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City of Daly City
ORGANIZATION STRUCTURE
Fiscal Years 2004- 2005 and 2005- 2006
CITIZENS OF DALY CITY
CITY
CLERK
CITY
TREASURER
MAYOR &
COUNCIL
CITY
ATTORNEY
PLANNING
COMMISSION
LIBRARY BOARD
OF TRUSTEES
PARKS & RECREATION
COMMISSION
PERSONNEL
BOARD
CITY
MANAGER
COMMUNITY
SERVICE CENTER
ECONOMIC & COMMUNITY
DEVELOPMENT
HUMAN
RESOURCES
PARKS AND
RECREATION
WATER & WASTEWATER
RESOURCES
FINANCE FIRE
LIBRARY POLICE PUBLIC WORKS
ADVISORY BOARDS & COMMISSIONS
C I T Y O F D A L Y C I T Y
TABLE OF CONTENTS
Page
Transmittal Letter ............................................................................................................................... ...... i
Budget Process ............................................................................................................................... ...... xiv
Budget Calendar ............................................................................................................................... .... xvi
SUMMARY STATEMENTS
Projected Available Fund Balances/ Retained Earnings................................................................... 1
Comparison of Revenue Budgets...................................................................................................... 4
Comparison of Expenditure Budgets ................................................................................................ 6
Interfund Transfers...................................................................................................................... ...... 9
Personnel Allocation..................................................................................................................... .. 10
DEPARTMENT BUDGETS
CITY ATTORNEY ......................................................................................................................... 12
CITY CLERK
Administration, including Elections ......................................................................................... 18
CITY COUNCIL ............................................................................................................................. 24
CITY MANAGER........................................................................................................................ .. 28
Administration ........................................................................................................................... 32
Community Promotion.............................................................................................................. 37
Community Service Center....................................................................................................... 41
CITY TREASURER...................................................................................................................... . 46
ECONOMIC AND COMMUNITY DEVELOPMENT............................................................... 52
Administration ........................................................................................................................... 55
Planning & Zoning .................................................................................................................... 71
Building....................................................................................................................... .............. 67
Housing & Community Development - Business Center............................................. 59
Block Grant ................................................... 75
Economic & Enterprise Development ......... 63
Residential Rehabilitation Program ............. 79
Aircraft Noise Soundproofing Project ......... 83
Home Program.............................................. 87
Redevelopment Agency – J. S. Mission Proj. Administration............................................... 91
Tax Increment ............................................... 96
Bayshore Redevlopment Project Area ......... 99
Bayshore Tax Increment............................. 103
C I T Y O F D A L Y C I T Y
TABLE OF CONTENTS
DEPARTMENT BUDGETS ( Continued) Page
FINANCE ............................................................................................................................... ..... 107
Administration/ Accounting..................................................................................................... 110
Central Services ....................................................................................................................... 114
Information Services ............................................................................................................... 118
Motor Vehicles ........................................................................................................................ 122
PBX ............................................................................................................................... ......... 128
Self Insurance - General Liability ......................................... 132
Workers Compensation .............................. 136
Utility Billing........................................................................................................................ .. 140
FIRE........................................................................................................................... .................... 145
HUMAN RESOURCES................................................................................................................ 154
LIBRARY ............................................................................................................................... ...... 160
PARKS & RECREATION ........................................................................................................... 169
Administration ......................................................................................................................... 172
Parks Maintenance................................................................................................................... 176
Recreation ............................................................................................................................... 180
Special Programs, including Doelger Art Center................................................................... 186
Peninsula Partnership .............................................................................................................. 192
Senior Adult Division.............................................................................................................. 194
POLICE......................................................................................................................... ................ 199
Public Safety Communications............................................................................................... 210
PUBLIC WORKS.......................................................................................................................... 219
Administration ......................................................................................................................... 222
Engineering.................................................................................................................... ......... 226
Signals & Street Lighting ....................................................................................................... 230
Streets Division ....................................................................................................................... 232
Building Maintenance ............................................................................................................. 236
C I T Y O F D A L Y C I T Y
TABLE OF CONTENTS
DEPARTMENT BUDGETS ( Continued) Page
WATER AND WASTEWATER RESOURCES ........................................................................ 241
Administration ......................................................................................................................... 244
Water Operations..................................................................................................................... 250
Wastewater Operations............................................................................................................ 254
Plant & Equipment Maintenance............................................................................................ 258
Laboratory..................................................................................................................... .......... 262
Distribution System Maintenance........................................................................................... 266
Collection System Maintenance ............................................................................................. 272
SANITATION DISTRICT
Legislative & Administration.................................................................................................. 278
NONDEPARTMENTAL
Nondepartmental Revenue/ Expense....................................................................................... 283
Civic Center Enterprise ........................................................................................................... 288
Linda Vista Benefit Assessment ............................................................................................. 291
Transfer Station........................................................................................................................ 294
AB 1600 ............................................................................................................................... ... 297
CAPITAL PROJECTS
Gas Tax ............................................................................................................................... .... 300
Community Development Block Grant.................................................................................. 302
Capital Outlay......................................................................................................................... 303
Major Facility Improvements.................................................................................................. 305
Water ............................................................................................................................... ..... 307
Sanitation ............................................................................................................................... . 310
C I T Y O F D A L Y C I T Y
TABLE OF CONTENTS
Alphabetical
Page
Aircraft Noise Soundproofing Project................................................................................................... 82
AB 1600........................................................................................................................... .................... 289
Appropriations Limitation - Daly City................................................................................................ 329
Appropriations Limitation - Sanitation District .................................................................................. 328
Bayshore Redevelopment Project Area................................................................................................. 96
Bayshore Tax Increment ...................................................................................................................... 100
Block Grant.......................................................................................................................... .................. 70
Budget Calendar ............................................................................................................................... .... xvi
Budget Process ............................................................................................................................... ...... xiv
Building Maintenance .......................................................................................................................... 232
Building....................................................................................................................... ........................... 64
Business Center ............................................................................................................................... ...... 68
Capital Outlay - see Capital Projects................................................................................................... 305
Central Services....................................................................................................................... ............ 110
City Attorney ............................................................................................................................... .......... 15
City Clerk.......................................................................................................................... ..................... 21
City Council........................................................................................................................ ................... 27
City Manager - Administration.............................................................................................................. 36
City Treasurer ............................................................................................................................... ......... 47
Civic Center Enterprise ........................................................................................................................ 282
Collection System Maintenance ......................................................................................................... 266
Community Development Block Grant ( also see Capital Projects)..................................................... 70
Community Promotion...................................................................................................................... .... 42
Community Service Center.................................................................................................................... 44
Comparison of Expenditure Budgets ...................................................................................................... 6
Comparison of Revenue Budgets ............................................................................................................ 4
Computer Services - See Information Services .................................................................................. 114
Description of Funds .............................................................................................................................. 12
Distribution System Maintenance ....................................................................................................... 262
Economic & Community Development - Administration ................................................................... 56
Economic & Enterprise Development................................................................................................... 74
Elections - see City Clerk....................................................................................................................... 21
Engineering.................................................................................................................... ...................... 216
Expenditure Budgets Comparison........................................................................................................... 6
C I T Y O F D A L Y C I T Y
TABLE OF CONTENTS
Alphabetical
Page
Finance - Administration/ Accounting................................................................................................. 106
Fire........................................................................................................................... ............................ 139
Fund Types & Basis of Accounting.................................................................................................... 330
Gas Tax - see Capital Projects............................................................................................................. 297
General Governmental Expenditures by Function ............................................................................. 322
General Liability ............................................................................................................................... .. 122
Glossary of Terms.......................................................................................................................... ..... 332
Home Program ............................................................................................................................... ....... 86
Human Resources ............................................................................................................................... 147
Information Services ........................................................................................................................... 114
Interfund Transfers...................................................................................................................... ............ 9
Laboratory ...... ............................................................................................................................... ..... 258
Library ............ ............................................................................................................................... ..... 155
Linda Vista Benefit Assessment ......................................................................................................... 280
Major Facility Improvements.............................................................................................................. 311
Major General Fund Tax Revenues .................................................................................................... 321
Miscellaneous Statistical Information................................................................................................. 327
Motor Vehicles....................................................................................................................... ............. 118
Nondepartmental Revenue/ Expense ................................................................................................... 277
Parks & Recreation - Administration.................................................................................................. 166
Parks Maintenance.................................................................................................................... .......... 172
PBX ................ ............................................................................................................................... ..... 130
Peninsula Partnership.................................................................................................................... ...... 188
Personnel Allocation..................................................................................................................... ........ 10
Personnel - see Human Resources ...................................................................................................... 147
Planning & Zoning......................................................................................................................... ....... 60
Plant & Equipment Maintenance ........................................................................................................ 254
Police .............. ............................................................................................................................... ..... 191
Principal Employers...................................................................................................................... ...... 325
Principal Property Taxpayers .............................................................................................................. 324
Projected Available Fund Balances/ Retained Earnings ........................................................................ 1
Property Tax Assessed Values, Levies and Collections .................................................................... 323
Public Safety Communications ........................................................................................................... 200
Public Works - Administration............................................................................................................ 212
C I T Y O F D A L Y C I T Y
TABLE OF CONTENTS
Alphabetical
Page
Recreation....... ............................................................................................................................... ..... 176
Redevelopment Agency - Administration ............................................................................................. 90
Residential Rehabilitation Program...................................................................................................... 78
Revenue Budgets Comparison ................................................................................................................ 4
Sanitation - see Capital Projects .......................................................................................................... 317
Sanitation District - Legislative & Administration............................................................................. 270
Schedule of Outstanding Debt............................................................................................................. 326
Self Insurance - General Liability ....................................................................................................... 122
Senior Adult Division .......................................................................................................................... 184
Special Programs....................................................................................................................... .......... 180
Street Lighting ............................................................................................................................... ..... 228
Streets Division ............................................................................................................................... .... 220
Tax Increment ............................................................................................................................... ....... 94
Traffic Signals ............................................................................................................................... ..... 224
Transfer Station........................................................................................................................ ........... 285
Utility Billing ............................................................................................................................... ....... 134
Water - see Capital Projects................................................................................................................. 313
Water & Wastewater Resources - Administration ............................................................................. 240
Water Operations ............................................................................................................................... . 246
Wastewater Operations..................................................................................................................... .. 250
Workers Compensation ....................................................................................................................... 126
BUDGET TRANSMITTAL
June 28, 2004
Honorable Mayor and
Members of the City Council
Citizens of Daly City
On behalf of the entire Management Team, we are pleased to present to you the City of Daly
City Biennial Comprehensive Annual Operating and Capital Budget for fiscal years 2005
and 2006. This is the second budget in a row that relies on reserves to fund on- going
operations, both times courtesy of the State Legislature and their continuing grab of local tax
money to fund the State deficit resulting in the City facing a $ 7.5 million budget gap. For
fiscal 2005, significant staffing and service reductions were made and approximately
$ 390,000 in reserves is designated to close the budget gap between revenues and
expenditures in the City’s General Fund. While this use of reserves is equal to only about
one- half of one percent of the $ 60.3 million in budgeted expenditures, it is significant in that
it illustrates how difficult this budget was to prepare. During the year we will strive to close
this gap. The following year predicts essentially a balanced budget by continuing these
expenditure reductions.
Included in these amounts was the loss revenues to the State of California of $ 2 million each
budget year under the Governor’s May budget proposal. As of this date, the legislature has
yet to adopt a budget and is at a stalemate in budget deliberations. This is on top of Daly
City’s continuing loss from past State actions in transferring local revenues to State coffers
that now totals more than $ 4 million annually, consisting mostly of local property taxes.
With this impact on our finances, we are struggling to provide the critical and necessary
services this community needs and deserves.
This budget process has been one presenting extraordinary challenges. Following the policy
guidelines set forth by the City Council, we have worked to
• protect the ability to provided the needed level of public safety services to the
community,
• maintain City facilities and other infrastructure that enables us to provide
critical quality- of- life programs and services,
• continue successful and needed programs and services to families and
neighborhoods, especially those directed to our youth,
• avoid the lay- off of personnel faced by many of the cities in California that is
damaging to the organization’s ability to maintain critical skills and
productivity,
• continue to make badly needed improvements to our facilities needed to serve
the community – not only for next year but for decades to come, and
• maintain a sound financial position from which to build in future years.
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CITY OF DALY CITY
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We believe the budget for the coming two years accomplishes those policy objectives to the
extent that resources allow.
This budget is aligned to support the City- wide goals set forth by the City Council. By
proactively searching out ways to improve the efficiency of our operations, we are able to
devote more resources toward those programs, projects and activities that have the greatest
potential for successfully achieving the City’s six long- term goals, which are:
I. To maintain the organization’s capability to provide existing services to the
community.
II. To fulfill all state and federal mandates as efficiently and effectively as possible.
III. To continue efforts and approaches to expand and improve service to the community.
IV. To encourage and support economic development in order to create jobs, expand the
community’s financial base and improve the quality of life.
V. To expand organizational capabilities and efficiencies in order to better serve the
community.
VI. To address essential youth- related issues within the community.
In summary, the City budget no longer contains adequate revenues to maintain previous
service levels, requiring reduced service hours to the public in areas such as libraries,
reduced law enforcement and fire protection staffing, increased recreation and facility use
fees to the community, reduced parks and landscaping maintenance, reduced youth
programs and may other less visible changes.
The change in the historic financing of cities by their own communities through property
taxes and other local taxes has been permanently altered by the State of California, with a
loss of $ 4 million a year or more to Daly City, which has never been a “ wealthy”
community. Therefore the situation of having only approximately 530 employees to provide
a full range of services to over 105,000 people and hundreds of businesses is the long- term
result.
At this point in our history, only a basic change in locally controlled funding sources and
amounts would enable a restoration of needed services to the community.
Budget Purpose
Daly City is a full- service city, providing police, fire, library, and parks and recreation
services to our citizens, along with water and sewer utilities and the other administrative and
ministerial duties of city government. As explained below, and illustrated throughout this
document, this budget provides a comprehensive financial framework for all City activities
during fiscal years 2005 and 2006.
BUDGET TRANSMITTAL
The Budget is meant to serve the following four major purposes:
1. To define Policy, as outlined by the City Council.
2. To serve as an Operating Guide for management to aid in the control of financial
resources, while complying with State requirements for General Law Cities and
Generally Accepted Accounting Principles for Government.
3. To present the City's Financial Plan for the two fiscal years, showing appropriations
and projected revenues by which the appropriations are funded.
4. To serve as a Communications Document for the Citizens of Daly City who wish to
understand how the City operates and the methods used to finance those operations.
Budget Organization
The budget contains four major parts:
Summary Statements - provide an over- all picture of the financial status of the City.
Included here are projected available fund balances and revenues and expenditures by
fund. Two years of actual results, estimates for the current year, and the next two
fiscal year's budgets are presented. This allows the reader to compare, on a historical
basis, the financial results of the City's 26 funds.
Departmental Budgets - present the budget broken down by operating unit. Each
program is shown separately, and the budget is by line item. The program is
described, highlights of recent accomplishments are chronicled and goals and
objectives are presented. Where possible, a performance measurement appropriate to
the program is shown graphically.
Capital Projects - are presented by fund. A summary of each individual project is
shown. It includes a history of expenditures, upcoming budget and five- year plan.
Individual project narratives are presented in a separate Capital Projects budget
document.
Technical/ Statistical - presents twenty- year historical and forecast information about
the City's finances. It also contains a glossary of terms and descriptions of funds to
aid the reader in understanding the budget document.
The Mission of Our City Government
The following Mission Statement expresses the philosophy behind the City’s budgetary
policies. The budget and the budgetary process are a means to an end. The budget is the
financial guide which documents how we intend to allocate the City’s scarce resources to
accomplish our mission of being a full- service city. The budgetary process brings together
the City Council, city management and citizens to discuss issues, set and modify policy and
develop a plan for implementation.
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CITY OF DALY CITY
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CITY OF DALY CITY MISSION STATEMENT
The City of Daly City is committed to addressing the diverse and changing
needs of residents, businesses, and employees. It will accomplish its mission
through the efficient delivery of quality municipal services provided with a
human touch.
To this end, the City will strive to:
* Assure the safety and general well being of the community
* Preserve, improve, and develop the physical and aesthetic aspects
of the community
* Encourage the economic health, balance, and stability of the
community
* Provide recreational, cultural, social, and educational
opportunities for residents to enhance their quality of life
* Develop and maintain a highly capable work force
Budgetary Policies
The City of Daly City has always functioned under significant financial constraints. It has
the largest population of all the cities in San Mateo County, but remains well below average
in revenue per capita. These financial constraints significantly influence budgetary policy.
The goal of maintaining current levels of service, and expanding them only when new
revenue sources become available, is strictly adhered to. A necessary complementary policy
of only funding on- going expenditures with stable, recurring revenues helps to guide
decision making.
In order to attain the policy objectives set forth by the City Council as described earlier, for
fiscal years 2005 and 2006 the basic guideline was to maintain current service levels where
possible while minimizing all controllable costs. Priority was given to critical public
services, particularly public safety.
BUDGET TRANSMITTAL
Revenue
Revenues Population per Capita
Brisbane $ 6,083,193 3,656 $ 1,664
Santa Clara 111,032,560 104,306 1 ,064
Burlingame 28,681,075 28,413 1 ,009
Mountain View 71,806,642 71,610 1 ,003
Hillsborough 9,613,701 10,975 876
Richmond 75,466,790 93,813 804
Redwood City 60,510,101 76,325 793
San Leandro 55,859,327 81,323 687
Sunnyvale 84,874,729 132,825 639
So. San Francisco 36,425,882 60,981 597
San Mateo 52,942,847 94,067 563
Hayward 75,591,147 144,304 524
Millbrae 10,816,536 20,814 520
Vallejo 60,285,461 118,618 508
San Bruno 19,225,954 40,334 477
Daly City 39,147,034 104,407 375
Pacifica N/ A 38,754 -
* Most Recent Revenues as reported by the State Controller
General Revenue Per Capita - Fiscal 2001- 02*
Previously a modified hiring freeze was instituted in April 2002, requiring City Manager
approval to fill any vacant position. During the latter half of fiscal 2002 the City had a four-percent
vacancy rate. Built into the budget assumptions in that budget cycle was a
continuation of at least a three- percent vacancy rate for fiscal 2003, while returning to a
more normal two- percent rate in fiscal 2004.
We never returned to those low vacancy rates, since revenues continued to lag and
expenditures not under our control continued to increase. The hiring freeze was continued
in anticipation of what has come to be: more State raids of local taxes. This, coupled with
substantial loses in the CalPERS retirement fund investment portfolio, has required
substantial reductions in service levels. In the latter half of fiscal 2004, there were
approximately 47 vacant positions, about 40 of which were in the General Fund.
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CITY OF DALY CITY
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Our staffing is now at a 30 year low as measured by employees per 1,000 residents. The
State of California has more employees per capita, in fact 50% more, than does the City of
Daly City. While employees have been added to the State employment rolls at an
unprecedented rate, Daly City has been holding vacancies to make the budget balance. Both
fiscal 2005 and 2006 budgets anticipate that these positions will remain unfilled.
Ave Growth Actual
1975 1985 2004 per Year 2004
Full- time Staff * 445 452 580 1.05% 533
Population 72,500 82,372 105,427 105,427
Employees per
1,000 Residents 6.14 5.49 5.50 5.06
* Includes Daly City & NSMCSD
Historical Analysis of Staffing
Levels and Population Served
Because Daly City is a mature community, without significant new growth in population or
area, one of our guiding principles for the budget has always been providing for carefully
controlled growth in service levels only when it is affordable in the long- term. We refrain
from spending one- time money on on- going operations. Keeping to these budget policies
helps to insure long- term continuance of service levels that the residents have come to
expect.
Unfortunately, as a result of the State continuing to take our local taxes to fund their deficits
and increased pension costs due to losses in the CalPERS investment portfolio that the City
now has to make up, we are looking at a structural imbalance between normal operating
costs and revenues of about $ 4.5 million per year.
As of the date of budget adoption, several new revenue alternatives have been presented,
including local sales and use tax and a business license tax increase. These options will be
considered by the City Council for placement on the ballot. This would give the local
community the option of continuing the reduced level of service we have now or reinstating
previous service levels.
Budget Changes:
Normally this section contains the enhancements to the budget we have been able to make due
to growth in population or in the local economy resulting in some increase in revenues. For this
budget it is the opposite. Along with holding 47 positions vacant as of June 2004 with no
apparent prospect of filling them in this biennial budget period we have reduced authorized
BUDGET TRANSMITTAL
positions by one. We have combined the positions of Central Services Supervisor with that of
Purchasing Agent as a result of a retirement. This follows the reduction by one in staffing the
Community Services Center last year due to loss of funding. While this may seem insignificant,
it is the first time since the passing of Proposition 13 in 1978 that the City has officially reduced
authorized staff.
Revenue Projections and Assumptions
Although Daly City is the largest community in San Mateo County, at 105,427 in
population, there are built- in difficulties in revenue projection. Cities of average size do not
have enough diversity to cause their revenues to follow regional trends closely enough to
allow revenue projections to be as accurate as one might like. Much reliance must be placed
on the County and State governments, which are responsible for assessing and collecting
most of our revenues. Given this situation, we use historical data plus a general sense of the
economic status of the local community to help predict future revenues. When combined
with County and State data and regional and national trends, we normally produce a
reasonably good picture of the near future.
Property Tax
The major revenue source available to the General Fund is property tax. Property tax is
collected by the County and distributed to the City based upon a formula determined by
State law. With the imposition of property tax limits through state Proposition 13, taxes
were limited to $ 1 per $ 100 of assessed valuation. This $ 1 was split among cities, schools
and counties in a ratio in proportion to the amounts of taxes collected before Proposition 13
was passed. Daly City receives an average of 20.5 cents of each $ 1 collected. Property tax
revenues increase when 1) property is transferred to a new owner and is revalued at the
current sales price, plus 2) a two percent annual increase on existing property so long as
increases in market price are at least equal to two percent.
Secured Property Tax Average Growth Rate
Scenario
8,000,000
9,000,000
10,000,000
11,000,000
12,000,000
2004 2005 2006 2007 2008
Year
$
Daly City has no control over the amount of property tax revenues it receives. However, we
can budget relatively accurately based on the County estimates of increases in assessed
valuation. Property tax revenue is expected to increase approximately 7 percent in fiscal
2005. In fiscal 2006 we expect a 5.4 percent increase as a result of increasing interest
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CITY OF DALY CITY
viii
rates. Because home prices continue at high levels this revenue source continues to grow in
spite of other negative factors affecting the local economy.
Sales Tax
Sales tax is a difficult revenue to budget. Local trends do not always mirror the larger
economy. Sales tax was up almost eight percent in fiscal 2003, but almost flat in 2004. We
anticipate a slightly better than four percent increase in 2005 with an improving economy
followed by about three percent in fiscal 2006. Average ten year historical growth of 3.2%
is illustrated in the chart.
Sales Tax Average Growth Rate Scenario
7,000,000
7,500,000
8,000,000
8,500,000
9,000,000
9,500,000
2004 2005 2006 2007 2008
Year
$
Motor Vehicle In- lieu
Our third largest General Fund revenue source has served as a political football for the State
Legislature. Over several years a reduction totaling 67 percent was made to the Motor
Vehicle In- lieu tax, with the State back- filling the difference to local government out of the
State general fund. The State constitution guarantees this as local revenue but does not
control the tax rate, leaving that to the legislature. Then when the fiscal crunch hit the rate
was temporarily returned to the previous level. The new governor campaigned on reducing
the tax yet again, which he did immediately upon assuming office.
Motor Vehicle Tax Average Growth Scenario
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
2004 2005 2006 2007 2008
Year
$
BUDGET TRANSMITTAL
When the State was flush with money they felt is was fine to mess with local taxes.
Unfortunately, now that the State has changed the rules on this revenue source, we are
deeply concerned that some or all of this vital local revenue may be diverted to help balance
the State budget. That this has not already happened is only due to an extremely aggressive
lobbying and educational effort by local jurisdictions. After adjustment for a one- time
“ loan” to the State of $ 1.9 million that occurred as a result of all the
decrease/ increase/ decrease changes to the tax rate, we expect to see a 2.5 percent increase in
fiscal 2005 and a like increase in fiscal 2006.
Utility Users Tax
Because the usage of gas, electricity, telephone and cable television service is relatively
stable and increases are mainly dependent on population and rate changes, this revenue
source is more predictable than most. The growth rate has been quite high in the past as the
influence of cellular and the proliferation of various long distance carriers has continued.
The energy crisis had some unusual effects on this revenue, for a short time increasing it,
then when conservation efforts took hold, decreasing it. We expect a 3.5 percent increase in
fiscal 2005, and a like increase in fiscal 2006.
UUT Average Growth Rate Scenario
0
2,000,000
4,000,000
6,000,000
8,000,000
2004 2005 2006 2007 2008
Year
$
General Fund Sources and Uses
Revenue sources and expenditure categories for the General Fund appear above. It is
interesting that 55 percent of the General Fund budget goes for police and fire services,
which is greater than the combined total of property tax and sales tax, at only 36 percent.
This relationship is not atypical for California cities since the adoption of Proposition 13,
which capped property tax rates at 1 percent of current valuation.
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CITY OF DALY CITY
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Misc
16%
Interest
2%
Utility Tax
11%
Other Taxes
11%
Sales Tax
16% Property Tax
20%
Motor Vehicle
12%
Fees
12%
General Fund Revenues
2002- 03/ 03- 04 Budgets
General
Government
10%
Library
4%
Parks & Rec
12%
Nondepart-mental
12%
Police
Fire 35%
20%
Econ &
Community
Devel
5%
Public Works
10%
General Fund Expenditures
2002- 03/ 03- 04 Budgets
It has been necessary to find other revenue sources to fund basic services like police and
fire, since the traditional method of funding by adjusting the property tax rate is not
available to California cities. Greater reliance is placed on user fees and local taxes, such as
the utility users tax, which can be controlled at a local level.
Major Accomplishments
During the course of the past two years there have been substantial accomplishments, some
of which include:
• With the completion of a draft Master Plan for the Cow- Palace/ Carter- Martin Area,
the first step in realizing a neighborhood shopping center as well as the development
of the Carter- Martin lands has taken place.
• Delivery of recycled water in lieu of potable water for irrigation purposes at three
golf courses will begin in September 2004, completing this major project that will
help preserve the City’s aquifer.
• Developed agreements and implemented North County Fire Authority Joint Powers
Agency with the cities of Brisbane and Pacifica Fire Departments to create greater
efficiencies and improve the coordination of emergency services.
• Continued efforts at redevelopment of Mission Street through negotiation and
processing of potential mixed- use development on the Landmark site.
• Completion of the energy retrofit for the Civic Center Complex has resulted in a 60%
decrease in energy usage in City Hall.
• Implementation of GASB 34 reporting requirements. Both financial and
infrastructure have been fully implemented.
• Implementation of the Five- Year major Facility Capital Improvement Program
continued with completion of the Hillside Park Clubhouse, Lincoln Community
Center, and Gellert Park Field Improvements projects. Projects under construction or
out to bid are Bayshore Community Center and Library, War Memorial
BUDGET TRANSMITTAL
Community Center and Library, Replacement Fire Station 92, and John Daly Vista
( Thorton Beach Trail).
• Other Capital Improvements completed include reconstruction of the City Hall
parking lot, rerouting of Skyline Drive sewer main, Westlake off- ramp landscape
improvements, reroofing of Doelger Art Center, pedestrian improvements and street
improvements, new utilities and water interconnect projects, installation of new
burglar/ fire alarm systems, and purchase of a 100- foot tiller drawn ladder truck for
the Fire Department.
Capital Improvement Program
The City of Daly City Capital Improvement Budget for fiscal years 2005 and 2006 provides
funding for 157 separate capital projects. These involve acquisition of new equipment,
construction of new facilities, repair and renovation of existing facilities and design work
for projects planned in the future. Capital expenditures totaling over $ 70 million are planned
for the next two years.
0 1 2 3 4 5 6 7 8 9
10
11
12
13
14
15
16
17
18
19
20
21
Millions
1998- 99
1999- 00
2000- 01
2001- 02
2002- 03
2003- 04
$ 14,741,942 $ 13,874,954 $ 18,884,515 $ 20,852,458 $ 19,217,197 $ 18,996,480
6 Year Capital Expenditures History
Sanitation
Water
Utility
Major
Facilities
Capital
Outlay
C. D. B. G.
Gas Tax
xi
CITY OF DALY CITY
xii
Capital outlays are made from the following City funds:
Gas Tax Fund
Revenues to this Fund come from the State of California as the City's share of Gasoline Tax, a
special county sales tax ( one- half cent) earmarked for transportation projects, and federal and
state transportation grants. Monies are also provided from developers involved in new
construction in Daly City. All revenues are restricted for use on all aspects of maintenance and
construction of streets, roads and sidewalks, including roadway design, storm drainage and
design and improvement of intersections and traffic controls.
For the past six years, the major emphasis in the Gas Tax Fund has been pavement
maintenance. For fiscal 2005 and 2006, new funding for Street Resurfacing and Street Slurry
Sealing averages more than $ 1.7 million each year.
Construction work completed in fiscal 2004 includes pedestrian improvements along Junipero
Serra Blvd in front of the new Pacific Plaza development and a new landscaped City entrance
marker at the top of the Westlake exit off of Interstate 280.
Community Development Block Grant Fund
The sole revenue source for this fund is the Federal Community Development Block Grant
Program. Funds are restricted for use only on certain eligible types of projects according to
guidelines issued by the U. S. Department of Housing and Urban Development and must benefit
low and/ or moderate income people or areas in the City.
Beginning in fiscal year 2003, the only project receiving new Block Grant capital funding has
been the construction of the Bayshore Community Center ( see Major Facility Improvements
Fund below). In all, nearly 5.8 million in Block Grant funds will be used for construction of
this facility, including a Federal Housing and Urban Development loan of $ 4.5 million. The
debt service on this loan will be repaid out of future Block Grant allocations to the City.
Capital Outlay Fund
Capital projects paid for with General Fund monies are in this fund, as well as projects paid for
with such special revenues as Park- in- Lieu Fees paid by developers in lieu of providing public
parks within their projects, Storm Drain and Public Facility Fees and contributions from State
and private grant sources.
Projects involve capital expenditures in General Fund City departments for acquisition of major
equipment and for public facility major maintenance and renovation.
Significant projects in this fund include a telecommunications network linking City buildings
with fiber optic cable, the City's contribution to a major county- wide library ( Peninsula Library
System) computer system upgrade, a project to replace curbside recycling containers using state
grant funds, and a tree replanting program to replace diseased pine trees in parks and along
roadways.
An exterior painting and roof replacement effort was started four years ago. Fire stations,
recreation facilities, and a library have been completed. Several additional facilities will be
done over the next two years, including a major roof replacement project at Fire stations 94 and
95 currently underway.
BUDGET TRANSMITTAL
Contributions from the local scavenger company will be used for drainage improvements and
on- going minor repairs and maintenance at the closed Mussel Rock landfill.
Major Public Facilities Fund
This is a special fund to capture the costs and funding of projects involving construction of
major new public buildings or the addition to or renovation of a number of existing buildings
and recreation facilities. The projects in this fund represent the largest public improvement
effort in Daly City’s 90- year history. More than $ 70 million in improvements are planned over
a 10 year period. Most projects have either been completed, are underway or are in the design
process. A few planned projects have had to be deferred due to budgetary constraints.
Capital projects in this fund are financed with a combination of one- time General Fund
revenues, Community Development Block Grant funds, State Library and Park Bond funds, and
special revenues such as Park- in- lieu Fees and Public Facility Fees. Additional funding will
come from school districts, neighboring agencies benefiting from the improvements and from
private grants. The grants, Park- in- lieu Fees and Public Facility Fees are restricted for use on
designated projects.
Projects funded over the next two years include ongoing design and construction of over $ 41
million in major additions and improvements to City facilities. These improvements involve
construction of the Bayshore Community Center and Library funded in part with Community
Development Block Grant monies including a HUD Section 108 Loan; demolition and
replacement of the War Memorial Community Center with a new multi- use building including a
library; completion of the replacement for Fire Station 92; construction of a vista point
overlooking Thorton Beach; and construction of a Civic Center Annex to house City offices that
have grown to keep up with the demands of a growing community.
Already completed are renovation of most of the City's tot lots and playgrounds, the renovation
and reconfiguration of the City's Corporation Yard, construction of a clubhouse at Hillside Park,
new sport fields at Gellert Park, and rebuilding of the Lincoln Park Community Center.
Water Utility Fund
All capital expenditures involving the Daly City water system are paid for here. This includes
improvements and repairs to the water distribution system, the maintenance of pump stations,
wells and reservoirs, the acquisition of new equipment and the construction of new facilities.
The most significant capital activity in the Water Utility Fund will be the construction of a
replacement reservoir with increased capacity, a pump station, and distribution mains to serve
the Bayshore neighborhood of Daly City and allow an interconnection between the east and
west side of the city. Certificates of participation in the amount of $ 9,860,000 were issued to
fund this group of projects.
Completion is pending on a new well, replacing well # 10, and plans for another well are being
developed. A project to change water disinfection from chlorine to chloramine was completed
in 2004. Emphasis continues on the replacement of other key water mains throughout the City
in accordance with a Water Master Plan developed to systematically renovate the City's entire
water system.
xiii
CITY OF DALY CITY
xiv
Sanitation District Fund
Projects in this fund are paid for by the North San Mateo County Sanitation District, a
subsidiary of the City of Daly City.
All capital projects in this fund concern maintenance and/ or new construction of the wastewater
collection system or wastewater treatment plant facilities.
The major emphasis in the Sanitation Fund has been the construction of recycled water
facilities, which are nearly completed. These convert treated wastewater into clean recycled
water that can be used by local golf courses for irrigation purposes. It will reduce the
dependence of such businesses on water pumped out of the local aquifer via private wells. This
is a $ 6 million project that is partly funded through a low interest loan from the State Revolving
Fund.
A number of projects in the Sanitation Fund are devoted to replacement of key sewer mains
throughout the City in accordance with a Sewer Master Plan developed to systematically
renovate the City's entire sewer collection system. Of significance was the recently completed
project to reroute flows from the north end of Skyline Drive. Work is now underway to reline
sewers and replace manholes in the vicinity of Mission and Parkview.
Other projects include a $ 1.1 million project to replace emergency generators at various
facilities and repair of various storm sewer lines.
Effects on Operating Budgets
The majority of capital projects represent the replacement or refurbishment of existing
equipment or facilities. For those projects that expand capacity, operating budgets reflect the
additional costs associated with that new capacity. The only area of significant influence on
operating budgets is the City’s major capital project effort.
With the addition of the new Bayshore Community Center enhanced staffing is required. The
Parks and Recreation and Library departments prepared minibudgets for this facility and funds
were set aside in the General Fund accordingly, based on estimated completion date of the
facility. This process was also carried out for the War Memorial building replacement project,
and funds have been set aside for a partial year of operations in fiscal 2006.
Debt Management
The City generally does not incur debt, except in instances where there will be long- term
benefits or where no other method of acquiring an asset is possible. All equipment
purchases are prefunded, typically through user charges from internal service funds. This
includes such items as fire apparatus, computers, photocopiers and motor vehicles. This
policy saves countless dollars of interest expense, and reflects a rational and fiscally sound
approach to asset acquisition in a municipal government.
Daly City issued an unprecedented $ 55 million of debt in fiscal 2004. Interest rates hit all-time
lows in the last year, and the City was able to effectively leverage the availability of
these financings to its long- term benefit. The single largest issue was $ 36,235,000 in
pension obligation bonds. The proceeds of these bonds were used to pay off the unfunded
accrued actuarial liability with the state- wide pension plan, CalPERS. As a result of the
BUDGET TRANSMITTAL
dot- com bubble bursting, CalPERS incurred losses in its investment portfolio over a three-year
period that resulted in a substantial increase in the City’s unfunded liability.
Because CalPERS uses an implicit 8.25% interest rate for unfunded liabilities, the City was
able to produce $ 7 million in net present value savings by joining a state- wide financing
pool to issue taxable debt at an all- in true interest cost of 5.973%. The refinancing of this
liability will result in cash flow savings of approximately $ 629,000 in fiscal 2005 and
$ 1,343,000 in fiscal 2006. Repayment will be made by both governmental and enterprise
funds relative to each fund’s personnel costs in lieu of payments to the CalPERS pension
plan.
The City issued certificates of participation to fund water system improvements in the
Bayshore area of the City, and used the State Water Resources Control Board Revolving
Loan Program to finance a recycled water project in the Sanitation District Fund, both of
which will be paid through future user charges. Both debt service payments and user
charges have been budgeted.
Outstanding Debt at June 30, 2004
Description
Interest
Original Principal Balance at
June 30, 2004
Sanitation District Capacity
Expansion
Refinancing Certificates of
Participation
Issued Aug. 1, 1992
Final Maturity June 1, 1999
5.4% $ 20,980,000 $ 7,740,000
Sanitation District Recycled
Water Project
State Water Resources Revolving
Fund
Issued March 1, 2004
Final Maturity March 1, 2024
2.5% $ 3,160,733 ( 1) $ 3,160,733
Bayshore Community Center
HUD Sec 108 Loan
Issued June 30, 2004
Final Maturity Aug. 1, 2024
5.41% $ 4,500,000 $ 4,500,000
Water System Improvements
Certificates of Participation
Issued June 11, 2004
Final Maturity June 1, 2024
4.811775% $ 9,860,000 $ 9,860,000
Pension Obligation Bonds
Issued June 29, 2004
Final Maturity June 1, 2024
5.973%
( taxable)
$ 36,235,000 $ 36,235,000
( 1) Remainder of total approved
amount of $ 4,450,128 will be drawn
in fiscal 2005
xv
CITY OF DALY CITY
xvi
We also took advantage of a US Housing and Urban Development loan program to
effectively receive an advance on future Federal Block Grant monies to finance part of the
construction costs of the Bayshore Community Center and Library. Debt service payments
are budgeted in the Block Grant Fund.
These capital improvements are discussed in more detail in the Capital Improvements
section above.
Because these debt obligations do not pledge the full faith and credit of the City for
repayment, they do not impact our legal debt limit, calculated at 15 percent of property
assessed valuation and equal to $ 882 million at June 30, 2004.
ACKNOWLEDGMENT
The City Manager's Office and the Department of Finance and Administrative Services
sincerely appreciate the cooperation and assistance of the City Council and City staff in
addressing the financial requirements and challenges of fiscal years 2005 and 2006. Many
people throughout the organization put a high degree of effort and skill into the production
of this document. It is their combined effort that enabled the timely issuance of this report.
Respectfully submitted,
JOHN C. MARTIN DONALD W. MCVEY
City Manager Director of Finance and
Administrative Services
City of Daly City
CITY ATTORNEY
Fiscal Years 2004- 2005 and 2005- 2006
CITY ATTORNEY
ASSISTANT
CITY ATTORNEY
DEPUTY
CITY ATTORNEY
LEGAL
SECRETARY
LEGAL
OFFICE ASSISTANT
SENIOR LEGAL
OFFICE ASSISTANT
CITY ATTORNEY
PROGRAM DESCRIPTION
The City Attorney’s office is authorized for one City Attorney, one Assistant and one Deputy
with 2 support staff employees.
The City Attorney’s Office advocates the City’s interest in lawsuits filed against or on behalf of
the City, its officers, employees and agencies in administrative venues, before Boards or
Commissions and in the state or federal court systems. The City Attorney’s Office in
conjunction with the Risk Manager, investigates all claims for damages filed against the City and
defends the City’s interests where necessary.
Role of the City Attorney’s Office
The City Attorney is appointed by the City Council and is committed to providing the highest
quality of legal representation to the Mayor, City Council, City Manager, City departments, City
boards and Commissions. The City Attorney’s Office serves as general counsel for the Daly
City Redevelopment Agency, the Daly City Housing Development Finance Agency and the
Public Facilities Finance Corporation as well as serves in the capacity of District Counsel to the
North San Mateo County Sanitation District.
The City Attorney’s Office serves a similar advisory function with respect to the various
departments in the City, whose actions are also governed by and must be derived from state law
and for the various boards, agencies and commissions within the City.
Responsibilities include:
• Representing the City in legal proceedings;
• Must have expertise in widely diverse areas of law, from bankruptcy to water rights,
litigation to legislation and real estate to personnel matters;
• Provides counsel to and attends meetings of certain Council committees, the Planning
Commission and special City department task forces;
• Providing advice or written opinions to any officer, department head, board commission or
other unit of local government in areas of land use, personnel, elections, conflict of interest
and economic development;
• Drafting, reviewing and approving as to form all contracts, surety bonds, ordinances and
resolutions;
• Investigating, evaluating and recommending disposition of all claims made against the City;
While the City Attorney’s Office endeavors to do as much of the City’s legal work as possible,
certain legal issues are so specialized or require such large commitments of time over a short
period, that the City contracts with outside law firms to represent the City’s interest.
Historically, the City has utilized outside law firms to handle matters involving eminent domain,
police civil rights, and various bond offerings.
16
CITY OF DALY CITY
GOALS
As a support department ( rather than an operational department) achieving anticipated and
defined goals are difficult to set out. This is a fundamental distinction between the position of
City Attorney, and that of all other City departments.
Goals include technical competence, effecting accurate and clear presentations, avoid litigation
and liability wherever possible, and the layout of alternatives when there’s a legal problem.
PROGRAM OBJECTIVES
1. To promptly advise each department of legal implications of proposed actions, and of
permissible alternatives when legal restrictions arise.
2. To participate in existing and new City programs as a full team member and assist in their
successful completion.
3. To enhance the administration of the City Attorney's Office in a cost effective manner.
COST PER SIMILARLY SITUATED BAY AREA CITIES
FOR IN- HOUSE CITY ATTORNEY DEPARTMENTS
CITY POPULATION STAFF BUDGET COST
San Mateo 90,000 3 attorneys 1 ½ support staff 1,368,126 $ 15.20/ resident/ year
Hayward 140,030 6 attorneys 3 support staff 1,737,645 $ 12.41/ resident/ year
Fremont 209,100 4 attorneys 3 support staff 1,938,217 $ 9.27/ resident/ year
Daly City 103,269 2 attorneys 2 support staff 764,129 $ 7.39/ resident/ year
17
City of Daly City
CITY CLERK
Fiscal Years 2004- 2005 and 2005- 2006
CITY CLERK
ELECTIONS
ADMINISTRATION
ASSISTANT
CITY CLERK
TYPIST CLERK II/
DEPUTY CITY CLERK
2 TYPIST
CLERKS II
CITY CLERK
PROGRAM DESCRIPTION
The public record under the conservatorship of the City Clerk provides fundamental
integrity to the structure of our democracy.
The Office of the City Clerk is responsible for three legislative functions:
1. As an Election Official, the City Clerk administers Federal, State and Local
procedures through which local government representatives are selected;
2. As a Legislative Administrator, the City Clerk prepares legislative Agendas,
verifies publishing and posting of legal notices and the recording of legislative
decisions;
3. As a Records Manager, the City Clerk oversees the preservation and protection of
public record, maintains and indexes the Minutes, Ordinances and Resolutions
adopted by the City Council. The City Clerk ensures that public records are
readily accessible to the public.
GOAL
The City Clerk is responsible for the conduct of municipal elections. She oversees a staff
of four. The primary goal of the City Clerk’s Office is to provide high quality service to
the public in the dissemination of public information, and recording, maintenance,
storage and retrieval of official documents.
HIGHLIGHTS
Beginning in year 2000, the City Clerk implemented the electronic Document
Imaging/ Record Keeping System. Storage of documents electronically reduces volume
of paper storage files, speeds retrieval of documents, and ensures protection against
deterioration of vital historical and legal records. To date, approximately one- third of the
City Clerk’s files, and many Historical Records Folders have been scanned and archived.
The City Clerk’s office continues to offer a variety of services to assist the citizens of
Daly City:
• Assistance with Daly City Garbage Discounts and California State
Homeowners/ Renters Assistance was provided to approximately 100 residents
annually
• Assistance with applications for Exemption from Utility Users Tax was provided
to approximately 100 residents annually
• The absentee Voters Box is being utilized more frequently with each subsequent
Election
22
CITY OF DALY CITY
PROGRAM OBJECTIVES
To provide high quality service to the public in the recording, maintenance, storage and
retrieval of official documents; and in the conduct of Municipal Elections.
Continuation of the Document Scanning of City Records with the ultimate goal to have
all Legislative Records in the computerized program by the 2006 Budget Year.
23
City of Daly City
CITY COUNCIL
Fiscal Years 2004- 2005 and 2005- 2006
CITY
COUNCIL
PLANNING
COMMISSION
LIBRARY BOARD
OF TRUSTEES
CITY
MANAGER
PARKS & RECREATION
COMMISSION
PERSONNEL
BOARD
CITY
ATTORNEY
ADVISORY BOARDS AND COMMISSIONS
28
CITY COUNCIL
PROGRAM DESCRIPTION
The City Council is the legislative body of the City and is composed of five members elected at large
and serving staggered four- year terms. The Council makes all policy determinations through the
enactment of ordinances and resolutions, exercising final authority in the implementation of such
policies. The Council determines how the City will generate and spend revenue through annual
reviews and approval of the City’s budget. The City Council appoints the City Manager and City
Attorney, as well as the members of the City’s various advisory boards and commissions.
GOAL
Provide effective leadership in the development of public policy in order to provide efficient,
responsive and high quality, professional municipal services to Daly City’s residents.
HIGHLIGHTS
The Council remains committed to numerous issues of community interest. Members have assumed
leadership roles within the County in a number of areas. The City Council has been involved in
policy committees of the League of California Cities, serving as representatives on the Joint Powers
Board of the County, Airport Roundtable, the Airport’s Land Use Committee, Criminal Justice
Council, the San Mateo County Operational Area Office of Emergency Services, Colma Creek Flood
Control District, the Convention and Visitors Bureau of San Mateo County, City/ County Association
of Governments, San Mateo County Pre- Hospital Emergency Services Medical Group, Peninsula
Traffic Congestion Relief Alliance and Association of Bay Area Governments Executive Committee,
and Vice Chair of the San Mateo County Transit District Board.
Key efforts of the City Council during the prior budget period include:
A concerted effort by the Council has been made to inform residents of the continuing threat to local
services raised by the State of California’s seizure of local community taxes. Council members,
accompanied by city staff, gave presentations throughout the community, including to local service
clubs, the Chamber of Commerce, and to over 18 homeowner groups, outlining the sources of city
revenues and the effect of continued State taking of local revenues on the City’s ability to render
local services. Council members urged citizens to become engaged in efforts to reach State
Legislators with the message that residents want local funds to remain local. Many residents
responded by assisting with calls and letters to Sacramento and the signing of petitions expressing
their concerns.
The Council actively pursued legislation favorable to the City’s interests by following important
legislative developments, adopting resolutions in support or opposition to legislation, and by writing
and contacting local legislators on issues affecting the well being of Daly City.
Council members took an active role in community events and in promoting Daly City, by meeting
with visiting dignitaries and business interests, and by making themselves available for numerous
special meetings and conferences related to city and regional peninsula interests. Council members
attended ground breakings and openings for capital improvement projects as well as new community
developments including the openings of Hillside Park Clubhouse, Lincoln Community Center,
groundbreakings for the Bayshore Community Center and Library and War Memorial Community
Center and Library, opening of the newly remodeled Serramonte Shopping Center, and
groundbreaking for new affordable housing units to be built by Habitat for Humanity.
City of Daly City
CITY MANAGER
Fiscal Years 2004- 2005 and 2005- 2006
CITY
MANAGER
ADMIN
SECRETARY
SENIOR MGMT
ANALYST
SR. OFFICE
ASSISTANT
2 OFFICE
ASSISTANTS
ASSISTANT
CITY MANAGER
COMMUNITY PARTICIPATION
and INFORMATION
COMMUNITY SERVICE
CENTER
PUBLIC INFORMATION
& VOLUNTEER COORD
COMMUNITY SERVICE
CENTER SUPERVISOR
ECONOMIC & COMMUNITY
DEVELOPMENT FIRE
FINANCE HUMAN RESOURCES
LIBRARY PARKS & RECREATION
POLICE PUBLIC WORKS WATER & WASTEWATER
RESOURCES
SERVICE
SPECIALIST II
SERVICE
SPECIALIST I
TYPIST
CLERK II
COMMUNITY SERVICE
OFFICE ASSISTANT
OFFICE OF THE CITY MANAGER
PROGRAM DESCRIPTION
The City Manager’s Office is responsible for the general management and oversight of Daly
City’s municipal operations, including the Daly City Redevelopment Agency and North San
Mateo County Sanitation District. This involves coordination of organizational programs and
activities; development and general management of the operating and capital budgets; financial
planning for the municipal corporation; continued improvement, expansion or redirection of
programs and activities within the organization to meet community needs; selection of senior
management personnel; oversight of labor relations activities; generating public information and
encouraging community participation; and representing the organization in interjurisdictional
matters with other agencies.
These duties are carried out under the direction of the City Council and through implementation
of City Council policies and legislative actions. The City Manager’s office is responsible for
ensuring that the City Council is provided with adequate information and recommendations
regarding technical and professional issues under policy consideration and implementing
Council decisions in these areas. Further, the City Manager’s office provides the necessary
clerical and administrative support to Council Members in their legislative role within the
organization, as well as in their activities with other agencies and organizations.
HIGHLIGHTS
Although the economic decline continues to present real challenges for the City, especially with
regards to the continuing State of California’s seizures of local community taxes, previous
efforts in economic development have softened the blow to City revenues by providing more
sustainable revenue sources than enjoyed by many communities within San Mateo County.
Where many neighbors have been hit by the significant loss of transient taxes and internet
companies, Daly City has been able to transition from robust economic times to the current
situation without resorting to major service cuts and layoffs experienced throughout the
peninsula. The decline in some revenue sources has made the funding of the adopted Five- Year
Public Facilities Improvement Program more difficult. It is anticipated that the building of the
new War Memorial facility will be the last significant capital project under the five year plan,
with the others fully planned and designed should funding become available.
ACCOMPLISHMENTS
During the course of the past two years, the following results have been achieved:
Two major retail centers within the community, Westlake Shopping Center and
Serramonte Mall were sold with the new ownership at each center making significant
investment in the remodeling and re- structuring of each center. The City is participating
in the renewal of these two important centers by working with the owners to achieve
improved traffic access, parking, public transit and land use for these regional shopping
centers.
CITY OF DALY CITY
ACCOMPLISHMENTS ( CONTINUED)
• With the completion of a draft Master Plan for the Cow- Palace/ Carter- Martin Area, the
first step in realizing a neighborhood shopping center as well as the development of the
Carter- Martin lands has taken place.
• Delivery of recycled water in lieu of potable water for irrigation purposes at three golf
courses will begin in June 2004, completing this major project that will help preserve the
City’s aquifer.
• Developed agreements and implemented North County Fire Authority Joint Powers
Agency with Brisbane and Pacifica Fire Departments to create greater efficiencies and
improve the coordination of emergency services.
• Continued efforts at redevelopment of Mission Street through negotiation and processing
of potential mixed- use development on the landmark site.
• Completion of the energy retrofit for the Civic Center Complex has resulted in a 60%
decrease in energy usage in City Hall.
• Implementation of GASB 34 reporting requirements, both financial and infrastructure
have been fully implemented.
• Implementation of the Five- Year major Facility Capital Improvement Program continued
with completion of the Hillside Park Clubhouse, Lincoln Community Center, and Gellert
Park Field Improvements projects. Projects under construction or out to bid are Bayshore
Community Center and Library, War memorial Community Center and Library,
Replacement Fire Station 92, and John Daly Vista ( Thorton Beach Trail).
• Other Capital Improvements completed include reconstruction of City Hall parking lot,
re- routing of Skyline Drive sewer, Westlake off- ramp landscape improvements, re-roofing
of Doelger Art Center, pedestrian improvements and street improvements, new
utilities and water inter- connect projects, installation of new burglar/ fire alarm systems,
and purchase of a 100’ Tiller Drawn Ladder Truck.
OFFICE OF THE CITY MANAGER
PROGRAM OBJECTIVES FOR FISCAL YEARS 2005 THROUGH 2006
• In an attempt to maintain service levels to the extent feasible, given reduced staffing and
operations funding, more extensive management oversight will be required for all City
activities.
• Oversee adoption of the development agreement necessary for Phase One and Two of the
Landmark Site.
• Significant progress has been made, but final completion of a major automated systems
upgrade providing for graphic and non- graphic geobase information capabilities
throughout the organization will be finalized.
• Opening of two new community centers, including two new branch libraries at War
Memorial Community Center and Bayshore Community Center. With the opening of
Bayshore Community Center, the City will enter a new partnership in the provision of
services with a community- based organization.
• Continue efforts to coordinate with local area school districts and other service providers.
Develop partnership agreements to render services in a way that maximizes the use of
both school district and city facilities, and expands the opportunities for residents to
participate in recreational, learning, and family support activities.
• Continue efforts to achieve the development of a full service hotel, and completion of
Phase III of the Pacific Plaza development.
• Continue efforts to achieve the development of a neighborhood market and retail plaza
for residents of Bayshore in keeping with the Master Plan for Cow- Palace/ Carter- Martin
area.
City of Daly City
CITY TREASURER
Fiscal Years 2004- 2005 and 2005- 2006
CITY
TREASURER
LOCAL AGENCY
INVESTMENT FUND
DEPUTY
CITY TREASURER
SAVINGS &
LOANS
BANKS
SAN MATEO COUNTY
INVESTMENT FUND
FEDERAL GOVERNMENT
OBLIGATIONS
CITY TREASURER
PROGRAM DESCRIPTION
The office of the City Treasurer is responsible for the management of cash and
investments of the City, the Redevelopment Agency and the Sanitation District, Trust and
Agency Funds, and Public Facilities Financing Corporation.
The City Treasurer is an elected official and serves as the Treasurer to the City Council,
responsible for investments made in compliance with State law, and has as objectives:
1) Safety – at no risk to the City at any time
2) Liquidity – availability of monies when needed, and
3) Yield – maximum interest earnings without sacrifice of the first two
objectives.
These include various short term government insured certificates of deposit, Federal
Government Obligations ( Ginnie Mae), deposits in the State of California Local Agency
Investment Fund and County of San Mateo Investment Pool.
Due to the City Treasurer’s active involvement with the business community, the office
frequently assists the Business License Division in collection of its business license fees.
He also works closely with the Finance Department in collecting delinquent accounts
receivables. The Treasurer also participates with the Daly City Chamber of Commerce in
its many activities.
GOAL
To monitor financial trends to maximize investment income and to maintain adequate
cash availability while ensuring that principal invested is protected from loss.
HIGHLIGHTS
With a portfolio of $ 80 million, the City of Daly City has realized an average current yield
of 3% for the past year.
CITY OF DALY CITY
PROGRAM OBJECTIVES
1. Investment of funds will be in compliance with governing positions of law and
city’s investment policy.
2. Maintain adequate cash availability while ensuring that principal invested is
protected from loss.
City of Daly City
DIRECTOR
ASSISTANT
DIRECTOR
ECD PROGRAM
ADMINISTRATOR
ECD ANALYST
SENIOR
PLANNER
2 ASSOCIATE
PLANNERS
ASSISTANT
PLANNER
TYPIST
CLERK II
CODE ENFORCEMENT
CODE ENFORCE-MENT
OFFICER
CHIEF BUILDING
INSPECTOR
SENIOR BUILDING
INSPECTOR
BUILDING PLANS
ENGINEER
6 BUILDING
INSPECTORS
2 TYPIST
CLERKS II
SR. ECON. DEVELOP.
COORDINATOR
ECON. DEVELOP.
COORDINATOR
PLANNING BUILDING HOUSING & COMMUNITY
DEVELOPMENT
ECONOMIC
DEVELOPMENT
REDEVELOPMENT
CODE ENFORCE-MENT
INSPECTOR
TYPIST
CLERK II
BUSINESS CENTER
MANAGER
BUSINESS CENTER
SECTY./ RECEPT.
ENT. DEVELOP.
COORDINATOR
PROGRAM
ASSISTANT
BUSINESS CENTER
ENTERPRISE CENTER
DEPARTMENT OF ECONOMIC & COMMUNITY DEVELPOMENT
Fiscal Years 2004- 2005 and 2005- 2006
ADMINISTRATION
SECRETARY III
HOUSING & CD
SUPERVISOR
REHAB.
COORDINATOR
REHAB. CONST.
INSPECTOR
HOUSING
COORDINATOR
CD
SPECIALIST
STAFF
SECRETARY
1/ 2 ACCOUNTING
TECHNICIAN
ECONOMIC & COMMUNITY DEVELOPMENT ADMINISTRATION
PROGRAM DESCRIPTION
The Department of Economic and Community Development is responsible for the management
of five divisions: Building, Economic Development, Housing and Community Development,
Planning and Zoning, and the Daly City Redevelopment Agency. Together these divisions are
responsible for the implementation of policy pertaining to the orderly and balanced physical and
economic growth in Daly City. The Department of Economic and Community Development
coordinates the work of these five divisions in order to strengthen and preserve the City’s
neighborhoods; strategically develop the City’s revenue base; coordinate new growth and long
range plans; pursue economic development through redevelopment efforts; and assure safe
construction for all of the City’s residents and merchants.
GOAL
To direct activities for the Department’s five divisions to assure orderly growth, responsive
service, interdepartmental coordination, and fulfillment of the City’s long- range objectives.
HIGHLIGHTS
• Provided assistance to developers interested in a variety of sites in Daly City, including: the
Landmark site, DeLong Street property, Serramonte Condos, Westlake Shopping Center,
various commercial properties in the Bayshore area including excess land in the Cow Palace
area, El Rancho Market Site, and numerous small properties along Mission Street.
• Issued Final Certificate of Completion on the Construction of Phase I and II of the Pacific
Plaza Development.
• Certificate of Completion issued on the conclusion of development of the 87th and
Edgeworth Street property. Tenants include Ace Hardware, a new Broadmoor Police
Station, a Laundromat/ Deli Café and storage facility.
• Purchased property at 173 – 3rd Avenue. Demolished home and greenhouses and completed
the cleanup of contaminated soil. Property sold to Habitat for Humanity for the construction
of seven low- income homes.
• Purchased 204 – 92nd Street property for inclusion in the future construction of the Civic
Center Annex.
• Joining Daly City’s business community are Fuddruckers, Kaiser Permanente Office
Building, Quiznos, Cactus Fresh, and Celia’s.
• Implemented Hire Daly City. org website which allows businesses to post local job
opportunities.
CITY OF DALY CITY
HIGHLIGHTS ( CONTINUED)
• Facilitated and assisted the Daly City- Quezon City Sister City Committee in promoting their
Ninth Annual Filipino American Friendship Celebration.
• Issued $ 175,206 in housing rehab loans/ grants, 8 low- income homeowner loans, 25 Minor
Home Repair Grants to seniors, and 6 Security Bars Replacement grants.
• Processed to completion 144 homes for sound proofing retrofit for ANSP Phase IX.
Bringing the total number of homes with completed soundproofing to 2,263.
• Responded to 1,069 Citizen complaints regarding safety and code violations and resolved
978 cases.
PROGRAM OBJECTIVES
1. Continue to promote Daly City’s economic growth and prosperity by promoting marketing
efforts in the Bayshore District and along the Mission Street corridor.
2. Complete revisions to the Housing Element of the General Plan.
3. Assist and support the development of 87 affordable units for seniors on the El Rancho
Market site.
4. Prepare and approve a Disposition and Development Agreement for the Landmark site and
the Crowne Plaza Hotel site on Junipero Serra Boulevard.
5. Continue to seek opportunities for the development of low- income housing.
PLANNING AND ZONING
PROGRAM DESCRIPTION
The Planning Division administers and maintains the City’s General Plan, Specific Plans, Zoning
Ordinance, and coordinates Code Enforcement activities. The General Plan envisions future
development in the City through broad goals, policies and objectives; Specific Plans establish
measures to implement the General Plan; and the Zoning Ordinance establishes specific standards to
assure orderly, compatible and attractive development. This Division also provides support to the
City Council, Planning Commission, Redevelopment Agency, Design Review Committees, and
coordinates the Development Coordinating Committee and Administrative Hearing Board.
Activities of the Division include reviewing developments for conformance with City Codes and
other requirements including State Laws. The Division also assists the public and development
community on matters of zoning, permits and other entitlement procedures. Code enforcement staff
ensures timely compliance with local codes and promotes community pride through self- help.
GOAL
To preserve and enhance the City's physical, economic, and social environment through
implementation of effective short and long- range planning principles.
HIGHLIGHTS
In the past two fiscal years the Planning Division completed the following prominent tasks:
• Assisted in major new development projects recently completed or under construction:
Recently Completed: Under Construction:
Pacific Plaza – Phase II Lake Merced Golf Club Improvements
Serramonte Corporate Center ( Kaiser) 4- unit Mixed- Use Development on Edgeworth
Summit Ridge Subdivision ( 74 units) Lausanne Subdivision ( 10 units)
Bay Vista Subdivision ( 75 units) Habitat for Humanity - Third Ave. ( 7 units)
Serravista Subdivision ( 45 units) Carter Street Storage Facility
Parkview Terrace ( 31 units) Trader Joe’s/ Cost Plus Commercial Building
Mixed- Use Bldg., Edgeworth @ 87th St.
New KFC/ Taco Bell
• Reviewed over 814 new building permit applications, with an additional review of over 300
resubmitted plans mostly within 5 days. Over 35% of these were Express reviews, completed in
one day.
• Completed environmental reviews per CEQA for over 20 City capital projects.
• Participated in required General Plan Housing Element Update.
CITY OF DALY CITY
HIGHLIGHTS ( CONTINUED)
• Operated with a 50% vacancy rate in the Planning Division for a period of more than 1.5
years.
• Prepared a Master Bicycle Plan for the City of Daly City.
• Reviewed and processed the following development permit applications:
Conceptual Review 39 Design Review 32 GPA’s 2
Use Permits 34 Minor Subdivisions 8 Zone & Text Changes 4
Variances 8 Major Subdivisions 5 Admin. Use Permits 9
PROGRAM OBJECTIVES
During the next fiscal budget cycle the Planning Division will strive to complete the following:
1. Update the Daly City Coastal Element and Implementation Plan.
2. Review and upgrade residential development regulations in order to prevent “ monster
homes,” illegal secondary units, excessive density, parking problems, etc.
3. Continue to coordinate environmental compliance for all City capital projects.
4. Review approximately 1,000 building permit plans within 3 to 5 working days.
5. Process planning applications within an average time of 10 weeks.
6. Increase public knowledge and access regarding the development application, review and
approval process via improvements to the Division’s Internet web site.
7. Develop and implement a training program for landlords and property managers as an
option for cases brought before the Hearing Board.
8. Focus Code Enforcement Task Force efforts on substandard apartments, emphasizing
quick abatement of hazardous violations and incentives for voluntary abatement.
9. Adopt General Plan and zoning amendments that implement the Cow Palace Master Plan.
10. Continue coordination of multi- jurisdictional transportation study in implementing
transportation improvements, including the Geneva Avenue/ Highway 101 Interchange.
11. Integrate planning permit processes into new Hansen geo- based permitting system.
BUILDING DIVISION
PROGRAM DESCRIPTION
The Building Division is responsible for the administration and enforcement of building codes to
safeguard life, health, property and public welfare. The division reviews plans for and inspects
construction of new buildings and building renovations, seeks correction of building code violations
through an active code enforcement program, and maintains related records.
GOALS
To ensure the health and safety of the community through building inspection activity by enforcing
building and construction codes set forth under the Daly City Municipal Code. To provide
continuity of inspections, and to assist the development of new construction by providing timely and
accurate information on plans and specifications. To further ensure the continued integrity and
viability of Daly City's housing stock.
HIGHLIGHTS
• Issued over 5,000 permits annually with an average of 89% issued the day an application was
filed.
• Served 8,940 customers at the building counter annually at an average wait of 2.5 minutes
( down from 3.5 minutes in the previous budget cycle). Responded to over 10,000 telephone
information requests annually.
• Performed 16,270 next day or same day construction inspections ( compared with a ten year
average of 13,880), 17.2% above average.
• On average, conducted 1,120 reviews of building plans submitted under 729 applications
annually. Seventy- one percent were reviewed in two weeks or less ( up from 48% in the
previous budget cycle). Thirty- two percent were reviewed the same day, using the Express
Plan Check service ( up from 21% in the previous cycle).
• Conducted over 500 code enforcement investigations annually with 40% of the cases
investigated, solved and closed within 30 days. Approximately four percent of cases were
referred to the Administrative Hearing Board for resolution. Reduced the open case backlog
from 350 to 100 cases ( the goal was reduction to 250 cases).
• Adopted the 2001 California codes with significant local structural amendments. Trained
staff in their use.
• Translated the “ Is A Permit Required” handout into Spanish. Updated all handout materials
for the 2001 California codes.
CITY OF DALY CITY
HIGHLIGHTS ( CONTINUED)
• Updated the division web page to reflect the new California code requirements and made
building permit, 3R report applications, handouts and fee schedules available on- line.
• Created and filled a Building Plans Engineer position. The division now has a licensed
structural engineer on staff.
• Assisted in the development of new permitting and code enforcement database software.
• Simplified and implemented a new fee schedule to facilitate automatic fee calculation.
• Completed inspections of the Serramonte Corporate Center office building and associated
Kaiser Permanente tenant improvement project.
PROGRAM OBJECTIVES
1. Provide excellent and timely service. Strive for new and better ways to serve the public.
Implement customer service improvements as needed.
2. Maintain a 10 working day turnaround on initially submitted plans, 5 working days on
resubmitted plans, an average three minute wait at the counter, next day response on
construction inspection requests, and an average of ten inspections per day per inspector.
Issue permits as requested, 88% on the same day requested.
3. Reduce the average number of plan check submittals from 2.5 to 2.4 per application.
4. Respond to all code enforcement requests within two working days. Keep all cases current
with no more than 30 days of non- activity. Maintain an open caseload of less than 150.
5. Implement the new permitting and enforcement database software.
6. Adopt the 2004 California Building Codes. Train staff in the changes.
7. Continue the web page development by providing more and better information regarding the
public services that we provide.
8. Using new database software, automate the residential requirements report ( 3R) process.
DALY CITY BUSINESS CENTER
PROGRAM DESCRIPTION
The Daly City Business Center provides a location for the creation, maintenance and growth of
small businesses by offering attractively priced office spaces in a commercial area, a full range
of administrative support services provided by a professional staff, on- site technical assistance
through the Enterprise Center, office amenities as well as the latest technologies to local
entrepreneurs. Created in 1995, the Daly City Business Center is the only government sponsored
business center/ incubator program in the North San Mateo County area.
Strategically located at 355 Gellert Boulevard, the Center is the only facility that provides
serviced small office spaces starting at 90 sq. ft., with 6- 18 month leases in Daly City. The
Center has the capacity to handle up to 39 tenant- offices and 18 virtual offices in various stages
of development. It also strives to create a community of small business owners, helping one
another attain common objectives and cognizant of the different resources available within the
City.
GOAL
To provide an environment conducive to the creation, attraction, retention and expansion of
small businesses by helping them minimize overhead, have access to personalized business
services and technical assistance, and build business relationships and networks essential to its
success, so that these businesses may, in turn help promote economic development for the City
and enhance employment opportunities for the residents of the North San Mateo County.
HIGHLIGHTS
• Generated a wider awareness and interest about the DCBC through community service,
networking activities, sales presentations and mailers
• Created a new, definitive image and identity of the Center as a Program of the City of
Daly City with a logo, new brochure, and stationery
• Started FY 2003 serving 21 tenants and 10 virtual clients with the capacity to handle up
to 29 tenants and 13 virtual clients by year- end. This translates to serving the business
services needs of an estimated 70 to 100 people including tenants, their employees,
contractors and guests being served at the Center on a daily basis.
• Significantly reduced estimated City investment to the Center to 16% of its total budget.
• Provided the location and services that supported the creation of 14 new business
enterprises;
CITY OF DALY CITY
HIGHLIGHTS ( CONTINUED)
• These new business enterprises provided employment ( including self- employment
opportunities) for 24 people during the year
• Provided services to over 70 owners/ workers of small businesses, and their customers.
PROGRAM OBJECTIVES
1. Provide office space and business services to up to 52 small businesses/ start- ups
( including Business Identity and executive suites clients) by 2006.
2. Meet or exceed client quality expectations for business services for reception,
telecommunications, meeting facilities, networking activities, mail and call handling, and
secretarial services.
3. Increase awareness and interest in the Daly City Business Center as “ the only business
center/ incubator in the North San Mateo County” by working with the local community
organizations and hosting/ participating in business networking activities.
4. Inform home- based businesses, business license applicants and other small businesses in
Daly City about services and opportunities available at the Daly City Business Center.
5. Conduct business workshops among the tenants on matters of common interest.
6. Recognizing the importance of presenting a professional image for small businesses
within the Center, the 9- year old carpet covering the Center’s common areas will be
replaced in 2004. Likewise, artwork depicting Daly City’s history, people, and scenery
will be presented at the Center.
HOUSING & COMMUNITY DEVELOPMENT Community Development Block Grant
PROGRAM DESCRIPTION
The CDBG program involves administration of the City’s entitlement grant from the Department
of Housing and Urban Development ( HUD). The City uses these funds to carry out activities
such as housing, economic development, public services and improvement of public facilities
that primarily serve low income residents. The administration of the CDBG program insures
compliance with all HUD requirements. This includes completing reports to HUD in a timely
fashion; soliciting, evaluating and recommending to City Council appropriate projects for CDBG
funding; and overseeing the timely and appropriate expenditure of funds.
Additionally, this program coordinates the use of HOME Investment Partnerships Program
funds.
GOAL
To identify and meet the critical community development and housing needs of the lower-income
residents of Daly City, in compliance with federal, state and local regulations.
HIGHLIGHTS
During FY 2003- 04 staff:
• Provided funding for construction of the Bayshore Community Center as well as wage
compliance oversight.
• Evaluated potential development sites for construction of affordable rental and ownership
housing.
• Monitored 13 CDBG funded programs/ projects and funded 25 subgrantees to meet
needed public services for Daly City residents.
• Provided funding to Rebuilding Together and North Peninsula Neighborhood Services
enabling these organizations to complete housing rehabilitation projects for 33 lower
income Daly City homeowners.
• Investigated several potential multi- family acquisition/ rehabilitation projects.
• Coordinated with San Mateo County in the implementation of the Mortgage Credit
Certificate Program servicing 10 Daly City households.
• Prepared the City’s 2004- 05 HUD Action Plan and completed HUD Consolidated
Performance Report for FY 1998- 2002.
• Implemented an education program for first time homebuyers. A total of 92 individuals
have completed individualized counseling through the program and 16 have purchased a
home since the program’s inception in FY 01- 02.
• Executed loan documents for a Section 108 Loan to finance development of Bayshore
Community Center.
CITY OF DALY CITY
PROGRAM OBJECTIVES
1. Continue to work with non- profit housing development organization for acquisition and
rehabilitation of rental complex containing 10 or more units.
2. Identify and evaluate sites suitable for new rental housing for low and moderate income
households.
3. Work with Habitat for Humanity to develop 4 to 8 units of self- help housing.
4. Continue to address fair housing issues through development of educational materials,
increase community outreach and investigation of housing discrimination cases.
5. Continue education program for first time homebuyers and evaluate alternatives for
downpayment assistance for low and moderate income households.
6. Prepare HUD One- Year Action plans for 2004- 05 and 2005- 06 for use of CDBG and
HOME funds.
7. Coordinate with the County for continuing implementation of the Mortgage Credit
Certificate program in Daly City.
8. Coordinate the implementation of CDBG- funded Capital Improvement projects with
other City departments, including financial management and oversight, environmental
review and monitoring compliance with Federal Labor Standards provisions.
9. Continue to provide funding, monitor and assist CDBG subrecipients who provide a
variety of public services to low income Daly City residents in the areas of food, shelter,
legal services, health care, child care, youth services, family crisis intervention, literacy
and job training.
10. Monitor HOME and CDBG funded activities and programs to ensure compliance with
Federal regulations.
11. Prepare Annual Performance Reports for use of HOME and CDBG funds.
12. Establish a code- enforcement program in low- income census tracts utilizing CDBG
funds.
ECONOMIC AND ENTERPRISE DEVELOPMENT
PROGRAM DESCRIPTION
The Daly City Enterprise Development program seeks to strengthen the City’s economic climate
primarily by fostering the development and growth of small and microenterprise businesses.
Through the Enterprise Center ( Center), the program provides business consulting, technical
assistance and referral services in a variety of areas to small and microenterprise business
owners, prospective owners and residents. Additionally, Center staff provide business evaluation
interviews and quarterly assessments for Business Center clients, loan packaging for the Micro
Loan Program, operates the Small Business Workshop Series, plans and coordinates business
planning classes, and develops networking programs for small businesses.
GOAL
To strengthen existing and foster the development of new small and microenterprise businesses
by offering consulting, technical assistance and other programs for small and microenterprise
businesses owners and residents at little or no cost.
HIGHLIGHTS
Accomplishments during 2003- 04 include:
• Provided individual consulting to approximately 123 small and microenterprise business
clients and conducted over 365 consulting appointments during the past two fiscal years.
• Documented 8 jobs that were created by clients of the Center since July of 2002.
• Provided business evaluation interviews and quarterly follow- up counseling to designated
Business Center clients as needed.
• Established partnership with Skyline College to offer entrepreneurship class for college
credit. Course serves over 35 student entrepreneurs.
CITY OF DALY CITY
PROGRAM OBJECTIVES
1. Provide counseling services to 150 small business clients and conduct at least 300
consulting appointments.
2. Document 10 new jobs that are created by Center clients including at least 7 jobs for low
and moderate income persons.
3. Monitor all assisted businesses and implement improved methods for tracking impact and
effectiveness of the Enterprise Center.
4. Provide business evaluation interviews and quarterly follow- up counseling to designated
Business Center clients as needed.
5. Continue partnership with Skyline College and offer 12- session entrepreneurship class at
least once annually.
6. Establish new loan program for Daly City Businesses utilizing CDBG funds.
7. Enhance employment opportunities for low and moderate income residents of Daly City
by executing, whenever appropriate, first source hiring agreements.
8. Work with Business Center and Chamber of Commerce to offer “ seamless” and
comprehensive assistance to new and growing Daly City businesses.
9. Develop and implement an outreach campaign to market the Enterprise Center’s services.
HOUSING & COMMUNITY DEVELOPMENT Residential Rehabilitation Program
PROGRAM DESCRIPTION
The Residential Rehabilitation Loan Program provides low- interest rate loans to low/ mod
income homeowners to finance home repairs. The funds are used to correct code related
deficiencies like hazardous plumbing, electrical problems, termite repairs, lead based paint and
asbestos control or abatement, and structural repairs, etc., to make property decent, safe and
sanitary. Four loan programs are available: 1) Complete Rehab; 2) Roof- only; 3) Paint only;
and, 4) Our newest partial loan, Windows only. Two grants are available; a Senior Minor
Home Repair Grant and a Security Bars Replacement Grant. The Rehab staff provides many
applicants with a full house inspection, a written inspection report, a cost estimate, bidding
assistance, work- in- progress monitoring and progress payment preparation.
GOAL
The goals of the program are fourfold: 1) Outreach to low income homeowners and offer them
low- interest rate loans and grants; 2) Provide better living conditions for eligible homeowners
through timely and equitable distribution of available funds; 3) Eliminate unsafe security bars
to facilitate resident escape in case of fire; and, 4) Upgrade the housing stock and forestall
deterioration of the City infrastructure.
HIGHLIGHTS
During FY 03/ 04, the Rehab staff:
• Issued 39 loans/ grants totaling $ 175,026 ( benefiting 39 low- income homeowners; includes
25 Senior Minor Home Repair Grants and 6 Security Bars Replacement Grants)
• Received/ reviewed 43 applications
• Provided full house inspections for 33 homes
• Responded to 149 phone inquiries
• Serviced approximately 43 rehab loans ( post payments, monitor delinquency, issue
payment coupons and annual loan statements)
• Performed annual review of 1 deferred rehab loan
• Inserted message in the City Utility Billing twice ( each ran for 2 months)
• Worked with North Peninsula Neighborhood Services Center to provide low- income
homeowners with additional funds/ resources to do home repairs
• Initiated a new Emergency Grant program providing up to $ 3,000 to income eligible Daly
City victims of City declared emergencies. The grant covers repair/ replacement of furnaces
and/ or water heaters, or to repair electrical and/ or plumbing problems.
CITY OF DALY CITY
PROGRAM OBJECTIVES
1. Utilize all available methods of the media to inform homeowners in the City about our
loan and grant program. Show the Rehab video and Power Point presentations on Channel
26 and provide both to interested residents, homeowners’ associations and other interested
parties as well as giving presentations at interested homeowners association meetings. We
will continue to advertise, in English and Spanish, on the City’s Channel 26. We will issue
news releases in the Daly City Record. We will use the message area of the utility bill,
when available, and list program information in the Community Information Program
Book, which is updated yearly. Provide all libraries, the senior center and other City
departments with our latest Rehab brochure to make available to the general public.
2. Process, in a timely and efficient manner, all applications for loans or grants.
3. Provide accurate full- house inspections and cost estimates, and assist each homeowner, as
needed, with the bidding process, job quality control, and payment processing.
4. Receive 250 phone inquiries, review 68 applications, inspect 60 homes, issue 50- 60
loans/ grants, complete 50- 60 jobs ( including 40 Senior Minor Home Repair Grants and 10
Security Bars Replacement Grants) and service a loan portfolio of approximately 50
amortized loans and 1 deferred loan.
5. Coordinate with North Peninsula Neighborhood Services Center ( NPNSC) to provide
additional minor home repair assistance to low- income families ( especially seniors and the
physically challenged) who are unable to do this work for themselves. It is estimated that
referring potential applicants to NPNSC can assist 40 households/ 100 persons.
HOUSING & COMMUNITY DEVELOPMENT Aircraft Noise Soundproofing Project
PROGRAM DESCRIPTION
The San Francisco International Airport ( Airport) funded the Aircraft Noise Soundproofing Project
with: 1) $ 120 million provided under a Memorandum of Understanding ( MOU). Daly City’s pro-rata
share of these funds was $ 20.184 million, used to reduce the impact of aircraft noise in homes
in the southeastern portion of Daly City; 2) up to $ 22.4 million additional funds to retrofit homes in
a reduced area in the southeastern portion of Daly City. Daly City is eligible to use about $ 9.6
million of these funds for Phases 7, 8 and 9 ( totaling 620 homes); and, 3) almost $ 3.5 million
provided by the Federal Aviation Administration and the Airport under an 80/ 20 funding split to
cover Phase 10, consisting of 303 dwelling units ( includes 120 apartments).
Retrofit work consists of installing acoustically rated double pane windows, solid core doors,
blown- in attic insulation, chimney dampers, thermal sliding glass doors and other items as
recommended by an acoustical engineer to reduce the interior noise level of each home to 45
CNEL or less.
GOAL
Reduce interior noise levels for all eligible dwelling units to 45 CNEL ( Community Noise
Equivalency Level) or less by the end of 2004.
HIGHLIGHTS
During FY 03- 04, the Rehab staff:
• Oversaw retrofit work through construction completion of 144 homes in Phase 9
• Worked with the Airport and the FAA to secure almost $ 3.5 million for 303 dwelling units
in
Phase 10
For ANSP 10
• Secured a project manager, architectural services and construction inspection services
• Provided Airport with necessary Grants of Easements to obtain 25% funding
• Reviewed 303 plans and specifications
• Advertised for construction bids and awarded a construction contract
• Oversaw beginning of construction for 183 homes and 120 apartments
CITY OF DALY CITY
PROGRAM OBJECTIVES
1. Work with the Airport and the FAA while retrofitting 303 dwelling units in Phase 10
2. Complete retrofit work on all eligible homes by the end of 2004
ANSP 10
• Oversee work- in- progress for 303 homes
• Close out this phase by the end of 2004
HOUSING & COMMUNITY DEVELOPMENT HOME Program
PROGRAM DESCRIPTION
HOME funds are one of the primary tools available to address a growing affordable housing
crisis in San Mateo County. In July of 2003, Daly City became an independent Participating
Jurisdiction ( PJ) in the HOME program and now receives a direct allocation of HOME funds
from the Federal government.
Our program targets developers for new construction, and works with non- profit organizations to
acquire and rehabilitate existing buildings. These activities benefit Daly City residents by
providing additional affordable housing while beautifying neighborhoods and neglected
property. The HOME program also provides loan funds to existing owners of multi- unit
buildings to do repairs such correction of hazardous plumbing, electrical problems, termite
repairs, structural repairs, etc.) to make each rental unit decent, safe and sanitary. Use of HOME
funds is very restricted, must benefit low and very low- income tenants, and requires the
continued affordability of rent for each tenant household assisted.
GOAL
The goal of the program is to expand housing opportunities for all categories of need: families,
seniors, disabled and special needs populations. The City will use a variety of approaches to
address the needs of all types of lower income households including new construction,
acquisition/ rehabilitation and homeownership assistance.
HIGHLIGHTS
Accomplishments during 2003- 04 include:
• Responded to over 150 phone calls from the public seeking affordable housing
• Evaluated sites suitable for development of ownership and rental housing for lower
income households.
• Provided funding for land acquisition and construction, entitlements, relocation services
and soil remediation associated with development of 7 single- family homes by Peninsula
Habitat for Humanity. Homes are currently under construction with an estimated
completion date of June 2005.
• Established Daly City as a HOME Participating Jurisdiction and adopted guidelines for
use of HOME funds in Daly City.
CITY OF DALY CITY
PROGRAM OBJECTIVES
1. Work with Peninsula Habitat for Humanity to complete entitlement process and secure
funding to develop housing units on De Long Avenue and the Parkview Clubhouse site.
2. Identify sites and properties that represent valuable opportunities for development of
additional affordable housing.
3. Work with private developers to include affordable housing component in new
construction projects.
4. Study alternatives for offering assistance to low- income households seeking to become
homeowners.
5. Monitor rents annually to ensure continued affordability of HOME- subsidized properties
to low and very low income tenant households
6. Prepare Annual Plans for 2004- 05 and 2005- 06 and submit to Department of Housing
and Urban Development.
7. Prepare Annual Performance Reports for FY 2003- 04 and FY 2004- 05 per HUD
requirements.
DALY CITY REDEVELOPMENT AGENCY – J. S.- MISSION PROJECT AREA
PROGRAM DESCRIPTION
The Redevelopment Agency is responsible for the revitalization of three commercial areas,
Mission Street, a portion of Junipero Serra Boulevard and the Bayshore Project area. In these
areas the Agency directs its efforts toward: removing and replacing deteriorating properties by
assembling vacant and under- utilized property; assuring new construction is well- designed;
working with merchants to restore economic vitality; and providing housing opportunities for all
income categories. Along Mission Street the Agency operates a rebate program for business and
property owners who upgrade building facades. Other related budget sections are:
DCRA Tax Increment Funds. These funds receive revenue from incremental property taxes
within the redevelopment areas and transfers them to the Agency Administration Budget.
GOAL
To eliminate blight, and promote renovation, revitalization and redevelopment of Daly City,
which increases the tax base, expands retail and service opportunities and creates jobs for
residents.
HIGHLIGHTS
• Final Certificate of Completion issued for the development and construction of a nine- story
office building, two parking structures, Cineplex and an attractive public Plaza, Phase I and
II Pacific Plaza.
• Certificate of Completion issued for the 87th and Edgeworth Street commercial property.
• Supplemented the existing DDA with Pacific Plaza to provide the Agency certain rights to
use parking spaces within the Pacific Plaza Parking Garage.
• Approved seven applications for the Façade Improvement Program along Mission Street.
CITY OF DALY CITY
PROGRAM OBJECTIVES
1. Complete a Development and Disposition Agreement for the sale and development of the
Landmark.
2. Continue to market land on Junipero Serra Boulevard for sale and construction of a Hotel.
3. Continue to work with Summit Commercial for the completion Phase III of the Pacific Plaza
Development.
4. Acquire property on Junipero Serra Boulevard for inclusion in the development of Phase III
of Pacific Plaza.
5. Acquire additional property along Mission Street for the development of affordable housing
and/ or mixed- use projects.
6. Provide oversight of property management activities for the Agency- owned Property.
7. Expand code enforcement oversight on Mission Street.
8. Continue the marketing of the Façade Improvement Program for the revitalization of Mission
Street.
BAYSHORE REDEVELOPMENT PROJECT AREA
PROGRAM DESCRIPTION
In June of 1999, the Daly City City Council adopted the Bayshore Redevelopment Project Area
for the revitalization of the Bayshore Neighborhood. The Bayshore Redevelopment Project area
is located in the easternmost part of Daly City and includes most of the Bayshore neighborhood.
The Agency will direct its efforts toward: assembling vacant and under- utilized property;
assuring that new construction is well- designed; support residential uses in the area; and increase
the provision of public services and facilities in the project area. Other related budget sections
are:
Bayshore Tax Increment Fund. This fund receives revenue from incremental property taxes
within the redevelopment area and transfers them to the Bayshore Agency Administration
Budget.
Bayshore Façade Improvement Program. This fund administers monies for the improvement and
beautification of business facades in the Bayshore area.
GOAL
To eliminate blight and deterioration of the area, correct and maintain needed public
improvements; retain and assist existing business through rehabilitation activities; market and
promote new businesses that will increase the tax base; expand retail and service opportunities
and create jobs for residents.
HIGHLIGHTS
• Worked with the City and other Agencies to fund and construct the Bayshore Community
Center.
• Demolished the old fire station on Geneva Avenue for use as a neighborhood mini park.
• Approved the development of affordable senior housing units on the El Rancho Market site.
• Implemented a Façade Improvement Demonstration Project at 2800 Geneva Avenue.
CITY OF DALY CITY
PROGRAM OBJECTIVES
1. Complete the Master Plan for the Cow Palace Area.
2. Prepare an RFP for the development of the Cow Palace Area.
3. Implement a neighborhood Residential Rehabilitation Program.
4. Identify properties for possible mixed- use development to include affordable housing for low
and medium income families.
City of Daly City
DIRECTOR
ASSISTANT
DIRECTOR
SECRETARY III
1/ 2 CENTRAL SVC.
SUPERVISOR
PRINTER
OPERATOR
PARKING METER/
STORES CLERK
RISK MANAGEMENT
DIVISION
RISK MANAGER
RISK MGMT
OFFICE ASSISTANT
INFORMATION
SERVICES MANAGER
SR. NETWORK
ADMINISTRATOR
SR. PC/ LAN
TECINICIAN
2 PROGRAMMER/
ANALYSTS
COMPUTER
OPERATIONS TECH
PC/ LAN
TECNICIAN
MOTORVEHICLES
DIVISION
ADMINISTRATION
DIVISION
CENTRAL SERVICES
DIVISION
INFORMATION
SERVICES DIVISION
UTILITY BILLING
DIVISION
PBX TELEPHONE
SERVICES
UTILITY BILLING
SUPERVISOR
CUSTOMER
SERVICE REP.
3 1/ 2 ACCOUNT
CLERKS II
CASHIER
3 METER
READERS
MOTOR VEHICLES
SUPERVISOR
CHIEF
MECHANIC
6 MECHANICS
AUTOMOTIVE
BODYWRK/ PAINTER
MECHANIC’S
HELPER
RADIO/ COMM.
TECHNICIAN
1/ 2 TYPIST
CLERK II
ACCOUNTING
SECTION
ACCOUNTING SVC.
MANAGER
ACCOUNTANT
2 1/ 2 ACCOUNT
CLERKS II
SR. ACCTG.
TECHNICIAN
1/ 2 ACCOUNTING
TECHNICIAN
PAYROLL
SECTION
2 ACCOUNT
CLERKS II
PURCHASING
SECTION
1/ 2 CENTRAL SVC.
SUPERVISOR
2 ACCOUNT
CLERKS III
PAYROLL
SUPERVISOR
1/ 2 TYPIST
CLERK II
NETWORK
ADMINISTRATOR
DEPARTMENT OF FINANCE & ADMINISTRATIVE SERVICES
Fiscal Years 2004- 2005 and 2005- 2006
108
FINANCE - ADMINISTRATION
PROGRAM DESCRIPTION
Finance Administration is responsible for facilitating the planning, organization, implementation,
control, coordination, and direction of the financial policies and programs of the City, as established
by the City Council and City Manager. The Department also prepares and publishes the
Comprehensive Annual Financial Report, Operating Budget and Capital Budget for the City of Daly
City.
Finance Administration has seven principal areas of responsibility: Accounting, Business License,
Capital Projects Accounting, Finance Administration, Payroll, Purchasing, and Utility Billing. In
addition, the department manages the following internal service functions: Central Services,
Information Services, Motor Vehicles, PBX Telephone Services and the City’s Risk
Management/ Self Insurance programs.
GOAL
To continue providing responsive, timely, cost effective, and accurate management information to
every user, and to maintain superior services to other departments and the public in all our
functional responsibilities.
HIGHLIGHTS
Accounting: During the past two years, staff has accomplished the following:
• Prepared Comprehensive Annual Financial Reports which received awards for excellence in
financial reporting from both the Government Finance Officers Association ( GFOA) and the
California Society of Municipal Finance Officers ( CSMFO) for the 19th and 20th consecutive
years.
• Implemented new mandatory financial reporting standards recently issued by the Governmental
Accounting Standards Board ( GASB 34), including accounting for infrastructure elements in
advance of the 2007 deadline.
• Maintained an average of ten working days for the closing of accounting books.
• Provided training to city departments/ divisions on the IFAS accounting system.
Business License ( sub- unit of Accounting): Business License Tax revenue grew approximately
$ 122,000 over the past two years. Our staff is coordinating efforts with the Planning/ Code
Enforcement, Police and Fire departments to ensure that all businesses meet the necessary
requirements. We are also utilizing information provided by the State and other local agencies to
locate businesses. These tasks will become more efficient with the implementation of the new
Hansen software. We continue to focus our efforts on bringing unlicensed businesses into
compliance with Daly City's municipal code.
Administration: Oversaw the preparation of biennial operating and capital budgets, which again
received national and state honors from GFOA and CSMFO. During the past few years,
administrative staff was stretched thin due to vacancies in the Assistant Director of Finance and
Secretary III positions. A contract was entered into with MBIA to assist the City in identifying
and collecting sales tax revenue that sometimes gets missed because it is not properly reported. We
worked with Hansen Systems to implement new contracts for the provision of comprehensive asset
management and applications software.
CITY OF DALY CITY
HIGHLIGHTS ( CONTINUED)
Payroll: Payroll staff updated the Payroll system with some new features. Staff has been working
to set up an On- Line Timesheet process. We are eliminating a lot of " paper" and reducing demands
on storage space by scanning most of our files onto our SIRE records archiving system, providing
easier access and retrievability. We maintain the demanding regular workload of processing a
$ 42 million annual payroll.
Purchasing: We currently maintain an average of three calendar days in which purchase requisitions
are processed as purchase orders. The Bi- Tech purchasing software was successfully used to issue
Blanket Purchase Agreements ( BPA) in the previous fiscal year, and this use is being expanded.
PROGRAM OBJECTIVES
1. Continue the implementation of new governmental financial reporting standards ( GASB 34)
2. Continue to pursue migration of payroll time reporting to a Web- based payroll module from the
City’s finance software vendor.
3. Monitor the implementation of new software from Hansen Systems to replace the City’s Muni
Base system, and oversee the expansion of applications to include new areas including Business
License and Utility Billing.
4. Work to implement enhancements on the financial reporting system in preparation for a new
web- based user interface
5. Complete implementation of the City’s automated purchasing and fixed asset systems.
6. Maintain the standard of ten working days for issuing of monthly financial reports.
7. Maintain a three day average for processing purchasing requisitions.
8. Strive to exceed the customer service expectations of our residential and business communities,
as well as those of our fellow departments.
93/ 94
94/ 95
95/ 96
96/ 97
97/ 98
98/ 99
99/ 00
00/ 01
01/ 02
02/ 03
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
Business License Tax Revenue
109
CENTRAL SERVICES
PROGRAM DESCRIPTION
The Central Services Division encompasses four areas. These are: Duplicating & Copier
Service, Mail Messenger, Central Stores, and Parking Meters.
Duplicating provides printing for the various City offices, which is done by the offset method,
and produces a wide variety of publications. Working in conjunction with the printing function
we have a Desktop Publishing system that we utilize to produce originals for printing. An
additional function of this division is the purchase and maintenance of the City photocopy
machines.
The Mail Messenger service provides citywide pick- up and delivery of interoffice and U. S. Mail.
Also, we deliver small parcels and orders received through the city store.
Central Services maintains a stockless system for office products, but still stocks and supplies
the various City departments with the most frequently used stationery, safety and miscellaneous
supplies. Most of the City shipping and receiving is handled here also.
There are approximately 600 Parking Meters located throughout the City. These meters are
collected and maintained by the Central Services Division.
GOAL
The goal of this division is to provide the highest quality services to City departments in the
most time- and cost- effective manner.
HIGHLIGHTS
In 2003 we increased the rates on the two- hour parking meters to make the hourly rate
consistent on all meters. The revenues reflect this rate increase along with a steady
increase since the installation of the meters. The increase in revenues is due in large part
to the reliability of the electronic meters. Also, we have had some success selling the old
mechanical parking meters in the City Store at City Hall.
In Central Stores we continue to process orders via several methods; online ordering with
Office Depot which is in conjunction with the County of San Mateo and allows us greater
discounts, the stockless program with Boise Cascade and Corporate Express, and the
Central Service Store Orders for our on- hand stock.
In Duplicating for 2002- 03 & 2003- 04 we completed approximately 1200 print jobs with
a total of 2,500,000 impressions.
In our mail facility we processed approximately 400,000 pieces of mail each year for
2002- 03 and 2003- 04.
112
CITY OF DALY CITY
PROGRAM OBJECTIVES
Our objectives for this year include;
1. Maintain the production of Duplicating at approximately 1,200,000 impressions annually.
2. Continue to process U. S. Mail at a rate of approximately 33,30 pieces a month.
3. Evaluate and purchase replacement copiers for City Manager, City Clerk, Library, Police,
and Streets Division in 2004- 05; and for Human Resources and Recreation in 2005- 06.
4. Monitor the revenue from and repair ac
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| Title | Budget. 2004-2006. |
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| Transcript | City of Daly City ORGANIZATION STRUCTURE Fiscal Years 2004- 2005 and 2005- 2006 CITIZENS OF DALY CITY CITY CLERK CITY TREASURER MAYOR & COUNCIL CITY ATTORNEY PLANNING COMMISSION LIBRARY BOARD OF TRUSTEES PARKS & RECREATION COMMISSION PERSONNEL BOARD CITY MANAGER COMMUNITY SERVICE CENTER ECONOMIC & COMMUNITY DEVELOPMENT HUMAN RESOURCES PARKS AND RECREATION WATER & WASTEWATER RESOURCES FINANCE FIRE LIBRARY POLICE PUBLIC WORKS ADVISORY BOARDS & COMMISSIONS C I T Y O F D A L Y C I T Y TABLE OF CONTENTS Page Transmittal Letter ............................................................................................................................... ...... i Budget Process ............................................................................................................................... ...... xiv Budget Calendar ............................................................................................................................... .... xvi SUMMARY STATEMENTS Projected Available Fund Balances/ Retained Earnings................................................................... 1 Comparison of Revenue Budgets...................................................................................................... 4 Comparison of Expenditure Budgets ................................................................................................ 6 Interfund Transfers...................................................................................................................... ...... 9 Personnel Allocation..................................................................................................................... .. 10 DEPARTMENT BUDGETS CITY ATTORNEY ......................................................................................................................... 12 CITY CLERK Administration, including Elections ......................................................................................... 18 CITY COUNCIL ............................................................................................................................. 24 CITY MANAGER........................................................................................................................ .. 28 Administration ........................................................................................................................... 32 Community Promotion.............................................................................................................. 37 Community Service Center....................................................................................................... 41 CITY TREASURER...................................................................................................................... . 46 ECONOMIC AND COMMUNITY DEVELOPMENT............................................................... 52 Administration ........................................................................................................................... 55 Planning & Zoning .................................................................................................................... 71 Building....................................................................................................................... .............. 67 Housing & Community Development - Business Center............................................. 59 Block Grant ................................................... 75 Economic & Enterprise Development ......... 63 Residential Rehabilitation Program ............. 79 Aircraft Noise Soundproofing Project ......... 83 Home Program.............................................. 87 Redevelopment Agency – J. S. Mission Proj. Administration............................................... 91 Tax Increment ............................................... 96 Bayshore Redevlopment Project Area ......... 99 Bayshore Tax Increment............................. 103 C I T Y O F D A L Y C I T Y TABLE OF CONTENTS DEPARTMENT BUDGETS ( Continued) Page FINANCE ............................................................................................................................... ..... 107 Administration/ Accounting..................................................................................................... 110 Central Services ....................................................................................................................... 114 Information Services ............................................................................................................... 118 Motor Vehicles ........................................................................................................................ 122 PBX ............................................................................................................................... ......... 128 Self Insurance - General Liability ......................................... 132 Workers Compensation .............................. 136 Utility Billing........................................................................................................................ .. 140 FIRE........................................................................................................................... .................... 145 HUMAN RESOURCES................................................................................................................ 154 LIBRARY ............................................................................................................................... ...... 160 PARKS & RECREATION ........................................................................................................... 169 Administration ......................................................................................................................... 172 Parks Maintenance................................................................................................................... 176 Recreation ............................................................................................................................... 180 Special Programs, including Doelger Art Center................................................................... 186 Peninsula Partnership .............................................................................................................. 192 Senior Adult Division.............................................................................................................. 194 POLICE......................................................................................................................... ................ 199 Public Safety Communications............................................................................................... 210 PUBLIC WORKS.......................................................................................................................... 219 Administration ......................................................................................................................... 222 Engineering.................................................................................................................... ......... 226 Signals & Street Lighting ....................................................................................................... 230 Streets Division ....................................................................................................................... 232 Building Maintenance ............................................................................................................. 236 C I T Y O F D A L Y C I T Y TABLE OF CONTENTS DEPARTMENT BUDGETS ( Continued) Page WATER AND WASTEWATER RESOURCES ........................................................................ 241 Administration ......................................................................................................................... 244 Water Operations..................................................................................................................... 250 Wastewater Operations............................................................................................................ 254 Plant & Equipment Maintenance............................................................................................ 258 Laboratory..................................................................................................................... .......... 262 Distribution System Maintenance........................................................................................... 266 Collection System Maintenance ............................................................................................. 272 SANITATION DISTRICT Legislative & Administration.................................................................................................. 278 NONDEPARTMENTAL Nondepartmental Revenue/ Expense....................................................................................... 283 Civic Center Enterprise ........................................................................................................... 288 Linda Vista Benefit Assessment ............................................................................................. 291 Transfer Station........................................................................................................................ 294 AB 1600 ............................................................................................................................... ... 297 CAPITAL PROJECTS Gas Tax ............................................................................................................................... .... 300 Community Development Block Grant.................................................................................. 302 Capital Outlay......................................................................................................................... 303 Major Facility Improvements.................................................................................................. 305 Water ............................................................................................................................... ..... 307 Sanitation ............................................................................................................................... . 310 C I T Y O F D A L Y C I T Y TABLE OF CONTENTS Alphabetical Page Aircraft Noise Soundproofing Project................................................................................................... 82 AB 1600........................................................................................................................... .................... 289 Appropriations Limitation - Daly City................................................................................................ 329 Appropriations Limitation - Sanitation District .................................................................................. 328 Bayshore Redevelopment Project Area................................................................................................. 96 Bayshore Tax Increment ...................................................................................................................... 100 Block Grant.......................................................................................................................... .................. 70 Budget Calendar ............................................................................................................................... .... xvi Budget Process ............................................................................................................................... ...... xiv Building Maintenance .......................................................................................................................... 232 Building....................................................................................................................... ........................... 64 Business Center ............................................................................................................................... ...... 68 Capital Outlay - see Capital Projects................................................................................................... 305 Central Services....................................................................................................................... ............ 110 City Attorney ............................................................................................................................... .......... 15 City Clerk.......................................................................................................................... ..................... 21 City Council........................................................................................................................ ................... 27 City Manager - Administration.............................................................................................................. 36 City Treasurer ............................................................................................................................... ......... 47 Civic Center Enterprise ........................................................................................................................ 282 Collection System Maintenance ......................................................................................................... 266 Community Development Block Grant ( also see Capital Projects)..................................................... 70 Community Promotion...................................................................................................................... .... 42 Community Service Center.................................................................................................................... 44 Comparison of Expenditure Budgets ...................................................................................................... 6 Comparison of Revenue Budgets ............................................................................................................ 4 Computer Services - See Information Services .................................................................................. 114 Description of Funds .............................................................................................................................. 12 Distribution System Maintenance ....................................................................................................... 262 Economic & Community Development - Administration ................................................................... 56 Economic & Enterprise Development................................................................................................... 74 Elections - see City Clerk....................................................................................................................... 21 Engineering.................................................................................................................... ...................... 216 Expenditure Budgets Comparison........................................................................................................... 6 C I T Y O F D A L Y C I T Y TABLE OF CONTENTS Alphabetical Page Finance - Administration/ Accounting................................................................................................. 106 Fire........................................................................................................................... ............................ 139 Fund Types & Basis of Accounting.................................................................................................... 330 Gas Tax - see Capital Projects............................................................................................................. 297 General Governmental Expenditures by Function ............................................................................. 322 General Liability ............................................................................................................................... .. 122 Glossary of Terms.......................................................................................................................... ..... 332 Home Program ............................................................................................................................... ....... 86 Human Resources ............................................................................................................................... 147 Information Services ........................................................................................................................... 114 Interfund Transfers...................................................................................................................... ............ 9 Laboratory ...... ............................................................................................................................... ..... 258 Library ............ ............................................................................................................................... ..... 155 Linda Vista Benefit Assessment ......................................................................................................... 280 Major Facility Improvements.............................................................................................................. 311 Major General Fund Tax Revenues .................................................................................................... 321 Miscellaneous Statistical Information................................................................................................. 327 Motor Vehicles....................................................................................................................... ............. 118 Nondepartmental Revenue/ Expense ................................................................................................... 277 Parks & Recreation - Administration.................................................................................................. 166 Parks Maintenance.................................................................................................................... .......... 172 PBX ................ ............................................................................................................................... ..... 130 Peninsula Partnership.................................................................................................................... ...... 188 Personnel Allocation..................................................................................................................... ........ 10 Personnel - see Human Resources ...................................................................................................... 147 Planning & Zoning......................................................................................................................... ....... 60 Plant & Equipment Maintenance ........................................................................................................ 254 Police .............. ............................................................................................................................... ..... 191 Principal Employers...................................................................................................................... ...... 325 Principal Property Taxpayers .............................................................................................................. 324 Projected Available Fund Balances/ Retained Earnings ........................................................................ 1 Property Tax Assessed Values, Levies and Collections .................................................................... 323 Public Safety Communications ........................................................................................................... 200 Public Works - Administration............................................................................................................ 212 C I T Y O F D A L Y C I T Y TABLE OF CONTENTS Alphabetical Page Recreation....... ............................................................................................................................... ..... 176 Redevelopment Agency - Administration ............................................................................................. 90 Residential Rehabilitation Program...................................................................................................... 78 Revenue Budgets Comparison ................................................................................................................ 4 Sanitation - see Capital Projects .......................................................................................................... 317 Sanitation District - Legislative & Administration............................................................................. 270 Schedule of Outstanding Debt............................................................................................................. 326 Self Insurance - General Liability ....................................................................................................... 122 Senior Adult Division .......................................................................................................................... 184 Special Programs....................................................................................................................... .......... 180 Street Lighting ............................................................................................................................... ..... 228 Streets Division ............................................................................................................................... .... 220 Tax Increment ............................................................................................................................... ....... 94 Traffic Signals ............................................................................................................................... ..... 224 Transfer Station........................................................................................................................ ........... 285 Utility Billing ............................................................................................................................... ....... 134 Water - see Capital Projects................................................................................................................. 313 Water & Wastewater Resources - Administration ............................................................................. 240 Water Operations ............................................................................................................................... . 246 Wastewater Operations..................................................................................................................... .. 250 Workers Compensation ....................................................................................................................... 126 BUDGET TRANSMITTAL June 28, 2004 Honorable Mayor and Members of the City Council Citizens of Daly City On behalf of the entire Management Team, we are pleased to present to you the City of Daly City Biennial Comprehensive Annual Operating and Capital Budget for fiscal years 2005 and 2006. This is the second budget in a row that relies on reserves to fund on- going operations, both times courtesy of the State Legislature and their continuing grab of local tax money to fund the State deficit resulting in the City facing a $ 7.5 million budget gap. For fiscal 2005, significant staffing and service reductions were made and approximately $ 390,000 in reserves is designated to close the budget gap between revenues and expenditures in the City’s General Fund. While this use of reserves is equal to only about one- half of one percent of the $ 60.3 million in budgeted expenditures, it is significant in that it illustrates how difficult this budget was to prepare. During the year we will strive to close this gap. The following year predicts essentially a balanced budget by continuing these expenditure reductions. Included in these amounts was the loss revenues to the State of California of $ 2 million each budget year under the Governor’s May budget proposal. As of this date, the legislature has yet to adopt a budget and is at a stalemate in budget deliberations. This is on top of Daly City’s continuing loss from past State actions in transferring local revenues to State coffers that now totals more than $ 4 million annually, consisting mostly of local property taxes. With this impact on our finances, we are struggling to provide the critical and necessary services this community needs and deserves. This budget process has been one presenting extraordinary challenges. Following the policy guidelines set forth by the City Council, we have worked to • protect the ability to provided the needed level of public safety services to the community, • maintain City facilities and other infrastructure that enables us to provide critical quality- of- life programs and services, • continue successful and needed programs and services to families and neighborhoods, especially those directed to our youth, • avoid the lay- off of personnel faced by many of the cities in California that is damaging to the organization’s ability to maintain critical skills and productivity, • continue to make badly needed improvements to our facilities needed to serve the community – not only for next year but for decades to come, and • maintain a sound financial position from which to build in future years. i CITY OF DALY CITY ii We believe the budget for the coming two years accomplishes those policy objectives to the extent that resources allow. This budget is aligned to support the City- wide goals set forth by the City Council. By proactively searching out ways to improve the efficiency of our operations, we are able to devote more resources toward those programs, projects and activities that have the greatest potential for successfully achieving the City’s six long- term goals, which are: I. To maintain the organization’s capability to provide existing services to the community. II. To fulfill all state and federal mandates as efficiently and effectively as possible. III. To continue efforts and approaches to expand and improve service to the community. IV. To encourage and support economic development in order to create jobs, expand the community’s financial base and improve the quality of life. V. To expand organizational capabilities and efficiencies in order to better serve the community. VI. To address essential youth- related issues within the community. In summary, the City budget no longer contains adequate revenues to maintain previous service levels, requiring reduced service hours to the public in areas such as libraries, reduced law enforcement and fire protection staffing, increased recreation and facility use fees to the community, reduced parks and landscaping maintenance, reduced youth programs and may other less visible changes. The change in the historic financing of cities by their own communities through property taxes and other local taxes has been permanently altered by the State of California, with a loss of $ 4 million a year or more to Daly City, which has never been a “ wealthy” community. Therefore the situation of having only approximately 530 employees to provide a full range of services to over 105,000 people and hundreds of businesses is the long- term result. At this point in our history, only a basic change in locally controlled funding sources and amounts would enable a restoration of needed services to the community. Budget Purpose Daly City is a full- service city, providing police, fire, library, and parks and recreation services to our citizens, along with water and sewer utilities and the other administrative and ministerial duties of city government. As explained below, and illustrated throughout this document, this budget provides a comprehensive financial framework for all City activities during fiscal years 2005 and 2006. BUDGET TRANSMITTAL The Budget is meant to serve the following four major purposes: 1. To define Policy, as outlined by the City Council. 2. To serve as an Operating Guide for management to aid in the control of financial resources, while complying with State requirements for General Law Cities and Generally Accepted Accounting Principles for Government. 3. To present the City's Financial Plan for the two fiscal years, showing appropriations and projected revenues by which the appropriations are funded. 4. To serve as a Communications Document for the Citizens of Daly City who wish to understand how the City operates and the methods used to finance those operations. Budget Organization The budget contains four major parts: Summary Statements - provide an over- all picture of the financial status of the City. Included here are projected available fund balances and revenues and expenditures by fund. Two years of actual results, estimates for the current year, and the next two fiscal year's budgets are presented. This allows the reader to compare, on a historical basis, the financial results of the City's 26 funds. Departmental Budgets - present the budget broken down by operating unit. Each program is shown separately, and the budget is by line item. The program is described, highlights of recent accomplishments are chronicled and goals and objectives are presented. Where possible, a performance measurement appropriate to the program is shown graphically. Capital Projects - are presented by fund. A summary of each individual project is shown. It includes a history of expenditures, upcoming budget and five- year plan. Individual project narratives are presented in a separate Capital Projects budget document. Technical/ Statistical - presents twenty- year historical and forecast information about the City's finances. It also contains a glossary of terms and descriptions of funds to aid the reader in understanding the budget document. The Mission of Our City Government The following Mission Statement expresses the philosophy behind the City’s budgetary policies. The budget and the budgetary process are a means to an end. The budget is the financial guide which documents how we intend to allocate the City’s scarce resources to accomplish our mission of being a full- service city. The budgetary process brings together the City Council, city management and citizens to discuss issues, set and modify policy and develop a plan for implementation. iii CITY OF DALY CITY iv CITY OF DALY CITY MISSION STATEMENT The City of Daly City is committed to addressing the diverse and changing needs of residents, businesses, and employees. It will accomplish its mission through the efficient delivery of quality municipal services provided with a human touch. To this end, the City will strive to: * Assure the safety and general well being of the community * Preserve, improve, and develop the physical and aesthetic aspects of the community * Encourage the economic health, balance, and stability of the community * Provide recreational, cultural, social, and educational opportunities for residents to enhance their quality of life * Develop and maintain a highly capable work force Budgetary Policies The City of Daly City has always functioned under significant financial constraints. It has the largest population of all the cities in San Mateo County, but remains well below average in revenue per capita. These financial constraints significantly influence budgetary policy. The goal of maintaining current levels of service, and expanding them only when new revenue sources become available, is strictly adhered to. A necessary complementary policy of only funding on- going expenditures with stable, recurring revenues helps to guide decision making. In order to attain the policy objectives set forth by the City Council as described earlier, for fiscal years 2005 and 2006 the basic guideline was to maintain current service levels where possible while minimizing all controllable costs. Priority was given to critical public services, particularly public safety. BUDGET TRANSMITTAL Revenue Revenues Population per Capita Brisbane $ 6,083,193 3,656 $ 1,664 Santa Clara 111,032,560 104,306 1 ,064 Burlingame 28,681,075 28,413 1 ,009 Mountain View 71,806,642 71,610 1 ,003 Hillsborough 9,613,701 10,975 876 Richmond 75,466,790 93,813 804 Redwood City 60,510,101 76,325 793 San Leandro 55,859,327 81,323 687 Sunnyvale 84,874,729 132,825 639 So. San Francisco 36,425,882 60,981 597 San Mateo 52,942,847 94,067 563 Hayward 75,591,147 144,304 524 Millbrae 10,816,536 20,814 520 Vallejo 60,285,461 118,618 508 San Bruno 19,225,954 40,334 477 Daly City 39,147,034 104,407 375 Pacifica N/ A 38,754 - * Most Recent Revenues as reported by the State Controller General Revenue Per Capita - Fiscal 2001- 02* Previously a modified hiring freeze was instituted in April 2002, requiring City Manager approval to fill any vacant position. During the latter half of fiscal 2002 the City had a four-percent vacancy rate. Built into the budget assumptions in that budget cycle was a continuation of at least a three- percent vacancy rate for fiscal 2003, while returning to a more normal two- percent rate in fiscal 2004. We never returned to those low vacancy rates, since revenues continued to lag and expenditures not under our control continued to increase. The hiring freeze was continued in anticipation of what has come to be: more State raids of local taxes. This, coupled with substantial loses in the CalPERS retirement fund investment portfolio, has required substantial reductions in service levels. In the latter half of fiscal 2004, there were approximately 47 vacant positions, about 40 of which were in the General Fund. v CITY OF DALY CITY vi Our staffing is now at a 30 year low as measured by employees per 1,000 residents. The State of California has more employees per capita, in fact 50% more, than does the City of Daly City. While employees have been added to the State employment rolls at an unprecedented rate, Daly City has been holding vacancies to make the budget balance. Both fiscal 2005 and 2006 budgets anticipate that these positions will remain unfilled. Ave Growth Actual 1975 1985 2004 per Year 2004 Full- time Staff * 445 452 580 1.05% 533 Population 72,500 82,372 105,427 105,427 Employees per 1,000 Residents 6.14 5.49 5.50 5.06 * Includes Daly City & NSMCSD Historical Analysis of Staffing Levels and Population Served Because Daly City is a mature community, without significant new growth in population or area, one of our guiding principles for the budget has always been providing for carefully controlled growth in service levels only when it is affordable in the long- term. We refrain from spending one- time money on on- going operations. Keeping to these budget policies helps to insure long- term continuance of service levels that the residents have come to expect. Unfortunately, as a result of the State continuing to take our local taxes to fund their deficits and increased pension costs due to losses in the CalPERS investment portfolio that the City now has to make up, we are looking at a structural imbalance between normal operating costs and revenues of about $ 4.5 million per year. As of the date of budget adoption, several new revenue alternatives have been presented, including local sales and use tax and a business license tax increase. These options will be considered by the City Council for placement on the ballot. This would give the local community the option of continuing the reduced level of service we have now or reinstating previous service levels. Budget Changes: Normally this section contains the enhancements to the budget we have been able to make due to growth in population or in the local economy resulting in some increase in revenues. For this budget it is the opposite. Along with holding 47 positions vacant as of June 2004 with no apparent prospect of filling them in this biennial budget period we have reduced authorized BUDGET TRANSMITTAL positions by one. We have combined the positions of Central Services Supervisor with that of Purchasing Agent as a result of a retirement. This follows the reduction by one in staffing the Community Services Center last year due to loss of funding. While this may seem insignificant, it is the first time since the passing of Proposition 13 in 1978 that the City has officially reduced authorized staff. Revenue Projections and Assumptions Although Daly City is the largest community in San Mateo County, at 105,427 in population, there are built- in difficulties in revenue projection. Cities of average size do not have enough diversity to cause their revenues to follow regional trends closely enough to allow revenue projections to be as accurate as one might like. Much reliance must be placed on the County and State governments, which are responsible for assessing and collecting most of our revenues. Given this situation, we use historical data plus a general sense of the economic status of the local community to help predict future revenues. When combined with County and State data and regional and national trends, we normally produce a reasonably good picture of the near future. Property Tax The major revenue source available to the General Fund is property tax. Property tax is collected by the County and distributed to the City based upon a formula determined by State law. With the imposition of property tax limits through state Proposition 13, taxes were limited to $ 1 per $ 100 of assessed valuation. This $ 1 was split among cities, schools and counties in a ratio in proportion to the amounts of taxes collected before Proposition 13 was passed. Daly City receives an average of 20.5 cents of each $ 1 collected. Property tax revenues increase when 1) property is transferred to a new owner and is revalued at the current sales price, plus 2) a two percent annual increase on existing property so long as increases in market price are at least equal to two percent. Secured Property Tax Average Growth Rate Scenario 8,000,000 9,000,000 10,000,000 11,000,000 12,000,000 2004 2005 2006 2007 2008 Year $ Daly City has no control over the amount of property tax revenues it receives. However, we can budget relatively accurately based on the County estimates of increases in assessed valuation. Property tax revenue is expected to increase approximately 7 percent in fiscal 2005. In fiscal 2006 we expect a 5.4 percent increase as a result of increasing interest vii CITY OF DALY CITY viii rates. Because home prices continue at high levels this revenue source continues to grow in spite of other negative factors affecting the local economy. Sales Tax Sales tax is a difficult revenue to budget. Local trends do not always mirror the larger economy. Sales tax was up almost eight percent in fiscal 2003, but almost flat in 2004. We anticipate a slightly better than four percent increase in 2005 with an improving economy followed by about three percent in fiscal 2006. Average ten year historical growth of 3.2% is illustrated in the chart. Sales Tax Average Growth Rate Scenario 7,000,000 7,500,000 8,000,000 8,500,000 9,000,000 9,500,000 2004 2005 2006 2007 2008 Year $ Motor Vehicle In- lieu Our third largest General Fund revenue source has served as a political football for the State Legislature. Over several years a reduction totaling 67 percent was made to the Motor Vehicle In- lieu tax, with the State back- filling the difference to local government out of the State general fund. The State constitution guarantees this as local revenue but does not control the tax rate, leaving that to the legislature. Then when the fiscal crunch hit the rate was temporarily returned to the previous level. The new governor campaigned on reducing the tax yet again, which he did immediately upon assuming office. Motor Vehicle Tax Average Growth Scenario - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 2004 2005 2006 2007 2008 Year $ BUDGET TRANSMITTAL When the State was flush with money they felt is was fine to mess with local taxes. Unfortunately, now that the State has changed the rules on this revenue source, we are deeply concerned that some or all of this vital local revenue may be diverted to help balance the State budget. That this has not already happened is only due to an extremely aggressive lobbying and educational effort by local jurisdictions. After adjustment for a one- time “ loan” to the State of $ 1.9 million that occurred as a result of all the decrease/ increase/ decrease changes to the tax rate, we expect to see a 2.5 percent increase in fiscal 2005 and a like increase in fiscal 2006. Utility Users Tax Because the usage of gas, electricity, telephone and cable television service is relatively stable and increases are mainly dependent on population and rate changes, this revenue source is more predictable than most. The growth rate has been quite high in the past as the influence of cellular and the proliferation of various long distance carriers has continued. The energy crisis had some unusual effects on this revenue, for a short time increasing it, then when conservation efforts took hold, decreasing it. We expect a 3.5 percent increase in fiscal 2005, and a like increase in fiscal 2006. UUT Average Growth Rate Scenario 0 2,000,000 4,000,000 6,000,000 8,000,000 2004 2005 2006 2007 2008 Year $ General Fund Sources and Uses Revenue sources and expenditure categories for the General Fund appear above. It is interesting that 55 percent of the General Fund budget goes for police and fire services, which is greater than the combined total of property tax and sales tax, at only 36 percent. This relationship is not atypical for California cities since the adoption of Proposition 13, which capped property tax rates at 1 percent of current valuation. ix CITY OF DALY CITY x Misc 16% Interest 2% Utility Tax 11% Other Taxes 11% Sales Tax 16% Property Tax 20% Motor Vehicle 12% Fees 12% General Fund Revenues 2002- 03/ 03- 04 Budgets General Government 10% Library 4% Parks & Rec 12% Nondepart-mental 12% Police Fire 35% 20% Econ & Community Devel 5% Public Works 10% General Fund Expenditures 2002- 03/ 03- 04 Budgets It has been necessary to find other revenue sources to fund basic services like police and fire, since the traditional method of funding by adjusting the property tax rate is not available to California cities. Greater reliance is placed on user fees and local taxes, such as the utility users tax, which can be controlled at a local level. Major Accomplishments During the course of the past two years there have been substantial accomplishments, some of which include: • With the completion of a draft Master Plan for the Cow- Palace/ Carter- Martin Area, the first step in realizing a neighborhood shopping center as well as the development of the Carter- Martin lands has taken place. • Delivery of recycled water in lieu of potable water for irrigation purposes at three golf courses will begin in September 2004, completing this major project that will help preserve the City’s aquifer. • Developed agreements and implemented North County Fire Authority Joint Powers Agency with the cities of Brisbane and Pacifica Fire Departments to create greater efficiencies and improve the coordination of emergency services. • Continued efforts at redevelopment of Mission Street through negotiation and processing of potential mixed- use development on the Landmark site. • Completion of the energy retrofit for the Civic Center Complex has resulted in a 60% decrease in energy usage in City Hall. • Implementation of GASB 34 reporting requirements. Both financial and infrastructure have been fully implemented. • Implementation of the Five- Year major Facility Capital Improvement Program continued with completion of the Hillside Park Clubhouse, Lincoln Community Center, and Gellert Park Field Improvements projects. Projects under construction or out to bid are Bayshore Community Center and Library, War Memorial BUDGET TRANSMITTAL Community Center and Library, Replacement Fire Station 92, and John Daly Vista ( Thorton Beach Trail). • Other Capital Improvements completed include reconstruction of the City Hall parking lot, rerouting of Skyline Drive sewer main, Westlake off- ramp landscape improvements, reroofing of Doelger Art Center, pedestrian improvements and street improvements, new utilities and water interconnect projects, installation of new burglar/ fire alarm systems, and purchase of a 100- foot tiller drawn ladder truck for the Fire Department. Capital Improvement Program The City of Daly City Capital Improvement Budget for fiscal years 2005 and 2006 provides funding for 157 separate capital projects. These involve acquisition of new equipment, construction of new facilities, repair and renovation of existing facilities and design work for projects planned in the future. Capital expenditures totaling over $ 70 million are planned for the next two years. 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Millions 1998- 99 1999- 00 2000- 01 2001- 02 2002- 03 2003- 04 $ 14,741,942 $ 13,874,954 $ 18,884,515 $ 20,852,458 $ 19,217,197 $ 18,996,480 6 Year Capital Expenditures History Sanitation Water Utility Major Facilities Capital Outlay C. D. B. G. Gas Tax xi CITY OF DALY CITY xii Capital outlays are made from the following City funds: Gas Tax Fund Revenues to this Fund come from the State of California as the City's share of Gasoline Tax, a special county sales tax ( one- half cent) earmarked for transportation projects, and federal and state transportation grants. Monies are also provided from developers involved in new construction in Daly City. All revenues are restricted for use on all aspects of maintenance and construction of streets, roads and sidewalks, including roadway design, storm drainage and design and improvement of intersections and traffic controls. For the past six years, the major emphasis in the Gas Tax Fund has been pavement maintenance. For fiscal 2005 and 2006, new funding for Street Resurfacing and Street Slurry Sealing averages more than $ 1.7 million each year. Construction work completed in fiscal 2004 includes pedestrian improvements along Junipero Serra Blvd in front of the new Pacific Plaza development and a new landscaped City entrance marker at the top of the Westlake exit off of Interstate 280. Community Development Block Grant Fund The sole revenue source for this fund is the Federal Community Development Block Grant Program. Funds are restricted for use only on certain eligible types of projects according to guidelines issued by the U. S. Department of Housing and Urban Development and must benefit low and/ or moderate income people or areas in the City. Beginning in fiscal year 2003, the only project receiving new Block Grant capital funding has been the construction of the Bayshore Community Center ( see Major Facility Improvements Fund below). In all, nearly 5.8 million in Block Grant funds will be used for construction of this facility, including a Federal Housing and Urban Development loan of $ 4.5 million. The debt service on this loan will be repaid out of future Block Grant allocations to the City. Capital Outlay Fund Capital projects paid for with General Fund monies are in this fund, as well as projects paid for with such special revenues as Park- in- Lieu Fees paid by developers in lieu of providing public parks within their projects, Storm Drain and Public Facility Fees and contributions from State and private grant sources. Projects involve capital expenditures in General Fund City departments for acquisition of major equipment and for public facility major maintenance and renovation. Significant projects in this fund include a telecommunications network linking City buildings with fiber optic cable, the City's contribution to a major county- wide library ( Peninsula Library System) computer system upgrade, a project to replace curbside recycling containers using state grant funds, and a tree replanting program to replace diseased pine trees in parks and along roadways. An exterior painting and roof replacement effort was started four years ago. Fire stations, recreation facilities, and a library have been completed. Several additional facilities will be done over the next two years, including a major roof replacement project at Fire stations 94 and 95 currently underway. BUDGET TRANSMITTAL Contributions from the local scavenger company will be used for drainage improvements and on- going minor repairs and maintenance at the closed Mussel Rock landfill. Major Public Facilities Fund This is a special fund to capture the costs and funding of projects involving construction of major new public buildings or the addition to or renovation of a number of existing buildings and recreation facilities. The projects in this fund represent the largest public improvement effort in Daly City’s 90- year history. More than $ 70 million in improvements are planned over a 10 year period. Most projects have either been completed, are underway or are in the design process. A few planned projects have had to be deferred due to budgetary constraints. Capital projects in this fund are financed with a combination of one- time General Fund revenues, Community Development Block Grant funds, State Library and Park Bond funds, and special revenues such as Park- in- lieu Fees and Public Facility Fees. Additional funding will come from school districts, neighboring agencies benefiting from the improvements and from private grants. The grants, Park- in- lieu Fees and Public Facility Fees are restricted for use on designated projects. Projects funded over the next two years include ongoing design and construction of over $ 41 million in major additions and improvements to City facilities. These improvements involve construction of the Bayshore Community Center and Library funded in part with Community Development Block Grant monies including a HUD Section 108 Loan; demolition and replacement of the War Memorial Community Center with a new multi- use building including a library; completion of the replacement for Fire Station 92; construction of a vista point overlooking Thorton Beach; and construction of a Civic Center Annex to house City offices that have grown to keep up with the demands of a growing community. Already completed are renovation of most of the City's tot lots and playgrounds, the renovation and reconfiguration of the City's Corporation Yard, construction of a clubhouse at Hillside Park, new sport fields at Gellert Park, and rebuilding of the Lincoln Park Community Center. Water Utility Fund All capital expenditures involving the Daly City water system are paid for here. This includes improvements and repairs to the water distribution system, the maintenance of pump stations, wells and reservoirs, the acquisition of new equipment and the construction of new facilities. The most significant capital activity in the Water Utility Fund will be the construction of a replacement reservoir with increased capacity, a pump station, and distribution mains to serve the Bayshore neighborhood of Daly City and allow an interconnection between the east and west side of the city. Certificates of participation in the amount of $ 9,860,000 were issued to fund this group of projects. Completion is pending on a new well, replacing well # 10, and plans for another well are being developed. A project to change water disinfection from chlorine to chloramine was completed in 2004. Emphasis continues on the replacement of other key water mains throughout the City in accordance with a Water Master Plan developed to systematically renovate the City's entire water system. xiii CITY OF DALY CITY xiv Sanitation District Fund Projects in this fund are paid for by the North San Mateo County Sanitation District, a subsidiary of the City of Daly City. All capital projects in this fund concern maintenance and/ or new construction of the wastewater collection system or wastewater treatment plant facilities. The major emphasis in the Sanitation Fund has been the construction of recycled water facilities, which are nearly completed. These convert treated wastewater into clean recycled water that can be used by local golf courses for irrigation purposes. It will reduce the dependence of such businesses on water pumped out of the local aquifer via private wells. This is a $ 6 million project that is partly funded through a low interest loan from the State Revolving Fund. A number of projects in the Sanitation Fund are devoted to replacement of key sewer mains throughout the City in accordance with a Sewer Master Plan developed to systematically renovate the City's entire sewer collection system. Of significance was the recently completed project to reroute flows from the north end of Skyline Drive. Work is now underway to reline sewers and replace manholes in the vicinity of Mission and Parkview. Other projects include a $ 1.1 million project to replace emergency generators at various facilities and repair of various storm sewer lines. Effects on Operating Budgets The majority of capital projects represent the replacement or refurbishment of existing equipment or facilities. For those projects that expand capacity, operating budgets reflect the additional costs associated with that new capacity. The only area of significant influence on operating budgets is the City’s major capital project effort. With the addition of the new Bayshore Community Center enhanced staffing is required. The Parks and Recreation and Library departments prepared minibudgets for this facility and funds were set aside in the General Fund accordingly, based on estimated completion date of the facility. This process was also carried out for the War Memorial building replacement project, and funds have been set aside for a partial year of operations in fiscal 2006. Debt Management The City generally does not incur debt, except in instances where there will be long- term benefits or where no other method of acquiring an asset is possible. All equipment purchases are prefunded, typically through user charges from internal service funds. This includes such items as fire apparatus, computers, photocopiers and motor vehicles. This policy saves countless dollars of interest expense, and reflects a rational and fiscally sound approach to asset acquisition in a municipal government. Daly City issued an unprecedented $ 55 million of debt in fiscal 2004. Interest rates hit all-time lows in the last year, and the City was able to effectively leverage the availability of these financings to its long- term benefit. The single largest issue was $ 36,235,000 in pension obligation bonds. The proceeds of these bonds were used to pay off the unfunded accrued actuarial liability with the state- wide pension plan, CalPERS. As a result of the BUDGET TRANSMITTAL dot- com bubble bursting, CalPERS incurred losses in its investment portfolio over a three-year period that resulted in a substantial increase in the City’s unfunded liability. Because CalPERS uses an implicit 8.25% interest rate for unfunded liabilities, the City was able to produce $ 7 million in net present value savings by joining a state- wide financing pool to issue taxable debt at an all- in true interest cost of 5.973%. The refinancing of this liability will result in cash flow savings of approximately $ 629,000 in fiscal 2005 and $ 1,343,000 in fiscal 2006. Repayment will be made by both governmental and enterprise funds relative to each fund’s personnel costs in lieu of payments to the CalPERS pension plan. The City issued certificates of participation to fund water system improvements in the Bayshore area of the City, and used the State Water Resources Control Board Revolving Loan Program to finance a recycled water project in the Sanitation District Fund, both of which will be paid through future user charges. Both debt service payments and user charges have been budgeted. Outstanding Debt at June 30, 2004 Description Interest Original Principal Balance at June 30, 2004 Sanitation District Capacity Expansion Refinancing Certificates of Participation Issued Aug. 1, 1992 Final Maturity June 1, 1999 5.4% $ 20,980,000 $ 7,740,000 Sanitation District Recycled Water Project State Water Resources Revolving Fund Issued March 1, 2004 Final Maturity March 1, 2024 2.5% $ 3,160,733 ( 1) $ 3,160,733 Bayshore Community Center HUD Sec 108 Loan Issued June 30, 2004 Final Maturity Aug. 1, 2024 5.41% $ 4,500,000 $ 4,500,000 Water System Improvements Certificates of Participation Issued June 11, 2004 Final Maturity June 1, 2024 4.811775% $ 9,860,000 $ 9,860,000 Pension Obligation Bonds Issued June 29, 2004 Final Maturity June 1, 2024 5.973% ( taxable) $ 36,235,000 $ 36,235,000 ( 1) Remainder of total approved amount of $ 4,450,128 will be drawn in fiscal 2005 xv CITY OF DALY CITY xvi We also took advantage of a US Housing and Urban Development loan program to effectively receive an advance on future Federal Block Grant monies to finance part of the construction costs of the Bayshore Community Center and Library. Debt service payments are budgeted in the Block Grant Fund. These capital improvements are discussed in more detail in the Capital Improvements section above. Because these debt obligations do not pledge the full faith and credit of the City for repayment, they do not impact our legal debt limit, calculated at 15 percent of property assessed valuation and equal to $ 882 million at June 30, 2004. ACKNOWLEDGMENT The City Manager's Office and the Department of Finance and Administrative Services sincerely appreciate the cooperation and assistance of the City Council and City staff in addressing the financial requirements and challenges of fiscal years 2005 and 2006. Many people throughout the organization put a high degree of effort and skill into the production of this document. It is their combined effort that enabled the timely issuance of this report. Respectfully submitted, JOHN C. MARTIN DONALD W. MCVEY City Manager Director of Finance and Administrative Services City of Daly City CITY ATTORNEY Fiscal Years 2004- 2005 and 2005- 2006 CITY ATTORNEY ASSISTANT CITY ATTORNEY DEPUTY CITY ATTORNEY LEGAL SECRETARY LEGAL OFFICE ASSISTANT SENIOR LEGAL OFFICE ASSISTANT CITY ATTORNEY PROGRAM DESCRIPTION The City Attorney’s office is authorized for one City Attorney, one Assistant and one Deputy with 2 support staff employees. The City Attorney’s Office advocates the City’s interest in lawsuits filed against or on behalf of the City, its officers, employees and agencies in administrative venues, before Boards or Commissions and in the state or federal court systems. The City Attorney’s Office in conjunction with the Risk Manager, investigates all claims for damages filed against the City and defends the City’s interests where necessary. Role of the City Attorney’s Office The City Attorney is appointed by the City Council and is committed to providing the highest quality of legal representation to the Mayor, City Council, City Manager, City departments, City boards and Commissions. The City Attorney’s Office serves as general counsel for the Daly City Redevelopment Agency, the Daly City Housing Development Finance Agency and the Public Facilities Finance Corporation as well as serves in the capacity of District Counsel to the North San Mateo County Sanitation District. The City Attorney’s Office serves a similar advisory function with respect to the various departments in the City, whose actions are also governed by and must be derived from state law and for the various boards, agencies and commissions within the City. Responsibilities include: • Representing the City in legal proceedings; • Must have expertise in widely diverse areas of law, from bankruptcy to water rights, litigation to legislation and real estate to personnel matters; • Provides counsel to and attends meetings of certain Council committees, the Planning Commission and special City department task forces; • Providing advice or written opinions to any officer, department head, board commission or other unit of local government in areas of land use, personnel, elections, conflict of interest and economic development; • Drafting, reviewing and approving as to form all contracts, surety bonds, ordinances and resolutions; • Investigating, evaluating and recommending disposition of all claims made against the City; While the City Attorney’s Office endeavors to do as much of the City’s legal work as possible, certain legal issues are so specialized or require such large commitments of time over a short period, that the City contracts with outside law firms to represent the City’s interest. Historically, the City has utilized outside law firms to handle matters involving eminent domain, police civil rights, and various bond offerings. 16 CITY OF DALY CITY GOALS As a support department ( rather than an operational department) achieving anticipated and defined goals are difficult to set out. This is a fundamental distinction between the position of City Attorney, and that of all other City departments. Goals include technical competence, effecting accurate and clear presentations, avoid litigation and liability wherever possible, and the layout of alternatives when there’s a legal problem. PROGRAM OBJECTIVES 1. To promptly advise each department of legal implications of proposed actions, and of permissible alternatives when legal restrictions arise. 2. To participate in existing and new City programs as a full team member and assist in their successful completion. 3. To enhance the administration of the City Attorney's Office in a cost effective manner. COST PER SIMILARLY SITUATED BAY AREA CITIES FOR IN- HOUSE CITY ATTORNEY DEPARTMENTS CITY POPULATION STAFF BUDGET COST San Mateo 90,000 3 attorneys 1 ½ support staff 1,368,126 $ 15.20/ resident/ year Hayward 140,030 6 attorneys 3 support staff 1,737,645 $ 12.41/ resident/ year Fremont 209,100 4 attorneys 3 support staff 1,938,217 $ 9.27/ resident/ year Daly City 103,269 2 attorneys 2 support staff 764,129 $ 7.39/ resident/ year 17 City of Daly City CITY CLERK Fiscal Years 2004- 2005 and 2005- 2006 CITY CLERK ELECTIONS ADMINISTRATION ASSISTANT CITY CLERK TYPIST CLERK II/ DEPUTY CITY CLERK 2 TYPIST CLERKS II CITY CLERK PROGRAM DESCRIPTION The public record under the conservatorship of the City Clerk provides fundamental integrity to the structure of our democracy. The Office of the City Clerk is responsible for three legislative functions: 1. As an Election Official, the City Clerk administers Federal, State and Local procedures through which local government representatives are selected; 2. As a Legislative Administrator, the City Clerk prepares legislative Agendas, verifies publishing and posting of legal notices and the recording of legislative decisions; 3. As a Records Manager, the City Clerk oversees the preservation and protection of public record, maintains and indexes the Minutes, Ordinances and Resolutions adopted by the City Council. The City Clerk ensures that public records are readily accessible to the public. GOAL The City Clerk is responsible for the conduct of municipal elections. She oversees a staff of four. The primary goal of the City Clerk’s Office is to provide high quality service to the public in the dissemination of public information, and recording, maintenance, storage and retrieval of official documents. HIGHLIGHTS Beginning in year 2000, the City Clerk implemented the electronic Document Imaging/ Record Keeping System. Storage of documents electronically reduces volume of paper storage files, speeds retrieval of documents, and ensures protection against deterioration of vital historical and legal records. To date, approximately one- third of the City Clerk’s files, and many Historical Records Folders have been scanned and archived. The City Clerk’s office continues to offer a variety of services to assist the citizens of Daly City: • Assistance with Daly City Garbage Discounts and California State Homeowners/ Renters Assistance was provided to approximately 100 residents annually • Assistance with applications for Exemption from Utility Users Tax was provided to approximately 100 residents annually • The absentee Voters Box is being utilized more frequently with each subsequent Election 22 CITY OF DALY CITY PROGRAM OBJECTIVES To provide high quality service to the public in the recording, maintenance, storage and retrieval of official documents; and in the conduct of Municipal Elections. Continuation of the Document Scanning of City Records with the ultimate goal to have all Legislative Records in the computerized program by the 2006 Budget Year. 23 City of Daly City CITY COUNCIL Fiscal Years 2004- 2005 and 2005- 2006 CITY COUNCIL PLANNING COMMISSION LIBRARY BOARD OF TRUSTEES CITY MANAGER PARKS & RECREATION COMMISSION PERSONNEL BOARD CITY ATTORNEY ADVISORY BOARDS AND COMMISSIONS 28 CITY COUNCIL PROGRAM DESCRIPTION The City Council is the legislative body of the City and is composed of five members elected at large and serving staggered four- year terms. The Council makes all policy determinations through the enactment of ordinances and resolutions, exercising final authority in the implementation of such policies. The Council determines how the City will generate and spend revenue through annual reviews and approval of the City’s budget. The City Council appoints the City Manager and City Attorney, as well as the members of the City’s various advisory boards and commissions. GOAL Provide effective leadership in the development of public policy in order to provide efficient, responsive and high quality, professional municipal services to Daly City’s residents. HIGHLIGHTS The Council remains committed to numerous issues of community interest. Members have assumed leadership roles within the County in a number of areas. The City Council has been involved in policy committees of the League of California Cities, serving as representatives on the Joint Powers Board of the County, Airport Roundtable, the Airport’s Land Use Committee, Criminal Justice Council, the San Mateo County Operational Area Office of Emergency Services, Colma Creek Flood Control District, the Convention and Visitors Bureau of San Mateo County, City/ County Association of Governments, San Mateo County Pre- Hospital Emergency Services Medical Group, Peninsula Traffic Congestion Relief Alliance and Association of Bay Area Governments Executive Committee, and Vice Chair of the San Mateo County Transit District Board. Key efforts of the City Council during the prior budget period include: A concerted effort by the Council has been made to inform residents of the continuing threat to local services raised by the State of California’s seizure of local community taxes. Council members, accompanied by city staff, gave presentations throughout the community, including to local service clubs, the Chamber of Commerce, and to over 18 homeowner groups, outlining the sources of city revenues and the effect of continued State taking of local revenues on the City’s ability to render local services. Council members urged citizens to become engaged in efforts to reach State Legislators with the message that residents want local funds to remain local. Many residents responded by assisting with calls and letters to Sacramento and the signing of petitions expressing their concerns. The Council actively pursued legislation favorable to the City’s interests by following important legislative developments, adopting resolutions in support or opposition to legislation, and by writing and contacting local legislators on issues affecting the well being of Daly City. Council members took an active role in community events and in promoting Daly City, by meeting with visiting dignitaries and business interests, and by making themselves available for numerous special meetings and conferences related to city and regional peninsula interests. Council members attended ground breakings and openings for capital improvement projects as well as new community developments including the openings of Hillside Park Clubhouse, Lincoln Community Center, groundbreakings for the Bayshore Community Center and Library and War Memorial Community Center and Library, opening of the newly remodeled Serramonte Shopping Center, and groundbreaking for new affordable housing units to be built by Habitat for Humanity. City of Daly City CITY MANAGER Fiscal Years 2004- 2005 and 2005- 2006 CITY MANAGER ADMIN SECRETARY SENIOR MGMT ANALYST SR. OFFICE ASSISTANT 2 OFFICE ASSISTANTS ASSISTANT CITY MANAGER COMMUNITY PARTICIPATION and INFORMATION COMMUNITY SERVICE CENTER PUBLIC INFORMATION & VOLUNTEER COORD COMMUNITY SERVICE CENTER SUPERVISOR ECONOMIC & COMMUNITY DEVELOPMENT FIRE FINANCE HUMAN RESOURCES LIBRARY PARKS & RECREATION POLICE PUBLIC WORKS WATER & WASTEWATER RESOURCES SERVICE SPECIALIST II SERVICE SPECIALIST I TYPIST CLERK II COMMUNITY SERVICE OFFICE ASSISTANT OFFICE OF THE CITY MANAGER PROGRAM DESCRIPTION The City Manager’s Office is responsible for the general management and oversight of Daly City’s municipal operations, including the Daly City Redevelopment Agency and North San Mateo County Sanitation District. This involves coordination of organizational programs and activities; development and general management of the operating and capital budgets; financial planning for the municipal corporation; continued improvement, expansion or redirection of programs and activities within the organization to meet community needs; selection of senior management personnel; oversight of labor relations activities; generating public information and encouraging community participation; and representing the organization in interjurisdictional matters with other agencies. These duties are carried out under the direction of the City Council and through implementation of City Council policies and legislative actions. The City Manager’s office is responsible for ensuring that the City Council is provided with adequate information and recommendations regarding technical and professional issues under policy consideration and implementing Council decisions in these areas. Further, the City Manager’s office provides the necessary clerical and administrative support to Council Members in their legislative role within the organization, as well as in their activities with other agencies and organizations. HIGHLIGHTS Although the economic decline continues to present real challenges for the City, especially with regards to the continuing State of California’s seizures of local community taxes, previous efforts in economic development have softened the blow to City revenues by providing more sustainable revenue sources than enjoyed by many communities within San Mateo County. Where many neighbors have been hit by the significant loss of transient taxes and internet companies, Daly City has been able to transition from robust economic times to the current situation without resorting to major service cuts and layoffs experienced throughout the peninsula. The decline in some revenue sources has made the funding of the adopted Five- Year Public Facilities Improvement Program more difficult. It is anticipated that the building of the new War Memorial facility will be the last significant capital project under the five year plan, with the others fully planned and designed should funding become available. ACCOMPLISHMENTS During the course of the past two years, the following results have been achieved: Two major retail centers within the community, Westlake Shopping Center and Serramonte Mall were sold with the new ownership at each center making significant investment in the remodeling and re- structuring of each center. The City is participating in the renewal of these two important centers by working with the owners to achieve improved traffic access, parking, public transit and land use for these regional shopping centers. CITY OF DALY CITY ACCOMPLISHMENTS ( CONTINUED) • With the completion of a draft Master Plan for the Cow- Palace/ Carter- Martin Area, the first step in realizing a neighborhood shopping center as well as the development of the Carter- Martin lands has taken place. • Delivery of recycled water in lieu of potable water for irrigation purposes at three golf courses will begin in June 2004, completing this major project that will help preserve the City’s aquifer. • Developed agreements and implemented North County Fire Authority Joint Powers Agency with Brisbane and Pacifica Fire Departments to create greater efficiencies and improve the coordination of emergency services. • Continued efforts at redevelopment of Mission Street through negotiation and processing of potential mixed- use development on the landmark site. • Completion of the energy retrofit for the Civic Center Complex has resulted in a 60% decrease in energy usage in City Hall. • Implementation of GASB 34 reporting requirements, both financial and infrastructure have been fully implemented. • Implementation of the Five- Year major Facility Capital Improvement Program continued with completion of the Hillside Park Clubhouse, Lincoln Community Center, and Gellert Park Field Improvements projects. Projects under construction or out to bid are Bayshore Community Center and Library, War memorial Community Center and Library, Replacement Fire Station 92, and John Daly Vista ( Thorton Beach Trail). • Other Capital Improvements completed include reconstruction of City Hall parking lot, re- routing of Skyline Drive sewer, Westlake off- ramp landscape improvements, re-roofing of Doelger Art Center, pedestrian improvements and street improvements, new utilities and water inter- connect projects, installation of new burglar/ fire alarm systems, and purchase of a 100’ Tiller Drawn Ladder Truck. OFFICE OF THE CITY MANAGER PROGRAM OBJECTIVES FOR FISCAL YEARS 2005 THROUGH 2006 • In an attempt to maintain service levels to the extent feasible, given reduced staffing and operations funding, more extensive management oversight will be required for all City activities. • Oversee adoption of the development agreement necessary for Phase One and Two of the Landmark Site. • Significant progress has been made, but final completion of a major automated systems upgrade providing for graphic and non- graphic geobase information capabilities throughout the organization will be finalized. • Opening of two new community centers, including two new branch libraries at War Memorial Community Center and Bayshore Community Center. With the opening of Bayshore Community Center, the City will enter a new partnership in the provision of services with a community- based organization. • Continue efforts to coordinate with local area school districts and other service providers. Develop partnership agreements to render services in a way that maximizes the use of both school district and city facilities, and expands the opportunities for residents to participate in recreational, learning, and family support activities. • Continue efforts to achieve the development of a full service hotel, and completion of Phase III of the Pacific Plaza development. • Continue efforts to achieve the development of a neighborhood market and retail plaza for residents of Bayshore in keeping with the Master Plan for Cow- Palace/ Carter- Martin area. City of Daly City CITY TREASURER Fiscal Years 2004- 2005 and 2005- 2006 CITY TREASURER LOCAL AGENCY INVESTMENT FUND DEPUTY CITY TREASURER SAVINGS & LOANS BANKS SAN MATEO COUNTY INVESTMENT FUND FEDERAL GOVERNMENT OBLIGATIONS CITY TREASURER PROGRAM DESCRIPTION The office of the City Treasurer is responsible for the management of cash and investments of the City, the Redevelopment Agency and the Sanitation District, Trust and Agency Funds, and Public Facilities Financing Corporation. The City Treasurer is an elected official and serves as the Treasurer to the City Council, responsible for investments made in compliance with State law, and has as objectives: 1) Safety – at no risk to the City at any time 2) Liquidity – availability of monies when needed, and 3) Yield – maximum interest earnings without sacrifice of the first two objectives. These include various short term government insured certificates of deposit, Federal Government Obligations ( Ginnie Mae), deposits in the State of California Local Agency Investment Fund and County of San Mateo Investment Pool. Due to the City Treasurer’s active involvement with the business community, the office frequently assists the Business License Division in collection of its business license fees. He also works closely with the Finance Department in collecting delinquent accounts receivables. The Treasurer also participates with the Daly City Chamber of Commerce in its many activities. GOAL To monitor financial trends to maximize investment income and to maintain adequate cash availability while ensuring that principal invested is protected from loss. HIGHLIGHTS With a portfolio of $ 80 million, the City of Daly City has realized an average current yield of 3% for the past year. CITY OF DALY CITY PROGRAM OBJECTIVES 1. Investment of funds will be in compliance with governing positions of law and city’s investment policy. 2. Maintain adequate cash availability while ensuring that principal invested is protected from loss. City of Daly City DIRECTOR ASSISTANT DIRECTOR ECD PROGRAM ADMINISTRATOR ECD ANALYST SENIOR PLANNER 2 ASSOCIATE PLANNERS ASSISTANT PLANNER TYPIST CLERK II CODE ENFORCEMENT CODE ENFORCE-MENT OFFICER CHIEF BUILDING INSPECTOR SENIOR BUILDING INSPECTOR BUILDING PLANS ENGINEER 6 BUILDING INSPECTORS 2 TYPIST CLERKS II SR. ECON. DEVELOP. COORDINATOR ECON. DEVELOP. COORDINATOR PLANNING BUILDING HOUSING & COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT REDEVELOPMENT CODE ENFORCE-MENT INSPECTOR TYPIST CLERK II BUSINESS CENTER MANAGER BUSINESS CENTER SECTY./ RECEPT. ENT. DEVELOP. COORDINATOR PROGRAM ASSISTANT BUSINESS CENTER ENTERPRISE CENTER DEPARTMENT OF ECONOMIC & COMMUNITY DEVELPOMENT Fiscal Years 2004- 2005 and 2005- 2006 ADMINISTRATION SECRETARY III HOUSING & CD SUPERVISOR REHAB. COORDINATOR REHAB. CONST. INSPECTOR HOUSING COORDINATOR CD SPECIALIST STAFF SECRETARY 1/ 2 ACCOUNTING TECHNICIAN ECONOMIC & COMMUNITY DEVELOPMENT ADMINISTRATION PROGRAM DESCRIPTION The Department of Economic and Community Development is responsible for the management of five divisions: Building, Economic Development, Housing and Community Development, Planning and Zoning, and the Daly City Redevelopment Agency. Together these divisions are responsible for the implementation of policy pertaining to the orderly and balanced physical and economic growth in Daly City. The Department of Economic and Community Development coordinates the work of these five divisions in order to strengthen and preserve the City’s neighborhoods; strategically develop the City’s revenue base; coordinate new growth and long range plans; pursue economic development through redevelopment efforts; and assure safe construction for all of the City’s residents and merchants. GOAL To direct activities for the Department’s five divisions to assure orderly growth, responsive service, interdepartmental coordination, and fulfillment of the City’s long- range objectives. HIGHLIGHTS • Provided assistance to developers interested in a variety of sites in Daly City, including: the Landmark site, DeLong Street property, Serramonte Condos, Westlake Shopping Center, various commercial properties in the Bayshore area including excess land in the Cow Palace area, El Rancho Market Site, and numerous small properties along Mission Street. • Issued Final Certificate of Completion on the Construction of Phase I and II of the Pacific Plaza Development. • Certificate of Completion issued on the conclusion of development of the 87th and Edgeworth Street property. Tenants include Ace Hardware, a new Broadmoor Police Station, a Laundromat/ Deli Café and storage facility. • Purchased property at 173 – 3rd Avenue. Demolished home and greenhouses and completed the cleanup of contaminated soil. Property sold to Habitat for Humanity for the construction of seven low- income homes. • Purchased 204 – 92nd Street property for inclusion in the future construction of the Civic Center Annex. • Joining Daly City’s business community are Fuddruckers, Kaiser Permanente Office Building, Quiznos, Cactus Fresh, and Celia’s. • Implemented Hire Daly City. org website which allows businesses to post local job opportunities. CITY OF DALY CITY HIGHLIGHTS ( CONTINUED) • Facilitated and assisted the Daly City- Quezon City Sister City Committee in promoting their Ninth Annual Filipino American Friendship Celebration. • Issued $ 175,206 in housing rehab loans/ grants, 8 low- income homeowner loans, 25 Minor Home Repair Grants to seniors, and 6 Security Bars Replacement grants. • Processed to completion 144 homes for sound proofing retrofit for ANSP Phase IX. Bringing the total number of homes with completed soundproofing to 2,263. • Responded to 1,069 Citizen complaints regarding safety and code violations and resolved 978 cases. PROGRAM OBJECTIVES 1. Continue to promote Daly City’s economic growth and prosperity by promoting marketing efforts in the Bayshore District and along the Mission Street corridor. 2. Complete revisions to the Housing Element of the General Plan. 3. Assist and support the development of 87 affordable units for seniors on the El Rancho Market site. 4. Prepare and approve a Disposition and Development Agreement for the Landmark site and the Crowne Plaza Hotel site on Junipero Serra Boulevard. 5. Continue to seek opportunities for the development of low- income housing. PLANNING AND ZONING PROGRAM DESCRIPTION The Planning Division administers and maintains the City’s General Plan, Specific Plans, Zoning Ordinance, and coordinates Code Enforcement activities. The General Plan envisions future development in the City through broad goals, policies and objectives; Specific Plans establish measures to implement the General Plan; and the Zoning Ordinance establishes specific standards to assure orderly, compatible and attractive development. This Division also provides support to the City Council, Planning Commission, Redevelopment Agency, Design Review Committees, and coordinates the Development Coordinating Committee and Administrative Hearing Board. Activities of the Division include reviewing developments for conformance with City Codes and other requirements including State Laws. The Division also assists the public and development community on matters of zoning, permits and other entitlement procedures. Code enforcement staff ensures timely compliance with local codes and promotes community pride through self- help. GOAL To preserve and enhance the City's physical, economic, and social environment through implementation of effective short and long- range planning principles. HIGHLIGHTS In the past two fiscal years the Planning Division completed the following prominent tasks: • Assisted in major new development projects recently completed or under construction: Recently Completed: Under Construction: Pacific Plaza – Phase II Lake Merced Golf Club Improvements Serramonte Corporate Center ( Kaiser) 4- unit Mixed- Use Development on Edgeworth Summit Ridge Subdivision ( 74 units) Lausanne Subdivision ( 10 units) Bay Vista Subdivision ( 75 units) Habitat for Humanity - Third Ave. ( 7 units) Serravista Subdivision ( 45 units) Carter Street Storage Facility Parkview Terrace ( 31 units) Trader Joe’s/ Cost Plus Commercial Building Mixed- Use Bldg., Edgeworth @ 87th St. New KFC/ Taco Bell • Reviewed over 814 new building permit applications, with an additional review of over 300 resubmitted plans mostly within 5 days. Over 35% of these were Express reviews, completed in one day. • Completed environmental reviews per CEQA for over 20 City capital projects. • Participated in required General Plan Housing Element Update. CITY OF DALY CITY HIGHLIGHTS ( CONTINUED) • Operated with a 50% vacancy rate in the Planning Division for a period of more than 1.5 years. • Prepared a Master Bicycle Plan for the City of Daly City. • Reviewed and processed the following development permit applications: Conceptual Review 39 Design Review 32 GPA’s 2 Use Permits 34 Minor Subdivisions 8 Zone & Text Changes 4 Variances 8 Major Subdivisions 5 Admin. Use Permits 9 PROGRAM OBJECTIVES During the next fiscal budget cycle the Planning Division will strive to complete the following: 1. Update the Daly City Coastal Element and Implementation Plan. 2. Review and upgrade residential development regulations in order to prevent “ monster homes,” illegal secondary units, excessive density, parking problems, etc. 3. Continue to coordinate environmental compliance for all City capital projects. 4. Review approximately 1,000 building permit plans within 3 to 5 working days. 5. Process planning applications within an average time of 10 weeks. 6. Increase public knowledge and access regarding the development application, review and approval process via improvements to the Division’s Internet web site. 7. Develop and implement a training program for landlords and property managers as an option for cases brought before the Hearing Board. 8. Focus Code Enforcement Task Force efforts on substandard apartments, emphasizing quick abatement of hazardous violations and incentives for voluntary abatement. 9. Adopt General Plan and zoning amendments that implement the Cow Palace Master Plan. 10. Continue coordination of multi- jurisdictional transportation study in implementing transportation improvements, including the Geneva Avenue/ Highway 101 Interchange. 11. Integrate planning permit processes into new Hansen geo- based permitting system. BUILDING DIVISION PROGRAM DESCRIPTION The Building Division is responsible for the administration and enforcement of building codes to safeguard life, health, property and public welfare. The division reviews plans for and inspects construction of new buildings and building renovations, seeks correction of building code violations through an active code enforcement program, and maintains related records. GOALS To ensure the health and safety of the community through building inspection activity by enforcing building and construction codes set forth under the Daly City Municipal Code. To provide continuity of inspections, and to assist the development of new construction by providing timely and accurate information on plans and specifications. To further ensure the continued integrity and viability of Daly City's housing stock. HIGHLIGHTS • Issued over 5,000 permits annually with an average of 89% issued the day an application was filed. • Served 8,940 customers at the building counter annually at an average wait of 2.5 minutes ( down from 3.5 minutes in the previous budget cycle). Responded to over 10,000 telephone information requests annually. • Performed 16,270 next day or same day construction inspections ( compared with a ten year average of 13,880), 17.2% above average. • On average, conducted 1,120 reviews of building plans submitted under 729 applications annually. Seventy- one percent were reviewed in two weeks or less ( up from 48% in the previous budget cycle). Thirty- two percent were reviewed the same day, using the Express Plan Check service ( up from 21% in the previous cycle). • Conducted over 500 code enforcement investigations annually with 40% of the cases investigated, solved and closed within 30 days. Approximately four percent of cases were referred to the Administrative Hearing Board for resolution. Reduced the open case backlog from 350 to 100 cases ( the goal was reduction to 250 cases). • Adopted the 2001 California codes with significant local structural amendments. Trained staff in their use. • Translated the “ Is A Permit Required” handout into Spanish. Updated all handout materials for the 2001 California codes. CITY OF DALY CITY HIGHLIGHTS ( CONTINUED) • Updated the division web page to reflect the new California code requirements and made building permit, 3R report applications, handouts and fee schedules available on- line. • Created and filled a Building Plans Engineer position. The division now has a licensed structural engineer on staff. • Assisted in the development of new permitting and code enforcement database software. • Simplified and implemented a new fee schedule to facilitate automatic fee calculation. • Completed inspections of the Serramonte Corporate Center office building and associated Kaiser Permanente tenant improvement project. PROGRAM OBJECTIVES 1. Provide excellent and timely service. Strive for new and better ways to serve the public. Implement customer service improvements as needed. 2. Maintain a 10 working day turnaround on initially submitted plans, 5 working days on resubmitted plans, an average three minute wait at the counter, next day response on construction inspection requests, and an average of ten inspections per day per inspector. Issue permits as requested, 88% on the same day requested. 3. Reduce the average number of plan check submittals from 2.5 to 2.4 per application. 4. Respond to all code enforcement requests within two working days. Keep all cases current with no more than 30 days of non- activity. Maintain an open caseload of less than 150. 5. Implement the new permitting and enforcement database software. 6. Adopt the 2004 California Building Codes. Train staff in the changes. 7. Continue the web page development by providing more and better information regarding the public services that we provide. 8. Using new database software, automate the residential requirements report ( 3R) process. DALY CITY BUSINESS CENTER PROGRAM DESCRIPTION The Daly City Business Center provides a location for the creation, maintenance and growth of small businesses by offering attractively priced office spaces in a commercial area, a full range of administrative support services provided by a professional staff, on- site technical assistance through the Enterprise Center, office amenities as well as the latest technologies to local entrepreneurs. Created in 1995, the Daly City Business Center is the only government sponsored business center/ incubator program in the North San Mateo County area. Strategically located at 355 Gellert Boulevard, the Center is the only facility that provides serviced small office spaces starting at 90 sq. ft., with 6- 18 month leases in Daly City. The Center has the capacity to handle up to 39 tenant- offices and 18 virtual offices in various stages of development. It also strives to create a community of small business owners, helping one another attain common objectives and cognizant of the different resources available within the City. GOAL To provide an environment conducive to the creation, attraction, retention and expansion of small businesses by helping them minimize overhead, have access to personalized business services and technical assistance, and build business relationships and networks essential to its success, so that these businesses may, in turn help promote economic development for the City and enhance employment opportunities for the residents of the North San Mateo County. HIGHLIGHTS • Generated a wider awareness and interest about the DCBC through community service, networking activities, sales presentations and mailers • Created a new, definitive image and identity of the Center as a Program of the City of Daly City with a logo, new brochure, and stationery • Started FY 2003 serving 21 tenants and 10 virtual clients with the capacity to handle up to 29 tenants and 13 virtual clients by year- end. This translates to serving the business services needs of an estimated 70 to 100 people including tenants, their employees, contractors and guests being served at the Center on a daily basis. • Significantly reduced estimated City investment to the Center to 16% of its total budget. • Provided the location and services that supported the creation of 14 new business enterprises; CITY OF DALY CITY HIGHLIGHTS ( CONTINUED) • These new business enterprises provided employment ( including self- employment opportunities) for 24 people during the year • Provided services to over 70 owners/ workers of small businesses, and their customers. PROGRAM OBJECTIVES 1. Provide office space and business services to up to 52 small businesses/ start- ups ( including Business Identity and executive suites clients) by 2006. 2. Meet or exceed client quality expectations for business services for reception, telecommunications, meeting facilities, networking activities, mail and call handling, and secretarial services. 3. Increase awareness and interest in the Daly City Business Center as “ the only business center/ incubator in the North San Mateo County” by working with the local community organizations and hosting/ participating in business networking activities. 4. Inform home- based businesses, business license applicants and other small businesses in Daly City about services and opportunities available at the Daly City Business Center. 5. Conduct business workshops among the tenants on matters of common interest. 6. Recognizing the importance of presenting a professional image for small businesses within the Center, the 9- year old carpet covering the Center’s common areas will be replaced in 2004. Likewise, artwork depicting Daly City’s history, people, and scenery will be presented at the Center. HOUSING & COMMUNITY DEVELOPMENT Community Development Block Grant PROGRAM DESCRIPTION The CDBG program involves administration of the City’s entitlement grant from the Department of Housing and Urban Development ( HUD). The City uses these funds to carry out activities such as housing, economic development, public services and improvement of public facilities that primarily serve low income residents. The administration of the CDBG program insures compliance with all HUD requirements. This includes completing reports to HUD in a timely fashion; soliciting, evaluating and recommending to City Council appropriate projects for CDBG funding; and overseeing the timely and appropriate expenditure of funds. Additionally, this program coordinates the use of HOME Investment Partnerships Program funds. GOAL To identify and meet the critical community development and housing needs of the lower-income residents of Daly City, in compliance with federal, state and local regulations. HIGHLIGHTS During FY 2003- 04 staff: • Provided funding for construction of the Bayshore Community Center as well as wage compliance oversight. • Evaluated potential development sites for construction of affordable rental and ownership housing. • Monitored 13 CDBG funded programs/ projects and funded 25 subgrantees to meet needed public services for Daly City residents. • Provided funding to Rebuilding Together and North Peninsula Neighborhood Services enabling these organizations to complete housing rehabilitation projects for 33 lower income Daly City homeowners. • Investigated several potential multi- family acquisition/ rehabilitation projects. • Coordinated with San Mateo County in the implementation of the Mortgage Credit Certificate Program servicing 10 Daly City households. • Prepared the City’s 2004- 05 HUD Action Plan and completed HUD Consolidated Performance Report for FY 1998- 2002. • Implemented an education program for first time homebuyers. A total of 92 individuals have completed individualized counseling through the program and 16 have purchased a home since the program’s inception in FY 01- 02. • Executed loan documents for a Section 108 Loan to finance development of Bayshore Community Center. CITY OF DALY CITY PROGRAM OBJECTIVES 1. Continue to work with non- profit housing development organization for acquisition and rehabilitation of rental complex containing 10 or more units. 2. Identify and evaluate sites suitable for new rental housing for low and moderate income households. 3. Work with Habitat for Humanity to develop 4 to 8 units of self- help housing. 4. Continue to address fair housing issues through development of educational materials, increase community outreach and investigation of housing discrimination cases. 5. Continue education program for first time homebuyers and evaluate alternatives for downpayment assistance for low and moderate income households. 6. Prepare HUD One- Year Action plans for 2004- 05 and 2005- 06 for use of CDBG and HOME funds. 7. Coordinate with the County for continuing implementation of the Mortgage Credit Certificate program in Daly City. 8. Coordinate the implementation of CDBG- funded Capital Improvement projects with other City departments, including financial management and oversight, environmental review and monitoring compliance with Federal Labor Standards provisions. 9. Continue to provide funding, monitor and assist CDBG subrecipients who provide a variety of public services to low income Daly City residents in the areas of food, shelter, legal services, health care, child care, youth services, family crisis intervention, literacy and job training. 10. Monitor HOME and CDBG funded activities and programs to ensure compliance with Federal regulations. 11. Prepare Annual Performance Reports for use of HOME and CDBG funds. 12. Establish a code- enforcement program in low- income census tracts utilizing CDBG funds. ECONOMIC AND ENTERPRISE DEVELOPMENT PROGRAM DESCRIPTION The Daly City Enterprise Development program seeks to strengthen the City’s economic climate primarily by fostering the development and growth of small and microenterprise businesses. Through the Enterprise Center ( Center), the program provides business consulting, technical assistance and referral services in a variety of areas to small and microenterprise business owners, prospective owners and residents. Additionally, Center staff provide business evaluation interviews and quarterly assessments for Business Center clients, loan packaging for the Micro Loan Program, operates the Small Business Workshop Series, plans and coordinates business planning classes, and develops networking programs for small businesses. GOAL To strengthen existing and foster the development of new small and microenterprise businesses by offering consulting, technical assistance and other programs for small and microenterprise businesses owners and residents at little or no cost. HIGHLIGHTS Accomplishments during 2003- 04 include: • Provided individual consulting to approximately 123 small and microenterprise business clients and conducted over 365 consulting appointments during the past two fiscal years. • Documented 8 jobs that were created by clients of the Center since July of 2002. • Provided business evaluation interviews and quarterly follow- up counseling to designated Business Center clients as needed. • Established partnership with Skyline College to offer entrepreneurship class for college credit. Course serves over 35 student entrepreneurs. CITY OF DALY CITY PROGRAM OBJECTIVES 1. Provide counseling services to 150 small business clients and conduct at least 300 consulting appointments. 2. Document 10 new jobs that are created by Center clients including at least 7 jobs for low and moderate income persons. 3. Monitor all assisted businesses and implement improved methods for tracking impact and effectiveness of the Enterprise Center. 4. Provide business evaluation interviews and quarterly follow- up counseling to designated Business Center clients as needed. 5. Continue partnership with Skyline College and offer 12- session entrepreneurship class at least once annually. 6. Establish new loan program for Daly City Businesses utilizing CDBG funds. 7. Enhance employment opportunities for low and moderate income residents of Daly City by executing, whenever appropriate, first source hiring agreements. 8. Work with Business Center and Chamber of Commerce to offer “ seamless” and comprehensive assistance to new and growing Daly City businesses. 9. Develop and implement an outreach campaign to market the Enterprise Center’s services. HOUSING & COMMUNITY DEVELOPMENT Residential Rehabilitation Program PROGRAM DESCRIPTION The Residential Rehabilitation Loan Program provides low- interest rate loans to low/ mod income homeowners to finance home repairs. The funds are used to correct code related deficiencies like hazardous plumbing, electrical problems, termite repairs, lead based paint and asbestos control or abatement, and structural repairs, etc., to make property decent, safe and sanitary. Four loan programs are available: 1) Complete Rehab; 2) Roof- only; 3) Paint only; and, 4) Our newest partial loan, Windows only. Two grants are available; a Senior Minor Home Repair Grant and a Security Bars Replacement Grant. The Rehab staff provides many applicants with a full house inspection, a written inspection report, a cost estimate, bidding assistance, work- in- progress monitoring and progress payment preparation. GOAL The goals of the program are fourfold: 1) Outreach to low income homeowners and offer them low- interest rate loans and grants; 2) Provide better living conditions for eligible homeowners through timely and equitable distribution of available funds; 3) Eliminate unsafe security bars to facilitate resident escape in case of fire; and, 4) Upgrade the housing stock and forestall deterioration of the City infrastructure. HIGHLIGHTS During FY 03/ 04, the Rehab staff: • Issued 39 loans/ grants totaling $ 175,026 ( benefiting 39 low- income homeowners; includes 25 Senior Minor Home Repair Grants and 6 Security Bars Replacement Grants) • Received/ reviewed 43 applications • Provided full house inspections for 33 homes • Responded to 149 phone inquiries • Serviced approximately 43 rehab loans ( post payments, monitor delinquency, issue payment coupons and annual loan statements) • Performed annual review of 1 deferred rehab loan • Inserted message in the City Utility Billing twice ( each ran for 2 months) • Worked with North Peninsula Neighborhood Services Center to provide low- income homeowners with additional funds/ resources to do home repairs • Initiated a new Emergency Grant program providing up to $ 3,000 to income eligible Daly City victims of City declared emergencies. The grant covers repair/ replacement of furnaces and/ or water heaters, or to repair electrical and/ or plumbing problems. CITY OF DALY CITY PROGRAM OBJECTIVES 1. Utilize all available methods of the media to inform homeowners in the City about our loan and grant program. Show the Rehab video and Power Point presentations on Channel 26 and provide both to interested residents, homeowners’ associations and other interested parties as well as giving presentations at interested homeowners association meetings. We will continue to advertise, in English and Spanish, on the City’s Channel 26. We will issue news releases in the Daly City Record. We will use the message area of the utility bill, when available, and list program information in the Community Information Program Book, which is updated yearly. Provide all libraries, the senior center and other City departments with our latest Rehab brochure to make available to the general public. 2. Process, in a timely and efficient manner, all applications for loans or grants. 3. Provide accurate full- house inspections and cost estimates, and assist each homeowner, as needed, with the bidding process, job quality control, and payment processing. 4. Receive 250 phone inquiries, review 68 applications, inspect 60 homes, issue 50- 60 loans/ grants, complete 50- 60 jobs ( including 40 Senior Minor Home Repair Grants and 10 Security Bars Replacement Grants) and service a loan portfolio of approximately 50 amortized loans and 1 deferred loan. 5. Coordinate with North Peninsula Neighborhood Services Center ( NPNSC) to provide additional minor home repair assistance to low- income families ( especially seniors and the physically challenged) who are unable to do this work for themselves. It is estimated that referring potential applicants to NPNSC can assist 40 households/ 100 persons. HOUSING & COMMUNITY DEVELOPMENT Aircraft Noise Soundproofing Project PROGRAM DESCRIPTION The San Francisco International Airport ( Airport) funded the Aircraft Noise Soundproofing Project with: 1) $ 120 million provided under a Memorandum of Understanding ( MOU). Daly City’s pro-rata share of these funds was $ 20.184 million, used to reduce the impact of aircraft noise in homes in the southeastern portion of Daly City; 2) up to $ 22.4 million additional funds to retrofit homes in a reduced area in the southeastern portion of Daly City. Daly City is eligible to use about $ 9.6 million of these funds for Phases 7, 8 and 9 ( totaling 620 homes); and, 3) almost $ 3.5 million provided by the Federal Aviation Administration and the Airport under an 80/ 20 funding split to cover Phase 10, consisting of 303 dwelling units ( includes 120 apartments). Retrofit work consists of installing acoustically rated double pane windows, solid core doors, blown- in attic insulation, chimney dampers, thermal sliding glass doors and other items as recommended by an acoustical engineer to reduce the interior noise level of each home to 45 CNEL or less. GOAL Reduce interior noise levels for all eligible dwelling units to 45 CNEL ( Community Noise Equivalency Level) or less by the end of 2004. HIGHLIGHTS During FY 03- 04, the Rehab staff: • Oversaw retrofit work through construction completion of 144 homes in Phase 9 • Worked with the Airport and the FAA to secure almost $ 3.5 million for 303 dwelling units in Phase 10 For ANSP 10 • Secured a project manager, architectural services and construction inspection services • Provided Airport with necessary Grants of Easements to obtain 25% funding • Reviewed 303 plans and specifications • Advertised for construction bids and awarded a construction contract • Oversaw beginning of construction for 183 homes and 120 apartments CITY OF DALY CITY PROGRAM OBJECTIVES 1. Work with the Airport and the FAA while retrofitting 303 dwelling units in Phase 10 2. Complete retrofit work on all eligible homes by the end of 2004 ANSP 10 • Oversee work- in- progress for 303 homes • Close out this phase by the end of 2004 HOUSING & COMMUNITY DEVELOPMENT HOME Program PROGRAM DESCRIPTION HOME funds are one of the primary tools available to address a growing affordable housing crisis in San Mateo County. In July of 2003, Daly City became an independent Participating Jurisdiction ( PJ) in the HOME program and now receives a direct allocation of HOME funds from the Federal government. Our program targets developers for new construction, and works with non- profit organizations to acquire and rehabilitate existing buildings. These activities benefit Daly City residents by providing additional affordable housing while beautifying neighborhoods and neglected property. The HOME program also provides loan funds to existing owners of multi- unit buildings to do repairs such correction of hazardous plumbing, electrical problems, termite repairs, structural repairs, etc.) to make each rental unit decent, safe and sanitary. Use of HOME funds is very restricted, must benefit low and very low- income tenants, and requires the continued affordability of rent for each tenant household assisted. GOAL The goal of the program is to expand housing opportunities for all categories of need: families, seniors, disabled and special needs populations. The City will use a variety of approaches to address the needs of all types of lower income households including new construction, acquisition/ rehabilitation and homeownership assistance. HIGHLIGHTS Accomplishments during 2003- 04 include: • Responded to over 150 phone calls from the public seeking affordable housing • Evaluated sites suitable for development of ownership and rental housing for lower income households. • Provided funding for land acquisition and construction, entitlements, relocation services and soil remediation associated with development of 7 single- family homes by Peninsula Habitat for Humanity. Homes are currently under construction with an estimated completion date of June 2005. • Established Daly City as a HOME Participating Jurisdiction and adopted guidelines for use of HOME funds in Daly City. CITY OF DALY CITY PROGRAM OBJECTIVES 1. Work with Peninsula Habitat for Humanity to complete entitlement process and secure funding to develop housing units on De Long Avenue and the Parkview Clubhouse site. 2. Identify sites and properties that represent valuable opportunities for development of additional affordable housing. 3. Work with private developers to include affordable housing component in new construction projects. 4. Study alternatives for offering assistance to low- income households seeking to become homeowners. 5. Monitor rents annually to ensure continued affordability of HOME- subsidized properties to low and very low income tenant households 6. Prepare Annual Plans for 2004- 05 and 2005- 06 and submit to Department of Housing and Urban Development. 7. Prepare Annual Performance Reports for FY 2003- 04 and FY 2004- 05 per HUD requirements. DALY CITY REDEVELOPMENT AGENCY – J. S.- MISSION PROJECT AREA PROGRAM DESCRIPTION The Redevelopment Agency is responsible for the revitalization of three commercial areas, Mission Street, a portion of Junipero Serra Boulevard and the Bayshore Project area. In these areas the Agency directs its efforts toward: removing and replacing deteriorating properties by assembling vacant and under- utilized property; assuring new construction is well- designed; working with merchants to restore economic vitality; and providing housing opportunities for all income categories. Along Mission Street the Agency operates a rebate program for business and property owners who upgrade building facades. Other related budget sections are: DCRA Tax Increment Funds. These funds receive revenue from incremental property taxes within the redevelopment areas and transfers them to the Agency Administration Budget. GOAL To eliminate blight, and promote renovation, revitalization and redevelopment of Daly City, which increases the tax base, expands retail and service opportunities and creates jobs for residents. HIGHLIGHTS • Final Certificate of Completion issued for the development and construction of a nine- story office building, two parking structures, Cineplex and an attractive public Plaza, Phase I and II Pacific Plaza. • Certificate of Completion issued for the 87th and Edgeworth Street commercial property. • Supplemented the existing DDA with Pacific Plaza to provide the Agency certain rights to use parking spaces within the Pacific Plaza Parking Garage. • Approved seven applications for the Façade Improvement Program along Mission Street. CITY OF DALY CITY PROGRAM OBJECTIVES 1. Complete a Development and Disposition Agreement for the sale and development of the Landmark. 2. Continue to market land on Junipero Serra Boulevard for sale and construction of a Hotel. 3. Continue to work with Summit Commercial for the completion Phase III of the Pacific Plaza Development. 4. Acquire property on Junipero Serra Boulevard for inclusion in the development of Phase III of Pacific Plaza. 5. Acquire additional property along Mission Street for the development of affordable housing and/ or mixed- use projects. 6. Provide oversight of property management activities for the Agency- owned Property. 7. Expand code enforcement oversight on Mission Street. 8. Continue the marketing of the Façade Improvement Program for the revitalization of Mission Street. BAYSHORE REDEVELOPMENT PROJECT AREA PROGRAM DESCRIPTION In June of 1999, the Daly City City Council adopted the Bayshore Redevelopment Project Area for the revitalization of the Bayshore Neighborhood. The Bayshore Redevelopment Project area is located in the easternmost part of Daly City and includes most of the Bayshore neighborhood. The Agency will direct its efforts toward: assembling vacant and under- utilized property; assuring that new construction is well- designed; support residential uses in the area; and increase the provision of public services and facilities in the project area. Other related budget sections are: Bayshore Tax Increment Fund. This fund receives revenue from incremental property taxes within the redevelopment area and transfers them to the Bayshore Agency Administration Budget. Bayshore Façade Improvement Program. This fund administers monies for the improvement and beautification of business facades in the Bayshore area. GOAL To eliminate blight and deterioration of the area, correct and maintain needed public improvements; retain and assist existing business through rehabilitation activities; market and promote new businesses that will increase the tax base; expand retail and service opportunities and create jobs for residents. HIGHLIGHTS • Worked with the City and other Agencies to fund and construct the Bayshore Community Center. • Demolished the old fire station on Geneva Avenue for use as a neighborhood mini park. • Approved the development of affordable senior housing units on the El Rancho Market site. • Implemented a Façade Improvement Demonstration Project at 2800 Geneva Avenue. CITY OF DALY CITY PROGRAM OBJECTIVES 1. Complete the Master Plan for the Cow Palace Area. 2. Prepare an RFP for the development of the Cow Palace Area. 3. Implement a neighborhood Residential Rehabilitation Program. 4. Identify properties for possible mixed- use development to include affordable housing for low and medium income families. City of Daly City DIRECTOR ASSISTANT DIRECTOR SECRETARY III 1/ 2 CENTRAL SVC. SUPERVISOR PRINTER OPERATOR PARKING METER/ STORES CLERK RISK MANAGEMENT DIVISION RISK MANAGER RISK MGMT OFFICE ASSISTANT INFORMATION SERVICES MANAGER SR. NETWORK ADMINISTRATOR SR. PC/ LAN TECINICIAN 2 PROGRAMMER/ ANALYSTS COMPUTER OPERATIONS TECH PC/ LAN TECNICIAN MOTORVEHICLES DIVISION ADMINISTRATION DIVISION CENTRAL SERVICES DIVISION INFORMATION SERVICES DIVISION UTILITY BILLING DIVISION PBX TELEPHONE SERVICES UTILITY BILLING SUPERVISOR CUSTOMER SERVICE REP. 3 1/ 2 ACCOUNT CLERKS II CASHIER 3 METER READERS MOTOR VEHICLES SUPERVISOR CHIEF MECHANIC 6 MECHANICS AUTOMOTIVE BODYWRK/ PAINTER MECHANIC’S HELPER RADIO/ COMM. TECHNICIAN 1/ 2 TYPIST CLERK II ACCOUNTING SECTION ACCOUNTING SVC. MANAGER ACCOUNTANT 2 1/ 2 ACCOUNT CLERKS II SR. ACCTG. TECHNICIAN 1/ 2 ACCOUNTING TECHNICIAN PAYROLL SECTION 2 ACCOUNT CLERKS II PURCHASING SECTION 1/ 2 CENTRAL SVC. SUPERVISOR 2 ACCOUNT CLERKS III PAYROLL SUPERVISOR 1/ 2 TYPIST CLERK II NETWORK ADMINISTRATOR DEPARTMENT OF FINANCE & ADMINISTRATIVE SERVICES Fiscal Years 2004- 2005 and 2005- 2006 108 FINANCE - ADMINISTRATION PROGRAM DESCRIPTION Finance Administration is responsible for facilitating the planning, organization, implementation, control, coordination, and direction of the financial policies and programs of the City, as established by the City Council and City Manager. The Department also prepares and publishes the Comprehensive Annual Financial Report, Operating Budget and Capital Budget for the City of Daly City. Finance Administration has seven principal areas of responsibility: Accounting, Business License, Capital Projects Accounting, Finance Administration, Payroll, Purchasing, and Utility Billing. In addition, the department manages the following internal service functions: Central Services, Information Services, Motor Vehicles, PBX Telephone Services and the City’s Risk Management/ Self Insurance programs. GOAL To continue providing responsive, timely, cost effective, and accurate management information to every user, and to maintain superior services to other departments and the public in all our functional responsibilities. HIGHLIGHTS Accounting: During the past two years, staff has accomplished the following: • Prepared Comprehensive Annual Financial Reports which received awards for excellence in financial reporting from both the Government Finance Officers Association ( GFOA) and the California Society of Municipal Finance Officers ( CSMFO) for the 19th and 20th consecutive years. • Implemented new mandatory financial reporting standards recently issued by the Governmental Accounting Standards Board ( GASB 34), including accounting for infrastructure elements in advance of the 2007 deadline. • Maintained an average of ten working days for the closing of accounting books. • Provided training to city departments/ divisions on the IFAS accounting system. Business License ( sub- unit of Accounting): Business License Tax revenue grew approximately $ 122,000 over the past two years. Our staff is coordinating efforts with the Planning/ Code Enforcement, Police and Fire departments to ensure that all businesses meet the necessary requirements. We are also utilizing information provided by the State and other local agencies to locate businesses. These tasks will become more efficient with the implementation of the new Hansen software. We continue to focus our efforts on bringing unlicensed businesses into compliance with Daly City's municipal code. Administration: Oversaw the preparation of biennial operating and capital budgets, which again received national and state honors from GFOA and CSMFO. During the past few years, administrative staff was stretched thin due to vacancies in the Assistant Director of Finance and Secretary III positions. A contract was entered into with MBIA to assist the City in identifying and collecting sales tax revenue that sometimes gets missed because it is not properly reported. We worked with Hansen Systems to implement new contracts for the provision of comprehensive asset management and applications software. CITY OF DALY CITY HIGHLIGHTS ( CONTINUED) Payroll: Payroll staff updated the Payroll system with some new features. Staff has been working to set up an On- Line Timesheet process. We are eliminating a lot of " paper" and reducing demands on storage space by scanning most of our files onto our SIRE records archiving system, providing easier access and retrievability. We maintain the demanding regular workload of processing a $ 42 million annual payroll. Purchasing: We currently maintain an average of three calendar days in which purchase requisitions are processed as purchase orders. The Bi- Tech purchasing software was successfully used to issue Blanket Purchase Agreements ( BPA) in the previous fiscal year, and this use is being expanded. PROGRAM OBJECTIVES 1. Continue the implementation of new governmental financial reporting standards ( GASB 34) 2. Continue to pursue migration of payroll time reporting to a Web- based payroll module from the City’s finance software vendor. 3. Monitor the implementation of new software from Hansen Systems to replace the City’s Muni Base system, and oversee the expansion of applications to include new areas including Business License and Utility Billing. 4. Work to implement enhancements on the financial reporting system in preparation for a new web- based user interface 5. Complete implementation of the City’s automated purchasing and fixed asset systems. 6. Maintain the standard of ten working days for issuing of monthly financial reports. 7. Maintain a three day average for processing purchasing requisitions. 8. Strive to exceed the customer service expectations of our residential and business communities, as well as those of our fellow departments. 93/ 94 94/ 95 95/ 96 96/ 97 97/ 98 98/ 99 99/ 00 00/ 01 01/ 02 02/ 03 600,000 700,000 800,000 900,000 1,000,000 1,100,000 1,200,000 1,300,000 Business License Tax Revenue 109 CENTRAL SERVICES PROGRAM DESCRIPTION The Central Services Division encompasses four areas. These are: Duplicating & Copier Service, Mail Messenger, Central Stores, and Parking Meters. Duplicating provides printing for the various City offices, which is done by the offset method, and produces a wide variety of publications. Working in conjunction with the printing function we have a Desktop Publishing system that we utilize to produce originals for printing. An additional function of this division is the purchase and maintenance of the City photocopy machines. The Mail Messenger service provides citywide pick- up and delivery of interoffice and U. S. Mail. Also, we deliver small parcels and orders received through the city store. Central Services maintains a stockless system for office products, but still stocks and supplies the various City departments with the most frequently used stationery, safety and miscellaneous supplies. Most of the City shipping and receiving is handled here also. There are approximately 600 Parking Meters located throughout the City. These meters are collected and maintained by the Central Services Division. GOAL The goal of this division is to provide the highest quality services to City departments in the most time- and cost- effective manner. HIGHLIGHTS In 2003 we increased the rates on the two- hour parking meters to make the hourly rate consistent on all meters. The revenues reflect this rate increase along with a steady increase since the installation of the meters. The increase in revenues is due in large part to the reliability of the electronic meters. Also, we have had some success selling the old mechanical parking meters in the City Store at City Hall. In Central Stores we continue to process orders via several methods; online ordering with Office Depot which is in conjunction with the County of San Mateo and allows us greater discounts, the stockless program with Boise Cascade and Corporate Express, and the Central Service Store Orders for our on- hand stock. In Duplicating for 2002- 03 & 2003- 04 we completed approximately 1200 print jobs with a total of 2,500,000 impressions. In our mail facility we processed approximately 400,000 pieces of mail each year for 2002- 03 and 2003- 04. 112 CITY OF DALY CITY PROGRAM OBJECTIVES Our objectives for this year include; 1. Maintain the production of Duplicating at approximately 1,200,000 impressions annually. 2. Continue to process U. S. Mail at a rate of approximately 33,30 pieces a month. 3. Evaluate and purchase replacement copiers for City Manager, City Clerk, Library, Police, and Streets Division in 2004- 05; and for Human Resources and Recreation in 2005- 06. 4. Monitor the revenue from and repair ac |
| PDI.Date.Issued | 2004 |
| PDI.Title | Budget. 2004-2006. |
| OCLC number | 664148106 |
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