Memorandum

City of Lawrence

TO:	Mayor and City Commissioners
FROM:	David L. Corliss, Interim City Manager
CC:	Debbie Van Saun, Assistant City Manager
Date:	August 16, 2006
RE:	Implementation Items from the Adopted 2007 Budget

This memorandum sets out a work plan for the implementation of a number items coming from the Commission’s adoption of the 2007 budget. Some internal items (e.g. hiring of new three person street crew for Public Works) will proceed on without additional Commission input or review, however, a number of items are appropriate for Commission review and direction. This memorandum forecasts those items. I do not plan to discuss each of these items in depth on August 22, but will highlight those items on which I am seeking current Commission direction.

General Items

A. Staff will continue to respond to research requests generated during the budget preparation process as outlined in the attached Action Items Update.

B. Additionally, staff plans to review and monitor information from the County Appraiser’s office and other sources as we appear likely to experience less than historic growth in the assessed valuation in future budgets. The 2006 Kansas Legislature’s removal of machinery and equipment from the property tax roles, along with a possible slowdown in valuation growth will impact our budget projections for future years. We will use our financial advisor for assistance on this analysis as well as other projects.

Specific Initiatives and Programs in the 2007 Budget

Street Maintenance

C. The 2007 Budget included the 2007 Street Maintenance Program. Public Works staff will present a status report on the street maintenance program early in 2007 to advise the Commission on monitoring activities for the pavement management activities.

Sidewalk and Traffic Calming Devices

D. The Public Works Department has completed the data gathering phase of the sidewalk inventory. The adopted 2007 budget includes $250,000 in debt financing for sidewalk gap construction and traffic calming projects. Staff plans to solicit input from neighborhood associations, school officials, the pedestrian advisory committee, and the general public to include in our analysis of spending priorities for sidewalk projects. The Public Works Department maintains a priority ranking of traffic calming projects. A recommendation on the allocation of these funds for neighborhood traffic calming and sidewalks will be presented to the Commission for Commission approval.

Improving our Development and Planning Process

E. The final report from Matrix Consultants on our Development Process review is expected in August. After review of the report, Commission direction on the $112,000 for possible personnel resource improvements allocated in the 2007 Budget will be sought.

F. Staff has scheduled interviews of firms for the Traditional Neighborhood Development (TND) code project for later this month. This project should be underway in the fall of 2006 with a portion of the project budgeted for 2007 as well.

G. We have successfully transferred responsibility for the review of sanitary sewer line projects from the Public Works Department to the Utilities Department. A new staff attorney, John Miller (formerly Assistant City Attorney in Olathe), has joined City staff this week and has already begun work on several projects (Sign Code, assisting Planning staff, review of impact fee materials). The Infrastructure and Development Coordinator is scheduled to begin work after Labor Day.

Enhancing our Neighborhoods and our Downtown

H. I will work with the Police Department and other interested stakeholders in the coming months on the job responsibilities for the Neighborhood Resource Officer positions, including their rank, roles with neighborhood associations, and other tasks. The promotion opportunities for the newly created two sergeant positions will become available as budgeted in 2007.

I. Neighborhood Revitalization Act work continues. Following Commission discussion regarding the proposed redevelopment of 800 Pennsylvania, staff is working on separate plans which involve the 800 Penn. project and also separate NRA opportunities.

J. The 2007 budget provides $250,000 for the downtown fire sprinkler incentive program. The program would allow qualifying Massachusetts Street businesses (6^th Street to South Park) to receive up to a 75% rebate on qualifying expenditures to install fire sprinkler systems in the businesses, provided the system complies with applicable Code requirements, the business is current in tax and other obligations, and the property owner agrees to maintain the new fire sprinkler system. Additional criteria will be established in the coming weeks after consultation with appropriate City departments and downtown interests. The Commission will approve the final program. An important goal of the program will be to encourage sprinkler installations prior to the planned mill and overlay of Massachusetts at the conclusion of the next phase of the waterline replacement program.

Improving the Efficiency and Effectiveness of City Services

K. I plan to place on a Commission agenda in the fall a draft job description for the City auditor position. Final Commission direction on whether the position reports to the City Manager or to the City Commission will be needed. A background report on successful models for these positions (reporting, determining which items to audit, etc.) will accompany this item as well.

L. City staff is meeting with Management Partners later this month to review draft performance measurements and the proposed performance management system. The City Commission will receive a final draft of these important documents and tools at their study session of September 14. This process represents a substantial commitment on the part of City staff and we are committed toward ensuring that this tool and management system is utilized to its full potential.

M. The Grants Team has been established and a report from Jonathan Douglas on efforts to improve our grant opportunities will be provided in September.

N. Commission direction on travel to Washington D.C. later this year is desired. There has been Commission support of the concept of twice-a-year meetings on federal legislative issues to ensure visibility and continuity. Continuing a strong relationship with our Congressional delegation and their staff is important, and a number of funding and project opportunities should be discussed.

O. Staff is preparing implementation plans for the Climate Agreement signed earlier this year, and ensuring that it is complementary with our plans for an energy audit. Several energy audits of City facilities and programs will likely be needed over time. I have discussed this need with staff and we are seeking likely areas of City operations for initial review. We have contacted the Zephyr energy green tag program and we are seeking to finalize a recommendation of this project. I would like to involve our Recycling and Resource Conservation Advisory Board in these efforts.

P. A number of other efficiency and effectiveness initiatives will also be pursued including the adoption of a grease ordinance, continued focus on downsizing our vehicle fleet and ensuring energy efficiency with our vehicle fleet, and our E-gov initiatives to modernize a number of City operations.

Q. We also will begin discussions with Douglas County officials concerning strengthening and modernizing our partnerships and funding relationships.

R. We also plan to improve our contracts and accountability with funding to outside agencies. We plan to develop a contract that will be used with the agencies which links their funding to their approved plans and provides measurements for their performance and outcomes. The Commission will approve these contracts.

Economic Development

S. Staff will develop criteria for the “infrastructure incentive” ($250,000) that has been added to our economic development toolbox. The Commission will approve this program criteria after it is prepared.

T. The Economic Development Coordinator position is part of the approved 2007 budget. As previously noted, this position will work with City staff, our Economic Development partners at the Chamber of Commerce, and other stakeholders on the important issue of quality economic development for our community. This position will concentrate on providing economic analysis and coordination for a number of City programs and projects: downtown revitalization proposals – including the attraction and retention of businesses to our downtown; tax increment financing proposals; Kansas neighborhood revitalization efforts; retail market analysis; public incentive proposals and monitoring; and economic development proposals. The development of a job description which meets all of these goals and ensures healthy cooperation with various entities will be essential. After the development of a draft job description I plan to share it with the Commission to ensure that this position meets our high expectations for this investment.

Improving the Lives of Lawrence Residents through Social Services

U. As noted above at R), staff will present improved contracts with outside agencies to improve accountability on these expenditures.

V. Later in the year, staff will initiate contacts with appropriate social service providers and other community leaders to explore opportunities for a social service needs assessment. Establishing the parameters for such a review and clear expectations will be important.

Enterprise Fund Departments

W. City staff is devoting substantial time and effort toward a number sanitary sewer projects. The Commission will receive the recommendation on the proposed location of the new Wakarusa Water Reclamation Facility in the next several weeks.

X. Our new stormwater engineer has gained familiarity with the responsibilities of our stormwater utility and will report to the Commission this fall on plans for the utility, including stormwater master plan projects.

Transit

Y. The results of our City-KU cooperation study will be available this fall for Commission consideration. Additionally, I have asked our Transit Administrator to develop a multi-year plan for the replacement of Transit system vehicles, particularly focusing on our need in future years to replace buses which are not longer meeting full operational needs because of increased maintenance costs. After review by the Public Transit Advisory Committee, this will presented to the Commission as well.

Capital Debt Budget Summary

Z. Attached is a memorandum from the Parks and Recreation Director providing a status report on the approved expenditure of $900,000 for parks and recreation facilities. We are requesting approval to establish a bid date for the improvements planned at Clinton Park and the distribution of a Request for Proposals for design of the Burroughs Creek Trail. Other approved projects will continue in the design and planning stages.

AA. As stated in the recommended budget, I am recommending that the Commission explore the possibility of impact fees for certain capital improvements. I have directed additional research work on this item and seek Commission direction on conducting meetings with stakeholders on this issue in the coming month. This item will require balance between several competing interests

BB. Additional Commission discussion on capital improvements should also be conducted this fall. Staff is working on a review plan for the library expansion projects that will be presented to the Commission on August 29 – mapping out items such as neighborhood and downtown meetings that need to be conducted.

Resources for the 2007 Budget

CC. The Commission has adopted the budget and adopted an ordinance increasing electric franchise fees. Ordinances to phase-in increases for telephone and cable franchise fees to the maximum 5% allowed by law will be presented to the Commission in the future.

DD. Additionally, after the Matrix report is received we will present recommended fee adjustments for development-related fees (planning review fees, sign code, etc.) following a cost-recovery model.

EE. Staff would like Commission approval to present options on a more robust annexation practice than has been traditionally followed by the City, including annexation of key industrial sites. This is not viewed only as a possible fiscal benefit, but also as beneficial from a land use planning standpoint.

Other Items

FF. As indicated in the recommended budget, staff will monitor resources in the equipment reserve fund to determine whether certain key equipment requests presented as program improvements for 2007 can be funded.