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HomeMy WebLinkAbout5.1 DSRSD Study CITY OF DUBLIN 0_ 70 AGENDA STATEMENT CITY COUNCIL MEETING DATE: November 10,' 1986 SUBJECT Written Communication re Dublin San Ramon Services District Study EXHIBITS ATTACHED Letter from the City of San Ramon City Manager dated November 4, 1986; Conclusions and recommendations of the City Council of the City of San Ramon re the assumption of services from the Dublin San Ramon Services District; Letter from John Heiss dated October 14, 1986 to the City of San Ramon and attachments RECOMMENDATION Direct Dublin Liaison Committee to meet with representatives from the City of San Ramon to obtain clarification regarding their proposal . FINANCIAL STATEMENT: Undetermined at this time . DESCRIPTION In July of 1986, the Dublin City Council accepted a report from its sub-committee, which recommended the dissolution of the Dublin San Ramon Services District and the assumption of those services by the Cities of Dublin and San Ramon. This week, the San Ramon City Council held a special meeting to consider a report from its sub-committee regarding the assumption of services from the Dublin San Ramon Services District by the Cities of Dublin and San Ramon . The City of San Ramon Council sub-committee submitted a report containing conclusions and recommendations regarding the transfer of these services (see attached) .- They also presented a report prepared by John Heiss and commissioned by the City of San Ramon, which identified the financial implications to both Dublin and San Ramon, if each City adopted the conclusions and recommendations made by the San Ramon sub-committee. Staff has briefly reviewed these conclusions with the City Manager of San Ramon and as a result of that meeting,.. there appear to be some areas that need clarification. It is Staff ' s understanding that this week the Dublin San Ramon Services District considered the conclusions and recommendations of the San Ramon City Council and endorsed those conclusions and recommendations . In order to clarify the City of San Ramon' s position, it is Staff ' s recommendation that the City Council direct the Dublin Liaison Committee to meet with San Ramon to discuss their position in more detail and report back to the Council as soon as possible. ---------------------------------------------------------------------------- COPIES TO: City of San Ramon Dublin San Ramon Services District ITEM NO. — eity o f m San Ra ®. 2222 Camino Ramon San Ramon, California 94583 (415) 866-1400 November 4 , 1986 Rich Ambrose, City .Manager City of Dublin 6500 Dublin Blvd Dublin, CA 94568 ` Dear Rich. At a special meeting ,of the ~Sari -Ramon ,City jCouncil held November 3. .the--Council--cons1dered a report from -the Council DSRSD liaison committee ,-regarding the conclusions and recommendations for transfer of General-"Fund°services from the. District to the Cities of Dublin and. —'In addition, : the City Council considered supplemental. information _from Hughes , Heiss and,-Associates indicating that the DSRSD financial reports as of June 30 , 1986 will provide for a General'.Fund that still has, a• reserve of at least one million dollars in llocated reserves To .'t he extent that these funds '.'are transferred.;to the cities they would be--available -to offset "any required subsidies until property tax revenues previously related to the Dublin'- San Ramon Services District catch up. Attached are the conclusions and recommendations of the report presented to the City Council in outline form. The, City Council adopted -the attached conclusions and recommendations --in concept and instructed both theejiaison-committee and 'staff to continue meeting with the District ,'-liaison and City of .Dublin liaison to discuss these conclusions and to prepare 'an agreement providing for implementation of these recommendations and creation_of a Joint Powers Authority. As we discussed on the phone earlier today, I have made myself available this - afternoon to discuss this proposal and answer any specific questions that you may have before presenting this proposal to either your liaison or City- Council ,or Board. Sincerely, iv m Robinson Manager JR/jm cc: San Ramon City Council liaison FUND . GENERAL . y' *. 1 Parks and .Recrelati.on ' a. Parks to be transferred •or,`-if -legally infeasible to transfer, to be ,leased to cities reserving the decisions relating to maintenance , -scheduling ',,',setting fees and capital improvements to -.the cities as of January 1 , 1987 . b. All general funds less those budgeted for fire for balance of fiscal year will be transferred January 1 , 1987 . All general funds 'to include park dedication fees and other trust funds pertaining to parks and recreation plus Altamont fees and reserves as of June 30, 1986 . C. General funds received by DSRSD after January 1 , 1987 less amounts retained to .satisfy fire budget requirements will be transferred upon receipt. . d. Cities will provide maintenance and park and recreation services under contract . e. DSRSD will not charge administrative fee to administer contract . 2 . Fire a. JPA will be formed and become -operational March 1 , 1987 . b. JPA will consist of five members - two from each city and one from DSRSD. C. JPA will assure operational responsibility of the Fire Department July 1 , 1987 . All budget classification changes and interclassification budget transfers for the period of March 1 , 1987 - June 30 , 1987 will be approved by the JPA. d. Effective July 1 , 1987 DSRSD will transfer all general funds to cities . All funds encumbered for fire services , capital, etc. would be transferred to the JPA. e. DSRSD will not charge any administration fee to the JPA for participation. 3 . Sewer and Water - a. Sewer capacity allocation will be set by contract with the cities . b. Sewer permits will be issued by the cities . Cities will individually set the fees to be charged for the permit . C. DSRSD would charge each city for sewer capacity associated with the permits used. B. DSRSD will divest itself of any .claim, right or responsibility to the park and recreation and fire protection functions including removing itself from the JPA when assured that the general property tax funds now collected will not be distributed in whole or in part to other agencies . DSRSD will assist in obtaining legal opinions and legislation necessary to implement this proposal. C. All existing contracts with P.E.R.S .- and labor organizations will be honored. D. Future studies or recommendations of divestiture of sewer and water services are deferred by agreement through June 30 , 1993 . HUGHES.'- HEISS & ASSOCIATES M A N A G E M E N T C O N S U L T A N T S October 14, 1986 6� ::,r •_: ;,; 675 Mariners Island Blvd. /Suite 108 San Mateo, California 94404 - y';.;' 415/570-6111 8 1986 Mr. James Robinson OCT 1 �2 City Manager City of San Ramon L v;,;; , ,i'� , v 2222 Camino Ramon San Ramon, CA 94583 Dear Jim: As requested, I have analyzed the likely financial implications of San Ramon's preliminary proposal to transition parks and fire services from DSRSD to the cities under the conditions outlined during my discussions with Wayne and John, as well as described in the outline paper you provided. Attached are "quick and dirty" analyses, based on the DSRSD budget and our previous work involving estimated costs to the cities of assuming park maintenance and aquatic services as described in our report dated December 15, 1985. For illustrative purposes, actual materials and supplies cost noted in the DSRSD .budget; a 5% estimated cost increase for contract maintenance services; and FY 1986-1987 -fee revenue estimates contained in the DSRSD budget have been employed to . update our previous work. Property tax revenues related to DSRSD reflect: - (1) Those projected for DSRSD In FY 1986-87 in the current District budget; and (2) For subsequent years based on projections provided by Angus McDonald and documented in the joint paper we submitted on February 15, 1986 entitled Analysis of Cost and Revenue Impact of Parks and Recreation Service Transfer from DSRSD to Dublin and San Ramon. As the analysis indicates, neither Dublin nor San Ramon will face the need to subsidize f ire/parks once full transfer of - costs and revenues is effected. This results from the following: Finally, review of DSRSD f inanciai reports as of June 30, 1986 indicates that the general fund sti I I has a reserve of at least $1,000,000 i-n unallo- cated resources. My guess, based on expenditure patterns of DSRSD over the last two years, is that the f inaI audit wit l show an un des ignated/ unrestricted general fund balance significantly more than $1,000,000 -- perhaps in the $1 .5 mil I ion range. To the extent these funds were trans- ferred to the cities, they would be available to offset subsidies until property tax revenues related to DSRSD "caught up. " I hope this provides the information you need. Give me a call when you want to discuss the analysis. Sincerely yours, John W. Heiss HUGHES, HEISS b ASSOCIATES Principal Attachment One Revenue and Cost Projections Based on San Ramon Service Transfer Proposal FROM 1=1-87.;THROUGH 6-30-87** ITEM TOTAL TO DSRSD TO DUBLIN TO SAN RAMON Revenue Property Tax $1,401 ,100 $1,070,200 $172,068 . $158,832 Interest 92,500 _ 92,500- - nt.Gov.Fees 12,000 :. 12,000 - - Al tamont Dump Fees 112,000 : . .. .112,000 Aquatics Fees 75,000 28,950 46,050 Field Use Fees 12,750 - 6,834 5,916 Gent I.Govt. 35,000 35,000 - - Miscellaneous* 20,000 - 20,000 TOTAL $1,321 ,700 $207,852 $230,798 Costs Fire $1,321 ,700 $1,321 ,700 - - White House/ . Shannon Maint. Costs Allocated $ 15,600 $ . 14,000 Park Maint. Based on Park - 136,668 134,394 VCSC Maint. Analysis - 34,800 SROP Plus Current DSRSD - 53,150 Aquatics Staff Budget for All - 26,523 48,827 Items except Park Maint. Labor TOTAL $1,321 ,7 00 $213,321 $250.,371 Net Subsidy Required - 0 - $ 5,469 $ 19,573 * Contract/rental revenue related to SROP (swim club rental ; school district contract). ** Costs and revenues calculated for s i x month per i od. FROM 7-1-87 FROM 7-1-88 THROUGH 6-30-88 THROUGH 6-30-89 ITEM Dublin San Ramon Dublin San Ramon Revenue Property Tax $1 ,594,564 -$1,347,436 -$1,723,344 $1,398,656 Interest 92,500 92,500 92,500 92,500 Al tamont Dump Fees 112,200 --112,200 . 46,750 46,750 Aquatics Fees 57,900 92,100 57,900 92,100 Field Use Fees 13,668 11 ,832 13,668 11 ,832 Gen' l.Govt. 35,000 35,000 35,000 35,000 Miscellaneous* - 40,000 - 40,000 TOTAL $1 ,917,664 $1,731 ,068 $1 ,969,162 $1 ,716,838 Costs Fire $1,432,723 $1,210,677 $1,459,157 $1,184,243 White House/ Shannon Maint. 31 ,200 28,000 31 ,200 28,000 Park Maint. 273,336 268,788 273,336 268,788 VCSC 69,600 - 69,600 - SROP - .106,300 - 106,300 Aquatics Staff 53,046 97,654 53,046 97,654 TOTAL $1 ,859,905 $1 ,711 ,419 $1,886,339 $1,684,985 Net Revenue Available After Costs $ 57,759 $ 19,649 $ 82,823 $ 31 ,853 * Swim Clubs Rental/School District Rental Attachment Two Assumptions Underlying Revenue and Cost Projections Underlying . San Ramon Service Transfer Proposal ASSUMPTIONS UNDERLYING ESTIMATES 1-1-87 THROUGH 6-30-87 Costs Revenues Based on DSRSD budget for Based on DSRSD budget for 186-187. fire plus non-labor costs related to park maintenance/ Assumes DSRSD would retain all non- aquatics. Labor costs drawn property tax revenues/all non- _ from Hughes, Heiss Parks program .revenues through 6-30 to Report. support fire services and suffi- cient portion of property tax Differential costs for pools revenues to "break-even" on fire reflect differences in opera- service. ting periods between VCSC and SROP. Remaining portion of property tax revenues allocated to Dublin and Costs shown for 6 month period. San Ramon. Division reflects 184- 185 percent contribution as docu- mented in Hughes, Heiss studies. Program revenues are as bud- geted in DSRSD 186-187 budget, divided between cities based on data included in HHA reports. . Revenues shown for 6 month period. 7-1-87 THROUGH 6-30-88 Costs Revenues Same as above - displayed for Assumes property tax divided 12 months. based on proportional contribution by area. Totals and percentage No service increase assumed. share reflect projections provi- ded in Hughes/Heiss b McDonald No inflation assumed. Associates report. Reflects differing rates of AV increase, Fire JPA costs shared based Dublin and DSRSD portion of San on comparative assessed valua- Ramon. Reflects only increases tion. related to new development within current boundaries. Assumes other revenues related to DSRSD and funds generating reven- ues (e.g. general fund balance) spl it 1150-50" between Dubl in and San Ramon. Reflected in interest revenue in pro-forma budgets. Program related revenues alloca- ted as above. 7-1-88 TH ROUG H.6-3 0-89 Same as 7-1-87/6-30-88 except reflects: Property tax revenue increase based on previous Hughes, Heiss/McDonald & Associates projections as referenced above. Illustrates exp i rati on of AI tamont related land f i l l revenue in October, 1988. In next year, loss of landfill revenue partially offset by AV/property tax increase and subsidy starts to decrease.