►
Description
San Bruno City Council Meeting July 13, 2010 10d. Policy for General Fund and Eqpt. Replacement Reserves
B
Thank
You
mr.
mayor,
this
report
is
a
continuation
of
staff
of
the
staff
report
that
was
presented
to
City
Council
back
on
April
27th,
where
we
drafted
a
reserve
policy.
Several
questions
were
information
was
requested
by
City
Council,
and
this
report
provides
responses
to
some
books
to
those
inquiries.
B
Second
question
that
was
asked
for
by
the
City
Council
or
whoever.
What
are
the
reserve
levels
for
some
of
our
neighboring
cities
and
then
a
third
question
from
the
City
Council
was
a
detailed
listing
of
the
city's
equipment
replacement
fund
assets,
which
is
the
basis
for
the
policy
that's
recommended
or
that's
before
the
city
council
in
terms
of
the
level
for
the
equipment
replacement
reserve.
B
So
I'll
start
that
I'll
start
with
the
question
on
the
El
Nino
rainstorms
and
the
costs
associated
with
the
landslide
staff.
Looked
back
on
the
records
and
approximately
at
one
point,
three
million
dollars
was
expended
for
that
particular
events
as
related
to
the
landslides
and
those
costs
incurred
included
the
repair.
Obviously,
of
the
Lance
landslide,
including
excavation
hauling
of
materials
and
d'bries
construction
of
reinforced
reinforced
earth,
fell
insulation
of
gutters
and
then
recitation
of
backyards
in
the
landscape,
Phillip
impacted
homes
in
terms
of
the
comparison
of
reserve
levels
with
some
of
our
neighbors
neighboring
cities.
B
The
slide
before
you
gives
an
overview
of
some
of
our
some
of
the
native
cities
oven
down
peninsula
san
bruno.
What
I'm
recommending
for
the
City
Council
for
consideration
is
a
level
between
16.2
sixteen
point
and
two-thirds
percent
to
twenty
five
percent.
That's
really
two
to
three
months:
reserves
for
the
city's
general
fund.
Currently,
our
reserve
level
is
at
nineteen
percent.
This
is
about
six
million
dollars
out
of
the
30
1.3
million
dollar
general
fund
expenditures
for
the
current
year's
budget.
B
As
you
can
tell
looking
at
the
slide,
the
range
actually
varies
quite
a
bit
but
I
think
it's
fair
to
say
that
we're
within
the
general
range.
We
have
a
low
of
six
point:
six
percent
in
terms
of
current
levels
and
a
high
of
fifty
percent.
But
if
you
take
out
those
as
anomaly
so
that
may
certainly
our
level
of
nineteen
percent
or
our
recommended
level
sixteen
and
two-thirds
and
twenty-five
percent
is
within.
I
believe,
the
range
within
the
peninsula
cities
that
we
lived
at.
B
B
Among
those
reserves
that
are
considered
could
be
economic
uncertainty
fund,
a
catastrophic
emergency
fund
purse,
liability,
fun,
employed,
post-employment
benefits,
fun,
others,
other
funds
that
could
be
considered
and
and
just
as
important,
I
think,
was
discussed
earlier-
is
a
capital
facilities,
fun,
that's
to
replace
capital
facilities
and
also
to
repair
and
maintain
the
city's
assets
infrastructure
assets.
Other
options
are
other
considerations
in
terms
of
reserves,
may
include
even
a
pers
and
or
a
medical
benefits
rates.
The
rate
stabilization
plan,
so
those
are
other
things
that
certainly
can
be.
B
What
staffs
recommendation
is
that
is
for
a
general
fund
reserve
level
between
two
three
months,
and
that
again
is
between
the
sixteen
and
two-thirds
percent
and
twenty
five
percent.
You
know
keeping
in
mind
that
currently
we're
at
the
nineteen
percent
level
in
terms
of
the
equipment
replacement
reserve,
including
staff
report,
is
a
detailed
listing
of
the
assets
are
held
there.
B
One
of
the
things
to
be
mindful
of
is
also
the
fact
that
include
it
in
the
listing
our
replacements
of
the
fire
I'm
sorry
of
the
police,
black
and
white
vehicles,
that's
actually
included
in
the
operating
budget,
so
it
historically,
the
city
has
include
those
as
an
operating
expenditure,
as
opposed
to
setting
aside
those
monies
in
the
equipment
replacement
on
the
rationale.
For
that
is
that
it's
typical
that
every
three
years
we
go
through
that
they
expect
the
life
of
these
vehicles
are
approximately
two
years.
B
So
as
you
go
through
each
and
every
one
of
those
vehicles
typically
every
year
there
are
some
replacements
that
take
place
and
that's
just
been
incorporated
as
party
operating
budget
set
up
that
we
have
and
and
over
and
above
that
there
are
also
other
significant
items
in
the
capital
replacement
fund.
That
would
be
considered
potentially
as
part
of
the
capital
facility
replacement,
and
that
would
include
something
like
the
be
current
finance
software.
B
That's
substantial
in
terms
of
cost
that
would
be
considered
potentially
as
part
of
the
technology
or
a
CIP
projects,
type
of
replacement
that
would
garner
a
significant
amount
of
funds
in
order
to
capture
the
replacement
of
these
major
undertakings.
So
with
that,
I'll
take
questions
from
the
City
Council
in
terms
of
this
updated
report,
and
you
know,
seek
comment
and
direction
from
the
City
Council
questions
comes
this.
C
But
it
does
seem
that
in
difficult
economic
times
being
in
here
in
the
bay
area
that
we
are
somewhat
subject
to
larger
fluctuations
than
other
cities
in
general
would
be
I
know
here,
we're
talking
about
other
cities
in
the
area.
But
it
does
seem
that
when
we
have
corrections
in
real
estate
prices,
they
seem
to
hit
us
a
little
harder,
and
that
seems
to
be
something
that
really
drives
what
our
revenue
is
and
that's
one
thing
I
considered
when
we
start
looking
at
that.
That
overall
number
I
do
appreciate
you
getting
all
this
information
together.
C
One
thing
you
mentioned
that
I
sort
of
I
like
the
idea
of
segregating
the
funds,
so
that
we
know
exactly
what
we
have
available
for
say:
economic
emergencies,
and
then
we
know
if
we
need
to
dip
in
there.
I
think
this.
The
past
couple
of
years
have
been
good
indicators
of
how
severe
our
deficit
can
get,
and
we
could
probably
appropriately
sized
a
pool
of
money
for
that
and
then
designate
other
monies
for
emergencies
and
having
the
El
Nino.
C
I
was
wondering
how
much
how
much
money,
or
if
any
money
in
there
is
being
out
as
being
considered
for
technology,
refreshes
and
I
know
as
we
sort
of
modernize
the
way
we
operate
as
a
city,
technology
becomes
a
more
important
component
and
I
saw
a
few
software
items
a
few
large
items
in
there.
But
I'm
wondering
even
things
like
desktop
pcs,
that
the
employees
use
are
we
stockpiling
some
money
somewhere
where
we
can
replace
those?
B
D
If
I
could
just
offer
a
lot
of
reference
to
El,
Nino
and
I
think
it
should
be
said
that
the
city
had
every
indication
of
being
reimbursed
by
FEMA
and
unfortunately
through
the
history
of
that
that
area
in
that,
in
that
hillside
FEMA
rejected
any
reimbursement,
so
we
ate
at
all.
So
does
it
mean
that
any
disaster
in
san
bruno
we'd
have
to
absorb
all
the
costs?
I
believe
that
there
might
be
some
reimbursement
in
some
cases.
E
Any
comments,
and
through
the
chair
a
little
bit
on
the
accountant,
councilman
salazar,
I
was
wondering
about
the
cable,
TV
and
its
equipment.
I
know
there
was
an
item
and
I
can't
recall
that
went
out
and
we
had
to
replace
it
and
then
there
was
dialogue.
Well,
that
should
probably
be
in
the
equipment
reserve
so
that
we
can
keep
either
a
spare.
We
can
have
it
modernized.
Do
we
also
have
cable,
TV
and
those
assets
and
equipment
do
we?
Are
we.
B
Yes,
the
way
it's
set
up
is
that
each
one
of
the
enterprise
funds
is
self-sustaining.
When
I
sell
such
when
I
say
self-sustaining,
meaning
that
included
in
each
each
Enterprise
Fund
is
actually
a
plan
to
replace
their
and
their
related
assets
so,
for
instance,
a
cable.
If
you
look
at
the
cable
fund
and
in
terms
of
acquisition
of
assets,
it's
actually
coming
straight
out
of
that
Enterprise
Fund
that
there's
no
money's
really
coming
out
of
this
separate
fund,
which
is
really
for
that.
The
governmental
funds,
which
are
the
funds
besides
the
besides
the
enterprise,
once.
F
F
While
that
is
the
operational
profile
of
the
funds,
the
current
situation
in
the
cable
television
enterprise
it
does
not
allow
for
there
is
not
a
positive
fund
balance
that
is
at
least
at
the
current
time
available.
If
a
piece
of
equipment
at
the
head
end
were
to
fail
for
that
fund
than
to
be
utilized
to
without
impact
to
to
the
budget
or
to
resources.
F
That
is
an
issue
that
has
been
under
discussion
by
the
city.
Council.
Is
one
that
is
progressing
towards
resolution
over
the
next
period
of
several
years,
although
the
City
Council
may
recall
that
at
at
one
time
in
the
past-
and
this
is
continues
to
be
how
the
fund
operates?
In
fact,
a
system
rebuild
that
happened
approximately
15
years
ago
did
occur
with
amounts
that
had
been
built
up
over
a
period
of
time.
So
that's
the
theory
but
again
the
shore.
The
short
answer
to
question
do
because
I
don't
want
you
to
be
misinformed.
F
E
You
for
the
clarification
that
was
my
point
is
that
when
we
originated
the
system
and
then
we
had
its
first
upgrade
in
cable,
we
had
enough
in,
as
you
said,
built
up
in
order
to
pay,
for
that
upgrade
will
call
it
I
know,
there's
a
better
technology
word,
but
I
don't
know
what
to
use.
However,
when
we've
been
upgrading
now
we
are
running
a
deficit
because
we
don't
have
monies
allocated
in
order
to
keep
up
with
the
technology
and
demand
of
our
customers.
So
that's
where
I'm
saying
that
that
should
be
more
take
account.
E
I
believe,
utilized
within
this
I
think
there's
equipment
and
items
that
are
used.
It
should
be
triggered
within
the
equipment
reserved.
So
we
are
preparing
ourselves
for
the
future.
I
also
think
the
capital
facilities
fund-
that's
something
that
I've
already
alluded
to
earlier,
but
in
essence
had
we
have
had
the
ability
to
take
ear-a
for
other
things
and
not
use
them
for
one
time
this,
and
that
and
build
that
you
know
maybe
out
of
if
we
could
have
started
in
better
times.
Maybe
we
could
have
gotten
a
new
pool,
we're
back.
E
Then
we
were
talking
about
five
million
if
you
put
some
so
much
away
and
save
and
have
a
goal
and
a
desire
I
think
we
can
achieve
that,
but
I
think
we
also
need
to
have
long-term
planning
and
I.
Think
that's
one
thing
that
we
have,
unfortunately
not
always
done.
This
is
the
newest
facility
we're
in
here
today,
and
this
is
from
1987
and
then
we
of
course,
have
the
police
station.
E
D
D
We
have
a
fairly
new
in
the
industry,
a
fairly
new
system
in
an
up-to-date
system,
probably
state-of-the-art
in
comparison
to
our
competitors
and
the
fact
that
we
have
done
a
lot
as
far
as
the
infrastructure
of
the
city,
water,
sewer
wastewater,
so
I
think
we've
done
what
we
can
and
yes,
sir,
probably
can
question
mower
that
we
could
do
but
will
blend
previous
administrations.
For
that
I
said.
A
G
G
You
know
it's
it's
difficult
and
I
went
that's
one
of
the
reasons
we
try
to
get
a
week
and
did
pass
that
redevelopment
this
because
of
the
things
that
would
need
to
get
done
and
we're
with
you,
but
we're
still
looking
for
those
revenue
streams.
So
if
there's
anybody
out
there,
it
wants
to
donate
several
million
dollars.
Let
us
know:
okay,.