Hello City Council:

      I see from the staff report that the cost estimate for the repaving of the Corp Yard has been reduced and Measure B funds no longer proposed to be used for the project.  Paving of the Corp Yard is now proposed to be funded totally by Measure F.  As the ballot statement for that measure indicates, this funding is really intended for transportation projects, not the repaving of municipal facilities.

At the Council’s annual sit-down with City staff, Saturday, May 10,  9 a.m., the Council will review the City Administrator’s proposed 2014-15 Budget.  It has been the practice for the Council to hold the Budget Session in the Emergency Operation Center in the Police Department on Highland Avenue. The location provides a “round table” casual atmosphere leading to budget adoption. Nevertheless, these proceedings will not be recorded or broadcast for offsite viewing.

Those interested in hearing and learning first hand discussions and presentations on where City money might be spent, should attend the meeting.  There will be opportunities for the public to speak and ask questions.  In the past, coffee and donuts have been made available to attendees.

This year some of the items likely to be considered by the Council are:

• Hampton Field and tennis court reconstruction
• Roadway pavement, sidewalk and gutter improvements
• Employee benefits and salaries
• Staffing levels
• Piedmont pool maintenance and improvements
• Pedestrian and Bike Plan implementation
• Facility repair and maintenance
• Additional license plate readers
• Use of sewer fund monies and alternatives
• Reserve Funds
• Capital improvements
• Retirement costs
• Blair Park regular maintenance and improvements

Prior to adoption of the FY 2014-15 Budget, there will be two City Council public hearings.

Piedmont has an ongoing Smoke testing program to test for and detect infiltration and inflows (I/I) in your Personal Sewer Lateral (“PSL”). An inflow is water entering your PSL by an illegal connection that was formerly legal by decades old construction methods. The most common would be a cross-connection from your roof gutters. This can literally add hundreds if not thousands of gallons of water in the rainy season from a single home.

An infiltration is a crack or offset in your PSL. A PSL is often buried at up to six feet down and the amount of water let in by a crack can be negligible, literally a miniscule fraction as compared to an illegal inflow connection. The smoke testing will detect all I/Is and be reported to the City for correction.

Virtually all clay pipe PSL have some displacement and will fail the test even if no cross connection is present. EBMUD Manager of Wastewater Environmental Services Ben Horenstein stated that a clay system is better entirely replaced than repaired. Many steel PSL’s may have a displaced hub and this will require repair or replacement. The displacement inflows are negligible compared to an illegal cross-connection, yet the homeowner will have to bear the cost of entire replacement, normally starting at $5,000.

EBMUD has recently dramatically increased its rates; they do not intend to increase the capacity of their treatment plants. The reason our PSL’s are being tested is the result of a 2011 and 2012 Stipulated Orders (“SO”); the primary focus of these SOs is to stop the EBMUD treatment plants from becoming overwhelmed and discharging waste water into the Bay. Certainly, illegal inflows should be stopped, but I question the wisdom of forcing a complete PSL replacement on the many older homes that contribute negligible and inconsequential amounts to the overflow.

Of the seven public agencies affected by the Stipulated Orders, Piedmont is at 65% of mainline sewer replacement and second only to Emeryville at 70%. Piedmont is far ahead of the other cities in terms of mainline replacement. Berkeley has made significant progress and has a bit over a third of their mainline sewer replaced. Emeryville is an anomaly as their system is even older than Piedmont’s and their farsighted vision of attracting Big Box retail required properly working infrastructure. There is no resident sewer parcel tax in Emeryville.

Piedmonters have one of the highest sewer taxes (and the very highest school tax) and City Hall has attempted dramatic and questionable increases of the sewer tax. $900,000 of out $2.1M sewer tax revenue is transferred to General Funds annually with no time sheet system in place for the $900,000 transfer. Other costs taken from the Sewer Fund include storm drain work and, in some instances, the cost of repairing private party expenses as in the PHUUD Undergrounding Crest Road collapse. Eventually, that $275,000 was replaced by other taxpayer money from the General Fund; I would characterize this as rearranging deck chairs on the Titanic.

Those at City Hall who lament that Piedmont is no longer in the lead in improving the environment miss the total picture, or do not care to see it. Our mainline replacement is far ahead of other cities and close behind Emeryville (with no sewer parcel tax). Piedmonters are replacing PSLs at a higher rate than other cities as a higher percentage of Piedmont residents can afford this “luxury.” We continue to take the lead in the complex issue of keeping the Bay and environment clean.

Rick Schiller, Piedmont Resident

July 21, 2013

Editors’ Note:  The opinions expressed are those of the author and not necessarily those of the Piedmont Civic Association. 

The City announced that sewer lines will be tested in four areas of Piedmont. Work will occur from 8 am to 5 pm weekdays. Door hangers have been placed on the first group of affected homes. E2 Consulting Engineers will conduct the tests, which involve blowing harmless smoke into parts of the sanitary sewer system to find damage, improper connections, and where unwanted storm water may be entering the City’s sanitary sewer system.

The City cautions, “smoke may be seen coming from roof vents, building foundations, catch basins, clean-outs, down spouts, broken sewer laterals or manhole covers. The smoke will not enter your home or business if it is properly plumbed, vented, and the water traps contain water.”

Notice & map of sewer testing areas.

For further information contact:

Jeff Blum of E2 Consulting Engineers at 510-774-9223

or for the City,Viba Regalado-Silva Administrative Assistant (510) 420-3050 or Chester Nakahara Public Works Director at (510) 420-3061.

A 20-page, close-up view of Piedmont’s fiscal health will be presented to the City Council on Monday, June 3, by its Budget Advisory and Financial Planning Committee (BAFPC).

The five-member committee, made up of Piedmont residents with diverse fiscal expertise, focused its analysis on the City’s financial outlook for the next five years, potential financial risks regarding employee healthcare and retirement costs, the Sewer Fund, and some specific steps the Council can take to save money and reduce risks.

Here are a few of the report’s highlights.

First the good news: “Overall, the City looks to be in improving financial shape,” the report states,  “recovering as expected from the recent recession, and appears able financially to continue to provide exceptional basic public services.  However,” it warns, “there are still risks facing the city in retirement costs as well as sewer replacement and operating costs that need to be addressed.”

City Employee Retirement Costs  

In an effort to reduce “uncontrollable retirement benefit costs,” the Committee recommends: 1) the Council refinance the CalPERS pension side fund and negotiate a lower corresponding cap from City employees; 2) compensate employees in ways that do not contribute to their retirement costs, such as giving bonuses instead of salary increases; 3) continue to bargain for caps and sharing on pension retirement costs with new and current employees; 4) reduce current and retiree healthcare cost coverage to 75% of costs or lower, down from 100%, extend vesting of retiree healthcare benefits to 20 years instead of current 5 years;  and investigate putting more burden on “Tier 1 retirement employees” (current, long-time employees), if possible.

The report notes the importance of controlling these costs in light of the fact that, “The City faces the likelihood of substantial turnover in the next 5-10 years, as 23 employees have over 20 years of service and an additional 28 have over 10 years of service. We estimate that approximately 40 of the City employees are likely to retire over the next 10 years, with a significant portion in the next 5 years.”

Aquatics

The Committee notes that in FY12/13, expenses of the City-owned pool exceeded revenues by $158,000.  Based on the FY13/14 aquatics budget, the Committee projects pool expenses will cost Piedmont taxpayers $200,000 per year in the next 5 years.  The Committee also points out that the School District currently does not pay for pool use, and the private Piedmont Swim Team pays a below-market rate for pool use of about $17,000 per year.  The Committee “recommends that, regardless of the policy with respect to the School District, proper accounting should reflect the capital/operational costs per user which includes the School District usage as a footnote to the budget.”

Sewer Fund

The Committee recommends the City restart phased sewer replacement of the remaining 93,000 feet of Piedmont’s mainline sewer in order to save substantial costs over the currently planned small-scale, emergency repair/replacement strategy. Committee members unanimously recommend obtaining a low-interest State loan to restart the phased rehab and investigate potential funding sources — either through a temporary sewer surcharge measure or borrowing from the City’s General Fund — in order to address the projected temporary shortfall in the Sewer Fund beginning in 2016-17.

The Committee believes that the total cost to the City of a “logically phased rehabilitation program” would be lower than making incremental repairs because of 1) lower cost per lineal foot of larger-scale projects;  2) low interest State loans, currently at 1% interest; 3) lower risk of costs escalating if the rehab is done sooner rather than over decades; and 4) less risk of not meeting EPA regulatory requirements.

Conclusion

The report concludes that the City is in a “relatively strong financial position compared to the recent past.  However, the risks to the city still exist and Council must stay vigilant to find ways to adequately compensate employees in a controllable way and continue to work to improve the stability of the City’s finances.”

BAFPC REPORT

At the City Council 2013-14 Budget Work Session on May 11, information and questions were presented.

During the public forum, Tim Rood asked when Piedmont Recreational Facilities Organization (PRFO) was going to repay the City for the $125,000 expenses promised in regard to Blair Park.  He also wanted to know when the City planned to spend its $500,000 portion of the Measure WW Park Bond funds.   And he inquired when the Piedmont Hills Utilities Undergrounding District (PHUUD) Board was going to pay their pledged amount of $1o0,000 to the City.  The City had contracted for the undergrounding project and allowed the risk and unexpected cost of  approximately $2.5 million to fall to all City taxpayers rather than the property owners in the PHUUD benefiting from the project.

City Administrator Geoff Grote, in his overview of the budget, emphasized the generally strong financial condition of the City.  Much of the City’s improved fiscal condition can be attributed to increased property tax revenues, the passage of the City parcel tax measure, and revenues from the property transfer tax.  As properties change hands, the City reaps a benefit of new valuations of property, plus the transfer tax.

The Police Department is proposing a new civilian position to handle administrative and Information Technology (IT) functions.  On June 3, a comprehensive Facilities Maintenance Inventory and Implementation Plan is due and will allow assessment of future needs.

Employee benefits and compensation costs continue to require control and monitoring. The City Sewer Fund, long a source of  funding for the Public Works Department and implementation of federally required improvements related to water quality, is experiencing a decreasing balance.  More information on the fund will be developed to allow the Council to consider further steps to remain in compliance with federal laws.

During the budget review, the Council directed staff to provide the following information:

• Recreation Department — include on a City Council agenda for next October, a report detailing: the impacts of the proposed increases in aquatic fees;  swim lesson revenue; a breakdown of aquatic City Council Budget Work Session related expenses; the cost associated with having the pool open for so many hours/days during the year; and how many lap swimmers utilize the pool on a regular basis.  The Schoolmates program does not pay for itself, consequently consideration will be given to increasing the hourly charge to users.

• Police Department  — consider for next fiscal year (FY 14-15) increasing Animal Control Officer fees for the City of Emeryville.

• Fire Department  — determine the cost effectiveness of modifying the
Department’s apparatus bay doors and driveway in order to increase the number of manufacturers that would be able to supply a fire ladder truck to the City and, as a consequence, generate more and potentially lower bids for fire truck purchase.  The fire house doors are lower than standard thus requiring custom built ladder trucks.

• Public Works Department — provide the number of miles of paved streets in town and how many of these streets were paved over the last 10 years.  Residents have frequently wondered when streets in disrepair would be repaved.

• Administration-– provide: historical data regarding full and parttime employee positions; a list of staffing positions that are currently vacant; cost estimates for: a City “mail-in ballot” process for municipal elections; and consolidating the City’s municipal election with the State’s general election; check with the County Registrar’s office if the City could have both a “mail-in” ballot process along with one polling place within the City.

• Non-Departmental — determine if: the proposed 5% increase in Workers Comp. Insurance premiums is sufficient for FY 13-14; whether the City has the option of being self-insured for Unemployment Insurance; and re-examine if the FY 11/12 figure
of $352,841 for Library is correct (page 2-a under Tab 1)

The Council appointed Budget Advisory and Financial Planning Committee (BAFPC) has held several meetings to examine budget details.   CalPERS side fund, sewer fund, license plate readers, and other issues are being examined.  The BAFPC will make a formal recommendation to the City Council to be considered at the budget public hearings.  The Council’s first hearing is scheduled for June 3 and second June 17, at which time the budget is expected to be approved.

Comments on budget considerations can be sent to the City Council at:

Or email the entire City Council via the City Clerk at: tulloch@ci.piedmont.ca.us

Click here to view the proposed budget.

Learn How the Money Comes and Goes-

The five-member Budget Advisory and Financial Planning Committee (BAFPC) will hold its third meeting on Wednesday, May 8, at 7:00 p.m. in the Police Department Emergency Operations Center to continue their analysis of City revenues, expenditures and five-year financial planning.

May 8, BAFPC meeting:

1. Presentations on refinancing the Side Fund
2. Update on the Sewer Fund

The BAFPC will then meet jointly with the Capital Improvement Program (CIP) Committee on Thursday, May 9 at 7:00 p.m. in the Council Chambers, City Hall to discuss the proposed installation of License Plate Readers at City access points.

On Saturday, May 11, at 9:00 a.m. the City Council will hold its annual budget work session in the Police Department Emergency Operations Center.

All of the meetings are open to the public. However, meetings held in the Police Emergency Room historically have not been broadcast on KCOM or recorded. Those interested may attend and participate.

These tests involve blowing harmless smoke into parts of the City sanitary sewer system to find damage, improper connections, and where unwanted storm water may be entering the City’s sanitary sewer system. As a result, smoke may be seen coming from roof vents, building foundations, catch basins, clean-outs, downspouts, broken sewer laterals or manhole covers. The smoke will not enter your home or business, if it is properly plumbed, vented, and the water traps contain water.

Click to read the Notice and Map regarding smoke testing.

For further information contact the Piedmont Public Works Department at 510/420-3070.

The report and recommendations from the Budget Advisory and Financial Planning Committee (BAFPC) look at the City’s primary financial risks and ways to reduce them.  The report will be presented to the City Council on Monday, June 4.    The nine recommendations, covering the Sewer Fund, Pay, Pensions and Benefits, Capital Transfers and Other Items, can be read below.

Piedmont General Fund no longer has annual surpluses –

A few short years ago, Piedmont enjoyed a $4.5 million annual operating budget surplus.  With expenses of $13.5 million and revenues of $18 million, the City’s expenses represented only 75% of revenues in FY 05-06.  It enjoyed a surplus that was 25% of its budget.  City monies, not just private funds, were allocated annually to capital improvement projects such as the purchase of 801 Magnolia Avenue, installing play fields, and more. > Click to read more…