City Manager's Blog

Steve Pinkerton has been the City Manager of Manteca since June 16, 2008. He served as Redevelopment Director for the City of Stockton, California from 1994 to 2008. He has also worked for the cities of Long Beach and Redondo Beach. Born in Wisconsin, Mr. Pinkerton has a Master’s degree in Urban Planning and and a Master's Degree in Economics from the University of Southern California, and Bachelor’s degrees in Economics and Geography from the University of Missouri.

Thursday, April 30, 2009

Emergency Response


City of Manteca Firefighters combat a vehicle fire on South Union Road near Highway 120. The driver noticed smoke emitting from the engine compartment and exited the freeway.
The driver of the vehicle was not a resident of the City of Manteca which is not unusual. The close proximity of Highway 99 and Highway 120 generate a myriad of vehicle fires and accidents requiring emergency response and mitigation by our City Firefighters. Last year Firefighters responded to over 400 vehicle accidents and approximately half of those were for non-resident drivers.


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Wednesday, April 29, 2009

The Next Budget Raid from the State

I realize that the majority of the posts lately have focused on budgetary issues. Unfortunately, it is the budget time of year, and this will certainly be the most challenging budget we have faced (along with every other city in State) in the past 30 years. While we've been doing everything we can to reduce expenditures and maximize revenues, there are two major revenue issues that we can't predict yet.

One of those is our property tax collections, the County Assessor will not be coming up with final calculations until July or August. Since property taxes are traditionally a fairy predictable source of revenue, this is typically not a problem. However, as I noted in an earlier post, this year's assessments could be down from 10 to 20 percent, depending on how the assessor weighs foreclosures into his value estimation. Since property taxes are 25 percent of our General Fund Revenue and 100 percent of our Redevelopment revenue, the assessor's final determination could create huge swings in our final revenue estimates.

The second major unknown is the State of California. The State budget is predicated on Ballot Measures 1A-1F winning at the polls on May 19. Right now, all of the ballot measures are in trouble. Even if the ballot measures pass, the State has now revised their revenue estimates and it looks like their original budget is now at least $8 billion in the hole. Win or lose, the State may come back and attempt to withhold or "borrow" some of our revenues again. I'm going to be recommending to the City Council that we adopt a "preliminary" instead of final budget in June. Once our property tax number is set and once the State finalizes their budget, we'll then have enough information to adopt a final budget. During the interim period, we'll continue to do what we are doing today, constantly looking for ways to reduce expenditures both in the short and long term.

I've attached a column from California City News here which talks more about the State's latest budget issues.

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Tuesday, April 28, 2009

Not all properties are created (or taxed) equally

Most citizens equate Proposition 13 with protecting homeowners from onerous increases in property taxes. While Prop 13 does a good job of protecting homeowners, the big secret about Prop 13 is that was actually a much bigger benefit for businesses than homeowners. Prior to Prop 13, commerical properties paid about 60 percent of all property taxes statewide. After Prop 13, the burden shifted to homeowners paying about 60 percent of all property taxes.

How did this happen? Very simply, it is due to the fact that commercial businesses change ownership far less frequently than residences. Since taxes are updated to market value every time a property is sold, residential properties are adjusted to market value far more frequently than commercial properties. In addition, commercial property owners have all sorts of loopholes wherein they can transfer a property without it triggering a reassessment. There are all sorts of tricks where the commercial business can change hands without requiring an update of its value.

The following article you can access here talks about this issue and some of the possible solutions being floated in the legislature. Given the strong business lobby, I don't hold out much hope of a change in commercial assessments, but changing the way commercial property is assessed could greatly assist every City and County in the State.

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Monday, April 27, 2009

As the Economy Turns

I've noted a number of times in public meetings that our budget projections are a moving target. Every day, new information impacts (some positive, some negative) our bottom line budget for 2009-2010. While most of our projections are based on the hard data that we receive from our staff and other government agencies, we also closely monitor the State and National economic news as well.

National economic news is especially important when it comes to our pension costs. We fully expect our required pension contribution to Calpers to be increased significantly next year. This is due to the woeful state of the stock market. While there are some folks now bullish about the recent performance of the market, those of us who have closely followed the market the past few decades are not quick to assume that it is headed in a positive direction.

An interesting piece was written in the Huffington Post today about the potential short term stock market bubble and why it may be happening. It is good reading about the psychology of the market and the economy and you can read it here.

While the Huffington Post article is concerned with us chasing the next bubble in the economy, a new study by the Pew Research Center demonstrates significant changes in household spending patterns over the past couple of years. It further reinforces what we've been seeing in our sales tax numbers--that households are cutting back on expenditures--particularly non-essential retail purchases. You can read the study by clicking here.

It is these types of studies that convince us that sales tax, our most important city government revenue source, is going to continue to struggle. Sales tax revenues are not only an important component of the General Fund. Sales taxes also fund much of our transportation funding and pay for a good chunk of police and fire services as well.

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Sunday, April 26, 2009

Budget Deadlines Approaching

Colleagues are emailing me news articles from all across the State and Country about the latest City, County or State that is attempting to solve their budget crisis. Riverside County is the latest to join the news blitz, with their announcement that they'll be laying off more than 1000 employees if they can't get their employees to reduce their total compensation. You can read more about it here, and the labor union reaction here.

Riverside County's story is no different than the rest of us, with decreasing revenues and ever increasing costs for salaries, medical benefits and pensions. To quote one member of the Board of Supervisors:
"...In a county with an almost 13 percent jobless rate, "we have to realize how relatively (well off) we are," Buster said. He said the county needs the unions' cooperation in balancing its budget: "We don't want to do that by laying people off..."

Labor's reaction, not surprisingly is as follows:
...In tough economic times, "pensions are attractive targets for budget cutting, but it should be the last priority," said Jim Cunningham, executive director of the Riverside Sheriff's Association, which represents most of the county's deputies, district attorney's investigators, coroner's investigators and probation officers ---- more than 3,300 in all.

The members would be "vehemently opposed to any attack on the (current) pension plan," he said, suggesting supervisors instead tap into the reserve fund, which now stands at about $98 million. That account already is expected to be drawn down $30 million in the coming fiscal year, according to the county's mid-year budget report, which was released Feb. 3.

Supervisors also have talked about across-the-board pay cuts of 5 percent or more, but Cunningham says that assumes all county departments are equally important. They're not, he says, citing the planning department as an example of a department that has a "far lower" priority than policing. In a rough economy, he notes, crime typically rises and the current sheriff, Stanley Sniff, "runs a lean ship already..."

Manteca's situation is not much different. We are working very hard to minimize the budget's impact on both services and our employees, but at the end of the day, our final budget will be very dependent on our employee's willingness to acknowledge that we are now in very different times. Salaries, benefits and pensions all need to be analyzed in light of current and future revenue constraints.

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Saturday, April 25, 2009

Highlights from "The Week in Review"

Highlights from this week's Week in Review

Public Works
Economic Stimulus Grant: As part of the American Recovery and Reinvestment Act of 2009, Manteca will receive $586,200 in Federal grant money to be used toward energy-efficiency and conservation projects. Unlike many federal grants, there is no matching fund requirement for these monies, which means the City does not have to spend a certain amount to receive the full $586,200. Public Works is evaluating a variety of energy-efficiency and conservation projects to maximize the use ofthe Federal grant funds, and plans to provide recommendations to Council at
its May 19 meeting.

Parks and Recreation
Senior Olympic Games: The Parks and Recreation Department is working closely with the MantecaConvention and Visitors Bureau in bringing the Senior Games to Manteca, April 25-3. Events that are scheduled to be offered are softball, BMX, martial arts, track & field and pickle ball events. A Welcome Reception for all the athletes is scheduled for April 25 at 6:30 p.m. at the Del Webb Community Multipurpose Room. The public is encouraged to attend to honor local and
visiting athletes competing in the Senior Games, and to support our community.

Parks and Recreation Impact on City Budget: Joint administrative services between Parks and Recreation and Public Works has been the subject of much discussion and evaluation as the City faces reduced resources. Management staff continues to work on alternatives to streamline processes, focus on core services and improve efficiency and effectiveness in critical administrative services for both departments, including reception, clerical, analytical work and
purchasing/budgeting.

"The Week in Review" is accessible from the City's website or by going to this link.

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Friday, April 24, 2009

One Voice Trip

Recently, there was significant controversy in our neighboring City of Lathrop about the need to send our elected representatives on the annual "One Voice" trip sponsored by the Council of Governments (COG). These same "One Voice" opponents contacted our local representatives as well and asked why they would support this trip. You'll note that none of these opponents expressed any of their concerns at a Manteca City Council meeting. This is due, in no small part, to the very thoughtful and comprehensive response that Councilwoman Moorhead provided via email to the opposition group. In fact, a member of this group responded to the Councilwoman's email as follows:

"...Had our questions been answered (in Lathrop) as eloquently as you have been able to do, quite possibly there would have been no question to begin with. Maybe in the future when I have a question regarding such items, I should come to Manteca Council meeting to get an honest and informed response."

Here is the response that was prepared by Councilwoman Moorhead:

Again thank you for taking the time to email me about the COG trip. I have been participating in this trip for several years. I do believe in it 100%. Let me tell you why. Five years ago I was interested in seeing what COG was doing on behalf of my tax dollars (Measure K). I decided to go to Washington DC to see first hand what our city's leaders were doing on behalf of all of us. I was and still am very impressed with the time and dedication city leaders put into this trip. It is so important to continue going back annually to DC as a unified voice from our region as this helps to build relationships with members of Congress as well as Administration staff. Not only is there local officials but private sector as well. This is a good and strong benefit.

The process that each jurisdiction and participating agency goes through to research, select, approve, and review the regional priority projects for our federal platforms, is vital and necessary to help distill our many needs for our region. Through One Voice we provide our congressional representatives informed and local input from all the districts. The feedback from Congressional representatives indicates the One Voice helps them to better understand our central issues, as well as to advocate for our regional priority requests. This trip as One Voice puts focus on how regional cooperation and support opens doors for a variety of opportunities. This year the district's federal funding requests total $131,971,970. This includes private sector as well. To date more than 54 million dollars has been generated through One Voice. I hope this helps you to better understand the importance of One Voice.

I think participating city officials need to continue to educate the public about how the One Voice process itself helps the region. Please remember all projects local or regionally we (all cities and citizens) benefit by. If you have any further questions I am sure the Executive Director at COG(Andrew) will be able to help you.

Thank you for your email.

Respectfully,
Debby Moorhead

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Thursday, April 23, 2009

Just Compensation

Public employee salary, benefits and pensions are becoming a contentious issue in just about every City in the U.S. and particularly in California. Here is an excerpt from an editorial in Tuesday's Los Angeles Daily News:

"...And for the city employee unions, it's time to face the reality of California in 2009 and send this message:
We cannot afford to support the lifestyle you have become accustomed to. We can't afford the generous health benefits package. We can't afford the automatic 3 percent raise you'll get this year - or the additional 2.75 percent "step" increase due some employees. And we certainly cannot afford to pay the entire, looming half-billion dollar bill to secure your pension.
Public service is honorable and important work. But public employees can't live in a bubble, unaffected by the world and the economy around them..."

Click here to read the entire editorial.

The sentiment expressed is very similar to that given by the members of the Council's Budget Advisory Committee. It is imperative that we in the public sector ensure that our employees ARE aware of the world and the economy around us. I'll be meeting with all of our employee bargaining groups over the next week. I hope that we can have a fruitful discussion that acknowledges the financial challenges we face in local government and the financial challenges that our citizens are facing as well.

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Wednesday, April 22, 2009

City Council Public Comments

Public input is the most critical element to running an responsive, effective local government. I strongly encourage the public to attend City Council meetings and participate. In fact, in a time of dwindling resources (i.e. right now) it is critical that we receive feedback on which city expenditures are most important to our citizens.

There is no doubt in my mind that the City Council and City staff are intent on making sure we are spending our resources as effectively as possible. The challenge we often face is properly communicating to the public WHY an expenditure of dollars is in the best interest of our citizens. I'm hoping that this blog can contribute to the effort and I've encouraged every member of our staff to do a better job of communicating with the public.

Misinformation is the biggest challenge we face when attempting to explain our actions to the public. The public comment phase of our City Council meeting is an excellent venue for hearing the general concerns of the public. Unfortunately, it often becomes a platform for critics of city government to make false statements in order to justify their point of view. In the past, most cities have ignored these comments and just assumed that the general public realizes that these accusations are so extreme, that they must be false.

Unfortunately, experience has taught us that our silence in these situations often convinces the public that these accusations must be true. Therefore, I've decided that when appropriate, it is my responsibility to set the record straight when comments are factually inaccurate. That is why I responded several times at last night's meeting.

Here are some of the inaccuracies stated at the podium last night:

Statement: "Manteca has the highest sales tax rate in state...and the nation".

Answer: Actually, Manteca's 9.25% isn't even close to the highest rate in the state. Both South Gate and Pico Rivera have 10.25% rates, and Pico Rivera will rise to 10.75% in July as noted in an article you can access here. It is also important to note that most of the Sales Tax goes to the State or County, Manteca only gets 1.5%--and that extra half percent was approved by a 2/3 vote of the public. If the speaker wants some really high sales tax rates, she should go to this link where it shows that Tennessee has an AVERAGE sales tax rate of 9.36%!

Statement: "In 2007 the majority of the City's property tax went to the Redevelopment Agency instead of to the General Fund to pay for services."

Answer: When a citizen pays their property tax, only 11-15% of their tax comes back to the City. Most of it goes to the State, the Schools and the County. As I noted in a previous post, in a Redevelopment Area, the Agency receives 80-100 percent of the incremental increase in taxes after the project area is adopted. Therefore, the Agency doesn't take dollars away from the City, it provides a windfall of taxes that the City normally would never receive. In Manteca's case, well over $100 million has been reinvested in the community that would normally go to agencies outside the City.

Statement: The City is going to eminent domain a number of properties for a 560-unit subdivision.

Answer: The Machado Estates subdivision would include the ANNEXATION of a number of properties currently outside the City boundaries. The City would not be acquiring these properties, they would now be inside the City limits. Here is an article in the Bulletin that talks about the development.

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Tuesday, April 21, 2009

In the News...

Deputy Public Works Director Jim Stone passed on an op-ed piece in the New York Times very pertinent to our business. It does a good job of describing the need to consolidate services as revenues slide:

http://www.nytimes.com/2009/04/20/opinion/20brokaw.html?_r=1&emc=eta1

On the budget front, the latest city struggling with labor costs is Los Angeles. The first article discussses the Mayor's proposal to cut salaries across the board by ten percent:

http://www.latimes.com/news/local/la-me-labudget20-2009apr20,0,1004865.story

The second article discusses the issues Los Angeles is facing with Fire department overtime:

http://www.firefightingnews.com/articleBasicSearchResult.cfm?articleID=64937&search=los%20angeles

On the pension front, the City of Pacific Grove is seriously considering bankruptcy as an option in dealing with its debt to Calpers:

http://globaleconomicanalysis.blogspot.com/2009/04/pacific-grove-california-explores.html

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Monday, April 20, 2009

City Council Headliners

Only two non-consent items on Tuesday night's Council agenda:
-A hearing to consider adoption of a Resolution of Necessity for the Acquisition by Eminent Domain of Certain Real Property for Public Purposes in Connection with the West Louise Avenue Widening Project.
-A report on the League of Cities Revenue and Taxation Policy Committee meeting.

Consent items of interest include:
-Selecting the lowest responsible bidder for the Manteca Permit Center Project
-Updating the City's Fireworks Ordinance to permit the sale of Safe and Sane fireworks for an additional five years.

A copy of the full agenda packet is available at the following link on the City's website:
http://www.ci.manteca.ca.us/CityClerk/agendas/index.html

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Sunday, April 19, 2009

Highlights from "The Week in Review"

Here are some highlights from "The Week in Review". To read the entire document, click here.

Solid Waste: City Council's approval last meeting of the purchase of one automated solid waste collection truck will complete the Division's conversion to fully automated residential collection. Until this truck and one other that is on order arrives, the City will rely on older semi-automated trucks to do some alley collection and to have spare trucks available when the primary trucks are unavailable due to maintenance problems or scheduled services.

The City of Manteca’s annual maintenance cost is significantly lower than the industry average. Despite the lower maintenance cost of the semi-automated trucks, these trucks are more expensive to operate because the automated trucks collect many more containers per shift. With the recent order of a new automated truck, the City of Manteca will retire our last three semi-automated trucks, which are 9, 11, and 21 years old. These trucks have been primarily used as spare trucks in recent years to cover routes when automated trucks require maintenance or repair. Because of the difficult operating conditions, solid waste trucks do require frequent maintenance, so the industry standard is to maintain at least one spare truck for each 4 routes.

Senior Olympic Games: The Parks and Recreation Department is working closely with the Manteca Convention and Visitors Bureau in bringing the Senior Games to Manteca, April 25-30, 2009. Events that are scheduled to be offered are softball, BMX, martial arts, track and field, and pickle ball events. A Welcome Reception for all the athletes is scheduled for April 25 at 6:30 p.m. at the Del Webb Community Multi-purpose Room. We encourage your attendance in honoring local and visiting athletes competing in the Senior Games and supporting our community.

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Friday, April 17, 2009

Neighborhood Stabilization Program - Upcoming Meetings

In Wednesday's post, I mentioned that the City has received funding for the purchase and rehab of foreclosed homes. Two press releases were issued today regarding this program. One press release is targeted to residents interested in purchasing a home and the second release is for local licensed contractors and realtors:

NEWS BRIEF
YOUR OPPORTUNITY NOW!

YOUR OWN HOME
Neighborhood Stabilization Program
MANTECA HOMEBUYERS WORKSHOPS
TWO DATES AVAILABLE

Potential homebuyers can choose from two dates for the Neighborhood Stabilization Homebuyers Workshop. They will be held on Wednesday, April 22 and Wednesday, April 29, 7pm, at the Manteca City Council Chambers, 1001 West Center Street, Manteca. Visionary Home Builders will lead both workshops for those interested in obtaining information on purchasing a home through ‘Your Own Home” Neighborhood Stabilization Program (NSP).

San Joaquin County has received approximately $9 million in allocated funds from the U.S. Department of Housing and Urban Development as part of the Federal Stimulus Package. It will be used, in part, to purchase and repair vacant, foreclosed homes that will be available for purchase by eligible, low to moderate income, buyers.

Wednesday, April 22, 2009
or
Wednesday, April 29, 2009
7:00 – 8:00
Manteca City Council Chambers
1001 West Center Street
Manteca CA 95337

For information call: 209-466-6811 or http://www.visionaryhomebuilders.org/

-AND-

NEWS BRIEF

CALIFORNIA LICENSED SUBCONTRACTORS
AND REALTORS WORKING IN THE
MANTECA AREA


Informational meetings are being held Friday, April 24, for California Licensed Subcontractors and Realtors to obtain specifications on the bidding process for jobs through the Neighborhood Stabilization Program (NSP). Meetings are being led by Visionary Home Builders of California.

Manteca is receiving a portion of the $9 million allocated from the U.S. Department of Housing and Urban Development, as part of the Federal Stimulus Funds, for the purchase and repair of vacant, foreclosed residences in San Joaquin County.

Friday, April 24, 2009
Manteca City Council Chambers
1001 West Center Street
Manteca, CA 95337

Sub Contractors:
9:00am to 10:00am

Realtors
10:00am to 11:30am

For information call: 209-466-6811 or http://www.visionaryhomebuilders.org/

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Thursday, April 16, 2009

Lifestyle Outlets Update

Kerasotes Showplace 16 TheaterContractors will be very busy soon at the Lifestyle Outlets, adjacent to the Bass Pro Shop and Kerasotes Theater. Red Robin and Hampton Inn will be breaking ground soon, just to the north and south of the theater. A restaurant-oriented building will be under construction to the west of the theater and work will start up again on the building directly across from J.C. Penney. In addition, the developer will be making modifications to the shop space between J.C. Penney and the theater and a brand new row of shops will be constructed across from the existing shop space.

Craig Realty Group, is very confident that the shop space will fill up quickly. Outlet Centers, while impacted by the current recession, have proven much more resilient than the balance of the retail sector, as noted in a recent article in the Los Angeles Times you can read here. As most of you may know, Craig Realty Group is now teaming with Poag & McEwen to develop the balance of the shopping center anchored by Bass Pro Shop. For more details, read here for a good overall description of the project.

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Wednesday, April 15, 2009

New Housing Starts

Nationwide, housing starts this past month were at an all-time low (they've been keeping records for 50 years). Hopefully, this will turn out to be good news as it likely marks the bottom of the market. Most builders seem to see it as a good trend as builder confidence had its most dramatic rise in seven years.

We've now got a long road ahead to clear out the existing inventory of foreclosures which took a big jump in the past month. To help clear out this excess inventory, the City of Manteca has recieved funding from the federal government to facilitate the sale, rehab and purchase of distressed properties. In partnership with the County and several non-profits, we are hoping to leverage a little over a million dollars in federal funding to ensure that dozens of homes are rehabbed and occupied by first time homebuyers. Local realtors and contractors will be utilized in this process and the City's existing waiting list of first time homebuyers will accessed to implement this program.

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Atherton Drive Landscaping


The photo above shows the condition of the landscaping on Atherton Drive just south of the Bass Pro Shop. Last week's Bulletin article about landscaping standards noted that this area hasn't been adequately maintained by the contractor and the City hasn't provided the proper oversight to make sure the contractor maintains the landscaping.

I promised when starting this blog that when the City makes mistakes, we would fess up. Now is the time to fess up. It would be easy to point fingers on this one--as no less than six different contractors have been operating in this area during the Atherton Road extension--but I'm not going to do that. At the end of the day, it is the City's responsibility to make sure that every public right of way in this community is in top condition at all times. I would encourage members of the public to inform the City anytime there is a problem in the public right of way. While in many areas, someone other than the City is responsible for the day to day maintenance, ultimately the buck stops here. If there is a problem, we will fix it, and worry about blame later. Finding someone else to blame doesn't fix the problem. It is more important that our citizens have an attractive and well-maintained community every day of the year.

Tuesday, April 14, 2009

Before Vallejo, there was San Diego

As a City Manager, it is critical to stay ahead of the current trends. In the current economic downturn, every assumption about costs, revenue and budgeting and getting thrown out the window. Therefore, I am closely monitoring the cities which are at the leading edge of economic disaster. This is not only to make sure that we don't make the same mistakes, but to also look at the strategies these cities are employing to return from the brink. The two cities closest to the brink right now are Vallejo and San Diego.

While San Diego has somewhat recovered from its pension fiasco (unlike most cities which belong to CalPers, San Diego was self-funded), it is now facing huge challenges regarding its retiree health care costs and an operating budget that was damaged by the pension issues and is now facing huge drops revenue due to not only the overall economy but the drop in leisure travel.

Here are a couple of current cautionary tales emanating from San Diego:

http://www.voiceofsandiego.org/articles/2009/04/13/government/295retiree041209.txt

http://www.cbs8.com/Global/story.asp?S=10176087

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Monday, April 13, 2009

Local Vendor Preference Program

Economic Development is a high priority for the City of Manteca. This not only includes bringing new businesses to Manteca, but retaining our existing businesses as well. To this end, we are investigating every means possible to help sustain local businesses during the economic downturn. One means to sustaining local businesses is to ensure that the City of Manteca is using local businesses whenever legally possible.

This past Tuesday, the City Council formally adopted the Local Business Enterprise Preference policy. Essentially, eligible local vendors for publicly bid contracts are provided a 5% preference, and eligible local vendors offering professional services are provided a 5-point preference in staff’s evaluation of the proposals.

This program will provide the best of both worlds. The City of Manteca is assured of getting the lowest cost possible for its purchases while still providing local vendors with top priority in competing for our purchases.

A copy of the policy is attached.
Local%20Vendor%20Preference%20Policy.docx

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Sunday, April 12, 2009

Big League Dreams - Getting Stronger Every Year

Last Tuesday, the City Council received an update from the management of Big League Dreams (BLD). This annual update chronicled the incredible success of this often-criticized project. Friday's Bulletin did a nice job of summarizing the facts:

-257 adults softball teams this year as opposed to 168 in 2008.
-118 adult soccer teams compared to 124 in 2008.
-38 youth soccer teams compared to none in 2008.
-52 weeks booked solid of tournament play which is the same as last year.Seventy-five percent of the play – weekday leagues and tournaments – consists of youth teams.

-Of the out-of-town teams, at least 50 percent of the players and their families stay one night in Manteca area hotels.

-Over 400,000 attendees came to the complex in 2008.

-Total revenues were 17 percent ahead of projections meaning the payment to the City was $53,000 over projections--with a total payment to the City of $371,506!

The numbers certainly speak for themselves. Some will argue that the current numbers are good, but the original expenditure was far too high. In reality, while a city owned and operated project might have cost as much as $7 million less, I would challenge anyone to claim that the additional funds were not well spent. A City run facility likely would have cost the taxpayers at least $600,000 per year in maintenance and operational cost--whereas this facility is actually returning nearly $400,000 per year to the City. That is a difference of nearly $1 million per year. Thus, the additional cost will be paid off in about seven years--for the next 28 years of the lease, BLD will be a great financial benefit to the City.

In addition, a scaled down facility would not have attracted nearly as many outside visitors--outside visitors who eat in local restaurants and stay in local hotels. This likely benefits the local economy millions of dollars per year and returns hundreds of thousands of dollars back to the City in the form of sales tax and hotel tax revenues. A scaled down facility would not have generated the positive publicity that BLD has generated for the community. There are a lot of outside investors who would not even know that Manteca existed, were it not for BLD. While difficult to quantify, there is no doubt that BLD's existence has brought additional capital investment to the community.

I realize that there will always be naysayers, but in this case, those who continue to oppose BLD clearly have no case. The numbers don't lie.

Saturday, April 11, 2009

Highlights from "The Week in Review"


Here are a couple excerpts from this week's The Week in Review:

American Recovery and Reinvestment Act (ARRA) Funding: The Manteca Transit system will be receiving approximately $1.3 million in stimulus funding. The following projects are programmed to receive this funding:

First half of available funding:
Manteca Multimodal (Environmental/Engineering) $380,000
Marketing Plan (Rebranding/Signage/Brochures) $40,000
Fixed-Route Bus Purchase $100,000
Operations Facility Lease $130,000

Second half of available funding:
Manteca Multimodal (Construction) $649,009

All applications for ARRA funds are submitted to the Federal Transit Administration, Federal Transit Administration and the Department of Labor for review. The first half of the available funding, $650,000, is anticipated to be through the review process and ready for obligation on July 6. The second half of the funding, $649,009, is expected to be ready for obligation on October 1. Funding through this Act does not require a local match.

Multimodal Update: The Multimodal Station project has the following funding programmed:

Funding Source Amount When Available
ARRA (Stimulus) – Environmental/Engineering $380,000 July 6, 2009
ARRA (Stimulus) - Construction $649,009 October 1, 2009
Measure K $700,000 October 1, 2009
RSTP $1,500,000 October 1, 2010
Total: $3,229,009

Parks and Recreation:
· Staff continues to coordinate appointments for girls who are in financial need of formal dresses for upcoming proms, formals and 8th-grade graduations. Girls who are in need of dresses are required to fill out an application and must meet certain criteria. The program offers a chance for all teens to have the opportunity to attend a school event and help them build self esteem. Two additional dresses were donated this past week.

· The Little People’s program continues to offer preschool-aged children a “playgroup” environment, as well as an opportunity to learn, play and socialize with other preschoolers. The program provides a safe place to play, teaches vital life skills and gives preschoolers their first “real school experience.” The program currently has 45 participants registered in the program. The new session will began on March 30. The program will host the annual Easter Egg Hunt on April 13.

The Open Gym Program continues to provide a safe and secure place for the youth, teens and adults in our Community to play basketball. On March 27, there were 10 participants; on March 28 there were 28 participants; on April 3 there were 26 participants; and on March 21 there were 14 participants at the Open Gym Program. Friday’s Open Gym is now being offered again with two hours available to play basketball and two hours available to play volleyball.

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Friday, April 10, 2009

(Property) Tax Day



It's April 10, that cruel day just five days before income tax day when property owners have to make the second payment on their 2008-2009 property taxes. This year, about a one-third of those property owners will be making a payment lower than the one they made last April. This is due to the County Assessor taking into account the drop in property values during 2007. No, that isn't a typo--I meant 2007, not 2008.

Your current assessed value is based on the value of your home on January 1, 2008. This is because the assessor has to prepare taxable values during 2008 in order to meet the July 31 deadline for fixing values, which are then reflected in the property tax bill you receive in late fall. In the next fiscal year (2009-2010) property values will be based on the January 1, 2009 values. Given the massive drop in property values in 2008, the County Assessor expects far more properties to get tax reductions this year.

Some of you may ask, "if all property values are dropping, why doesn't everyone receive a reduction in taxes?"

Well, the assessed value of your property is not the market value of your property. When you purchase your property, the assessed value is set. Each year thereafter, the assessor cannot increase the assessed value of your property more than 2 percent. Thus, if property values are rising more than 2 percent per year, your assessed value is not keeping up with market value. However, with the current huge drop in values, there are likely to be very few properties that don't receive a reduction in value.

The reduction in value is often referred to as a Prop 8 adjustment. This is a quirk of the tax law that states that you can temporarily reduce the value of a property below its current assessed value. However, as property values go up, it can then go up in assessed value more than 2 percent a year. But, it can never go up beyond the value that it would have been if values had never dropped. Thus, if you received a reduction the past few years, you may see your property taxes go up more than 2 percent a year in the future.

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Thursday, April 9, 2009

2009 Housing Element


In today’s Bulletin a letter was published questioning the need for a housing element update.

The author is concerned with the cost of updating the City's existing Housing Element, and asks "why not simply implement the findings of the 2003 Housing Element and save our limited funds?" The answer is simple, State law requires the Housing Element to be updated every five years and Manteca's Housing Element was adopted in August 2004. Such updates are necessary to account for changes in demographics, housing program funding and site availability. The mandatory update also requires evaluation of the existing housing element to gauge the City's performance in meeting its established goals. The update also gives City's an opportunity to bring their housing elements into compliance with the most recent housing legislation.

Since the adoption of our last housing element the state legislature has approved new requirements for housing elements, including:
· SB 2-Requires zoning to encourage and facilitate emergency shelters and transitional and supportive housing. Specifically, at least one zoning district in each community must be identified where emergency shelters are allowed without a conditional use permit.
· SB 2348- Requires a more detailed inventory of sites, and requires that each community zone enough land at 20 units per acre to accommodate its low- and very low-income housing needs.
· SB575- Limits the downzoning or denial of projects identified in a Housing Element Adequate Sites Analysis.
· SB 1087- Requires housing elements be forwarded to water and sewer providers to ensure that infrastructure is available to meet future housing needs.
· AB 2634- Housing Element must quantify the needs of extremely low-income households.

Obviously the question becomes "What happens if we do not have an updated Housing Element?" Without a certified Housing Element, the City would be ineligible for some of the state housing grants and funds it currently receives. Other state funds, including those used to maintain roads and utilities, also could be jeopardized. The City would also be vulnerable to lawsuits for not working proactively to meet its housing needs. Typical remedies for such lawsuits include court orders to meet state certification requirements and, in some cases, court ordered moratoriums on development. These lawsuits are expensive and can have adverse fiscal and economic effects.

The Community Development Department is working diligently to craft a Housing Element that comes to grips with current and future housing needs including housing related to the foreclosure crisis, incentives for residential developers to provide affordable housing, working closely with non-profit developers, and working to promote higher density housing in the downtown.

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Wednesday, April 8, 2009

Redevelopment

Redevelopment finance is one of the least understood subjects in local government. The recent referendum on redevelopment in Lodi is a perfect example of how a positive aspect of redevelopment can be horribly misrepresented by the opposition.


It is a shame that Lodi continues to be one of the largest cities in the state without a redevelopment agency. Without Redevelopment, Lodi is lacking one of the few tools left to replace aging infrastructure, provide affordable housing and foster economic development.

The City of Manteca has generated hundreds of millions of dollars in economic activity, constructed tens of millions of dollars in infrastructure, provided desperately needed affordable housing for seniors and created new, modern commercial centers -- all due to adopting redevelopment areas over the past two decades.

Typically, your local government receives between ten and twenty percent of your property tax dollar. In a redevelopment area, it receives between eighty and one-hundred percent. In Manteca, that means we receive $15 million additional dollars per year. These are dollars that would mostly be going back to Sacramento. By voting down redevelopment, the citizens of Lodi have likely given away several hundred million dollars in future revenue--dollars that could go to replace aging infrastructure, revitalize neighborhoods and reconstruct and rehabilitate community facilities.

In future posts, I'll be talking more about the benefits generated via redevelopment.

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City Council Update

The Council gave a thumbs down to a mandatory spay and neutering ordinance, gave a semi-thumbs up to the Fireworks Ordinance and supported the recommendations of the Budget Advisory Committee.

Speakers at the meeting pointed out the difficulty in enforcing a spay and neuter ordinance and the concern that only law abiding citizens would be impacted and not those the ordinance was intended to punish. In reviewing ordinances in other cities, it was not clear that the ordinance had any impact on pet population and typically reduced the number of pets that were licensed.

The Council voted 3-1 to continue the practice of allowing non-profit agencies to sell safe and sane fireworks in the weeks leading up to Independence Day. The Council also agreed to impose a fee on each fireworks booth in order to recoup the staff cost associated with ensuring that each booth was in compliance with the ordinance. Staff had recommended a $700 fee, the City Council ultimately approved a $350 fee.

The Council heartily endorsed the findings of the Budget Review Committee, which included extending the life of the Committee. Staff was directed to find a time in early May where the City Council could hold a study session in conjunction with the Committee.

Monday, April 6, 2009

City Council Meeting Headliners

The Main items for Tuesday night's Council Meeting include:


  • The continued Public Hearing for the Mandatory Spaying and Neutering of Dogs. Also included in the recommendation is the micro-chipping of Redeemed Dogs and Cats
  • An item determining the future of the City's Fireworks Ordinance
  • The Report and Recommendations of the Budget Advisory Committee

Items of interest on the Consent Calendar include:

  • Final Adoption of the Local Vendor Preference Policy
  • Memorandum of Understanding with DeCristo Productions for 2009 Movies in the Park

A copy of the full agenda packet is available at the following link on the City's website:

http://www.ci.manteca.ca.us/CityClerk/agendas/index.html

Items of Interest from "The Week in Review"

For those of you who don't read the entire "Week in Review" (TWIR), here are a couple of the more interesting reports:

(You can access the TWIR at http://www.ci.manteca.ca.us/twir/)

COMMUNITY DEVELOPMENT DEPARTMENT
"The Trails:" Next Bay Properties, based in Danville, submitted a complete application last week to move forward on "The Trails" residential development project, located southwest of the Highway 120 Bypass and west of McKinley Road. The project will entail the development of 1,173 lots and all related infrastructure, plus the provision of an "Urban Forest."

PUBLIC WORKS DEPARTMENT
Possible Federal Funding for Manteca Projects: Staff has been notified by Congressman McNerney’s office that the Congressman was including six Manteca projects on his appropriations request list for the 11th District. Projects include installing a solar energy facility at the new corporation yard ($620,000), arsenic reduction ($430,000), sewer line replacement ($2 million) Austin Road interchange ($1 million) Regional Events Center ($750,000) and a job mentoring program requested by Give Every Child a Chance ($1 million). Although there is no guarantee any or all of these projects will receive final funding, including them on the Congressman’s appropriations list is essential to having them considered at all.

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One More News Report

Here is another interesting post from California City News:
With a deficit spiraling towards the $1 billion mark, the City of Los Angeles is set to layoff 400 city workers, with plans for the potential elimination of 2,800 additional positions this year. From the LA Times...
"Villaraigosa said earlier this week that no agreements have been reached, but that "everything must be on the table" to address L.A.'s financial woes, including layoffs and early retirements. The mayor also is exploring whether to privatize the Los Angeles Zoo and sell but lease back city parking garages and meters, which could raise hundreds of millions of dollars."
The Times has more on the Union response and next steps here.

Sunday, April 5, 2009

Government Pay Scales Dropping

From California City News:

Ancedotal reports of cities witholding cost-of-living increases and otherwise restructuring benefits are starting to roll in. The SacBee took a look at Sacramento area local governments over the weekend, and found several cities deciding on reduced COLA or increases that serve only to repay furloughs given earlier.
"I would not be surprised if five years from now, the average wage and benefit packages paid to both public and private sectors are actually lower," said one City Manger interviewed for the report.
Read more in the SacBee.

Thursday, April 2, 2009

Public Safety Workers Compensation Cost

The Sunday Bulletin stated that it costs the city more in workers compensation for public safety. This is not necessarily the case.

The workers compensation premium the city pays is a composite rate, which includes all full time, part time, and volunteers as well as all of public safety. There is always the belief that public safety employees cost more for coverage in the system than all other employees because of Labor Code 4850 which allows for an injured public safety employee to collect 100% of their salary for up to one year after sustaining a work related injury; in Manteca, we have been able to control this cost by utilizing a transitional work program.

To address the cost of workers compensation and reduce the total number of lost time claims for all injured city employees, which is the primary contributor to our rates, the city has a very aggressive temporary, transitional work program for all employees, including public safety. This program allows the injured worker to remain working within their physical restriction, and keeping the employee in the work environment. In most cases, the employee returns to full duty within a short period of time, thus the cost savings.

Public safety employees at the city account for approximately 33% of the total workforce, and over the last four years to present have accounted for 38% of the injuries. In comparison, public safety accounts for more than 50% of all injuries in most municipalities that have full time police and fire departments.

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Wednesday, April 1, 2009

Question: Are millions going down the toilet? Answer: Absolutely Not!

Sunday’s article in the Bulletin talked a lot about ground water and pipes that we use to collect sewer and the potential cost to residents. The bottom line is that we don’t believe that water infiltration is an issue, but in an absolute worse case scenario it might cost the typical homeowner around 10 cents per month--more likely the cost is about 1/1000th of that--so about 1/8th of a cent per year per household.

Some of the information presented in the article might be misunderstood, so we would like to present some information about groundwater and sewer collection. In an attempt to clarify some of the issues, our staff wastewater experts have provided answers to a series of questions that might have been created by the article. In the future we'll also be addressing some of the other issues brought up in the article such as gravity flow versus force main and alternate energy applications at the sewer plant.

Q1 – Why is the 54” line referenced by the Bulletin full of water?
A – The line was constructed over a decade ago, and over that time groundwater has filled the line from a leak in a manhole. This line does not convey sewage at this time. It is part of a future pipe system that will be completed as development occurs.

Q2 – Would this water reduce capacity at the wastewater treatment plant.
A – No, before this line could be put in service, the leak would have to be repaired.

Q3 – How much seepage or infiltration should be expected from a pipe installed below groundwater?
A – Industry standards have been developed for this situation, and the amount of infiltration is dependent on the pipe length, diameter, and how deep the pipe is in groundwater. If the City completed all 10 plus miles of the gravity system as proposed, the worst case infiltration would be about 70,000 gallons per day, and cost each home owner $1.50 per year. Actual infiltration is expected to be much lower (see Q4)

Q4 – Are there any other unused lines that have remained dry?
A – The City installed another segment of large diameter (54” diameter) trunk three years ago, and recent inspection revealed three inches of water that had accumulated in the pipe. That is a total of 2.8 gallons/foot of pipe in three years. If the entire proposed 10 plus miles of gravity collection system experienced this rate of infiltration or seepage, it would equate to an average of 43,200 gallons per year or 120 gallons per day of groundwater being added to the treatment plant. That is the equivalent of about half of a typical home.

Q5 – Are there any other leaks that are allowing groundwater to go to the plant?
A – There will always be some minor leakage, more so in the local lines that collect sewage from the individual houses and businesses than in the trunk lines that carry the sewage to the treatment plant. The most common source of leakage is at the point were a residential lateral connects to the local sewer line. Next most common problem area is at manholes where lines intersect.

Q6 – What is the City doing to prevent groundwater from entering the sewer system?
A – The City does regular maintenance and monitoring of the entire collection system to insure that infiltration or seepage is eliminated. In February, City crews cleaned and inspected over 40,000 feet of City sewer lines.

Q7 – If groundwater did seep into sewer lines, how would it affect the treatment plant capacity?

A – Treatment capacity is the plant’s ability to treat dry weather flows and wet weather flows. Dry weather flow consists of wastewater that is generated on a day-to-day basis from homes and businesses. Dry weather flow is made up of both hydraulic (water) loading and organic (human waste) loading. Dry weather flow is also a very consistent flow in that its amount and strength changes slowly over time. Wet weather flow is generated from stormwater and groundwater that finds its way into the gravity collection system through leaks and cracks in pipes and manholes. Wet weather flow is made up entirely of hydraulic loading, and it is a very inconsistent flow in that the amount of wet weather flow changes with the rainy season and as groundwater levels rise and fall.

Both flows – dry weather and wet weather – were accounted for during design of the Manteca treatment plant. Pumps and structures were sized to handle the hydraulic loading from both dry and wet weather flows. However, the biological systems designed to remove and treat the organic loads were sized to accommodate only the dry weather flows since this is the only source of organic loading. The biological treatment systems include facilities such as aerators, filters, digesters, and disinfection.

So, the answer to the question is that stormwater and groundwater infiltration have already been accounted for in the plant’s treatment capacity. Incidentally, designing for dry and wet weather flows is a standard engineering practice, and virtually every treatment plant in the country was designed this way.

Q8 – If groundwater or stormwater infiltration were reduced, can the “freed up” capacity be used for new homes and businesses?

A – Reducing a wet weather flow, such as groundwater infiltration, would free up hydraulic capacity at the plant. However, if a dry weather flow was inserted in its place, both the hydraulic loading and organic loading would increase at the plant. The plant could handle the hydraulic loading, but not the increase in organic loading. So, to accommodate additional homes or businesses that take the place of groundwater infiltration, the City would need to expand the plant’s biological treatment systems. These are typically the most expensive parts to maintain and operate.

Finally, a brief note about groundwater. Shallow groundwater is present in most of the area currently in the Manteca City limits, and future growth areas. The groundwater tends to be higher at lower elevations and near permanent water bodies. Groundwater levels fluctuate depending upon a number of factors including geology or soils type, precipitation, irrigation, and drainage or pumping. High or shallow groundwater is common in much of the world’s population centers which are typically located adjacent to water bodies. Fortunately engineers and geologists are able to identify, monitor, and compensate for the presence of groundwater in almost every situation, and have done so for hundreds of years. This capability has allowed us to build large buildings, tunnels, sewers, and other infrastructure below groundwater levels. Certainly the City of Manteca can construct a few miles of pipe below groundwater and still provide reliable cost effective service for all the existing and future rate payers.

We look forward to your comments on this issue.