CITY OF GRAND RAPIDS TRANSFORMATION FUND UPDATE SEPTEMBER - 2013.

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TABLE OF CONTENTS

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Introduction 3

Transformation Fund Statement 7

Transformation Fund Revenues 10

Transformation Fund Expenses 11

Investment UpdatesSupport for Ten Community Police Officers 12Support for Fifteen Firefighters 13Business Planning for City Cemeteries 14Business Planning for Indian Trails Golf Course 15Fire Department - Fire Squad Vehicles 16Joint Police and Fire Study 17Fee Study 18Curbside Refuse Collection Carts 193-1-1 Customer Service 20Stormwater Asset Management Planning 21Fire Apparatus Fuel Efficiency Initiative 22Police Department Automated License Plate Recognition 23Fire Department FEMA Grant Match – Prevention Grant 24Community Development Services Study 25

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TRANSFORMATION FUND INTRODUCTION In May 2010 Voters approved a temporary five-year City Income Tax

increase with the following stipulations:Reinstate ten Community Police OfficersCreate a Fire Squad with fifteen new FirefightersBalance the City’s General Operating Fund to ensure the City’s solvency,

and invest in changes to transform the City to become financially sustainable – to ensure that revenues exceed expenditures, while improving customer service, capital assets and quality of life in our community

A Transformation Fund was established to account for the temporary City Income Tax increase with the following objectives:

To isolate and track the new income tax monies to avoid any doubt as to where the tax dollars are spent

Invest in transformation activities that have the potential to result in a rapid, tangible, and monetary return on investment to help transform the City into a more financially sustainable organization where expenditures are consistently matched to available resources.

Sustain or improve outcomes, customer service, efficiency and productivity, and most importantly, lower costs through strategic investments.

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TRANSFORMATION FUND INTRODUCTION

A Transformation Investment Plan was developed that addresses six major areas:

Public SafetyStreets and infrastructureQuality of lifeTransparency, accountability, and communicationsCity operationsCitizen engagement and customer service

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A process for transformation to ensure success was established:Citizen Engagement76 separate value streams were developedRequired investment from the Transformation Investment Fund to achieve

the transformation leap necessary to achieve long-term savings or sustain outcomes

Identified owners to complete each of the value streamsScreening process developedInvestment Managers selected and charged with the responsibility for

managing the investment portfolio Rigorous process adapted from the City’s effective Lean Thinking

experience to evaluate and recommend transformative investmentsPublished online transformation results in a dashboard

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Additional resources were obtained and/or allocated: Safer Grant

2010 SAFER grant that provided funding for thirteen Firefighters for approximately two years. The temporary income tax monies that were earmarked for this purpose were reserved to sustain Firefighter staffing after the SAFER grant ended and the income tax measure expires.

Resulted in the FY2011, FY2012, and FY2013 Transformation Fund expenditures on Firefighters being reduced from fifteen Firefighters ($1,447,000) to two ($198,339) with the difference reserved to maintain Firefighter staffing for the rescue squad in future years beyond the termination of the SAFER grant.

Economic Vitality Incentive Program (EVIP)After reducing State Shared revenue allocations by 50% over 8 years, the

State of Michigan replaced the remaining statutory revenue sharing program with a reduced funding (approximately 2/3rds) competitive program called EVIP

Three criteria:Transparency and accountabilityEmployee compensationConsolidation and collaboration

It was decided to allocate these potential one-time “replacement” funds to the Transformation Fund to allow for additional investment

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TRANSFORMATION FUND STATEMENT OF ACTUAL EXPENDITURES

FY2011 – FY2013

7

Preliminary Organizations Amended Budget Actual Amended Budget Actual Actual

REVENUESUPPLEMENTAL INCOME TAX (SRTRN207) Income Tax Grow th Rate: 5.0% 4.0% 4.0% 9.0% 9.0%

Taxes-Temporary Five Year Income Tax 8,505,998$ 8,517,255$ 8,846,238$ 9,057,217$ 9,872,367$ 9,872,367$ Intergovernmental Revenues (EVIP) - - 4,570,056 4,570,056 4,661,457 4,896,488 Interest And Rents - - - 49,616 64,000 91,516 Return of Consultant Fees from Cemetery 5,000 - Loan Repayment from Refuse Fund - - - - 535,000 535,000 SUPPLEMENTAL INCOME TAX Total Revenue 8,505,998 8,517,255 13,416,294 13,676,889 15,137,824 15,395,371

EXPENDITURESSUPPLEMENTAL INCOME TAX (SRTRN207) Transfers Out

Support for Ten Community Police Officers 1,005,160 1,005,160 1,005,160 1,005,160 1,043,404 1,043,404 Support for Fifteen Firefighters 192,934 192,934 198,339 198,339 180,233 180,233 Support for 17 Firefighters after SAFER One - - - - 1,589,659 1,589,659 Business Planning for City Cemeteries - - 20,000 20,000 - (5,000) Business Planning for Indian Trails Golf Course - - 20,000 20,000 - - Fire Dept. - Fire Squad Vehicles - - 931,781 931,781 (3,171) (3,171) Joint Police and Fire Study - - 69,000 69,000 - - Fee Study - - 50,000 50,000 - - Curbside Refuse Colletion Carts - - 2,400,000 2,400,000 - - 3-1-1 Customer Service - - 225,640 225,640 336,599 173,315 Stormwater Asset Management Plan - - - - 450,000 450,000 Fire Apparatus Fuel Efficiency Initiative - - - - 75,550 75,550 Police Dept. Automated License Plate License Recognition - - - - 104,616 104,616 Fire Dept. FEMA Grant Match - Prevention Grant - - - - 100,808 100,808 Community Development Services Study - - - - 20,000 20,000 Transfers to General Operating Fund - - 7,679,552 7,679,552 6,052,707 6,052,707 Operational Transformation* - - - - - - Sustainable Asset Management* - - - - - - General Capital Improvements* - - - - - -

SUPPLEMENTAL INCOME TAX Total Requested Expenditures 1,198,094 1,198,094 12,599,472 12,599,472 9,950,405 9,782,121

SUPPLEMENTAL INCOME TAX NET INCOME (LOSS) 7,307,904 7,319,161 816,822 1,077,417 5,187,419 5,613,250

Fund Balance - Beginning of Year - - 7,319,161 7,319,161 8,396,578 8,396,578

Fund Balance - End of Year 7,307,904 7,319,161 8,135,983 8,396,578 13,583,997 14,009,828

FY2013FY2011 FY2012

Amended Budget

* Illustrative – projects under development, subject to review and approval process


TRANSFORMATION FUND FORECAST OF FUTURE EXPENDITURES

FY2014 – FY2018

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2014 2015 2016 2017 2018Adopted Adopted Adopted Adopted Adopted

Organizations Budget Forecast Forecast Forecast Forecast

REVENUESUPPLEMENTAL INCOME TAX (SRTRN207) Taxes-Temporary Five Year Income Tax 9,892,991$ 10,090,851$ -$ -$ -$ Intergovernmental Revenues (EVIP) 4,896,486 5,043,381 5,194,682 5,350,522 5,511,038 Interest And Rents 35,000 40,000 20,000 10,000 5,000 Return of Consultant Fees from Cemetery - - - - - Loan Repayment from Refuse Fund 535,000 535,000 535,000 535,000 - SUPPLEMENTAL INCOME TAX Total Revenue 15,359,477 15,709,232 5,749,682 5,895,522 5,516,038

EXPENDITURESSUPPLEMENTAL INCOME TAX (SRTRN207) Transfers Out

Support for Ten Community Police Officers 1,110,492 1,125,093 - - - Support for Fifteen Firefighters 1,173,989 1,606,671 - - - Support for 17 Firefighters after SAFER One 1,696,168 1,119,234 - - - Business Planning for City Cemeteries - - - - - Business Planning for Indian Trails Golf Course - - - - - Fire Dept. - Fire Squad Vehicles - - - - - Joint Police and Fire Study - - - - - Fee Study - - - - - Curbside Refuse Colletion Carts - - - - - 3-1-1 Customer Service - - - - - Stormwater Asset Management Plan - - - - - Fire Apparatus Fuel Efficiency Initiative - - - - - Police Dept. Automated License Plate License Recognition - - - - - Fire Dept. FEMA Grant Match - Prevention Grant - - - - - Community Development Services Study - - - - - Transfers to General Operating Fund - - - - - Operational Transformation* 7,000,000 4,000,000 4,000,000 4,000,000 4,000,000 Sustainable Asset Management* 1,000,000 12,000,000 1,250,000 1,250,000 1,250,000 General Capital Improvements* - 2,500,000 2,000,000 2,500,000 6,500,000

SUPPLEMENTAL INCOME TAX Total Requested Expenditures 11,980,649 22,350,998 7,250,000 7,750,000 11,750,000

SUPPLEMENTAL INCOME TAX NET INCOME (LOSS) 3,378,828 (6,641,766) (1,500,318) (1,854,478) (6,233,962)

Fund Balance - Beginning of Year 14,009,828 17,388,656 10,746,890 9,246,572 7,392,094

Fund Balance - End of Year 17,388,656 10,746,890 9,246,572 7,392,094 1,158,132

CITY OF GRAND RAPIDSTRANSFORMATION FUND (SRTRN207)

STATEMENT OF OPERATIONS


TRANSFORMATION FUND FIREFIGHTER AND OTHER RESERVES

FY2011 – FY 2018

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2014 2015 2016 2017 2018

Preliminary Adopted Adopted Adopted Adopted Adopted

Organizations Amended Budget Actual Amended Budget Actual Actual Budget Forecast Forecast Forecast Forecast

Reserve Targets:

Assigned Reserves to Maintain Firefighters After SAFER Grant & After Income Tax 1,254,066 1,254,066 2,498,964 2,498,964 2,176,072 2,439,203 1,119,234 - - - -

Unassigned Fund Balance 6,053,838 6,065,095 5,637,019 5,897,614 11,407,925 11,570,625 16,269,422 10,746,890 9,246,572 7,392,094 1,158,132

Total 7,307,904 7,319,161 8,135,983 8,396,578 13,583,997 14,009,828 17,388,656 10,746,890 9,246,572 7,392,094 1,158,132

Unassigned FB as a % of Total Expenditures 505.29% 506.23% 44.74% 46.81% 114.65% 118.28% 135.80% 48.08% 127.54% 95.38% 9.86%

Programmed for Fire Squad (15 personnel) [Total Cost of Squad] 1,447,000 1,447,000 1,447,000 1,447,000 1,447,000 1,496,958 428,956 1,606,671 - - -

Expenditure for Squad (Income Tax) [Portion not Covered by SAFER II] 192,934 192,934 202,102 202,102 180,233 180,233 52,757 1,606,671 - - -

Difference (SAFER II) 1,254,066 1,254,066 1,244,898 1,244,898 1,266,767 1,316,725 376,199 - - - -

Expenditure for 17 Firefighters after SAFER I Ends - - - - (1,589,659) (1,376,486) (1,696,168) (1,119,234) - - -

Net Difference 1,254,066 1,254,066 1,244,898 1,244,898 (322,892) (59,761) (1,319,969) (1,119,234) -

Reserved for Firefighters Beginning of Year - - 1,254,066 1,254,066 2,498,964 2,498,964 2,439,203 1,119,234 - - -

Reserved for Firefighters End of Year 1,254,066$ 1,254,066$ 2,498,964$ 2,498,964$ 2,176,072$ 2,439,203$ 1,119,234$ -$ -$ -$ -$

CITY OF GRAND RAPIDSTRANSFORMATION FUND (SRTRN207)

STATEMENT OF OPERATIONS

FY2013

FY2011 FY2012

Amended Budget

CITY OF GRAND RAPIDSREVENUES

Transformation Fund Revenue SourceFY 2010 – FY 2013

$ 27,446,839 , 71.64%

$ 9,466,544 , 24.71%

$ 141,132 , 0.37%

$535,000 , 1.40%

$720,700 , 1.88%

Transformation Fund Revenue SourceFY 2010 - FY 2013

Temporary Income Tax RevenueState of Michigan EVIP RevenueInvestment EarningsLoan Repayment - Refuse FundGrants and Other State & Local Funding

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CITY OF GRAND RAPIDSEXPENSES

$398,955 1.69%

$20,000 0.08%

$450,000 1.91%

$69,000 0.29%

$571,506 2.42%

$1,589,659 6.74%

$928,610 3.94%

$75,550 0.32%

$100,808 0.43%

$3,053,724 12.95%

$104,616 0.44%

$15,000 0.06%

$20,000 0.08%

$50,000 0.21%

$ 13,732,259 58.24%

$2,400,000 10.18%

Transformation Fund ExpendituresFY 2010 – FY 2013 3-1-1>>Pgm $398,955

CD Svcs Study>>$20,000

Storm Asset Mgmt>>$450,000

Joint Police Fire Study>>$69,000

Support for 15 FF>>$571,506

Support for 17 FF Post SAFER I>>$1,589,659

FD Quick Response Vehicles>>$928,610

Fire Apparatus Fuel Efficiency>>$75,550

FEMA Prevention Grant>>$100,808

Support for 10 Police Officers>>$3,053,724

ALPR License Plate System>>$104,616

Cemetery Business Planning>>$15,000

Golf Course Business Planning>>$20,000

Fee Study Consultant>>$50,000

GOF Transfers>>$13,732,259

Refuse Fund Loan>>$2,400,00011

INVESTMENT UPDATES

Support for Ten Community Police Officers

Background Following the successful May 2010 ballot

proposal, the City reinstated ten Community Police Officers and committed to maintaining the Community Policing Program

Milestones May 2010 ballot proposal approved by

voters Ten Community Police Officers immediately

recalled and reinstated City commits to funding the ten Community

Police Officers through June 30, 2015 Funding not yet identified beyond June 2015

Project Status: ACTIVE

Resources Cumulative Transformation Fund

Expenditures through June 2013: $3,053,724

Desired Outcomes Transformed Police Department operations

allow for the continuation of present outcomes at a reduced cost

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Support for Fifteen FirefightersBackground

Following the successful May 2010 ballot proposal, the City created a Fire Rescue Squad which is centrally deployed at the LaGrave Avenue fire station.

Milestones 2009 SAFER Grant provided funding for 17 firefighters for

2 years May 2010 ballot proposal approved by voters June 2011: the City received a 2010 SAFER grant

providing 13 firefighters for two years 15 firefighters hired and the squad deployed July 2011 The funding for 13 firefighters provided by the temporary

income tax is placed into a reserve August 2012: the 2009 SAFER grant funds are depleted

and the temporary income tax reserves begin to be utilized

Funding has not been identified to continue these positions beyond expiration of the temporary City Income Tax increase and depletion of the reserve

Status: ACTIVE

Resources Cumulative Transformation Fund Expenditures through

June 2013: $2,161,165

Desired Outcomes Maintain firefighter safety while simultaneously

transforming Fire Department operations to enable the continuation of present outcomes at a reduced cost

INVESTMENT UPDATES

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Business Planning for City CemeteriesBackground

The City’s cemeteries have operated at a loss for several years, requiring an annual subsidy from the General Operating Fund

General grounds maintenance has declined and prospect for the operations becoming financially sustainable remains uncertain

The L.F. Sloane Consulting Group, Inc. was hired by the City to develop an Operational Audit and Business Plan for cemeteries. The objective of this review was to identify potential sustainable models in cemetery operations that do not require an annual subsidy from the General Operating Fund.

Milestones The L.F. Sloane Consulting Group, Inc. presented the results of

their analysis and business plan options in December 2011 Since December 2011, numerous operational adjustments have

been made Overall the study did not provide a final path to financial stability

and sustainable asset management but several opportunities were highlighted

Business planning for the cemeteries continues

Status: INACTIVE/CLOSED

Resources The Transformation Fund allocated $20,000 during FY 2012.

$15,000 was spent and $5,000 was returned during FY 2013

Desired Outcomes The City intends to ensure that the City’s cemeteries are well

maintained, that our customers are served well, and the operations are financially sustainable.

INVESTMENT UPDATES

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Business Planning for Indian Trails Golf Course

Background Indian Trails Golf Course has operated at a loss for several years Capital improvements have been deferred and the prospect for

the operations becoming financially sustainable remains uncertain

The PROS Consulting Team was hired by the City of Grand Rapids to develop an Operational Audit and Business Plan for Indian Trails Golf Course. The objectives of this review were to examine key questions to help the City identify a sustainable model that generates sufficient revenues to operate, maintain and fund capital needs of the golf course.

Milestones The PROS Consulting Team presented the results of their analysis

and the business plan options in January 2012 Since January 2012, staff has implemented many of the

operational recommendations Summer 2013 - New golf course manager hired to continue to

develop a final path to financial stability and sustainable asset management

Business planning for the golf course continues

Status: INACTIVE/CLOSED

Resources Cumulative Transformation Fund Expenditures through June

2013: $20,000

Desired Outcomes The City is committed to ensuring the Indian Trails Golf Course

is well maintained, that our customers are served well, and the operations are financially sustainable.

INVESTMENT UPDATES

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Fire Department – Fire Squad VehiclesBackground

The project has provided funding to construct a state of the art live fire training facility, bring in a foam expert from the Los Angeles County Fire Department and take delivery of three vehicles that are outfitted with equipment that provides compressed air foam and water delivery. These vehicles are called Squads and provide greater flexibility in deployment

Milestones Classroom training has been completed on compressed air foam systems

for all fire suppression personnel For the first time in GRFD history the entire department was run through

live fire training, which was completed in November 2012. The department is currently rotating fire crews through their third live fire training.

The Department is currently executing a six-month assessment plan that began February 19th and runs to August 19, 2013. It is expected that an official report will be compiled and published within 30 days following the end of the six-month assessment period.

A special committee comprised of a battalion chief and the Squad officers has been assembled to ensure adequate dialogue regarding Squad operational improvements. To date, there have been only minor operational changes and small enhancements to the Squad deployment and operational strategies resulting from officer suggestions.

The Squads do respond to almost all calls that the large, traditional apparatus respond to and are proving to be very effective.

The Squads have used 32.11% less fuel when compared to the traditional vehicles while responding to 42.9% more calls since their “go-live”.

The Squads were delivered at a cost that was $3,171 under-budget, which has been transferred to the Fire Apparatus Fuel Efficiency Initiative

Status: ACTIVEResources

Cumulative Transformation Fund Expenditures through June 2013: $928,610

Desired Outcomes Operational — Maintain performance level goals by keeping multiple fire

units in service Safety — Provide greater standoff distances and heat absorption rates Financial — Provide $2,156,274 net savings, after investment payback,

over the term of the temporary City Income Tax increase; provide ongoing operational savings and a budget reduction of 4.59%; provide a fifteen year net savings, the lifespan of the apparatus, of $20,810,030.

INVESTMENT UPDATES

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Joint Police and Fire StudyBackground

The purpose of the consultant engagement is to provide a clear set of recommendations to make change that will transform services and make them sustainable by reducing costs and increasing productivity thereby achieving operational savings targets for police and fire services. This joint study could accelerate our partnerships with neighboring communities.

Milestones October 2011: The cities of Grand Rapids, Kentwood and

Wyoming entered into a contract with the International City/County Management Association to perform the study

Phase I reports for individual police and fire operation in the three partner communities were released in the 4th Quarter of 2012

Regional reports were released in the second quarter of 2013 Final Report released July 18, 2013 to joint Commissions of

Grand Rapids, Wyoming and Kentwood. Additional discussions to follow

Status: ACTIVE


2013: $69,000 Third Party (Non-City) Grant Funds: $127,000 Cities of Kentwood and Wyoming: $69,000

Desired Outcomes The anticipated outcomes of the study are to provide analysis of

present Police and Fire workloads with potential response alternatives along with possible scenarios for joint service opportunities. Achievement of the 10% savings goal in the Police and Fire Departments will produce approximately $7,000,000 in annual operational savings for this investment.

INVESTMENT UPDATES

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Fee StudyBackground

The City Commission approved hiring a consultant to develop standards for calculating the costs of providing services so that all City fees and fines will be based on total cost recovery.

Milestones Draft report revealed that the City does not have a uniform standard

way of accumulating costs. Without uniform cost accounting, standardized methodology is not feasible. Recommendation to address uniformity in cost accounting in the new financial system

Plante Moran provided a draft fee policy report and a draft administrative fee policy with the recommendation that the City set fees and fines at rates which include all costs (i.e. direct costs and allocation of indirect costs for departmental and administrative support services) incurred to provide the service.

September 2012: Final fee policy report released detailing recommendations and best practices.

Based on the final report recommendations, City departments were directed to focus on 100% fee recovery and explore ways in which to simplify their fee structure.

The revised fee policy was approved by the City Commission in June 2013.

Approximately one third of the City’s fees will be evaluated each year, beginning with the FY2014 budget process.

Status: INACTIVE/COMPLETED

Resources Cumulative Transformation Fund Expenditures through June 2013:

$50,000

Desired Outcomes The goal is to create a methodology and policy to determine which

services should be funded at least partially by fees, calculate the full cost of providing these services, and provide guidance by which the City Commission determines the appropriate balance of tax dollars and/or fees to provide services.

INVESTMENT UPDATES

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Curbside Refuse Collection CartsBackground

The City is seeking to take the next step to transform and integrate the entire range of solid waste services by improving its pay-as-you-throw refuse bag system through moving to a smart cart refuse system. Projected start up costs for retrofitting and replacing equipment exceeded the amount of funds available in the Refuse Fund

Milestones The $2.4M loan from the Transformation Fund was funded in

March 2012. Refuse truck modifications have been completed, software and

payment processing installed, carts manufactured and deployment kicked off September 4, 2012.

The Public Services Department continues to use the approved funding to cover the initial capital costs of transitioning to a pay-as-you-throw smart cart refuse system.

The loan will be repaid to the Transformation Investment Fund by an annual installment over five years at an interest rate of 3% beginning in FY2013.

The first payment on the loan was made in April 2013 in the amount of $535K.

Status: ACTIVE


2013: $1,865,000 loan balance ($2.4M Original loan less: $535K repaid through FY2013).

Desired Outcomes Using carts and automated tipping equipment will improve

the City’s collection productivity by 40%, remove over one million plastic bags from the waste stream and reduce employee injuries.

INVESTMENT UPDATES

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3-1-1 Customer ServiceBackground

Customer Service has consistently been one of the highest priorities driving continuous improvement in the City. 3-1-1 Customer Service takes this to another level. This tested technology allows for a single point of contact for non-emergency requests for service and information. 3-1-1 allows for 24/7 access to City Hall, permitting citizens to request services on-line, creates performance metrics of City responses, and permits citizens to track responses to their service requests, all from the convenience of their home, office, or on-the-go via smart phone applications.

Milestones January 2012 – City Commission approval to move forward with funding

of Phase 1 – Assessment Study July 2012, an Independent consultant, TurnKey Solutions LLC, presented

a financial business case for proceeding with the establishment of a 3-1-1 system

August 15, 2012 – Phase II, the implementation plan was approved by the Transformation Investment Managers. A funding recommendation from the Transformation Fund in the amount of $784,867 was forwarded to the City Commission

1st half FY 2013 project requirements were finalized and the financial contributions from the Water fund, Streets fund, Refuse fund, Parks fund and General Operating Fund (Transformation dollars) were determined and approved by the City Commission

January 2013 – Phase III - began the 3-1-1 implementation process by hiring a Call Center manager

July 2013 – Soft launch of 3-1-1 with the call center beginning to take calls for Water Customer Service, Meter Maintenance and Customer Service (3000)

On-Going – Additional departments scripts are being written and staggered implementation schedules continue

Status ACTIVEResources


Desired Outcomes The anticipated outcomes are enhanced, single source customer

service interaction with citizens of Grand Rapids which will provide seamless integration with ALL customer service requests while reducing the overall costs to taxpayers.

INVESTMENT UPDATES

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Stormwater Asset Management PlanningBackground

The report of the Community Based Stormwater Planning Initiative recommended the development of an asset management plan for the City’s stormwater infrastructure, together with an update of the Stormwater Management Plan and Stormwater Technical Reference Manual from 1994.

Milestones On August 28, 2012 the City Commission approved an appropriation

of Transformation Funds in the amount of $450,000. The City Commission approved a contract with Tetra Tech PC of

Michigan on September 25, 2012 for a Comprehensive Master Plan for Stormwater.

Documents generated include: 1) Stormwater Technical Reference Manual; 2) Stormwater Management Plan; and 3) Stormwater Asset Management and Capital Improvement Plan.

All project documents are available at: http://grcity.us/enterprise-services/Environment-Services/Pages/Stormwater-Asset-Management-Plan.aspx

The project was completed $115,918 under-budget in May 2013 and a presentation was made to the City Commission on June 11, 2013. The presentation included a brief overview of the project and the resulting recommendations. The excess funds will be returned to the Transformation fund in FY2014

Several A-3 documents are currently in development as a result of the recommendations provided. Additional Transformation Fund support will be requested for implementing the selected recommendations.

Status: ACTIVEResources


Desired Outcomes The Asset Management Plan will create the long-term planning and

asset management foundation for the stormwater infrastructure and capital program. This effort will provide a roadmap for investment strategies and guidance for future stormwater policies and control. It will also bring stormwater in line with and complement the existing Comprehensive Master Plan for Water and Sanitary Sewer Services allowing the City to have a more integrated approach to managing these related assets.

INVESTMENT UPDATES

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http://grcity.us/enterprise-services/Environment-Services/Pages/Stormwater-Asset-Management-Plan.aspx

http://grcity.us/enterprise-services/Environment-Services/Pages/Stormwater-Asset-Management-Plan.aspx

Fire Apparatus Fuel Efficiency InitiativeBackground

The City is committed to evaluating and implementing cost-effective “green” technology to assist in meeting EPA standards by lowering toxic gases and diesel particulate. This project will also evaluate the technology potential to increase fire apparatus lifespan.

Milestones On August 28, 2012 the City Commission approved appropriation of

Transformation Funds in the amount of $72,379. December 2012: The Department’s QRV's (subsequently referred to

as squads) were delivered at a cost that was $3,171 under-budget. The City Commission approved the transfer of these funds to the Fire Apparatus Fuel Efficiency Initiative.

On March 18, 2013, the equipment installations were completed and the Department proceeded to purchase telemetry equipment and software to measure fuel use.

The GRFD discovered that utilization of an existing device installed for the computer aided dispatch (CAD) software could meet all of the telemetry needs.

As a result of the CAD device discovery, data gathering has been delayed until approximately the end of 2013.

The GRFD will produce the data findings once telemetry is on-line as well as publish a report on the results of the initiative. These findings are likely to benefit the entire City fleet.

Status: ACTIVE


$75,550

Desired Outcomes Initial five-year savings are projected at $82,853, placing Return on

Investment at 4.37 years. The GRFD is expecting a reduction in fuel usage, emissions and maintenance expense. The potential to extend the life of diesel engines has not been factored into the cost benefit analysis. Based on the outcome of this pilot, successful technology could be expanded to the remainder of the Fire Department’s apparatus and the balance of the City’s vehicle fleet.

INVESTMENT UPDATES

22

INVESTMENT UPDATES

Police Department Automated License Plate Recognition

Background The Police Department received approval to purchase Automated

License Plate Recognition (ALPR) technology in the form of four 3-camera ALPR systems, one to be deployed in each Service Area.

Milestones The GRPD partnered with several other municipal departments

(Parking Services, Treasurer's Office, and the 61st District Court) on this project to provide a benefit to the entire city.

September 2012: The purchase of Automated License Plate Recognition (ALPR) technology is approved by the Transformation Fund Investment Advisors.

The GRPD completed a test and evaluation process with two ALPR systems and believe that at a 6% rate of increased collection they will more than pay for the purchase and operation of this technology (for five years) in the first year of operation.

The ALPR technology was deployed on March 14, 2013. The follow up process calls for a quarterly review, which will provide

the necessary data to properly evaluate the rate of increased collection and corrections.

Using only the combined collections from warrants and outstanding parking fines collected ($45,767), one-half of the initial cost of the ALPR systems has been paid for in less than five months.

Status: ACTIVE


$104,616

Desired Outcomes 1) Increase the efficiency/safety of our officers; 2) Increase the

recovery of stolen vehicles; 3) Increase our warrant arrests; and 4) to increase our investigative abilities. The inter‐departmental goals are: 1) Increase the Treasurer Department's collection of parking fines 2) Increase the collection of outstanding income tax payments, and 3) Increase the number of bench warrant arrests for the 61st District Court.

ALPR Statistics March-July 2013

License Plates Scanned 869,815

Hits Received 1,422

Stolen Vehicles Recovered 12

Value of Stolen Vehicles Recovered

$104,222

Parking Scofflaws Located 108

Outstanding Parking Fines Collected

$40,142

Fines Collected from Meter Reader Notification to ALPR cars $11,579

Warrant Arrests 19 with $5,625 in fines

Criminal Complaints Numerous Cases Aided23

INVESTMENT UPDATES

Fire Department FEMA Grant Match – Prevention GrantBackground

The Fire Department has worked to develop a fire prevention residential safety program. The program is funded with transformation funds and with a FEMA AFG grant. The prevention program will improve fire safety outcomes.

Milestones September 2012: The Investment Managers approved the 20%

matching funds in the amount of $88,940 and an additional $11,868 for incidentals not covered by the grant.

The Fire Department hired 3 grant-funded contract employees on 10/29/2012 who began building the program and creating partnerships to support the program.

At the end of January 2013, the Fire Department launched a pilot group of fire suppression personnel to conduct the in-home assessments to test and refine the program processes.

The Fire Department has now launched the program department-wide and is using fire suppression crews to conduct the in-home fire safety assessments and smoke alarm installations.

The Fire Department continues to utilize LEAN principles in an ongoing effort to improve the program for both homeowners and the Fire Department.

The Fire Department has several partners in this endeavor and is seeking to create more in order to enhance the program and expand capacity.

The Fire Department has applied for a FEMA grant that would extend this program’s grant funding for an additional year. If successful, the Fire Department will request additional Transformation Fund investments.

Status: ACTIVE


$100,808 2012 FEMA AFG Fire Prevention and Safety Grant: $444,700

Desired Outcomes Create a residential fire safety program using neighborhood

associations as a platform. This program will decrease the number of fires, fire loss and injuries within the target neighborhoods. Additional benefits anticipated include increased education and residential fire prevention efforts.

FEMA Grant Statistics Through July 2013

In-Home Assessments Completed

550

Residents Impacted 1,600

Smoke Alarms Installed 3,100

Fire Safety Improvements 1,000

Targeted Neighborhood Program Participation

Creston 15%

Garfield Park 25%

Southeast Community 25%

Southeast End 16%

West Grand 19%

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INVESTMENT UPDATESCommunity Development Services

StudyBackground

The Community Development Services Study provides for a review of potential alternatives for providers of Community Development services. On November 28, 2012 the City Commission approved a memorandum of understanding (“MOU”) between the City of Grand Rapids, the County of Kent and the City of Wyoming regarding a county-wide review of Community Development Services.

Milestones The MOU began on December 1, 2012 and will conclude no later

than September 30, 2013 (unless an extension is agreed to by all parties).

The County of Kent, the City of Grand Rapids and the City of Wyoming made significant progress in preliminary discussions and received a CGAP Grant of $40,000 from the State of Michigan.

A consultant was selected to conduct the necessary research and provide recommendations for the work group to consider.

On March 5, 2013, a budget amendment was approved in the amount of $20,000 for the portion the City of Grand Rapids has agreed to contribute towards the study.

Status: ACTIVE


$20,000 State of Michigan CGAP Grant: $40,000 Kent County and the City of Wyoming: $20,000 each

Desired Outcomes The purpose of the review is “to determine opportunities to improve

program delivery while reducing administrative costs for community development service.” Based on the information collected in the review, a wide variety of changes could occur including, but not limited to, streamlining processes and/or timelines, determining different ways to allocate funds, or potential mergers of community development departments.

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CITY OF GRAND RAPIDS TRANSFORMATION FUND UPDATE SEPTEMBER - 2013.

Documents

Transcript of CITY OF GRAND RAPIDS TRANSFORMATION FUND UPDATE SEPTEMBER - 2013.