8D Consent 2007 1217 - Laserfiche WebLink

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WEST SAN LEANDRO SHUTTLE BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FY 2007-08 Expenditures for Fiscal Year 2006-07 were approximately $23,000 (6.4%) less than the adopted budget. The unanticipated decrease in program costs can be attributed to the decreasing operation costs of MV Transportation services as a result of the use of diesel shuttles which are more cost effective than CNG shuttles. Additional cost savings measures and a budget surplus were realized by 1) the continuation of the Executive Director of the SUMO being paid as a contracted consultant rather than a paid employee, 2) the majority of LINKS marketing and advertising being paid for with consulting fees as a result of the extensive marketing efforts conducted in conjunction with the annual LINKS Rider and Employer Survey, 3) the continuation of financial accounting for LINKS being administered by the City's Finance Department, and 4) the revenue generated as a result of the Boys and Girls Club shuttle program which is administered by the SUMO. 2007-08 Proposed Budget There are several major changes to the LINKS budget for Fiscal Year 2007-08. First, the proposed expenditure budget for Fiscal Year 2007-08 includes an approximate 4% increase over the proposed budget for 2006-07. This increased cost is a direct result of the anticipated increase in the costs associated with an expanded marketing and advertising program for 2007-08 and the expenditures associated with the operation of the Boys and Girls Club shuttle. Additionally, the following is a narrative of other budgeted items for FY 2007-08: First, as a result of the 2005-06 BID Advisory Board recommendation, and the continued sentiments of the 2006-07Advisory Board, the SUMO will continue to contract with its employees. Starting in January 2006, the Executive Director of the SUMO was paid as a consultant and the SUMO no longer directly hired staff to operate the shuttle. This arrangement will continue throughout 2007-08 and this cost savings measure will continue to be employed throughout the entire fiscal year. As a result, approximately $15,000 in programmatic savings will continue to be realized. Second, the City of San Leandro will continue to provide accounting services for the LINKS. In prior years, accounting work for the LINKS was provided by the Executive Director, a contract accountant, and a CPA firm. All accounting functions continue to be provided by the City of San Leandro Finance Department. Third, LINKS was not successful in securing a BAAQMD grant for calendar year 2008. Therefore, there will be no funding from BAAQMD for LINKS in 2008. Additionally, the grant from MTC expired in June, 2007 and was not eligible for renewal. Therefore, no MTC grant funding will be available in 2008. As a result, the Redevelopment Agency will continue to provide gap funding to compensate for the budgetary gap left by the termination of BAAQMD and MTC funding. For Fiscal Year 2007-08, the Redevelopment Agency of San Leandro will provide the shuttle with up to $200,000 in funding on an as-needed basis. Fourth, as a result of compliance standards regulated by the California Air Resources Board, shuttle operation costs for LINKS may slightly increase as of January 1, 2008. If these operations costs exceed the proposed budget and encumbers all funds budgeted by the Redevelopment Agency, there may be a gap in needed revenue to operate the program. Such an 7~Page