CBO Discussion and Recommendations
FY 2017-18 Fall Supplemental Budget Ordinance
Bureau: Office of Management & Finance

Type: New Request

Request: MF_089 - Facilities - Increased Security Funding
Fall BMP

Fall BMP

Fall BMP

Requested
Adjustments

CBO/Council
Changes

Total
Adjustments

EXPENDITURES
External Materials and Services
Internal Materials and Services

554,938
16,500

0
0

554,938
16,500

TOTAL EXPENDITURES

571,438

0

571,438

REVENUES
Fund Transfers - Revenue

571,438

0

571,438

TOTAL REVENUES

571,438

0

571,438

Bureau Description:
This decision package requests a General Fund cash transfer for incremental increases to contracted security costs at City Hall and for the
Mayor’s Detail. Contracted security costs have risen at City Hall due to the upsurge of City business disruption incidents over the past 6
months (protests, vandalism, demonstrations, damage to City property). In addition, building rental rates have not kept pace, as they only
increase by inflation each fiscal year.
Enhanced needs have also been identified for the Mayor’s detail. More information can be furnished to Council upon request.
If this decision package is denied, the incremental cost will result in a reduction in major maintenance contribution to the City Hall major
maintenance reserve.
CBO Discussion and Recommendation
Recommended with reservations. Facilities Services is requesting $571,438 in General Fund resources to support the incremental cost of
increased security guard presence at City Hall and for the Mayor. This increased level of service was instituted during FY 2016-17, and
continued into the current fiscal year. While the increased level of security services may well have been warranted, the increase is too
substantial to be covered by the City Hall rental rate, and Facilities Services is currently relying on building reserves to support the service
level increase.
To the degree that the increased level of security services is ongoing, OMF should coordinate a FY 2018-19 decision package that reflects
an increase in the operations and maintenance rental rate component for City Hall. In the near term, and to the degree that Council wishes to
retain the existing level of security services, CBO recommends that $571,438 in one-time General Fund discretionary and General Fund
Overhead resources be appropriated to City Hall tenants to fund the current year increase in the City Hall rental rate.
City Hall tenants pay Facilities Services a rental rate that includes both an operations and maintenance component and a major maintenance
component. Any building-specific savings on the operations and maintenance component is added to major maintenance reserve balances.
CBO has been supportive of OMF’s efforts to increase the major maintenance rental rate component, and looks forward to the result of the
work Council directed OMF to perform in the FY 2017-18 budget note around major maintenance and asset management. As Facilities
Services develops its asset management program and makes the case to increase major maintenance contribution rates, it will be critical to
have policies and internal controls that prevent major maintenance funding from being cannibalized by operations expenses. CBO
recommends the division consider establishing a Facilities Services Capital Fund to that end.

10/10/17 13:32
sap_b_dp_summary

Page 158 of 320