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12-13-2011, B1- FISCAL STATUS AND STATUS OF MAJOR CITY GOALS
counci lj acEnaa uepon t C I T Y O F S A N L U I S O B I S P O FROM : Charles Bourbeau, Director of Finance & Information Technolog y Prepared By :Debbie Malicoat, Finance Manage r SUBJECT : UPDATE ON THE CITY'S FISCAL STATUS AND STATUS OF MAJO R CITY GOAL S RECOMMENDATIO N 1.Review and discuss an update on the City's fiscal status based on interim 2010-11 year - end financial results and first quarter trends in 2011-12 . 2.Review and discuss status on the City's progress in accomplishing the Major City Goal s adopted by Council for 2011-13 . REPORT IN BRIE F This report provides information on three related topics : •2010-11 interim financial results , •2011-12 fiscal outlook for the General Fund and the Enterprise Funds , •Update of progress on Major City Goals and Other Important Objectives . Interim financial results for the 2010-11 year reflect a mixed bag of positive outcomes an d concerning news . Of concern is the under-realization of revenues . Even though some revenues recovered from the Great Recession stronger than anticipated, other revenues saw unexpecte d declines . Overall General Fund revenues came in $568,400 under budget . A similar pattern o f declining revenues was true in many of the Enterprise Funds as well . The positive outcome s came in the form of expenditures savings that were higher than anticipated . The reduce d expenditures were primarily due to one-time savings from vacant positions that have since bee n filled or eliminated from the budget . Overall, based on the analysis of the General Fund's fisca l results from 2010-11 it appears that under-performing revenue sources will continue to lag whil e the expenditure savings will not be duplicated in the current budget year . As for the fiscal outlook in 2011-12, there is considerable uncertainty in key areas . The economic outlook for the county is for slow growth but the potential for adverse impacts fro m state and federal budget reductions is reason for concern . Additionally, there is uncertainty ove r the timing of personnel compensation savings (concessions) that are incorporated in the 2011-1 2 budget . Lastly, budget adjustments in anticipation of reduced property tax receipts will need t o be made for 2011-12 . As a result of uncertainties, any discussion of possible use of unallocate d fund reserves above the 20% policy level generated in 2010-11 would be most appropriate when a more thorough analysis is available and this analysis can be informed by the City's continuin g efforts to work with labor groups on reaching financial objectives . This is the most prudent approach given the one-time nature of the savings achieved in 2010-11, and the uncertaint y facing both revenue and expenditures in 2011-12 . Meeting Date -12-13-1 1 Item Number Update on the City's Fiscal Status and Major City Goals Page 2 The City has an ambitious portfolio of work to be accomplished during 2011-13 . Attachment 4 includes a detailed report on the status of Major City Goals and Other Important Objectives se t by the Council as part of the 2011-13 Financial Plan . The status is provided as of November 1 , 2011 . Some exciting accomplishments since July include : •The City Council approved a public-private partnership with Digital West Networks fo r completion of the fiber-optic cable ring around the City and to improve access to hig h speed internet for businesses . •Work on the possible renewal of Measure Y has begun with the completion of a new citizen satisfaction survey . •The Neighborhood Services Specialist job description is complete . The description of general duties was discussed at a recent Neighborhood Services Team Meeting, an d feedback from the neighborhood advocates was incorporated into the job description . •Curb ramp construction is complete in Pavement Area 5 in preparation for summer 201 2 paving work . Sidewalk repairs are also underway in Area 5 . DISCUSSION Interim 2010-11 Year-End Results Summar y Attachment 1 contains the interim financial results for the General Fund and the City's enterpris e funds for 2010-11 . While the annual outside audit is not yet complete, staff believes the attache d interim report provides a reasonable basis for assessing the General Fund's financial position a t the end of 2010-11 . However, this information is subject to change once all accruals have bee n made and the audit is complete . Final audited financial statements are expected to be issued b y the end of December 2011 and the Comprehensive Annual Financial Report (CAFR) i s scheduled for presentation in January 2012 . As reflected in the attached report, City revenues and other sources for the General Fund wer e below budget estimates by $568,400 or 1%. Expenditures were below budget by $2 .5 million o r 5%. This was due largely to one-time savings from "frozen" or vacant positions . In many cases, the positions that were vacant have either been eliminated in the 2011-13 Financial Plan, or wer e subsequently filled, meaning the City will not see these savings in the future . As shown in the report, these expenditure savings and related year-end results produce an endin g 2010-11 General Fund balance that is $1 .9 million higher than anticipated after adoption o f stopgap measures . These positive results are good news, but are tempered by the one-tim e nature of the reduced expenditures and substantial fiscal uncertainties on the horizon . Anticipated state and federal budget "triggers" can be expected to have an adverse impact on th e local economy and both property tax revenues and utility users tax revenues are vulnerable t o reduction for differing reasons . The adopted 2011-12 operating budget of approximately $50 million indicates that $10 millio n should be kept in reserve to comply with the City's 20% minimum reserve policy . Based on th e actual results, the City began 2011-12 with a general fund balance of $12 .9 million, exceeding Update on the City's Fiscal Status and Major City Goals Page 3 the minimum policy level by $2 .9 million . This provides some capacity for the General Fund to accommodate any unforeseen circumstances . Consistent with standing fiscal policies, and reaffirmed by the City Council, a sustainable budge t relies on matching ongoing revenues and ongoing costs . One-time or non-recurring increases i n fund balance should only be used for one-time cost or cost associated with the timing of th e City's other budget balancing strategies . Given the continuing uncertainty around both revenue s and expenditures, discussion about any possible use of these additional one-time reserves woul d be most appropriate in the context of a thorough review of the General Fund financial positio n based on more facts being known . Staff anticipates that this will happen no earlier than the Mid - Year Budget Review in February 2012 . As displayed in Attachment 1, in general each of the enterprise funds ended the fiscal year in a positive position ; that is, revenues and expenditures were within budget estimates and endin g fund balances are in compliance with policy . The City had five enterprise funds (Water, Sewer, Parking, Transit and Golf) during 2010-11 . The City Council decided to merge the Golf Fun d into the General Fund beginning in 2011-12 ; however, for this report all five enterprise funds ar e summarized . 2011-12 General Fund Revenue Outloo k The current economic cycle continues to struggle in some areas while recovering in others . The Central Coast Economic Forecast has projected that while the overall trend will continue to b e upward, the area will see some bumps along the road and certain aspects of the economy wil l continue to lag for some time to come and declines in key revenue sources are still possible . The local economy is influenced by a number of government offices and facilities including Ca l Poly, California Men's Colony, Cuesta College, the California Highway Patrol and Cal Tran s District 5, to name a few. As the State and Federal governments face continued revenu e shortfalls there is the potential for budget "triggers" to be pulled, which would lead to reduction s in spending for higher education, health and human services and other state programs with a heavy presence in the county . This could have an indirect impact on the City's fiscal situatio n and the severity of that impact is unknown . While the City's revenues in total were less than projected, there are some hopeful signs o f economic recovery . As discussed in more detail below, sales tax and transient occupancy ta x (TOT) are showing signs of improvement . However, property tax and utility user tax ar e anticipated to be below budget estimates . The City's top five General Fund revenues—sales tax, property tax, TOT, utility users tax, an d property tax in lieu of vehicle license fee (VLF) – account for about 80% of total General Fun d revenue sources . By focusing on them, one can obtain an excellent understanding of the City's revenue position . Based on year-end results and preliminary information that has surfaced sinc e then, the following is an initial, high-level assessment of the current outlook for these revenue s in 2011-12 . O Sales Tax .General sales tax receipts in 2010-11 were $643,500 (6%) higher than estimate d due to recoveries in nearly every major business category : new motor vehicles, lumber and Update on the City's Fiscal Status and Major City Goals Page 4 building materials, home furnishings, and department stores . Similar recoveries were experienced statewide . Revenues from the local %2-cent sales tax (Measure Y) were also highe r than expected by $127,300 (2%). As shown in the chart below, actual results for 2010-11 have recovered to 2008-09 levels . The 2011-13 Financial Plan assumes that the revenue will grow by 3 .6% in 2011-12 and 2% in 2012 - 13 . With only the first quarter results available, it is too soon to tell whether these growt h assumptions will be reached, particularly since the holiday sales quarter is the City's mos t important quarter for sales tax . In addition, the Financial Plan made certain assumptions abou t the sales tax that would be generated by the new Target store and it is too soon to determine i f those estimates are accurate . As illustrated below, sales tax revenues are still well below the pre - recession levels experienced in 2006-07 . However, first quarter results are higher than the firs t quarter of last year (see Attachment 2), so staff is cautiously optimistic that the revenue estimate s for the current year will be met . ©Property Tax.Property tax revenues for 2010-11 were $358,900 or 4% less than budge t estimates . The City has not been immune from the valuation decreases that have bee n experienced county-wide, however the City of San Luis Obispo has not seen the level of propert y tax declines that others have . Because of the timing of the tax levy and subsequent collection , property taxes are a "lagging" revenue and will not return to pre-recession levels as quickly a s other revenue sources . The 2011-13 Financial Plan assumed that property taxes would remai n flat in 2011-12 . The latest information from the County indicates that assessed valuatio n actually decreased by 1 .5%. In addition, there is some vulnerability related to appeals an d commercial property declines . Therefore it will be important to monitor this revenue closely an d return to Council at the Mid-Year Budget Review with a downward revision of the revenu e estimate that could amount to $500,000 . ©Transient Occupancy Tax (TOT).Results for 2010-11 were slightly better than the budge t estimate, which reflected an increase of 8 .5% from the prior year . Based on the first three month s of 2011-12 (see Attachment 3), the City continues to see year-over-year increases in this revenu e source . The 2011-12 budget assumes that TOT revenues will increase by 2% over 2010-11 an d it appears that the strong start to the fiscal year will position the City to meet or exceed tha t target . Sales Tax Revenu e $16,000,00 0 $14,000,00 0 $12,000,00 0 $10,000,00 0 $8,000,00 0 $6,000,00 0 $4,000,00 0 $2,000,00 0 $- 2005-06 2006-07 2007-08 2008-09 2009-10 2010-1 1 General Sales Tax :s Measure Y Sales Tax Update on the City's Fiscal Status and Major City Goals Page 5 O Utility Users Tax (UUT).Results for 2010-11 were below budget estimates by $267,700 o r 6%. This revenue is based on utilities including water, telephone, cable television, natural ga s and electricity . The decline in revenues is influenced by many factors : changes i n telecommunications technology, household purchasing decisions and an overall change in th e underlying services taxed . In addition, there are statewide lawsuits related to utility users ta x that create vulnerability to this revenue . The 2011-12 budget anticipated UUT revenue woul d remain consistent with the 2010-11 budget and the first quarter achieved budgeted levels . Given the recent decline this revenue source, staff will monitor this revenue source closely, but at thi s time believes the current projections for 2011-13 continue to be reasonable, pending further developments and trend data for the year . ©Property Tax in Lieu of VLF.This reflects revenues from the "swap" of VLF "backfill " revenues from the State in return for an offsetting portion of the property tax revenues . Actual results for 2010-11 were on target with estimates . This revenue is projected to remai n unchanged in 2011-12, based on current assumptions and information from the county . 2011-12 General Fund Expenditure Outloo k General Fund expenditures are generally on target for the first quarter of 2011-12 . City staff ha s a track record of containing costs within the overall approved budget . Plus elements of the City's Fiscal Health Contingency Plan remain in effect including City Manager review befor e filling all vacant positions . These are all signs of prudent fiscal management . However, there is a significant uncertainty that looms as it relates to expenditures . The adopted 2011-12 budget anticipated a reduction in General Fund personnel costs of $1 .3 million and proportional amounts in the Enterprise Funds . The $1 .3 million recognized that successo r Memorandums of Agreement (MOA) with various employee groups could be in effect no soone r than January 1, 2012 or half the 2011-12 fiscal year as most agreements expire on December 31 , 2011 . The 2011-12 budget also includes limited one-time savings available in the event tota l employee concessions are not fully realized on January 1, 2012 . For example if employe e concessions that achieve Council's labor relations objectives are phased-in, these limited, one - time savings could be used to offset lower than anticipated short-term savings . This contingency plan was identified in the 2011-13 Financial Plan as a "glide path". In terms of progress to date, a resolution reducing total compensation for unrepresente d management personnel will be voted on by the City Council at its December 6, 2011 meeting . This resolution exceeds the 6 .8% total compensation reduction targeted for this group and wil l take effect on January 5, 2012, the first full pay period in 2012 . Because the reduction i s immediate and meets the financial reduction parameter set by Council, no glide path funds ar e needed for unrepresented management . However, this group's reduction only equates to 2 2 percent of the $1 .3 million in budgeted General Fund reductions assumed in the 2011-12 budget . Negotiations with the other represented employee groups are ongoing . It is noteworthy that the funding for the glide path is from one-time savings . As such, glide pat h funding is not a viable option to alleviate the necessity for on-going and sustainable personne l cost reductions . Moreover, if anticipated concessions are not achieved as defined in the Financia l Plan and/or a longer than anticipated glide path is experienced, budget adjustments may b e necessary to ensure the City has a balanced financial plan . These budget adjustments could Update on the City's Fiscal Status and Major City Goals Page 6 include : 1) additional allocation of one-time savings to extend the glide path, 2) additiona l operating budget reductions, and/or, 3) staffing reductions . Whether or not budget adjustment s may be necessary will be dependent upon progress towards achieving employee concessions . These budget reduction options could be contemplated as soon as the mid-year budget-review i n February 2012 . On the other hand, if employee concessions are achieved as anticipated in th e 2011-13 Financial Plan, the glide path funds could be used to fund one-time projects a s determined by Council . 2011-12 Outlook for Enterprise Fund s The Water Fund reduced expected revenues during 2010-11 by approximately $1 .4 million du e to lower water sales . The 2011-12 budget anticipates modest growth from the 2010-11 amount , but it will be important to monitor water sales during the year to see if the reduced water use i n 2010-11 continues or if there were unique factors that were one-time in nature . Current year-to - date results suggest that water sales are on target to meet 2011-12 projections . All other enterprise fund indicators are on target to meet 2011-12 budget estimates for bot h revenues and expenditures . However, as previously mentioned, uncertainty in the genera l economy could have an unknown impact on enterprise fund revenues . This impact could be positive and result in additional revenues, for example, if there is increased ridership on th e transit system due to high gas prices . Conversely, it could mean reductions in parking revenue s if fewer cars are using parking garages and meters . All of the enterprise funds will be monitore d closely and any anticipated anomalies will be reported at the mid-year budget review . MAJOR CITY GOAL UPDATE The attached report (Attachment 4) details the status of Major City Goals and Other Importan t Objectives set by the Council as part of the 2011-13 Financial Plan . The status is provided as o f November 1, 2011 . In general, we are on track in accomplishing the objectives based on th e work programs adopted by the Council . As discussed in the report, there have been changes t o the work programs due to a variety of factors ; most of which are related to the timing o f accomplishing tasks rather than the elimination of work program elements . Revised timelines are reflected in the attached report . Some exciting accomplishments since July include : •The City Council approved a public-private partnership with Digital West Networks fo r completion of the fiber-optic cable ring around the City and to improve access to hig h speed internet for businesses . •A new business friendly website (www .openforbusinessinslo .com)was launched through a joint effort of the City and the Chamber of Commerce . •Work on the possible renewal of Measure Y has begun with the completion of a new citizen satisfaction survey . •The Neighborhood Services Specialist job description is complete . The description o f general duties was discussed at a recent Neighborhood Services Team Meeting, an d feedback from the neighborhood advocates was incorporated into the job description . •Curb ramp construction is complete in Pavement Area 5 in preparation for summer 201 2 paving work . Sidewalk repairs are also underway in Area 5 . Update on the City's Fiscal Status and Major City Goals Page7 •The Irish Hills Conservation Plan was approved in July 2011 . Staff are undertakin g certain implementation activities now ; these include continued jeep roa d decommissioning and a major trail workday on November 12 th . Two grant requests hav e been submitted for continued trail work and for riparian restoration along Froom Creek . •New signage is currently being installed primarily at Irish Hills . •Playground equipment replacement work is ongoing with completion of Meadow Par k anticipated for November 2011 . •The Meadow Park Restroom Roof replacement is complete . •Design work is ongoing on the Warden Bridge surface replacement . Details of each goal's work program and status in achieving the tasks is provided in Attachmen t 4 . Staff will present the next "formal report" to the Council in February 2012 as part of th e 2011-12 Mid-Year Budget Review . In the interim, staff will keep the Council up-to-date on th e status of major projects through agenda reports, Council Notes and other briefing opportunities . ATTACHMENT S 1.Quarterly Financial Report : Fourth of 2010-11 (Interim Results for 2010-11 ) 2.Sales Tax Newsletter Second Quarter Calendar 201 1 3.TOT Report : September 201 1 4.Major City Goal Update T :\Council Agenda Reports\Finance & IT CAR\Finance\2011\CAR First Quarter Update 11-15-11 .docx Attachment 1111M‘Hk city ofsan lu g s o$Isp o Quarterly Financial Repor t Fourth Q arter of 2010-1 1 October 31, 201 1 OVERVIEW Since this report is for the last quarter of the fiscal year , it serves as an interim financial report for the year . While the audit is not yet complete, we believe thi s interim report provides a reasonable basis for assessin g the General Fund's financial position at the end of 2010 - 11 . However, this information is subject to change onc e all accruals have been made and the audit is completed . Final financial statements are likely to be issued in December 2011 . GENERAL FUND FOCU S The focus of this report is on the General Fund . However, based on interim results, the enterprise an d other funds generally performed as well or better tha n budget projections, although the Water Fund significantly revised revenue projections downwar d during the fiscal year to reflect the actual water sale s experienced . General Fund Overvie w Based on interim results, there is mixed news . Revenue s and other sources were below target by $568,400 but , due largely to savings from vacant positions , departments saved $2 .5 million in their expenditur e budgets ($1 .1 million more than expected). Based on the actual results, we will have an ending fun d balance that is higher than anticipated in the 2010-1 1 budget by about $1 .9 million . As discussed in the 2011-13 Financial Plan, w e anticipated ending 2011-12 with the reserv e approximately $214,000 less than the policy level . The expenditure savings generated in 2010-11 provides th e opportunity to restore the reserve to policy levels an d provides limited capacity for the General Fund t o accommodate any unforeseen circumstances . Consistent with our fiscal policies, and reaffirmed by th e City Council, a sustainable budget relies on matching ongoing revenues and ongoing costs . One-time or non - recurring increases in fund balance should only be use d for one-time costs . As discussed in the Budget Message, these reserve s should address any unforeseen realignment of service s that may occur or any one-time costs associated with the timing of our other budget balancing strategies . Therefore, discussion about the use of these additiona l one-time reserves would be most appropriate in th e context of a thorough review of the General Fun d financial position at the Mid-Year Budget Review . How Does This Compare to the Five Year Forecast ? The General Fund Five Year Forecast predicted that w e would end the 2010-11 fiscal year with about $1 .6 million more in fund balance than our reserve polic y requires, of which the Council approved one-tim e Significant Operating Program Changes equal to about $700,000 in 2011-13 . If all of the forecast assumptions remained unchange d and all other things were equal, we would end 2010-1 1 with $2 .9 million more than the policy level (the adopte d 2011-12 operating budget of $50 million indicates tha t we should keep $10 million in reserve to comply with our policy). However, as discussed in more detai l below, it is unlikely that all forecast assumptions wil l remain unchanged ; therefore maintaining this one-tim e savings in the reserve is prudent at this point . The forecast will be updated with the actual year-en d results as well as updates to revenue and expenditur e trends and will be presented to the Council at the Mid - Year Budget Review. What Does This Mean?The current economic cycl e continues to struggle in some areas while recovering i n others . Economists have projected that while the overal l trend will continue to be upward, we will see som e minor bumps along the road and certain aspects of th e economy will continue to lag for a long time to come . Recently, there has been increased speculation of a "double dip" recession, where we will again see decline s in key revenue sources . B1-8 Attachment 1 Quarterly Financial Report -Fourth Quarter of 2010-1 1 While the City's revenues in total were less tha n projected, there are some hopeful signs of economi c recovery . As discussed below, sales tax and transient occupancy tax (TOT) are showing signs o f improvement . However, property tax and utility user s tax were below budget estimates . Fortunately, the revenue declines are offset b y expenditure budget savings in 2010-11 of $2 .5 millio n (5%). However, the expenditure savings are largely one - time due to staffing savings resulting from "frozen" o r vacant positions . In many cases, the positions that wer e vacant have either been eliminated in the 2011-1 3 Financial Plan or subsequently filled ; therefore we won't continue to see these savings in the future . Are We Out of the Woods? Do We Still Need to Save ? Given the one-time nature of the expenditure saving s combined with the continued volatility of ongoin g revenue sources, the City goes into the 2011-1 3 Financial Plan with cautious optimism, but the expenditure reductions identified in the 2011-1 3 Financial Plan are still necessary . The stronger year-end results could provide flexibility in terms of the timing o f achieving the savings identified in the Financial Plan o r could provide a buffer if revenue projections turn out t o be too optimistic, but the City's long term fisca l sustainability depends upon aligning revenues an d expenses . This alignment involves making fundamenta l reductions to operating programs as identified in th e budget . Revenue and Expenditure Summar y As reflected in the following summary and detailed i n the following pages, overall revenues and sources wer e slightly below budget estimates ($568,400) whil e expenditures were less than budgeted by 5% ($2 .5 million). This results in an ending General Fund balanc e that is $1 .9 million more than projected . Balanc eGeneral Fund Actual Varianc eBudget % Revenue s Expenditures * Other Sources (Uses ) Fund Balance, 7-01-10 50,755,400 47,214,400 (3,634,400) 11,114,100 50,427,20 0 44,713,90 0 (3,874,600) 11,114,100 (328,200 ) 2,500,50 0 (240,200 ) - -1 % 5 % -7% Fund Balance, 6-30-11 11,020,700 12,952,800 1,932,100 * Includes estimated expenditure savings, reimburse d expenditures, and encumbrances . Top Ten Revenue s Our top ten revenues account for about 90% of tota l General Fund revenues . By focusing on these, we ca n get an excellent understanding of our revenue position . As shown below, while there are some variances both u p and down, overall our top ten revenues were $56,70 0 more than budget estimates . Top Ten Revenues Budget Actual Variance % Sales Tax: General 11,500,000 12,143,500 643,500 6 % Sales Tax : Measure Y 5,489,000 5,616,300 127,300 2 % Property Tax 8,800,000 8,441,100 (358,900)-4 % TOT 4,770,000 4,844,200 74,200 2 % Utility Users Tax 4,860,000 4,592,300 (267,700)-6 % Property Tax in lieu of VLF 3,551,000 3,551,100 100 0 % Franchise Fees 2,427,000 2,352,100 (74,900)-3% Business Tax 1,786,700 1,797,800 11,100 1 % Dev Review Fees 1,777,100 1,668,000 (109,100)-6% Recreation Fees 1,289,600 1,300,700 11,100 1 % Total 46,250,400 46,307,100 56,700 0 % The following highlights some key revenue results : Sales Tax.General sales tax receipts were $643,50 0 (6%) higher than estimated due to recoveries in nearl y every major business category : new motor vehicles , lumber and building materials, home furnishings an d depat intent stores . Similar recoveries were experience d statewide . Revenues from our local '/2-cent sales tax (Measure Y ) were also higher than expected by $127,300 (2%). These results are an indication that the economy wa s recovering during the fiscal year. The budget anticipate d an overall increase in sales tax revenues of abou t $650,000 from 2009-10 levels . These revenues actuall y increased $1 .7 million from the prior fiscal year . Th e additional $1 .1 million above 2009-10 levels largel y offsets the lower revenues in other areas of the top ten . Property Tax .Property tax revenues were lower than expected by $358,900 (4%). While we have not seen th e level of decline in property taxes that other areas of th e State and County have experienced, we are not immun e from the effects of the housing market downturn . Because of the timing of the tax levy and subsequen t collection, property taxes are a "lagging" revenue an d will not return to pre-recession levels as quickly as other revenue sources . The 2011-13 Financial Plan assumed that property taxe s would remain flat in 2011-12 . The latest informatio n from the County indicates that assessed valuatio n actually decreased by 1 .5%. In addition, there is som e vulnerability related to appeals and commercial propert y declines, therefore it will be important to monitor thi s revenue closely and we will return to Council at th e Mid- Year Budget Review with a downward revision o f the revenue estimate by approximately $500,000 . 2 B1-9 Attachment 1 Quarterly Financial Report Fourth Quarter of 2010-1 1 Transient Occupancy Tax (TOT).As indicated in th e recent TOT newsletter, results for the year were slightl y better than our budget estimate . The strong TOT result s are indicative of two factors : the Central Coast remains a popular tourist destination and the Tourism Busines s Improvement District (T-BID) efforts to market Sa n Luis Obispo as a destination are working . Utility Users Tax .This revenue is based on utilities like water, telephone, cable television, gas an d electricity . The decline in revenues is influenced b y many factors : changes in telecommunication s technology, household purchasing decisions and a n overall change in the underlying services that are taxed . This is an important revenue source to the City and w e will continue to monitor this in the 2011-13 Financial Plan . Development Review Fees .These are driven by the timing of private sector permit applications, which ar e difficult to project and have seen significant declines i n the past few years . Revenues were below budge t estimates by $109,100 (6%) and were below the prio r year's results by $126,000 (7%). The 2011-13 Financial Plan anticipates that development review fees have reached the bottom and will begin to see recovery next year . Franchise Fees .Revenues from franchise fees wer e below estimates by $74,900 (3%). This is largely due to lower than anticipated revenues from the cable televisio n franchise . Recreation Fees .Revenues from the recreation fee s were on target with budget estimates . Expenditure s After adjusting for projected expenditure savings , encumbrances and carryovers, expenditures were 5 % under budget . As a reminder, the Financial Plan assume s there will be 2% expenditure savings each year . Whil e savings occurred in all categories, staffing savings account for about 60% of the total savings . Thi s primarily reflects positions that were impacted by th e hiring freeze and remained vacant throughout the year . In most cases, these positions were either eliminated i n the 2011-13 Financial Plan or have subsequently bee n filled ; therefore we will not experience ongoing saving s from these vacancies . By Department .As shown below, all expenditures by department were below budget . Expenditures Budget Actual*Variance % Administration 2,660,900 2,436,200 224,700 8 % City Attorney 620,000 599,000 21,000 3 % Human Resources 3,088,000 2,877,400 210,600 7% Finance & IT 4,576,400 3,989,900 586,500 13 % Community Dev 2,664,000 2,399,300 264,700 10% Parks & Recreation 3,108,000 2,865,400 242,600 8 % Public Works 11,290,900 10,798,700 492,200 4% Police 15,137,100 14,034,900 1,102,200 7 % Fire 9,874,600 9,488,600 386,000 4 % Total Departmental 53,019,900 49,489,400 3,530,500 7 % Reimbursed Expenses (4,436,400)(4,449,900)13,500 0 % Estimated Savings (1,369,500)(1,369,500 ) Total Expenditures 47,214,000 45,039,500 2,174,500 5% * Including encumbrances of $325,900 and unexpende d General Carryover of $492,900 . By Type .Operating expenditures by type were also less than budgeted as summarized by the following . Actual *TypeExpenditures By Budget Variance % Staffing 41,187,700 39,169,700 2,018,000 5 % Contract Services 4,564,500 4,034,000 530,500 12 % Telecomm & Utilities 1,740,000 1,629,500 110,500 6 % Insurance 1,976,900 1,939,500 37,400 2 % Other Operating Costs 3,503,700 2,705,900 797,800 23 % Minor Capital 47,100 10,800 36,300 77 % Total by Type 53,019,900 49,489,400 3,530,500 7 % Reimbursed Expenses (4,436,400)(4,449,900)13,500 0 % MOA Adjustments - Estimated Savings (1,369,500)(1,369,500 ) Total 47,214,000 45,039,500 2,174,500 5 % * Including encumbrances of $325,900 and unexpende d General Carryover of $492,900 . Other Sources (Uses) Operating transfers in 2010-11 are lower than projected , resulting in a negative variance in Other Sources (Uses ) of $240,200 . Several small, one-time variances occurred , but lower than anticipated gas tax revenues accounts fo r the majority of the variance ($123,100). We wil l continue to monitor this closely because the 2011-1 3 Financial Plan anticipated the higher gas tax revenue . Therefore, this source of funding for the General Fun d could be overstated and may need to be revise d downward at Mid-Year . In addition, the budget anticipated transferring 61 0 Monterey to the Parking Fund for the future Palm - Nipomo garage at a price of $650,000 . Upon appraisa l of the property, the transfer price was $500,000, with an agreement that in the future when the garage is ready fo r construction, any increase in property value will b e realized at that time . B1-1 0 Attachment 1 Quarterly Financial Report Fourth Quarter of 2010-1 1 ENTERPRISE FUND S In general, enterprise fund revenues and expenditures ar e in line with budget estimates and in all cases , expenditures were within budget allocations . Unspen t CIP project budgets reflect the timing of those project s and will carry forward to the next fiscal year . Year-to- Date working capital balances are intended for futur e capital investments and unrestricted reserves consisten t with policy. In some cases, working capital balances ar e accumulating in anticipation of future capital needs . Water Fun d Actua lYTD PercentWorking Capital Budge t Revenues*14,398,200 14,639,600 102 % Expenditure s Operating programs 14,054,200 12,389,200 88 % CIP projects 5,517,900 2,197,400 40 % Debt service 2,341,500 2,373,000 101 % Other Sources (Uses)814,600 42,700 5 % Balance, Start of Year 15,653,800 15,653,800 - Balance, Year-to-Date 8,953,000 13,376,500 - *Reflects revised budget The Water Fund reduced expected revenues b y approximately $1 .4 million during the year to reflec t lower water sales that were occurring . It will be important to monitor water sales during 2011-13 to see i f the reduced water use continues or if there were uniqu e factors that resulted in the situation this year . Sewer Fun d Actua lYTD PercentWorking Capital Budge t Revenues 13,542,600 13,526,900 100 % Expenditure s Operating programs 7,898,400 7,077,700 90 % CIP projects 6,180,300 2,216,400 36 % Debt service 3,243,700 3,191,500 98 % Other Sources (Uses)(64,600)(17,900)28 % Balance, Start of Year 9,628,500 9,628,500 - Balance, Year-to-Date 5,784,100 10,651,900 - Parking Fun d YTD Actual PercentWorking Capital Budge t Revenues 3,629,600 3,730,100 103 % Expenditure s Operating programs 2,274,400 2,190,200 96 % CIP projects 2,632,600 624,100 24 % Debt service 1,483,000 1,523,000 103 % Other Sources (Uses)(23,100)(108,100)468 % Balance, Start of Year 7,291,800 7,291,800 - Balance, Year-to-Date 4,508,300 ,6,576,500 - During the year, the General Fund sold property locate d at 610 Monterey to the Parking Fund for $500,000 fo r the future construction of the Palm-Nipomo parkin g garage . This inter-fund transaction resulted in a n expense to the parking fund of $393,900 (the book valu e of the property) and a transfer (other use) of $106,100 . Transit Fun d Percen tWorking Capital Budget YTD Actua l Revenue s Expenditures Operating program s CIP project s Other Sources (Uses ) Balance, Start of Year 5,620,900 2,981,600 2,761,000 (7,500 ) 838,600 4,066,30 0 2,893,50 0 1,010,60 0 (2,100) 838,600 72 % 97 % 37 % - Balance,Year-to-Date 709,400 998,700 - Transit Fund revenues include anticipated grant money that will reimburse the Transit Fund for capita l purchases, like bus replacements . To the degree that these purchases have not occurred yet, remaining CIP budget will carry forward to future years, as will the associated grant revenue budget for those purchases . Golf Fun d Percen tWorkingCapitalBudgetYTDActual Revenue s Expenditures Operating program s CIP project s Other Sources (Uses ) Balance, Start of Year 356,000 697,100 43,400 346,500 38,000 364,40 0 688,20 0 32,70 0 338,70 0 38,000 102% 99% 75% 98% - Balance, Year-to-Date -20,200 .. Beginning in 2011-12, Golf operations will no longer b e accounted for as an enterprise fund, they will be reporte d as an activity in the General Fund . All Golf Fund assets , liabilities and fund balances will become part of th e General Fund . Whale Rock Commissio n Percen tWorkingCapitalBudgetYTDActual Revenue s Expenditure s Operating program s CIP projects Other Sources (Uses ) Balance, Start of Year 1,170,000 1,013,400 573,40 0 (8,900) 932,900 1,030,70 0 797,00 0 - 932,900 88% 79% 0% 0% - Balance, Year-to-Date 507,200 _ 1,166,600 - FOR MORE INFORMATIO N This summary is based on detailed information produce d by the City's financial management system . If yo u would like additional information, or have any question s about the report, please call us at 781-7128 . Council Update on November 1 .5, 2011 .We plan to provide the Council with an update on the City's fisca l status based on interim year-end results and first quarte r trends at the November 15, 2011 meeting . Electronic Distribution : All Employees 4 B1-1 1 Attachment 2 city o f San 1111S OB,lSp O Second Quarter of Calendar Year 201 1 Sales Ta N'e Mette r OVERVIEW For the Quarter.This newsletter covers the City's sales tax revenues received in September 2011 for sale s occurring from April through June 2011 .After adjustin g for apportionment errors and late payments, "point- of-sale" revenues were up by 9 .1% compared with th e same quarter last year .This follows a 10% increase las t quarter. Sales Tax Receipts Summar °°ASales Tax Receipts Reported Point-of-Sale Net Adjustment s Adjusted Point-of Sal e Pool Receipts 2nd Qtr 201 1 2,934,856 (50,299 ) 2,884,557 301,550 2nd Qtr 2010 Change 2,651,802 10 .7 % (7,794 ) 2,644,008 9 .1 % 300,574 0 .3 % Total 3,186,107 2,944,582 8 .2% The following summarizes "point-of-sale" revenues b y major business group,after adjusting for late payments , apportionment errors last year and other adjustment s identified by our sales tax advisor : Adjusted Sales Tax Receipts By Typ e 2nd Qtr 201 0Point-of-Sale Receipts 2nd Qtr 2011 % Chang e Gen Consumer Goods 1,006,822 962,856 4 .6 % Autos & Transportation 522,866 481,386 8 .6 % Restaurants & Hotels 350,451 337,766 3 .8 % Building & Construction 262,415 230,552 13 .8 % Fuel & Service Stations 374,799 256,682 46 .0 % Business & Industry 174,080 196,884 -11 .6 % Food & Drugs 193,124 177,881 8 .6 % Total 2,884,557 2,644,007 9.1 % Consumer Spending Increases .The large increase for fuel and service stations was due to continue d increases in fuel prices . New automobile sales posted a large gain, due to pent-up consumer demand and sale s incentives . Strong sales in plumbing and electrica l supplies were a primary factor in the increase in buildin g and construction . The business and industry category shows what appears to be a large decline . However, this is actually due to a onetime accounting adjustment that falsely inflate d revenues last year . Measure Y Revenues .Measure Y revenues were up 9 .9% from last year, generating $1,492,509 for th e quarter . Since this is the 5 th consecutive quarter of recovery, w e remain cautiously optimistic about this trend . However, a s the economic rebound slows and recovers less tha n projected, the threat of a double dip recession remains . NEWSLETTER CONTENT S This newsletter includes a summary prepared by the City's sales tax advisor highlighting key trends and sales tax issues . It also includes the following charts and graph s about the City's sales tax base : Major business groups : first quarter 2011 and 201 0 Top 25 sales tax producers (listed alphabetically for thi s quarter) Top 15 business categories : this quarter compared wit h last year Sales per capita : City compared with the County and State, last 13 quarter s Major business groups : last 13 quarters Sales per capita : City compared with six other agencies in the region, last 13 quarter s Sales tax revenues by geographic area : this quarter compared with last yea r Major business groups : 13 year history (provided a t fiscal and calendar year ends ) A listing of individuals and organizations that routinel y receive this newsletter is provided at the end of the report . MORE INFORMATION AVAILABL E The information provided in this newsletter is based on a detailed database available to the City through our sale s tax advisor . If you require additional information abou t the City's retail base, or have any questions about thi s newsletter, please contact Mary Bradley, Interim Directo r of Finance & Information Technology, at (805) 781-7125 . B1-1 2 Attachment 3 city o fsan lu g s oBisp o September 201 1 November 14, 201 1 This report covers the City's transient occupancy tax (TOT) revenues for September 2011 compared with the tw o prior years . As reflected below, revenues for the month of September 2011 are up by 12.1 % from the same mont h last year and up by 8.8 % year to date .Year End TOT Revenue s Prior Year Last Year This Year Increase (Decrease ) Last Year Vs This Yea r 2009-10 2010-11 2011-12 Amount I Percent July $508,195 $541,806 $591,184 $49,379 9 .1 % August 511,564 542,194 574,395 $32,201 5 .9 % September 400,023 437,543 490 .524 $52,981 12 .1 % Year To Total 1,521,54 3Date1,419,783 1,656,103 134,560 8 .8% October 414,870 442,58 6 November 280,913 330,92 4 December 246,684 274,41 7 January 230,279 256,35 1 February 273,373 302,24 6 March 326,099 333,78 3 April 423,158 451,13 3 May 372,997 433,874 June 490,326 512,54 2 Year To Date Total 4,478,482 4,859,398 1,656,103 The September results are consistent with the fac t that it is one of our mos t important TOT months . Traditionally, touris t activities increase startin g with the Fourth of July holiday and continue through August an d September . According t o the Smith Travel Report,a leading data source for the lodging industry , occupancy rates increase d from 69% in Septembe r 2010 to 75 .1% in September 2011 . This means that the increase i n TOT is due largely to an increase in occupancy rates not an increase in room rates . The September results are encouraging news and a good indicator that summer travel activities were positively impacted by the City's ongoing campaign as a trave l destination . We remain hopeful that this increased tourism will continue through the traditionally slower winte r months. Financial Plan .The strong start to the year nicely positions the City to meet or exceed the 2011-12 Financia l Plan estimate which projects that TOT revenues will increase by 2% over fiscal year 2010-11 . We will closely monitor our monthly results in 2011-12 and, if appropriate, update our 2011-12 projections at the mid-year budge t review . Trend Analysis .TOT revenues have begun to recover more quickly than other General Fund revenue sources . They have been steadily increasing for over one year and are expected to reach their annual pre-recession levels in fiscal year 2012-13 . This upward trajectory is not, however, expected to continue beyond 2012-13 . Once TOT revenues reach their pre-recession level, their rate of growth is expected to flatten out or grow at a slower, mor e sustainable rate. For More Information .Please call Jennifer Thompson, Revenue Supervisor, at (805) 781-7129 . DISTRIBUTION : City Council, Budget Review Team, Fiscal Officers, Department Heads, The Tribune, Economic Development Manager, John Lindt , Dave Kastner, Chamber of Commerce, Verdin Marketing, Pragna Patel, Business Times, New Times, SLO City News, SLO Journa l The revenues shown in this report are prepared on an accrual basis as of the end of the month . They are based on TOT amounts reported by operators but not necessarily remitted to th e City within the 30 days after month-end required by the City's TOT ordinance . B1-1 3 STATUS OF GOALS AND OBJECTIVE S As of November 1, 201 1 city of san Luis omspo ATTACHMENT 4 STATUS OF GOALS AND OBJECTIVE S As of November 1, 201 1 TABLE OF CONTENT S INTRODUCTION CARRYOVER GOALS AND OBJECTIVE S Overview 1 Other Important Council Objective s Report Card : Major City Goals and Creek and Flood Protection 2 3 Other Important Council Objectives 1 Skatepark 23 Report Card : Address as Resources Permit 2 Airport Area Annexation 2 3 Action Plan Changes 2 Broad Street Corridor Plan 2 3 Next Report 2 MAJOR CITY GOALS STATUS OF MAJOR CIP PROJECT S Status of Major Capital Improvement 2 5 Economic Development 3 Plan (CIP) Project s Preservation of Essential Services and 5 Fiscal Health Neighborhood Wellness 8 Traffic Congestion Relief 1 0 OTHER IMPORTANT COUNCI L OBJECTIVE S Open Space Preservation 1 5 Infrastructure Maintenance 1 7 Planning : Update Land Use and Circulatio n Elements 1 9 Affordable Housing/Homeless Services 2 0 ADDRESS AS RESOURCES PERMI TMENEIMMEMNEMM Parks and Recreation 2 1 Climate Protection 2 1 Historic Preservation 21 B1-1 5 ATTACHMENT 4 INTRODUCTIO N OVERVIE W This report details the status of Major City Goal s and Other Important Council Objectives set by th e Council as part of the 2011-13 Financial Plan as o f November 1, 2011 . In general, we are on track i n accomplishing these objective s based on the work program s adopted by the Council . Report Card.The following is a quick "report card" on the status o f Major City Goals and Othe r Important Council Objectives base d on the "action plans" approved b y the Council as part of the 2011-1 3 Financial Plan . As a benchmark, at November 1 , 2011, we are about 17% through the two-year Financial Plan period . Most of the goals and objectives are near or excee d this level, with most showing good progress . Organization .The "report card" is followed by a short summary of notable changes from the origina l action plan . After this is a more detailed report o n each Major City Goal and Other Important Counci l Objective, which shows th e objective, action plan as adopte d by the Council, any revision s (additions are shown in italics ; date changes are also shown in italics and highlighted in a separat e column; and deletions are shown i n strikeout) and a brief statu s summary as of November 1, 2011 . Shorter reports are provided fo r "Address as Resources Permit" fo r 2011-13 as well as for "carryove r goals" from 2009-11 . Important Not e Many of these are multi - year goals that have activities associated wit h them that go beyond th e two-year 2011-13 tim e frame . This status repor t is focused on approve d "Action Plan" tasks as o f November 1, 2011 . Report Card :2011-13M 'or City Goals & Other Important Council Objctive s Percent Complete as of November 1, 2011 Per Actions Plan Task s MAJOR CITY GOAL S Economic Developmen t Preservation of Essential Services & Fiscal Healt h Neighborhood Wellnes s Traffic Congestion Relie f OTHER IMPORTANT COUNCIL OBJECTIVE S Open Space Preservatio n Infrastructure Maintenanc e Planning : Update Land Use & Circulation Element Affordable Housing/Homeless Services 0%10%20%30%40%50%60%70%80%90%100% 1 B1-1 6 ATTACHMENT 4 MAJOR CITY GOAL S Report Card : 2011-13 Address as Resources Permit Percent Complete as of November 1, 201 1 Parks and Recreation Climate Protectio n Historic Preservation 0%10%20%30%40%50%60%70%80%90%100% ACTION PLAN CHANGE S As noted above, in general we are on track i n accomplishing these goals and objectives based o n the work programs adopted by the Council . However, notable changes from the original actio n plans include the following . Major City Goal s Traffic Congestion Relief.Several projects hav e been delayed for reasons including project cos t revisions to reduce costs, lengthy Caltrans approva l process, and staff's focus on higher priority projects . The delivery of traffic signal poles and projec t revisions to reduce costs delayed the completion o f intersection work at Madonna/Los Osos Valle y Road as . well as at Broad Street/Santa Barbara . Th e Los Osos Valley Road Interchange project wa s delayed due to a longer than anticipated Projec t Approval process through Caltrans . The Tank Farm/Broad intersection improvements and the mid - Higuera improvements were slightly delayed due to higher priority projects consuming the engineering staff's time . Finally, conversion of the traffic signals acquired through the relinquishment of Highwa y 227 from the State has been delayed due in part t o the long-term vacancy from an on-the-job injury of a Signal Maintenance Technician . Once that vacanc y is filled, staff will resume work on this task . Other Important Council Objective s Planning: Update Land Use and Circulatio n Elements .This project's start date was delaye d because the grant work program was approved late r than anticipated by the grantor . On September 27 , 2011, the Strategic Growth Council provided the official grant notice to proceed which indicated th e City could begin work on grant-funded activities . The Request for Proposals has been distributed, and staff anticipate that consultant interviews will occu r in November with contract signing in December . Address as Resources Permi t The City is on track in accomplishing thes e objectives . NEXT REPOR T We will present the next "formal report" to th e Council in February 2012 as part of the 2011-1 2 Mid-Year Budget Review . In the interim, we wil l keep the Council up-to-date on the status of majo r projects through agenda reports, Council Notes an d other briefing opportunities . -2 B1-17 ATTACHMENT 4 MAJOR CITY GOAL S ECONOMIC DEVELOPMEN T Objective .Increase focus on economic development . Support creation of head-of-household jobs through developing strategies for infrastructure, focusing on promising growth sectors, and expediting desired economi c activity . Expand collaboration with Cal Poly,Cuesta, business community and responsible agencies . Action Plan Task Original Revise d Economic Development Strategic Plan 1 . Create a Project Plan to guide development of the Economic Development Strategi c Plan. 9/11 Complete 2 . Conduct research and analysis with the assistance of local experts and utilize curren t census data to identify the characteristics that will define "head of household jobs" fo r the purpose of guiding the Strategic Plan process . Conduct baseline research on metrics that may be used to evaluate progress towards accomplishment of the Majo r City Goal. 9/11 Complete 3 . Create a stakeholder group consisting of residents, business owners, property owners , and representatives of the County, Economic Vitality Corporation (EVC), Chamber o f Commerce, Downtown Association and other community groups to provide input o n the scope of work for the request for proposals (RFP). 10/11 Complete 4 . Issue an RFP and scope of work for a contract to develop a City of San Luis Obisp o Strategic Plan for Economic Development . 11/11 Complete 5 . Execute the consultant contract, develop strategic plan, and present recommende d Strategic Plan to Council for consideration including an implementation strategy fo r the 2012-13 fiscal year . 6/1 2 6 . Implement the new Economic Development Strategic Plan.Ongoing Infrastructure in Expansion Area s 1 . Develop an RFP for the analysis of infrastructure requirements in the Margarita an d Airport areas, with a scope of work to include a strategy for phasing and financing of key infrastructure components needed to move development forward and suppor t creation of head of household jobs . 6/1 2 2 . Develop and present a program for Council consideration based on the recommendations in the report . Collaboration Committee 1/1 3 1 . Continue to invest in the goals of the Collaboration Committee as a partner with th e County, Cal Poly, and the business community in improving the entrepreneuria l culture of the community in an effort to create head of household jobs . Continue t o work with Cuesta College, the EVC and the business community to increas e opportunities that facilitate job growth . Ongoing Status Summary : 15% Complete .The following is a summary of accomplishments and important next step s for this goal . 3 - B1-1 8 A ST°` AC IIENi 4 MAJOR CITY GOAL S Activity within the Economic Development Program included several exciting developments during this perio d such as : •The City Council approved a public-private partnership with Digital West Networks for completion of th e fiber-optic cable ring around the City and to improve access to high speed internet for businesses . •A City Council Study Session was held regarding a potential development agreement with Chevron to enable the installation of more than 50% of the public facilities (such as transportation infrastructure, water distribution lines, and stormwater infrastructure) identified in the Airport Area Specific Plan . •A new business friendly website (www .openforbusinessinslo .com)was launched through a joint effort o f the City and the Chamber of Commerce . •The Economic Development Strategic Plan process is well underway with formation of a Steerin g Committee and the completion and dissemination of the Request for Proposals (RFP) for consultan t services associated with development of the Strategic Plan . In preparation for work with the Steering Committee, staff completed research into background demographics and head-of-household jo b definitions used in other communities and by other governmental agencies . This information wa s considered by the Steering Committee and factored into review of the Scope of Work for the RFP . The Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis accomplished by the Steering Committee also helped to inform the Scope of Work . All background information provided to th e Steering Committee, minutes from meetings, and the SWOT Analysis are available online a t http ://www . slocity.org/economicdevelopment/strategicplan/plan .asp . •City staff continues to work with the Collaboration Committee . During this period, the Committe e moved forward with Cal Poly's facilitation of the Small Business Development Center (SBDC) as th e entity to support improvements to the entrepreneurial culture of the community . 4 B1-19 ATTACHMENT 4 MAJOR CITY GOAL S PRESERVATION OF ESSENTIAL SERVICES AND FISCAL HEALT H Objective .Adopt a budget that sustains the city's short and long-term fiscal health, preserves public health an d safety and other essential services in line with residents' priorities, and includes cost reduction strategies . Action Plan Tas k Continue emphasis on effectiveness and efficiency of City organization Original Revise d 1 . Identify candidate departments for one structured organizational review . Issu e request for proposals (RFP) for consulting services to systematically addres s operating performance, cost reductions, and opportunities to improve service . Complete reviews and present to City Manager. 12/1 2 2 . Continue to review and implement ideas for savings or increased revenues a s recommended by staff and community members .Ongoin g 3 . Evaluate at least four opportunities for managed competition in City functions a s identified in prior and current organizational reviews .Ongoing 4 . Perform focused overview of City's organizational structure to identify potential fo r reorganization, combination, or other modifications to improve efficiency and reduce cost. 12/1 2 5 . Using framework set forth in the initial 2006 analysis, benchmark key City financial and outcome measures with comparable communities . Develop a schedule for updating benchmark analysis on a recurring basis . 12/11 6/1 2 6 . Determine viability and cost versus savings potential of changes to variabl e frequency drives of certain large motors in existing facilities, and expanded lightin g control, for possible inclusion in the 2013-15 Financial Plan. Continue to develop, review, modify and implement Human Resource policies i n support of fiscal sustainability 2/12 6/1 3 1 . Develop short term and long term strategy for personnel cost containment an d receive approval from Council prior to labor negotiations . 9/11 Complete 2 . Negotiate cost containment actions through ongoing negotiation process with al l employee groups. 12/1 1 3 . Establish a process to periodically review and monitor personnel costs and the impact of those costs on overall financial health . Ensure the stability and diversity of the City's revenue sources Ongoin g 1 . Examine threats to the City's Utility Users Tax revenue from federal and stat e legislation. Identify actions and develop plan to address problems as needed . 12/11 6/1 2 2 . Conduct Business License Tax audit with Franchise Tax Board data .5/1 2 3 . Conduct Transient Occupancy Tax audits .12/12 5 - B1-2 0 ATTACHMENT 4 MAJOR CITY GOAL S Task Original Revise d 4 . Explore the possibility of establishing a storm drain utility and receive Counci l direction. Work with Council and the community to renew Measure Y 2/1 3 1 . Hire consultant to conduct public opinion research .4/44 Complete 2 . Conduct public opinion research .10/11 Complet e 3 . Present survey results and analysis to Council and determine optimal timing o f ballot measure . 11/11 12/1 1 4 . Initiate public information/education program . Identify and address long-term liabilities that are important to fiscal sustainabilit y 1 . Refine five-year capital improvement program that will responsibly protect the City's infrastructure assets, including building facilities, and develop plan fo r funding as needed . 1/1 2 6/1 2 2 . Update Fleet Management Policy to reflect revised fleet life cycles . Develop long - term fleet replacement schedule . Establish Fleet internal service fund if determine d to be appropriate . 6/1 2 3 . Evaluate Information Technology replacement needs . Develop long-term replacement schedule . Identify appropriate funding strategy, including potentia l Information Technology internal service fund . 6/1 3 4 . Review liability and workers compensation claims trends and establish a plan o f funding if needed . Continue to closely review and monitor the City's fiscal condition 6/13 Ongoing 1 . Update General Fund Five-Year Forecast at least twice annually, at mid-year an d with recommended budget . Ongoing 2 . Prepare focused reports on areas of interest to city management and Council .Ongoing Status Summary : 10% Complete .The following is a summary of accomplishments and important next step s for this goal . Cost Savings The 2011-13 Financial Plan includes an expectation that the City will realize cost savings through efficiency an d effectiveness measures implemented over the two-year financial plan period . These savings measures include ideas generated by the public through the financial plan process, by staff through the Non-Operating Budge t Balancers (NOBBs) exercise, and by consultants through bi-annual organizational assessments . The amount o f savings that the City is seeking through this effort corresponds to a 3-to-1 return on investment with respect to th e cost of conducting the organizational assessment . Overall, the City is planning to achieve $50,000 in saving s during 2011-12, and an additional $100,000 in savings during 2012-13 . City staff has formalized the proces s 6 B1-2 1 ATTACHMENT 4 MAJOR CITY GOAL S whereby ideas for cost-savings generated by efficiency measures and organizational assessments will b e measured . Staff has also started the process of implementing and accounting for these ideas . Personnel Cost Containmen t The 2011-13 Financial Plan also assumes employee concessions to achieve a balanced budget while retainin g General Fund reserves at or near policy levels . Council provided staff with labor relations objectives in Septembe r and these objectives were shared with all employee groups with agreements expiring at year end . The objective s include a $3 .1 million City-wide reduction of total compensation costs and pension cost containment o r reductions . Discussions regarding meeting these objectives occurred with unrepresented employee s (Confidential, Managers and Department Heads) and a recommendation will be brought to the City Counci l during 2011 . Negotiations with the Police Officer's Association, the Firefighters Union, the City Employee s Association (SLOCEA), and the Battalion Chiefs Association are being coordinated and are underway. Measure Y Work on Measure Y renewal has begun with the completion of a new citizen satisfaction survey. Benchmark Study This project has been delayed due to staff's focus on labor negotiations . A role of the new Finance an d Information Technology Director will be to review the scope of this project and develop a plan for completion . Utility User Tax (UUT) Analysis and Potential Ballot Measur e Staff explored cost-effective options for a review of the City's UUT practices, and on September 20, 2011 , Council approved such a contract with MuniServices and Donald Maynor . This agreement provides for a UU T compliance and revenue protection program and will assist the City in identifying and correcting errors or omissions that cause revenue deficiencies . Additionally, these services include assistance with development of a ballot measure aimed at updating the City's UUT ordinance language and protecting it against erosion due to ne w legislation . The citizen satisfaction survey mentioned above also included questions related to a potential UU T ballot measure so that Council can decide how to proceed . Equipment Replacement Funding Staff have reviewed all fleet equipment assets and completed a comprehensive equipment replacemen t spreadsheet which identifies the timing of projected fleet purchases and the replacement funds that will be neede d over the life of the assets . Information Technology (IT) staff are now starting on a similar spreadsheet for I T hardware and software . Following the completion of these two schedules, the next step will be to assess availabl e funding, develop a funding plan, and establish an internal service fund for equipment replacement as appropriate . Business License Tax Audi t After a successful effort to ensure business license compliance from residential rental property owners, staff hav e begun a Citywide business license tax audit . With cooperation from the Downtown Association, the effort began in the Downtown core area . Staff canvassed this area and recorded the names of businesses that did not appear i n the City's business license database, HdL . This list was then reviewed to determine which businesses truly wer e not in compliance . Letters were sent to these businesses, notifying them that the City's Municipal Code require s all entities conducting business in the City have a business license . The next step in this project will occur whe n staff receive data from the Franchise Tax Board . This information will be cross-checked with the data in HdL t o confirm which businesses are not in compliance and are subject to the enforcement process . Staff are also workin g with the Attorney's Office to streamline the current collection process to ensure the effectiveness of thes e methods . Departmental Efficiencie s The Utilities Department is exploring funding options for the installation of variable frequency drives (VFD) o n the Return Activated Sludge (RAS) pumps and indoor lighting upgrades as part of the Water Reclamation Facilit y energy efficiency project (SST project) with PG&E. Staff will present the project to Council in January with a n estimated completion date in 2013 . -7- B1-22 ATTACHMENT 4 MAJOR CITY GOAL S NEIGHBORHOOD WELLNES S Objective .Embrace and implement pro-active code enforcement and Neighborhood Wellness Policies . Action Pla n Revise dTaskOriginal 1 . Community coordination on new program elements .Ongoing 2 . Review City policy regarding voluntary compliance & evaluate Neighborhood Services Team . 9/11 2/1 2 3 . Create new job classification of Neighborhood Services Specialist .10/11 Complete 4 .Develop public outreach program .11/1 1 5 . Public outreach campaign .3/1 2 6. Hire additional staff.2/1 2 7 . Train new staff.3/1 2 8 . Begin "soft start" of program .4/1 2 9 . Begin full enforcement efforts .5/1 2 10 . Monitor progress and solicit feedback from external stakeholders .Ongoing 11 . Database enhancements and information sharing improvements .Ongoing Status Summary : 10% Complete .The following is a summary of accomplishments and important next step s for this goal . Internal Collaboratio n An ongoing effort associated with the Neighborhood Wellness objectives is cross-training staff within severa l departments to enhance enforcement and response efforts. Collaboration between Police, Fire, Parking Service s and the Code Enforcement Office has been established so the appropriate enforcement personnel are aware o f existing problems and can handle them efficiently . As an example, during a parking citation appeal one violato r indicated parking was difficult at the house he lived in because there were six residents . The Parking Manager forwarded the information to the Code Enforcement Officer for follow-up . This type of internal collaboration wil l continue as the new positions are filled and increased code enforcement is implemented. Policy Revie w Staff was directed to review practices related to voluntary compliance of the regulations to determine when it i s appropriate to escalate the level of enforcement efforts . As suspected, there were uneven levels of enforcemen t efforts between City departments responsible for these activities . For example, some departments escalat e enforcement very quickly while other departments allow ample time for compliance efforts . As a result of th e review of policies and practices, it was determined that strategic escalation of enforcement should occur Citywide . The process will include three levels : a Notice to Correct (NTC), a Notice of Violation (NOV) and administrativ e citations . The Notice to Correct will notify the violator of the code violations, warn of possible fines and establis h a timeline for action by the violator to avoid fines or fees . Based on the City's cost recovery for code enforcement policies, fees will be doubled for any permit issued to correct code violations . If no action is taken within th e prescribed timeline, a Notice of Violation (NOV) will be sent . The NOV will include an additional cost recover y charge and an additional warning of impending citations . If the violator remains recalcitrant, staff will begin th e - 8 - B1-2 3 ATTACHMENT 4MAJOR CITY GOAL S administrative citation process . This new process will not apply to the enforcement of noise violations, which ar e already subject to the issuance of formal warnings for initial violations and administrative citations for both th e offender and the property owner for subsequent violations within any nine-month period . Additionally, n o changes are necessary for parking violations . There are no warnings for parking in yards or blocking a publi c sidewalk . If the violation cannot be corrected immediately, a citation is issued . There were also concerns regarding repeat offenders . Neighborhood advocates suggested that repeat offender s should receive immediate fines for subsequent violations at their property . However, staff has reviewed th e practices and determined that second offense violations have been fined the code enforcement fee or issued a n administrative citation . Additionally, case management processes have been enhanced to more accurately trac k the repeat offenders and ensure that second offense violations are subject to immediate fines . The repeat violatio n must be at the same property that was originally cited . If an owner has many properties and there are simila r offenses at several of them, the City will still need to follow due process for each parcel as a separate action . Staff has begun evaluating the composition of the Neighborhood Services Team per Council's direction to consider the future involvement of neighborhood residents . Currently, the Team is comprised of City staff members from various departments . Staff will evaluate ways to more meaningfully involve neighborhoo d residents while preserving the Team's ability to discuss actual cases in a confidential manner . The Team will mee t with the Police Chief and Community Development Director to further discuss this issue and recommend a n approach to address it . The Neighborhood Services Specialist job description is complete . The description of general duties wa s discussed at a recent Neighborhood Services Team Meeting, and feedback from the neighborhood advocates wa s incorporated into the job description. Public Outreach Staff has begun discussions with the neighborhood and student groups regarding the upcoming public outreac h efforts . These groups have recommended several venues which staff will review . Because this audience will be a diverse group, efforts will be made to extend outreach through multiple media sources . Transition of Dutie s Staff has discussed the timing for transition of the Neighborhood Enhancement Ordinance (NEO) duties from th e Police Department Student Neighborhood Assistance Program (SNAP) program to the Community Developmen t Building and Safety Division . Based on the timelines identified in the work plan, duties will be transitioned in late March to early April . At that time, the new positions will be filled and the training will be sufficient to begin the soft start of the program . 9 - B1-24 ATTACHMENT 4 MAJOR CITY GOAL S TRAFFIC CONGESTION RELIE F Objective.Continue efforts on projects and programs which relieve traffic congestion (like street modifications , intersection improvements, pedestrian improvements, bicycle facilities, sidewalks, trip reduction programs, traffi c signal operations, LOVR interchange, Prado Road and public transit). Action Plan Task Original Revise d Transit Service Level s 1 .Maintain existing transit levels for local and regional services with uncertain levels o f State and Federal funding . Ongoin g 2 .Implement recommendation in the Short Range Transit Plan if funding is available .Ongoin g 3 .Work with Regional Transit Authority (RTA) and other transit providers to identify potential cost savings and sharing to reduce costs and improve efficiency .Ongoin g 4 .Explore alternative fuel and vehicle type to offset operational costs .Ongoin g Ongoing Ongoing 7/1 1 7/11 1/1 2 Complete Transit Improvement s 1 . Usc federal and state capital funding to replace and upgrade transit vehicles . Prado Road Extensio n 1 . Work with west side Margarita area property owners to implement phased improvements t o Prado Road. Madonna/LosOsos Valley Road Improvement s 1 . Complete minor intersection widening and restriping as part of Prefumo Creek Common s Off -Site improvements . Broad Street/South Street Intersection Improvement s 1 . Begin minor intersection widening, installation of northbound Dual Left Turn Lanes an d restriping as part of Village At Broad improvements . 2 . Complete Village At Broad improvements on Broad Street .11/11 2/1 2 Traffic Safety & Operations Program s 1 . Complete and present 2010 Annual Traffic Safety Report to Council for approval .11/11 Complete -10 - B1-2 5 ATTACHMENT 4 MAJOR CITY GOALS Task Original Revise d 2 .Complete and present 2010/11 Biennial Traffic Operations Report to Council for approval .2/1 2 3 .Implement Safety & Operations Report Recommendations .Ongoing 4 .Complete and present 2011 Annual Traffic Safety Report to Council for approval . Grand & 101 Traffic Signal Installatio n 1 .Complete design . 11/1 2 Complete 2 .Acquire Caltrans permit & authorization / Begin construction .5114 10/1 1 Widening,Signal Reconfiguration, and Railroad Crossing at Foothill & Californi a 1 .Complete design .Complete 2 .Acquire railroad approvals / Begin construction .D Complete Conversion of Relinquished Route 227 Traffic Signal Facilitie s 1 .Complete design .Complet e 2 .Begin construction.7/11 2/1 2 3 .Complete Traffic Signal Timing and Operations Optimization . Mid Higuera Widening and Signal Upgrade s 1 .Complete design . 1/1 2 7/11 3/1 2 11/1 1 2 .Begin construction.10/11 3/1 2 3 .Complete construction . Los Osos Valley Road (LOUR) Interchang e 1 .Complete construction plans and specifications . 12/1 2 12/11 10/1 2 2 .Complete right of way acquisition .12/11 10/1 2 3 .Pursue additional funding .Ongoing 4 .Implement phased improvements as new development occurs and fees are collected in th e LOVR sub area . Ongoing -11 -B1-2 6 ATTACHMENT 4 MAJOR CITY GOALS Tas k 5 . Complete detailed preparation of Bonded Indebtedness of local funding component . Pismo & Buchon Neighborhood Traffic Management Lnprovements Origina l TBD Revise d 1 . Complete design .5/11 Complete 2 . Begin construction .7/11 Complete 3 . Complete post project Studies .6/1 3 Bicycle Transportation Plan Updat e 1 . Begin Update of the Bicycle Transportation Plan .644 Complete 2 . Update the City's Bicycle Transportation Plan to maintain eligibility for state gran t funding . Tank Farm Road Intersection Improvement s 1 . Complete project design . 12/1 2 644 12/1 1 2 . Begin construction . Railroad Safety Trail – Hathway to Taft 10/11 3/1 2 1 . Complete construction documents .7/1 2 2 . Pursue additional funding .Ongoing 3 . Award contract and begin construction . Railroad Safety Trail - Taft to Pepper (Replaces Highway 101 Crossing project) 6/1 3 1 . Obtain California Highway Patrol (CHP), Union Pacific Railroad (UPRR), and Publi c Utilities Commission (PUC) approvals . 6/1 2 2 . Complete project design .6/1 3 3 . Pursue additional funding . Bob Jones City-to-Sea Trail Connection to LOUR Ongoin g 1 . Pursue outside funding for trail connections .Ongoing 2 . Complete construction drawings . Bob Jones City-to-Sea Trail Connection to Octagon Barn TBD 6/12 -12 - B1-2 7 ATTACHMENT 4 MAJOR CITY GOAL S Task Original Revise d 1 . Seek/obtain funding for study.Ongoing Complet e 2 . Complete project T-BD 2/1 4 3 . Pursue additional funding .Ongoing 4 . Complete project design and environmental review .TB D 5 . Complete construction drawings .TBD 6 . Complete construction . Other Projects That Reduce Traffic Congestio n 1 . Complete curb ramps, sidewalks, on-street bicycle facility paving, and stripin g improvements in conjunction with City street paving projects . TB D Ongoin g 2 . Implement Neighborhood Traffic Management program and projects .Ongoing 3 . Conduct bi-annual vehicle, bicycle traffic counts, speed surveys and travel time studies .Ongoin g 4 . Complete miscellaneous bicycle facility improvements identified in the Bicycl e Transportation Plan, as resources permit . Ongoin g 5 . Develop a list, in conjunction with the Bicycle Committee, of streets that would benefi t from increased street sweeping and coordinate with Street Maintenance to us e miscellaneous sweeping hours, when available, to increase frequency . Ongoing 6 . Seek funding for the design and construction of bikeways and pedestrian paths within th e City. Ongoing 7 . Seek funding to educate and promote bicycling, walking and transit as alternative forms o f transportation . Ongoing 8 . Provide more bicycle parking through the City's "Racks with Plaques" program .Ongoing Status Summary : 10% Complete .The following highlights key accomplishments so far and important nex t steps : The expected completion date for the intersection work at Madonna/Los Osos Valley Road and at has bee n delayed until January 2012 . The start date for this project, which is being constructed by private development , was delayed due to the delivery of traffic signal poles and project revisions to reduce costs . The project revision s reduced the developer costs and included reconfiguring the driveway to the back of Fire Station 4 and reutilizing a signal pole foundation . The project is now under construction and anticipated to be substantially complete befor e year end; however, part of the project will carry over into early 2012 . Similarly, the expected completion date for the intersection work at Broad Street/Santa Barbara has been delaye d until February 2012 . The start date for this project, which is being constructed by private development, wa s delayed due to the timing of the developer and his selection of a contractor . The project is now unde r construction. - 13 - B1-2 8 ATTACHMENT 4 MAJOR CITY GOAL S Implementation of improvements resulting from the Traffic Safety and Operations report has been changed fro m June 2012 to ongoing . The report will make certain recommendations and staff will need to evaluate possibl e funding sources and then develop the projects to go out to bid or to be done by the City Street crew, fitting the m in along with existing projects . The Los Osos Valley Road Interchange project was delayed due to a longer than anticipated Project Approva l process through Caltrans . This delay resulted from a lawsuit against Caltrans by adjacent property owners whic h led to Caltrans withdrawal of the environmental determination. Staff worked with Caltrans and, in the summer of 2011, the project report and new environmental determination were released . Staff presented the current status o f the project to Council in September 2011 and are moving forward in the design and right of way acquisitio n phases . The Tank Farm/Broad intersection improvements and the mid-Higuera improvements were slightly delayed du e to engineering staff's focus on higher priority projects . Both projects will be advertised for bids in winter 2012 for construction in spring 2012 . Curb ramp construction is complete in Pavement Area 5 in preparation for summer 2012 paving work . Sidewalk repairs are also underway in Area 5 . Conversion of the traffic signals acquired through the relinquishment of Highway 227 from the State has bee n delayed due to other higher priority projects and the long-term absence of a Signal Maintenance Technician due t o an on the job injury . Once that vacancy is filled, staff will resume work on this task . Many of these projects extend beyond the 2011-13 Financial Plan period . Staff is continuing to track the status o f all projects throughout the various phases and will monitor project status until completion . -14 - B1-29 ATTACHMENT 4 OTHER IMPORTANT COUNCIL OBJECTIVE S OPEN SPACE PRESERVATION Objective . Continue efforts to acquire, preserve, protect, and maintain open space in our greenbelt . Begin implementation of the master plan for City-owned agricultural lands at Calle Joaquin . Complete and begin implementation of the updated conservation plan for Irish Hills Natural Reserve . Prepare a Conservation Plan fo r Reservoir Canyon Natural Reserve . Create a plan for maintenance of Laguna Lake and Park, including potentia l funding . Action Plan Task Original Revise d Continued Open Space Acquisition,Preservation and Protection Ongoin g1.Continue participation in planning and acquisition efforts that at a minimum include : (a) the Chevron Tank Farm property and adjacent open space lands ; (b) City- o r Land Conservancy-held conservation easements on lands near Camp San Lui s Obispo ; (c) Righetti Hill in the Orcutt Specific Plan Area ; (d) "Upper Goldtre e Vineyard Tract" lots (King and Filipponi/Twisselman properties) above Johnso n Avenue ; and (e) the Filipponi/Denbow and Mountainbrook Church properties at th e end of Calle Joaquin . 2 .Support actions to implement the Agricultural Master Plan for the Calle Joaqui n Agricultural Reserve . Ongoing 3 .Complete Update of the Conservation Plan for Irish Hills Natural Reserve, an d begin implementation activities . Ongoing 4 .Continue implementation of elements of City adopted Conservation Plans for : Johnson Ranch ; South Hills ; Stenner Springs ; and the Bob Jones Trail . Ongoing 5 .Continue efforts to improve signage, trail conditions, and environmental restoratio n programs . Ongoing 6 .Continue to participate and oversee City-sponsored or directed mitigation projects , including the Los Osos Valley Road interchange, Bob Jones Trail environmenta l enhancements, and various private mitigation and enhancement projects throughou t the City . Ongoing 7 .Continue leadership role in management of the City's natural waterways throug h Zone 9 projects, and provide administrative oversight to the Stormwate r Management Program . Ongoing 8 .Preparation and completion of a Conservation Plan for Reservoir Canyon Natura l Reserve. 6/1 2 10/11 1/1 2 Develop a Plan for Maintenance of Laguna Lake and Park, Including Potentia l Fundin g 1 .Conduct and complete research on public and private grant and loan sources . 2 .Identify interested parties and groups . Begin a series of public workshops to develo p a community supported maintenance plan for Laguna Lake and for Laguna Lak e Park as it is affected by the maintenance plan . Develop an email group o f participants and provide electronic information updates to this group . 10/11 1/1 2 3 .Complete public workshops for the maintenance plan .2/12 4/1 2 4 .Draft the maintenance plan and begin circulation.6/12 -15 - B1-3 0 ATTACHMENT 4 OTHER IMPORTANT COUNCIL OBJECTIVE S Task Original Revise d 5 . Presentations of Draft Plan to : Stakeholders, Parks and Recreation Commission, an d Planning Commission for review, comment, and recommendations to the Cit y Council . 11/1 2 6 . Adoption of Maintenance Plan by Council .12/12 Status Summary : 20% Complete .The following is a summary of accomplishments and important next step s for this goal . Acquisition, Preservation and Protection of Open Spac e 1.Staff is participating in several acquisition efforts described above which are advancing satisfactorily . 2.Two grant proposals for the Bob Jones Trail extension and for several riparian enhancement projects hav e been submitted to State agencies . Staff continue to work with the Central Coast Agriculture Networ k (CCAN) to develop a management agreement for the site . In the meantime, another cover crop i s anticipated there . CCAN was successful in securing a grant in the amount of $250,000+ to organize it s activities at the Reserve and begin its own implementation activities under the Master Plan . 3.The Irish Hills Conservation Plan was approved in July 2011 . Staff are undertaking certain implementation activities now ; these include continued jeep road decommissioning and preparing for a major trail workday on November 12 . Two grant requests have been submitted for continued trail wor k and for riparian restoration along Froom Creek . 4.A mitigation basin was installed at Johnson Ranch and skills area is moving forward at Stenner Springs . 5.New signage is currently being installed primarily at Irish Hills . 6.Projects completed include : Andrews Street stormwater improvements ; Park Street sewer lin e replacement; silt removal at Hollyhock Lane and Los Osos Valley Road ; and new plantings along the Bo b Jones Trail . 7."Winterization" work was completed and needs for next year identified . A greater effort to obtai n necessary permits will be undertaken for 2012 . 8.Reservoir Canyon Conservation Plan is getting underway . Laguna Lake Maintenance Pla n 1 . Research is progressing on public and private grant and loan sources for financing of the project . 2-6 . These work program items are expected to be completed on schedule . -16 - B1-3 1 ATTACHMENT 4 OTHER IMPORTANT COUNCIL OBJECTIVE S INFRASTRUCTURE MAINTENANC E Objective.Increase infrastructure maintenance and investment . Sustain an effective level of core existin g infrastructure and proactively protect and maintain physical assets (such as the downtown, streets, bikeways , sidewalks, flood protection facilities, recreation facilities, City owned historic resources, and the urban forest). Infrastructure Maintenance is a designated Measure Y priority . Action Plan Task Original Revise d Buildings a n d 'Facilitie s 1 . Exterior Painting of Parks and Recreation Building 6/1 2 2 . Police Facility Air Volume Control Modifications 6/1 2 3 . Fire Station #3 Engine Bay Slab Replacement 6/1 3 4 . City Hall Steps Creek and Flood Protection 6/1 3 1 . Silt Removal 6/1 3 2 . Broad Street Bank Reinforcement Design 6/1 3 3 . Storm Drain Culvert Repair Design 6/1 3 4 . Storm Drain Pipe Replacement – Year 1 & Year 2 6/12 & 6/1 3 5 . Toro Street Bank Stabilizatio n Parking Service s 1 . Marsh Street Parking Structure Painting 6/1 3 6/1 3 2 . Downtown Parking Lot Resurfacing Desig n Parks & Public Place s 1 . Playground Equipment Replacement 6/1 3 6/1 3 2 . Meadow Park Roof Replacement 6/12 Complete 3 . Warden Bridge Deck/Mission Plaza Walkway Rehabilitatio n Streets 1 . Traffic Sign Maintenance Program – Year 1 & Year 2 6/1 3 6/12 & 6/1 3 2 . Pavement Maintenance – Year 1 & Year 2 642 & 6/13 Year I Complete 3 . Sidewalk Repair – Year 1 & Year 2 Wastewater 6/12 & 6/13 -17 - B1-3 2 ATTACHMENT 4 OTHER IMPORTANT COUNCIL OBJECTIVE S Task Original Revise d 1 . Laguna Lift Station 643-12/1 2 2 . Calle Joaquin Lift Station Replacement 6.744 12/1 2 3 . Wastewater Collection System Improvements – Year 1 & Year 2 6/12 & 6/1 3 4 . Water Reclamation Facility Major Maintenance – Year 1 & Year 2 Wate r 1 . Water Distribution System Improvements – Year 1 & Year 2 Re cr ular Maintenance 1 . Operating program regular maintenance through : Building, Flood Control, Golf Course, Landscape & Parks Maintenance, Natura l Resources Protection, Parking Operations, Ranger Program, Reservoir Operations , Streets & Sidewalk, Swim Center, Traffic Signals & Lighting, Tree, Vehicle & Equipment, Wastewater Collection, Water Distribution, Water Reclamatio n Facility, Water Treatment 6/12 & 6/1 3 6/12 & 6/1 3 Ongoing Status Summary : 10% Complete .The following is a summary of accomplishments and important next step s for this goal . The Laguna and Calle Joaquin Lift Station Replacement projects are 5% complete . A Request for Proposal s (RFP) for design services was approved by Council in August 2011, and a consultant is now under contract fo r both lift station projects . Several Water Distribution System Improvements projects are underway . The trench repair Job Order Contract i s 90% complete . Staff will take this to Council for review in early 2012 . Completion of the Water Reuse Automation Improvements is anticipated in July 2012 . A consultant is under contract for the Water Reus e Distribution Analysis and the project is 10% complete . All project work for the 2011-12 and 2012-13 Wastewater Collection System Improvements projects is underway. Two projects are ready to start construction in November 2011, and two projects are currently in design and 50 % complete . Playground equipment replacement work is ongoing with completion of Meadow Park Equipment replacemen t anticipated for November 2011 . The Meadow Park Restroom Roof replacement is complete . Design work is ongoing on the Warden Bridge surface replacement . Downtown parking lot resurfacing design work is 50% complete . -18 - B1-3 3 ATTACHMENT 4 OTHER IMPORTANT COUNCIL OBJECTIVE S PLANNING : UPDATE LAND USE AND CIRCULATION ELEMENT S Objective .Within the scope of the Strategic Growth Council (SGC) Grant, undertake an update of the Land Use and Circulation Elements ; including "Healthy Cities," complete streets, and pedestrian circulation policies . Action Plan Task Original Revise d 1 . Develop request for proposals (RFP) for consultant services 7/11 9/1 1 2 . Program initiation – Planning Commission and Council meetings 12/11 2/1 2 3 . Task Force formation and public participation plan 12/11 2/1 2 4 . Background report – current program evaluation, demographics, regulator y framework, interviews, and outreach x/12 6/1 2 5 . EIR – environmental setting/existing conditions report /1/12 6/1 2 6 . Policy updates – community workshops 8/12 11/1 2 7 . New issues, including neighborhood identification, healthy cities, greenhouse ga s reduction, pedestrian circulation, and complete streets policies and programs community workshops 11/12 1/1 3 8 . Policy document – draft set of goals, policies and implementation measures 2/13 6/1 3 9 . Land use plan recommendations – community workshops /1/13 6/1 3 10 . Circulation plan recommendations – community workshops 6,14 8/1 3 11 . EIR – project description and impact analysis including a fiscal analysis for th e updated elements underway . Assemble all current downtown design guidelines an d standards . 6/13 12/1 3 Status Summary : <1% Complete .The following is a summary of accomplishments and important next step s for this goal . Council reviewed the work program and authorized release of the Request for Proposals (RFP) on September 20 , 2011 . The RFP was posted and advertised on September 24 . On September 27, the Strategic Growth Counci l provided the official grant notice to proceed which indicated the City could begin work on grant-funded activities . Staff conducted a pre-bid conference on October 5, 2011 . Approximately 20 consulting firms attended th e question/answer session and responses to the RFP were due on October 28 . Six consultant team proposals wer e received and all fit within the project budget . Consultant interviews were held in November and staff is checkin g references . Staff anticipates that a contract will be awarded in December . The shift in dates above reflects the later start date due to the delay in the approval of the grant work program . Work extending beyond 2011-2013 is reflected in the chart below . Action Plan 2013-2015 Task Original Revise d 12 . EIR – Public Review Draft Release 1/1 4 13 . Draft EIR and General Plan Update 1/14 -19 - B1-3 4 ATTACHMENT 4 OTHER IMPORTANT COUNCIL OBJECTIVE S Task Original Revise d 14 . Public Workshops and Hearings 2/1 4 15 . DEIR – Response to comments 8/1 4 16 . Final EIR 9/1 4 17 . Final General Plan 11/14 -20 - B1-3 5 ATTACHMENT 4 OTHER IMPORTANT COUNCIL OBJECTIVE S AFFORDABLE HOUSING/HOMELESS SERVICE S Objective .Continue to facilitate provision of affordable as well as market-rate housing and provide leadership i n implementing the County's 10-Year Plan to End Chronic Homelessness . Action Pla n Task Original Revise d 1 . Seek grants to facilitate affordable housing projects .Ongoing 2 . Work with developers to include affordable housing units in projects and to complete housing projects in process . Ongoing 3 . Continue to implement Housing Element programs .Ongoing 4 . Look for new opportunities to use Affordable Housing Fund and grant monies t o leverage other funds for affordable housing projects . Ongoing 5 . Work with service providers and the Homeless Services Oversight Council (HSOC) director to understand needs of homeless population . Ongoing 6 . Continue HSOC participation to further the implementation of the 10-Year Plan .Ongoing Status Summary : 25% Complete .The following is a summary of accomplishments and important next step s for this goal . Council approved a grant application to the California Department of Housing and Community Developmen t (HCD) for $973,409 of Building Equity and Growth in Neighborhoods Program (BEGIN) funds for dow n payment assistance to 28 qualified low and moderate income homebuyers in the Housing Authority of San Lui s Obispo's (HASLO) Moylan Terrace project . Staff expect to submit the application in November and are working with HASLO to craft a complete and competitive application . Staff researched the Housing-Related Parks (HRP ) grant program which is designed to encourage cities and counties to develop new residential housing b y rewarding those jurisdictions that approve housing for low income households . Funds from this grant program ca n be used for the creation of or improvements to park and recreation facilities and recreation projects . Based on th e number of new low income housing starts last year, the City did not qualify for the minimum grant amount . However, the City may meet the minimum grant amount next year due to the number of low income units in th e ROEM Village at Broad project, which received its foundation inspection in January 2011 . Staff met with numerous developers and reviewed development projects for compliance with the City's Inclusionary Housing Program . Staff completed an affordable housing brochure that includes FAQ's and the step s involved in purchasing or renting inclusionary dwelling units . The brochure is available on the City's Housin g webpage and at the Community Development Department front counter . Staff has met with Community Actio n Partnership of San Luis Obispo (CAPSLO) and County staff on a monthly basis regarding funding opportunitie s for the proposed Homeless Services Campus on 3451 South Higuera Street . Staff completed a draft version of th e South Broad Street Corridor Plan and routed the Plan for review and comment to the City's Development Review Team and planning division staff . Staff met with a subcommittee of the Airport Land Use Commission to provid e an update on project status and receive comments on project consistency with the Airport Land Use Plan . Counci l approved an Affordable Housing Fund award for the Housing Trust Fund in the amount of $30,000 . This award improves the City's ability to facilitate affordable housing and provides technical assistance to City staff an d developers of affordable housing in the City . The award leverages significant additional funding from othe r sources . -21 - B1-3 6 ATTACHMENT 4 ADDRESS AS RESOURCES PERMI T The following provides brief status reports o n "Address as Resources Permit" objectives for 2011 - 13 . Climate Protectio n Objective .Implement greenhouse gas reductio n and Climate Action Plan . Conduct energy audits of all City facilities, increase energy conservation , invest in infrastructure which will save energy an d funds in the future . Status Summary: 10% Complete . The Utilities Department is working on an energ y efficiency project at the Water Reclamation Facilit y that partners with PG&E to reduce energy consumption, operating costs and greenhous e emissions . Staff will bring this project to Council i n January 2012 . In addition, the Community Developmen t Department has released the public review draft o f the Climate Action Plan and are conducting outreac h in the form of workshops, Farmers Marke t attendance, stakeholder presentations and resident outreach at grocery stores . Parks and Recreatio n Objective .Increase utilization of Damon-Garci a Sports Fields . Status Summary : 50% Complete. To address this Council objective staff firs t established a project team in spring 2011 . Th e project team consists of staff from Parks an d Recreation and Public Works departments, members of the Parks and Recreation Commission, an d representatives from both Youth and Adult Turf Sports . The project team has met monthly sinc e May of 2011 . The project team's first step was to create a projec t plan with four main objectives : determine curren t field usage (including maintenance); determine ways to increase play ; identify short term strategies ; an d identify longer term strategies . Based on permi t records, the use of the Damon Garcia Sports Field s during calendar year 2010 was analyzed . For the calendar year 2010, staff found that 1,395 hours of play by youth was scheduled, 419 .5 hours by adults , 5,483 hours were needed for maintenance (includin g closures for restoration), and 31 days of play wer e rained out . 47,388 people were estimated to hav e been on the fields as spectators or participants . Following the analysis of field usage, the projec t team determined that a stand of Bermuda gras s should be planted on a portion of a field to determin e definitively if it could (a) grow successfully in ou r cooler climate and (b) determine if it was mor e durable and therefore would result in less restoratio n time for the facilities longer term . The grass wa s planted during this summer's renovation and a fina l determination of its success and failure will occur i n spring 2012 . Also following the analysis of field usage, additional hours of play have been schedule d for 2011-12 . Ultimate Frisbee (for adults) has bee n added as has Lacrosse (for adults). Drop in play i s presently being tested with organized drop in play occurring on Tuesdays from 12 p .m . to 2 p.m . An average of approximately 30 players ar e participating in this opportunity . Beginning i n November 2011, when youth Flag Football i s complete, a Thursday night practice for club socce r teams will be added as another test for expande d play. These additional hours of play were based on a survey of over 125 users and non-users of th e facility who staff sought information from abou t their use to better maximize facility usage. To increase awareness of field uses and to bette r serve the public, a Google calendar has been created for the fields so that users can have ready access t o the scheduled play at the facility . Staff continues to : monitor field conditions ; survey (every other month ) users about field conditions ; and expand use of other facilities in the community for turf sports . As a result of the additional uses described above for 2011-12, permitted uses and additional drop in an d practice uses will result in an increase at a minimu m of 246 hours of permitted play (50 hours for yout h and 196 hours for adults). This totals a 13% increase from the prior year's previously scheduled play . Historic Preservation Objective .Continue to promote historic resourc e preservation opportunities and update Histori c Resource Inventory. Status Summary : 10% Complete . - 22 - B1-37 ADDRESS AS RESOURCES PERMI T In August, the Community Developmen t Department staff liaison facilitated a trainin g workshop from the State Historic Preservatio n Office for the Cultural Heritage Committee (CHC ) and interested members of the public . This was followed by development of a work program t o conduct historic survey work of a 10-block are a adjacent to the Old Town and Railroad Histori c Districts . The CHC sent letters to property owner s and received input at three meetings regarding th e process and how to proceed with the survey . Detailed workbooks with State Historic Survey forms, guidelines, architectural details and trainin g materials have been provided to the sub-committe e members who will be conducting the work . -23 - B1-38 ATTACHMENT 4 CARRYOVER GOALS AND OBJECTIVES a Brick Build a Dream" campaign for the park an d the Deck it Out Art Project . Airport Area Annexation Objective .Annex the Airport Area . Status Summary : 100% Complete for Phase IA . The Local Agency Formation Commissio n (LAFCO) completed the annexation process for 62 6 acres associated with Phase 1 A of the annexatio n area . The map and certificate of annexation wa s delivered to the State Board of Equalization and the land was officially added to the City boundary o n July 25, 2008 . Discussion with property owners in the Phase 1 B area was conducted in early 2009 . The proposed development of the Chevron property will result i n an amendment to the Airport Area Specific Plan (AASP). That project is in the Environmental Impact Report (EIR) preparation stage and City and County staff are collaborating in the review of th e project . The administrative draft of the EIR, alon g with the scope of work for a financing plan, i s underway . Annexation of the Chevron property wil l provide another key piece of the Airport Are a annexation . Discussions with LAFCO staff hav e indicated that LAFCO would prefer the City pursu e annexation of the entire remaining area including th e San Luis Obispo County Regional Airport, bu t would support phased annexations as needed . Thi s issue is significant because several areas of th e AASP are not contiguous to existing City boundarie s and the only way to bring those properties into th e City will be to address the airport property itself . Including the airport may significantly alter th e timing anticipated for Phase 1B . Broad Street Corridor Plan Objective .Adopt and implement a plan for South Broad Street corridor planning and improvements . Status Summary : 80% Complete .The plan ha s been significantly revised after further evaluatio n revealed that overall densities associated with reducing development to address traffic impacts , would result in less development than currently allowed . Utilities staff worked with Wallace Grou p to evaluate waste collection system capacity t o ensure orderly development could occur . Staff revised the draft plan to achieve the project goal o f mixed use and infill development . An Airport Land B1-3 9 The following summarizes the status of "carryover " Other Important Council Objectives from the 2009 - 11 and 2007-09 Financial Plans . In several cases , "carryover tasks" have been incorporated into th e Major City Goals (or "Other Important Counci l Objectives") for 2011-13, and as such, they are no t repeated in this section. OTHER IMPORTANT COUNCIL OBJECTIVE S Creek and Flood Protection Objective .Advance Mid-Higuera flood protection improvements by seeking Zone 9 funding t o complete design, obtain approvals and mak e progress toward construction as resources will allow . Status Summary : 15% Complete .As recommended by the Zone 9 committee, the Boar d of Supervisors approved additional funding for the completion of technical studies necessary for the environmental document . The County Environmental Division completed the studies early due to regulatory agency concurrence on specie s issues . The preliminary design work for the Mid - Higuera bypass flood control project, sponsored b y Zone 9, is underway. Staff are currently soliciting a work plan from a consultant to prepare preliminary design documents in order to complete th e environmental document . Staff will continue t o move this project forward as resources permit . Skatepark Objective .Develop plans and specifications an d seek funding to construct a skate park . Status Summary : 75% Complete .The skate par k has received all of its discretionary approvals b y City advisory bodies . The project is now in the fina l stages and 75% construction ready plans ar e presently under review by City staff . In September 2011, staff submitted gran t applications for Proposition 84 funding (200 8 Statewide Park Development and Communit y Revitalization Program) in the amount of $1 .2 7 million and to the Stewardship Counci l Infrastructure Fund for $200,000 . Additionally, staf f continue efforts to raise funds for the project throug h a variety of fundraisers including the ongoing "Buy - 24 - ATTACHMENT 4 CARRYOVER GOALS AND OBJECTIVE S Use Commission sub-committee has been assigne d to work with the project planner to assist wit h Airport density compliance determination . The infil l densities envisioned appear to trigger significant traffic impacts at various intersections . Evaluation o f project impacts will occur with the Environmenta l Impact Report (EIR) prepared for the General Pla n update. Staff anticipates distributing the revised draft in winter 2012 for conceptual review by the publi c and the Planning Commission . - 25 - B1-40 ATTACHMENT 4 STATUS OF MAJOR CIP PROJECT S AS OF NOVEMBER 1, 201 1 Percent Complete 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% UNDER CONSTRUCTIO N Stormdrain Replacements (2011-12 ) Street Reconstruction & Resurfacing (2011-12 ) Bob Jones Bridge Construction - Prad o Andrews Creek Bypass at Conej o Downtown Sidewalk & Lighting Replacemen t UNDER DESIG N Warden Bridge Repair - Mission Plaz a Tank Farm Widening - Broa d Stormdrain Replacements (2012-13 ) Street Reconstruction & Resurfacing (2012-13 ) Santa Rosa Skate Park Railroad Safety Trail Construction - Hathway to Taft Playground Equipment Replacement - Johnson,■ Santa Rosa, Emerson Park s Marsh Street Garage Painting Laguna Lift Station Replacemen t Gateway Monument - Santa Rosa & Highlan d Downtown Directional Signs Installatio n City Hall Step Replacemen t Calle Joaquin Lift Station & Forcemai n Replacement _ Bob Jones Bridge Construction - LOV R UNDER STUDY _ Website Upgrade • Water Reuse Automation Improvement s Water Reclamation Facility Energy Efficiency Projects -26 -B1-4 1