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HomeMy WebLinkAbout07-21-2020 Agenda Packet - Amended Tuesday, July 21, 2020 Based on the threat of COVID-19 as reflected in the Proclamations of Emergency issued by both the Governor of the State of California, the San Luis Obispo County Emergency Services Director and the City Council of the City of San Luis Obispo as well as the Governor’s Executive Order N-29-20 issued on March 17, 2020, relating to the convening of public meetings in response to the COVID-19 pandemic, the City of San Luis Obispo will be holding all public meetings via teleconference. There will be no physical location for the Public to view the meeting. Below are instructions on how to view the meeting remotely and how to leave public comment. Additionally, members of the City Council are allowed to attend the meeting via teleconference and to participate in the meeting to the same extent as if they were present. Using the most rapid means of communication available at this time, members of the public are encouraged to participate in Council meetings in the following ways: 1. Remote Viewing - Members of the public who wish to watch the meeting can view: • View the Webinar (recommended for the best viewing quality):  Registration URL: https://attendee.gotowebinar.com/register/3769612252414050829  Webinar ID: 134-034-099  Telephone Attendee: +1 (562) 247-8422; Audio Access Code: 783-492-721 • Televised live on Charter Cable Channel 20 • View a livestream of the meeting on the City’s YouTube channel: http://youtube.slo.city 2. Public Comment - The City Council will still be accepting public comment. Public comment can be submitted in the following ways: • Mail or Email Public Comment  Received by 5:00 PM on the day of meeting - Can be submitted via email to emailcouncil@slocity.org or U.S. Mail to City Clerk at 990 Palm St. San Luis Obispo, CA 93401. All emails will be archived/distributed to councilmembers, however, submissions after 5:00 p.m. on the day of the meeting may not be archived/distributed until the following day. Emails will not be read aloud during the meeting. • Verbal Public Comment  In Advance of the Meeting - Call (805) 781-7164; state and spell your name, the agenda item number you are calling about and leave your comment. The verbal comments must be limited to 3 minutes. All voicemails will be forwarded to the Council Members and saved as Agenda Correspondence. Voicemails will not be played during the meeting.  During the meeting – Join the webinar (instructions above). Once the meeting has started, please put your name and the item # you would like to speak on in the questions box. During public comment for the item, your name will be called, and your mic will be unmuted. Contact the office of the City Clerk at cityclerk@slocity.org for more information. All comments submitted will be placed into the administrative record of the meeting. Tuesday, July 21, 2020 6:00 PM REGULAR MEETING AMENDED TELECONFERENCE Broadcasted via Webinar San Luis Obispo Page 2 Agenda Amended to add Item A below. CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez and Mayor Heidi Harmon PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA (Not to exceed 15 minutes total) The Council welcomes your input. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to follow up on such items. A.RECEIVE AN UPDATE FROM THE EMERGENCY SERVICES DIRECTOR AND AFFIRM, MODIFY OR REPEAL THE EMERGENCY SERVICES DIRECTOR PROCLAMATION DATED JULY 17, 2020 AUTHORIZING THE FUNDING OF CERTAIN PROJECTS AND THE PURCHASE OF CERTAIN EQUIPMENT, SUPPLIES AND SERVICES OUTSIDE OF REGULAR PURCHASING PROCEDURES (JOHNSON - 20 MINUTES) Recommendation: Affirming the of the Emergency Services Director Proclamation. CONSENT AGENDA Matters appearing on the Consent Calendar are expected to be non-controversial and will be acted upon at one time. A member of the public may request the Council to pull an item for discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of the Council chooses another time. The public may comment on any and all items on the Consent Agenda within the three-minute time limit. San Luis Obispo City Council Agenda July 21, 2020 Page 3 1. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES (PURRINGTON) Recommendation: Waive reading of all resolutions and ordinances as appropriate. 2. MINUTES REVIEW - JUNE 25, 2020 AND JULY 7, 2020 CITY COUNCIL MEETINGS (PURRINGTON) Recommendation: Approve the minutes of the City Council meetings held on June 25, 2020 and July 7, 2020. 3. AUTHORIZE BID ADVERTISEMENT FOR BULLOCK LANE CORRUGATED METAL PIPE (CMP) REPLACEMENT, SPECIFICATION NO. 1000166 (HORN / BURDE) Recommendation: 1. Approve the Project Plans and Special Provisions for the Bullock Lane Corrugated Metal Pipe (CMP), Replacement Project; and 2. Authorize staff to advertise for bids; and 3. Authorize the City Manager to award the construction contract if the lowest responsible bid is within the Engineer’s Estimate of $300,000. 4. AUTHORIZATION TO EXTEND CURRENT CONTRACTS FOR JANITORIAL AND LANDSCAPE MAINTENANCE SERVICES THROUGH DECEMBER 31, 2020 AND AUTHORIZE ADVERTISING A REQUEST FOR PROPOSALS FOR THOSE SERVICES IN THE YEAR 2021 (HORN / CRUCE) Recommendation 1. Authorize the extension of existing janitorial and landscape contracts to December 31, 2020 to provide on-going services to the community while new RFPs are advertised, evaluated and new contracts awarded; and 2. Authorize the advertisement of janitorial and landscape Request for Proposals; and 3. Authorize the City Manager to award the janitorial and landscape contracts if within appropriated budgeted amounts. 5. ADOPT ORDINANCE NO. 1683 (2020 SERIES) AMENDING MUNICIPAL CODE SECTION 10.52.010 (PARKING METER ZONE RATES) TO REMOVE PREVIOUSLY ADOPTED RATE INCREASE (HORN / HUSSEY) Recommendation: Adopt Ordinance No. 1683 (2020 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Section 10.52.010 (Parking Meter Zone Rates) of the San Luis Obispo Municipal Code” to remove the previously adopted rate increase. San Luis Obispo City Council Agenda July 21, 2020 Page 4 6. AUTHORIZATION TO ACCEPT FY 2020-21 GRANT AWARD FROM DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL (CANTRELL / ELLSWORTH) Recommendation: 1. Authorize the Police Department to accept a grant award from the Department of Alcoholic Beverage Control for FY 2020-21 in the amount of $33,259; and 2. Adopt a Resolution entitled, “A Resolution of the Council of the City of San Luis Obispo, California, authorizing grant applications for funding provided through the Department of Alcoholic Beverage Control to increase education and enforcement programs focusing on regulating Retail Alcohol Outlets and authorizing the City Manager to execute all related grant documents;” and 3. Authorize the Chief of Police to execute all grant related documents and authorize the Finance Director to make the necessary budget adjustments. PUBLIC HEARING AND BUSINESS ITEMS 7. RESULTS OF PUBLIC ENGAGEMENT AND OUTREACH EFFORTS AND CONSIDERATION OF SUBMITTING TO THE VOTERS A COMMUNITY SERVICES/INVESTMENT MEASURE; AND AN INTRODUCTION OF AN ORDINANCE AMENDING EXISTING CHAPTER 3.15 ESSENTIAL SERVICES TRANSACTIONS (SALES) AND USE TAX AND REENACT IN FULL AMENDED CHAPTER 3.15 COMMUNITY SERVICES AND INVESTMENT IMPOSING A LOCAL TRANSACTIONS (SALES) AND USE TAX (JOHNSON / BETZ – 60 MINUTES) Recommendation: 1. Receive a report on the results of public engagement and outreach efforts regarding SLO Forward, an effort to support community investment and economic recovery by maintaining and improving the type of City services and infrastructure the community values most; and 2. As recommended by Council Members Pease, Stewart, and the Revenue Enhancement Oversight Commission, adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, calling and giving notice of the holding of a General Municipal Election to be held Tuesday, November 3 , 2020, for submitting to the Voters a question whether to extend the existing, voter-approved Local Transaction (Sales) and Use Tax at a 1.5¢ rate, until ended by Voters and continue the vital role of the Citizens Revenue Enhancement Commission to ensure funds are spent consistent with community priorities;” and 3. Introduce an Ordinance entitled, “An Ordinance of the City Council and the People of the City of San Luis Obispo, California, amending existing Chapter 3.15 (Essential Services Transactions (Sales) and Use Tax) of the San Luis Obispo Municipal Code and reenacting in full Amended Chapter 3.15 (Community Services and Investment) imposing a Transactions (Sales) and Use Tax to be administered by the California Department of Tax and Fee Administration;” and San Luis Obispo City Council Agenda July 21, 2020 Page 5 4. Adopt a Resolution entitled, “A Resolution of the Council of the City of San Luis Obispo, California, setting priorities for filing written Arguments regarding a City Measure and directing the City Attorney to prepare an Impartial Analysis;” and 5. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, providing for the filing of Rebuttal Arguments for City Measures submitted at Municipal Elections.” 8. FIRE DEPARTMENT ANNUAL REPORT AND 2020-2021 STRATEGIC OPERATIONAL PLAN (AGGSON / ALFORQUE / BLATTLER – 30 MINUTES) Recommendation: Receive and file the 2019-20 Fire Department Annual Report and 2020-21 Strategic Operational Plan. LIAISON REPORTS AND COMMUNICATIONS (Not to exceed 15 minutes) Council Members report on conferences or other City activities. At this time, any Council Member or the City Manager may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) ADJOURNMENT The next Regular City Council Meeting is scheduled for Tuesday, August 18, 2020 at 6:00 p.m., via teleconference. San Luis Obispo City Council Agenda July 21, 2020 Page 6 LISTENING ASSISTIVE DEVICES are available for the hearing impaired--please see City Clerk. The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410. City Council regular meetings are televised live on Charter Channel 20. Agenda related writings or documents provided to the City Council are available for public inspection in the City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal business hours, and on the City’s website www.slocity.org. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781-7100. RECEIVED JUL 2 0 2020 SLO CITY CLERK 1010 Marsh St., San Luis Obispo, CA 93401 (805) 546-8208 • FAX (805) 546-8641 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, County of San Luis Obispo, 1 am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party interested in the above entitled matter. I am the principal clerk of the printer of the New Times, a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo, County of San Luis Obispo, and which has been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo, State of California, under the date of February 5, 1993, Case number CV72789: that notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to -wit: in the year 2020. I certify (or declare) under the the penalty of perjury that the foregoing is true and correct. Dated at San Luis Obispo, C ifornia, this da I G o , 2020. 14j� Z Patricia Horton, New Times Legals Proof of Publication of Y ORDINANCE NO. 1683 (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING SECTION 10.52.010 (PARKING METER ZONE RATES) OF THE SAN LUIS OBISPO MUNICIPAL CODE NOTICE IS HEREBY GIVEN that the City Council of the City of San Luis Obispo, California, at its Regular Meeting of June 2, 2020, introduced the above titled ordinance upon a motion by Council Member Pease, second by Council Member Christianson, and on the following roll call vote: AYES: Council Member Christianson, Stewart, Vice Mayor Gomez and Mayor Harman ABSENT: None Ordinaaoo Nn_ 1803 (2020 Series —This City Ordinance defers all previously adopted parking meter rate increases as part of the City's revitalization efforts related to the economic impacts created by the COVID-19 pandemic. A full and complete copy of the Ordinance will be available for inspection as part of the published agenda packet for the July 21, 2020 Council Meeting, or you may call (805) 781-7100 for more information. NOTICE IS HEREBY GIVEN that the City Council of the City of San Luis Obispo will consider adopting the Ordinance at its Regular Meeting of July 21, 2020 at 6:00 p.m. While the Council encourages public participation, growing concern about the COVID-19 pandemic has required that public meetings be held via teleconference. Meetings can be viewed on Government Access Channel 20 or streamed live from the City's YouTube channel at http://youtube.slo.city. Public comment, prior to the start of the meeting, may be submitted in writing to the City Clerk's Office, 990 Palm Street, San Luis Obispo, CA 93401 or by email to emailcouncil@slocity.org Teresa Purrington, City Clerk July 16, 2020 A.lm,n & 11r, I.N'I'NG A&flmNj'NI(; of Pub Page intentionally left blank. City of San Luis Obispo, Council Memorandum Council Agenda Correspondence Date: July 17, 2020 TO: Mayor and Council FROM: Teresa Purrington, City Clerk VIA: Derek Johnson, City Manager DJ SUBJECT: Item #A – Emergency Services Director Proclamation No. 4 Receive an update from the Emergency Service Director and affirm the Emergency Services Director Proclamation No. 4. (Attachment A) Attachment A – Emergency Services Director Proclamation No. 4 Thursday, June 25, 2020 Special Emergency Closed Session of the City Council CALL TO ORDER A Special Emergency Closed Session of the San Luis Obispo City Council was called to order on Thursday, June 25, 2020 at 5:30 p.m. by Mayor Harmon, with all Council Members teleconferencing. ROLL CALL Council Members Present: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez, and Mayor Heidi Harmon. Absent: None City Staff Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa Purrington, City Clerk; were present at Roll Call. PUBLIC COMMENT ON CLOSED SESSION ITEMS None ---End of Public Comment--- A. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9. No. of potential cases: Two; Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: No. of potential cases: Two. A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency. The existing facts and circumstances exposing the City to litigation include the following: Dispute between the City and the owner of real property located at 3595 Sueldo regarding a previously unaccepted offer to dedicate right of way pursuant to the Subdivision Map Act, Tract 703 as recorded in Book 10 of Maps at Page 50 on October 31, 1980, and validity of acceptance of right of way for public road purposes; and a related assertion of liability by the owner of an adjacent property (Sullivan, Tentative Tract 3009/Minor Subdivision SLO 17- 0107) against the City for unspecified damages allegedly resulting from the unaccepted offer. Correspondence regarding these issues is available for review in the City Clerk’s Office located at 990 Palm Street. City Attorney Dietrick indicated there was no reportable action taken. Item 2 Packet Page 1 San Luis Obispo City Council Minutes of June 25, 2020 Page 2 B. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Paragraph (1) of subdivision (d) of Government Code § 54956.9; Name of case: LORI A. GILL and CRAIG A. GILL, Trustees of the Gill I nter Vivos Revocable Trust, dated June 29, 2005; and LORRAINE J. ANDREWS, aka LORRAINE JANET ZUIDERWEG, Trustee of The Andrews Living Trust dated February 8, 2010 v. City of San Luis Obispo; San Luis Obispo Superior Court Case No. 20CV-0184 City Attorney Dietrick indicated there was no reportable action taken. ADJOURNMENT The meeting was adjourned at 6:00 p.m. The next Regular City Council Meeting is scheduled for Tuesday, July 7, 2020 at 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. __________________________ Teresa Purrington City Clerk APPROVED BY COUNCIL: XX/XX/2020 Item 2 Packet Page 2 Tuesday, July 7, 2020 Regular Meeting of the City Council / Disaster Council CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council / Disaster Council was called to order on Tuesday, July 7, 2020 at 6:00 p.m. via teleconference by Mayor Harmon. ROLL CALL Council Members Present: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez, and Mayor Heidi Harmon. Absent: None City Staff Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa Purrington, City Clerk; were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes. CITY ATTORNEY REPORT ON CLOSED SESSION City Attorney Dietrick stated the Council met in Closed Session on two matters of existing litigation. A. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Paragraph (1) of subdivision (d) of Government Code § 54956.9; Name of case: Gregory Zocher v. City of San Luis Obispo; Derek J. Johnson, in his official capacity; and Monica Irons, in her official capacity; San Luis Obispo Superior Court Case No. 20CV-0298 On a motion by Council Member Pease and seconded by Council Member Christianson, a 5-0 vote, the Council authorized defense of the action and authorized the City Manager to appropriate funds for defense of the litigation. B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9. No. of potential cases: One. A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency. The existing facts and circumstances exposing the City to litigation include the following: Item 2 Packet Page 3 San Luis Obispo City Council Minutes of July 7, 2020 Page 2 Notice of Intent to Commence Litigation was received from the group “San Luis Obispo Architectural Preservation” (SLAP) alleging violation of the California Environmental Quality Act, following the adoption of Resolution No. 11128 (2020 Series) by the City Council, which denied an appeal of the approval of Mixed-Use Project at 545 Higuera/486 Marsh. A copy of the Notice is on file with the City Clerk. Council Member Pease recused herself due to a conflict of interest due to an employment relationship with a consultant working on the project. On a motion by Council Member Christianson and seconded by Vice Mayor Gomez and a 4 – 0 vote the Council authorized staff to proceed with defense of the action once filed and served. While primarily applicant funded litigation, the Council did authorize the City Manager to appropriate additional funds if needed in defense of the litigation. A. RECEIVE AN UPDATE FROM THE EMERGENCY SERVICES DIRECTOR AND AFFIRM, MODIFY OR REPEAL THE EMERGENCY SERVICES DIRECTOR PROCLAMATION DATED JULY 1, 2020 CLOSING BARS AND OTHER ONSALE ALCOHOL SERVING ESTABLISHMENTS OVER THE JULY 4, 2020 HOLIDAY WEEKEND AND LIMITING BAR OCCUPANCY AND OTHER ONSALE ALCOHOL ESTABLISHMENTS TO 25% UNTIL FURTHER ACTION City Manager Derek Johnson provided an in-depth staff report and responded to Council questions. Public Comments: None ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER STEWART, CARRIED 5-0 to adopt Resolution No. 11137 (2020 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, affirming actions of the Emergency Services Director” with the change presented in the staff correspondence received prior to the meeting. APPOINTMENTS 1. ADVISORY BODY APPOINTMENT FOR AN UNSCHEDULED VACANCY ON THE PROMOTIONAL COORDINATING COMMITTEE City Clerk Purrington presented the contents of the report. Public Comment: None ---End of Public Comments--- ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER STEWART, CARRIED 5-0 to approve the appointment of Lori Lerian to the Promotional Coordinating Committee as recommended by the Council Liaison Subcommittee. Item 2 Packet Page 4 San Luis Obispo City Council Minutes of July 7, 2020 Page 3 PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA Donna Pulling Allan Cooper ---End of Public Comment--- CONSENT AGENDA Council Member Christianson recused herself from item #6 due to a remote interest based on her employment with Transitions Mental Health. Council Member Pease recused herself from the item #5 due to a pending review of an action taken in September 2019 regarding the Clean Energy Choice item by the FPPC. PUBLIC COMMENT Item #5 - Tim Mahoney Item #5 - Eric Veium Item #5 - Justin Bradshaw Item #6 - Jill Bolster-White ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL MEMBER STEWART, CARRIED 5-0 (COUNCIL MEMBER PEASE RECUSED ON ITEM 5 AND COUNCIL MEMBER CHRISTIANSON RECUSED ON ITEM 6) to approve Consent Calendar Items 2 thru 7. 2. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate. 3. MINUTES REVIEW - JUNE 16, 2020 CITY COUNCIL MEETING CARRIED 5-0, to approve the minutes of the City Council meeting held on June 16, 2020. 4. ADDITION OF THE PROPERTY AT 1789 SANTA BARBARA AVENUE TO THE MASTER LIST OF HISTORIC RESOURCES AS THE LOZELLE AND KATIE FLICKINGER GRAHAM HOUSE CARRIED 5-0, to adopt Resolution No. 11139 (2020 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adding the property located at 1789 Santa Barbara Avenue to the Master List of Historic Resources as “The Lozelle and Katie Flickinger Graham House” (HIST-0144-2020).” 5. SECOND READING OF ORDINANCE NO. 1684 AND 1685 (2020 SERIES) INTRODUCED BY THE CITY COUNCIL ON JUNE 16, 2020, TO ADD LOCAL AMENDMENTS TO THE ENERGY CODE IN TITLE 15 AND TO AMEND TITLE 17 TO PROVIDE LIMITED TERM REGULATORY FLEXIBILITY TO SUPPORT ALL-ELECTRIC NEW BUILDINGS Item 2 Packet Page 5 San Luis Obispo City Council Minutes of July 7, 2020 Page 4 CARRIED 4-0-1 (COUNCIL MEMBER PEASE RECUSED), to 1. Adopt Ordinance No. 1684 (2020 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, establishing the Clean Energy Choice Program by amending the City of San Luis Obispo Building Code to require higher energy performance for newly constructed structures” implementing an Energy Reach Code entitled “Local Amendments to Part 6 (Energy) of the 2019 California Building Code” adding Chapter 15.04.110, entitled “Amendments – California Energy Code”, to the Municipal Code; and 2. Adopt Ordinance No. 1685 (2020 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 17 (Zoning Regulations) of the Municipal Code supporting the Clean Energy Choice Program (PL-CODE-0062-2020)” implementing regulatory flexibility through December 31, 2022 in support of the Clean Energy Choice Incentive Program; and 3. Direct staff to submit the approved local amendments and accompanying required submittal forms and information to the California Energy Commission to initiate the local amendments to California Energy Code review and approval process. 6. REQUEST OF TRANSITIONS-MENTAL HEALTH ASSOCIATION TO REALLOCATE AFFORDABLE HOUSING FUNDS FROM BRANCH STREET APARTMENTS TO BISHOP STREET STUDIOS CARRIED 4-0-1 (COUNCIL MEMBER CHRISTIANSON RECUSED), to adopt Resolution No. 11140 (2020 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the reallocation of Affordable Housing Funds to Transitions- Mental Health Association from Branch Street Apartments to Bishop Street Studios (in the amount of $20,644).” 7. ADOPT A RESOLUTION UPDATING THE CITY’S MASTER FEE SCHEDULE, THE CURRENT FEE FOR ENVIRONMENTAL IMPACT DETERMINATION, AND APPLY NEEDED CORRECTIONS TO ADOPTED FEES CARRIED 5-0, to adopt Resolution No. 111041 (2020 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting new fees and amending the 2020-21 Master Fee Schedule.” PULLED FROM CONSENT 8. CONSIDERATION OF REMOVAL OF ADVISORY BODY MEMBER Public Comments: Allan Cooper ---End of Public Comment--- CARRIED 5-0, to approve the removal of James Papp from the Cultural Heritage Committee. Item 2 Packet Page 6 San Luis Obispo City Council Minutes of July 7, 2020 Page 5 PUBLIC HEARING ITEMS AND BUSINESS ITEMS 9. AUTHORIZATION TO PURCHASE TWO ELECTRIC TRANSIT VEHICLES Public Works Director Matt Horn and Transit Manager Gamaliel Anguiano provided an in- depth staff report and responded to Council questions. Public Comments: None ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE MAYOR GOMEZ, CARRIED 5-0 to approve the purchase of two electric buses for $1,744,259 using the California Department of Goods and Services Statewide Cooperative Purchasing Contract. 10. 2020-21 COMMUNITY PROMOTIONS PROGRAM – TOURISM BUSINESS IMPROVEMENT DISTRICT & PROMOTIONAL COORDINATING COMMITTEE Deputy City Manager Greg Hermann and Tourism Coordinator Chantal Burns provided an in-depth staff report and responded to Council questions. Public Comments: None ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0 to 1. Authorize the City Manager to enter into various contracts and program expenditures for the TBID not to exceed the 2020-21 program budget of $1,014,000 (excludes staffing costs) based on the recommendations by the TBID Board and the adopted TBID Fund revenue projections as part of the 2020-21 Budget Supplement; and 2. Authorize the City Manager to enter into contracts utilizing the TBID Fund un- appropriated fund balance from the 2019-20 fiscal year, following the completion of the City’s audited financial statements, for tourism marketing expenditures in 2020-21 based on the recommendations by the TBID Board; and 3. Authorize the City Manager to use the TBID Fund Reserve of $100,000 for tourism marketing expenditures in 2020-21 in accordance with the TBID reserve policy; and 4. Authorize the City Manager to enter into various contracts and program expenditures for Community Promotions not to exceed the 2020-21 program budget of $368,000 (excludes staffing costs) based on the recommendations by the PCC. Council Member Christianson recused herself from Item 11 due to a remote interest based on her employment with Transitions Mental Health. Council Member Christianson left the teleconference at 8:00 PM. Item 2 Packet Page 7 San Luis Obispo City Council Minutes of July 7, 2020 Page 6 RECESS Council recessed at 8:00 p.m. and reconvened at 8:15 p.m., with Council Member Christianson absent and all other Council Members present. 11. CONSIDERATION OF THE 2020-21 HUMAN RELATIONS COMMISSION GRANTS-IN-AID FUNDING RECOMMENDATIONS Community Development Director Michael Codron and Housing Coordinator Cara Vereschagin provided an in-depth staff report and responded to Council questions. Public Comments: Sandra Gresham Bernadette Bernardi Catherine Manning Celeste Goyer ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER STEWART, SECOND BY VICE MAYOR GOMEZ, CARRIED 4-0-1 (COUNCIL MEMBER CHRISTIANSON RECUSED) to 1. As recommended by the Human Relations Commission, approve the 2020-21 Grants-in- Aid funding allocations in the amount of $150,000; and 2. Authorize the Community Development Director to execute agreements with each grant recipient. 12. CREATION OF A DIVERSITY, EQUITY, AND INCLUSION TASK FORCE City Manager Derek Johnson provided an in-depth staff report and responded to Council questions. Public Comments: Jean Reno Amber Steele ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER STEWART, CARRIED 5-0 to adopt Resolution No. 11142 (2020 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, creating the Task Force for Diversity, Equity and Inclusion and defining its term and charge.” With the following changes: • Taskforce members shall reside in the County of San Luis Obispo and have frequent affiliation and knowledge of the City • Replace the word prejudice with discrimination • Marginalized cultural groups Item 2 Packet Page 8 San Luis Obispo City Council Minutes of July 7, 2020 Page 7 13. NOVEMBER 3, 2020 GENERAL MUNICIPAL ELECTION Deputy City Manager Greg Hermann and City Clerk Teresa Purrington provided an in-depth staff report and responded to Council questions. Public Comments: None ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE MAYOR GOMEZ, CARRIED 5-0 to adopt Resolution No. 11143 (2020 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, calling for the holding of a General Municipal Election to be held on Tuesday, November 3, 2020, for the election of certain Officers as required by the provisions of the Charter, adopting regulations for Candidate Statements, and requesting the Board Of Supervisors of the County Of San Luis Obispo to consolidate a General Municipal Election with the Statewide General Election to be held on November 3, 2020, pursuant to § 10403 of the Elections Code with a correction to the Resolution as follows: Section 3: a) The statement may include the name, age and occupation of the candidate and a brief description of no more than 250 200 words of the candidate’s education and qualifications expressed by the candidate himself or herself. COUNCIL COMMUNICATIONS AND LIAISON REPORTS Council Members Christianson, Pease and Stewart and Mayor Harmon attended the ribbon cutting ceremony for the Maxine Lewis art project in Mission Plaza. ADJOURNMENT The meeting was adjourned at 9:48 p.m. The next Closed Session and Regular City Council Meeting is scheduled for Tuesday, July 21, 2020 at 6:00 p.m., respectively, via teleconference. __________________________ Teresa Purrington City Clerk APPROVED BY COUNCIL: XX/XX/2020 Item 2 Packet Page 9 Page intentionally left blank. Item 2 Packet Page 10 Department Name: Public Works Cost Center: 5301 For Agenda of: July 21, 2020 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Richard Burde, Engineer III SUBJECT: AUTHORIZE BID ADVERTISEMENT FOR BULLOCK LANE CORRUGATED METAL PIPE (CMP) REPLACEMENT, SPECIFICATION NO. 1000166 RECOMMENDATION 1. Approve the Project Plans (Attachment A) and Special Provisions (Attachment B) for the Bullock Lane Corrugated Metal Pipe (CMP), Replacement Project; and 2. Authorize staff to advertise for bids; and 3. Authorize the City Manager to award the construction contract if the lowest responsible bid is within the Engineer’s Estimate of $300,000. DISCUSSION Background The City’s Storm Drain System Replacement program is an annual asset maintenance program that addresses capital maintenance of drainage pipelines, culverts, and constructed drainage channels and is aimed at replacing or reconstructing failed facilities and reducing flood risk and the likelihood of property damage. Identifying and replacing failing storm drainage also ensures that the City’s drainage system can adequately accommodate stormwater flows through the City’s drainage network, thereby reducing flooding potential. A large share of the City’s storm drainage infrastructure consists of Corrugated Metal Pipe (CMP), which no longer conforms to City standards and must be replaced based upon frequent failure from corrosion. As CMP deterioration progresses and becomes severe, the pipe deforms and often collapses along with t he overlying roadway or improvements, which require costly emergency repairs and make the City vulnerable to liability claims for damaged private property. The project to replace the Bullock Lane Culvert, which conveys flows beneath Bullock Lane, was originally started design in 2012. Due to funding constraints and permitting issues the project was placed on hold until 2019 when design resumed. Item 3 Packet Page 11 VICINITY MAP Project Description – Bullock Lane Culvert The CMP storm drain culvert underneath Bullock Lane has completely rusted through and is now allowing water to flow directly on top of native soil. This condition has allowed for native material to erode away, creating large voids underneath the metal pipe. As these voids continue to grow the structural integrity of the culvert and overlying roadway becomes compromised further and could negatively impact the north/south railway tracks. In addition, a headwall that supports the existing culvert at its outfall is failing and is in danger of collapse if not rep aired or replaced. A complete failure of either the headwall or culvert would likely cause the roadway to collapse and would negatively impact the railway (adding further costs to the City). The goal of the Bullock Lane project is to replace the failing CMP storm drain with a High- Density Polyethylene (HDPE) pipe of the same size. In addition, a concrete sack headwall that currently exists in the Right-of-Way of Union Pacific Railroad (UPRR) company will be replaced with a new concrete headwall located within the City’s right-of-way. Previous Council or Advisory Body Action Funding for the Bullock Lane project was allocated to the Storm Drains Annual Asset Maintenance account in the 2019-21 Capital Improvement Plan. The supplemental budget that was authorized by City Council June 2, 2020 allocates $250,000 in additional funds required for project completion. Item 3 Packet Page 12 Policy Context Per the October 2018 Purchasing Policy Update to the July 2015 Financial Management Manual, Council approval is required for Public Projects that cost over $175,000. Public Engagement Public engagement was done during the initial identification of this project to be included in the 2019-21 Financial Plan. COVID-19 Considerations Due to the current economic impacts of COVID-19, the City reevaluated all Capital Improvement Plan projects with the goal of adjusting Capital Expenditures in response to projected revenue shortfalls, and aligning the adjusted CIP program with a focus on economic recovery and fiscal responsibility. With these criteria in mind, this project was recommended to continue since it addresses a critical and time dependent infrastructure need. Additionally, this project supports economic recovery through contracts with local or regional companies that will further retain employment and long-term viability of construction. This project is critical to the safety of our community due to the risk of property loss with the potential collapse of the existing CMP culvert and subsequent roadway failure that would result. CONCURRENCE The Administration and Public Works departments concur with the proposed recommendation outlined in this document. In addition, concurrence by Union Pacific Railroads, Army Corp of Engineers, Fish & Wildlife, and the California Regional Water Board has been shown through the issuance of regulatory and encroachment permits. ENVIRONMENTAL REVIEW Staff recommends finding this project exempt from environmental review under Section 15302 Class 2 (Replacement or Reconstruction) of the California Environmental Quality Act (CEQA). A Notice of Exemption will be filed through the Community Development Department upon Council approval of the project. All environmental mitigations have been outlined in the permits issued by the Army Corp., California Water Board, and Department of Fish and Wildlife. No additional environmental review is required. FISCAL IMPACT Budgeted: Yes Budget Year: 2019-20 and 2020-21 Funding Identified: Yes Item 3 Packet Page 13 Fiscal Analysis: There is currently a balance of $209,139.21 in the Storm Drain System Replacement Annual Asset Maintenance Account (90742). This funding was recommended to proceed per the FY 20/21 Budget Supplement. Additional supplemental funding of $250,000 was appropriated as part of the FY 20/21 Budget Supplement for Bullock Lane. The project is expected to cost $377,000 to complete, which includes a 25% contingency, leaving $132,139 in the account. Staff recommends a larger project contingency to address unforeseen conditions during construction due to the impacts of the COVID-19 Pandemic. Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund $377,000 $377,000 State Federal Fees Other: Total $377,000 $377,000 201 Fund Engineer's Estimate Total:$300,000 $300,000 Contingencies $75,000 $75,000 Total for Construction $375,000 $375,000 Materials Testing:$1,500 $1,500 Printing:$500 $500 Total Project Cost $377,000 $377,000 Current Project Balance:$209,139 $209,139 Additional FY20/21 Budget Funding $250,000 $250,000 Post Bullock Remaining Balance:$82,139 $82,139 Project Total Costs Storm Drain Replacement 90742 Bullock Lane CMP Replacement, Specification No. 1000166 Remaining funding is anticipated to be utilized for an emergency replacement of failed CMP storm drain at 405 N. Foothill, which is estimated to cost $75,000 to complete. Remaining funds will be held for Trash Capture device installations. Item 3 Packet Page 14 ALTERNATIVES Deny authorization to advertise. Council could choose to not authorize City staff to advertise the Bullock Lane CMP Replacement Project. This is not recommended as further delay in the replacement of the storm drain line and supporting headwall could result in the collapse of the headwall and section of roadway supported by the line. Attachments: a - COUNCIL READING FILE - Bullock Plan Set b - COUNCIL READING FILE - Bullock Lane Specifications c - COUNCIL READING FILE - Site Photos Item 3Item 4 Packet Page 15 Page intentionally left blank. Item 3Item 4 Packet Page 16 Department Name: Public Works Cost Center: 5002/5005 For Agenda of: July 21, 2020 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Director of Public Works Prepared By: Greg Cruce, Acting Maintenance Operations Manager SUBJECT: AUTHORIZATION TO EXTEND CURRENT CONTRACTS FOR JANITORIAL AND LANDSCAPE MAINTENANCE SERVICES THROUGH DECEMBER 31, 2020 AND AUTHORIZE ADVERTISING A REQUEST FOR PROPOSALS FOR THOSE SERVICES IN THE YEAR 2021 RECOMMENDATION 1.Authorize the extension of existing janitorial and landscape contracts to December 31, 2020 to provide on-going services to the community while new RFPs are advertised, evaluated and new contracts awarded; and 2.Authorize the advertisement of janitorial and landscape Request for Proposals (RFP); and 3.Authorize the City Manager to award the janitorial and landscape contracts if within appropriated budgeted amounts. DISCUSSION Background In 2014, the City of San Luis Obispo issued formal Request for Proposals (RFP) for janitorial and landscape services to clean and maintain City facilities. This process resulted in the City obtaining the lowest cost services provided by vendors capable of providing these services in compliance with the City’s Purchase Policy. The RFP process for these services was and still is very involved and requires interested vendors to attend one of multiple facility tours. These tours are essential, so vendors have the full picture of the services that are to be provided. Since each facility is dynamic, tours are the only effective way to show t he scope of work, and have potential vendors ask specific questions based on their observations. In March of this year, the State of California, County of San Luis Obispo, and City of San Luis Obispo declared an emergency due to the COVID-19 pandemic. In response to this emergency, the City has closed facilities to the public and transitioned as many staff as possible to telecommuting to minimize the risk of spreading of the COVID-19. Concurrent with this action, staff time was shifted to providing essential government services and developing and implementing COVID-19 protocols for facility operations, disinfection, social distancing, and preparing public services counters for the eventual restoration of standard City services. This work was and is critical important and required the deferment of work to prepare and issue new RFPs for janitorial and landscape services. Item 4 Packet Page 17 Extension of Existing Janitorial and Landscape Maintenance Contracts The City existing contracts for landscape and janitorial services were secured by the formal RFP process, awarded to the lowest cost qualified vendor to provide this services, the services were obtain in compliance with the City’s Purchasing Policy, and expired on June 30, 2020. This expiration date is a contract term and can be modified by mutual consent of both parties (vendor and City). The contract authorizes the City Engineer to amend the contract as necessary and staff is requesting Council’s concurrence to complete this amendment. This extension will allow for an additional six months of janitorial and landscape services while the new RFPs are advertised, evaluated, and awarded. Scope of New RFPs The RFP for janitorial services groups facilities into the following types: 1. General Offices 2. Public Safety Facilities 3. Recreation Facilities 4. Parks Restrooms The RFP for landscape services groups facilities into the following service types: 1. Landscaped Areas, Parks, Facilities with turf 2. Landscaped Areas, Parks, Facilities without turf 3. Traffic median islands, frontages and sound walls 4. Sound walls, circles, islands and frontages 5. Parking lots 6. Railroad Right-of-Way 7. Water Resource Recovery Facility The contract janitorial and landscape maintenance locations are grouped into similar areas and Levels of Service as a guideline to manage the janitorial and landscape work and cost. Level of Service groupings are used to afford the best maintenance service within the available budget; and provides for areas that are commonly used by the community to receive a higher level of maintenance. The vendor is responsible for providing all maintenance services, including labor, supplies, and equipment in accordance with the tasks and service levels detailed in the RFP. Policy Context The City’s purchasing policy designates maintenance services as a General Services Purchase1 and requires issuance of a formal RFP document approved by the City Council for services with a cost greater than $150,000. Public Engagement No public engagement is necessary as this is considered to be an administrative item. 1 General Services Purchases. Contracts and purchases for operating and maintenance services, including basic IT maintenance services. Item 4 Packet Page 18 CONCURRENCE This action has the concurrence of the Utilities and Parks and Recreation Departments and the Natural Resources Program. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in th is report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15 378. FISCAL IMPACT Budgeted: Yes Budget Year: Fiscal 2020-21 Funding Identified: Yes Fiscal Analysis: Landscaping Services Funding Sources General Fund Enterprise Funds Total Award Cost Parks Maintenance Landscape $311,600 $311,600 Streets Maintenance Landscape $3,000 $3,000 Natural Resources Landscape $11,600 $11,600 Parking Services Landscape $22,000 $22,000 Transit Landscape $6,000 $6,000 Utilities Department Landscape $24,000 $24,000 Total $326,200 $52,000 $378,200 Janitorial Services Funding Sources General Fund Enterprise Funds Total Award Cost Parks Maintenance Janitorial $126,800 $126,800 Facilities Maintenance Janitorial $224,200 $224,200 Parks and Recreation Janitorial $36,300 $36,300 Parking Services Janitorial $15,000 $15,000 Utilities Department Janitorial $7,500 $7,500 Total $387,300 $22,500 $409,800 Item 4 Packet Page 19 Funding for Landscape and Janitorial services are found in the 2020-21 Parks and Landscape Maintenance, Facilities Maintenance, Parking Services, Utilities Administration and Water Resource Recovery Facility budgets. This funding is sufficient to support janitorial and landscape maintenance services for the 2020-21 Fiscal Year (under both the extended contract and the new arising from the RFP). Approximately 50% of the funding will be used to support work associated with the exiting contract for both landscape and janitorial services and 50% of the funding is planned to be used with the new contract with the selected vendors obtain by the formal RFP process. ALTERNATIVES Deny, or reduce work scope. The Council may choose to deny authorization for the Request for Proposal. Staff does not recommend this alternative as this would result in a reduced frequency of maintenance and increased risk of liability for unmaintained sites. Deny contract extension with existing landscape and janitorial services vendor. The Council may choose to deny contract extension for landscape and janitorial services. Staff does not recommend this alternative since this will result in deceased services provided to the community . Ultimately this service reduction will require the closure of facilities provided for public use and the redirection of staff work to service the most critical facilities that provide support for public safety and essential government operations. Attachments: a - Janitorial Scope of Work - Facilities b - Janitorial Scope of Work - Parks c - Landscape Scope of Work - Parks Item 4 Packet Page 20 Section A DESCRIPTION OF WORK The Contractor shall provide all labor, equipment, and materials required to perform high quality janitorial service at the locations and frequencies listed in Section II of this specification. The intent of this specification is to procure high quality janitorial service that will result in attractive building appearance at all times. The intent of this section is to describe, but not limit, the janitorial tasks necessary for high quality janitorial service. The Contractor shall perform the tasks listed plus any additional tasks needed to achieve attractive building appearance. The tasks described in paragraphs A through C are regularly scheduled tasks. The tasks described in paragraphs D through L are tasks that the Contractor shall perform when requested by the City. DESCRIPTIONS OF REGULARLY SCHEDULED TASKS A. General Janitorial Tasks 1. Use Appropriate Cleaning Compounds a. do not use cleaning compounds with the following ingredients: hydrochloric acid, phenols, peroxides, mercury, and iodine b. post Material Safety Data Sheets (MSDS) for all cleaning compounds wherever such cleaning compounds are stored at City locations c. whenever and wherever feasible, use “green” cleaning compounds that are environmentally friendly 2. Report Problems a. note any of the following problems and report them to the City representative before 7:30 a.m. on the next working day: pest infestations, vandalism, graffiti, damaged fixtures and furnishings, clogged drains (that cannot be cleared with a plunger), inoperable lighting fixtures b. immediately report running water which cannot be shut off to the Police Department dispatcher at 781-7312 to notify Building Maintenance Standby for response. c. secure any lost-and-found articles in a janitorial closet and notify the City representative 3. Empty and Clean Wastebaskets and Trashcans a. for all “Recreation Facilities” and “Public Safety Office” locations, empty all wastebaskets, trashcans, and recycling containers and install clean liners of the correct size b. for all “General Office” locations, empty central pickup trashcans and recycling containers and install clean liners of the correct size. c. ensure deposit of any interior collected recycle materials is placed separately from trash in appropriate exterior recycle bins. 4. Empty and Clean Ashtrays a. remove all smoking material and other debris from ashtrays 5. Clean and Disinfect Drinking Fountains a. wash all drinking fountain surfaces using clean toweling and an approved Quaternary Ammonium Germinal Detergent (QAGD) solution b. rinse washed surfaces with potable water c. ensure that all surfaces are free of spots d. polish all stainless steel surfaces with an approved polishing compound 6. Clean Lobby Counters a. remove dirt, oil, and fingerprints from all lobby counter surfaces using a cloth dampened with an approved cleaning/disinfecting solution Item 4 Packet Page 21 b. do not use abrasive products on counter surfaces 7. Spot Clean Window and Door Glass at Entrances and on Interior Partitions a. remove streaks, spots, and fingerprints from interior glass surfaces using a cloth and an approved cleaning solution 8. Spot Clean Doors, Door Frames, Door Hardware, and Switchplates a. remove dirt, oil, and fingerprints from doors, door frames, door hardware (including kickplates), and switchplates using a cloth dampened with an approved cleaning solution 9. Spot Clean Interior Walls a. gently remove dirt, oil, and fingerprints from interior wall surfaces using a cloth dampened with an approved cleaning solution and following procedures appropriate for the surface to be cleaned 10. Vacuum Carpets a. remove loose dirt and debris from all carpets using a commercial vacuum cleaner 11. Spot Clean Carpets a. remove spots and stains from carpets using a truck-mounted or portable carpet extraction machine 12. Dust Mop Wood Floors a. remove loose dirt and debris from wood floors using an untreated, oil-free dust mop 13. Damp Mop Wood Floors a. remove loose dirt and debris from wood floors using an untreated, oil-free dust mop b. remove dirt and grime using a damp mop without soaking the floor 14. Sweep Concrete, Ceramic Tile, and Resilient Floors a. remove loose dirt and debris from floors using a push broom, dust mop, or commercial vacuum cleaner 15. Wet Mop Floors a. on resilient floors, remove loose dirt and debris from floors using a push broom, dust mop, or commercial vacuum cleaner b. wash off dirt and grime using a wet mop and bucket with an approved cleaning solution c. remove stubborn dirt and grime spots using a plastic or nylon scrubbing pad (either hand-held or mounted on a low-speed buffing machine) with an approved cleaning solution d. remove all excess cleaning solution with a wet mop or wet/dry vacuum cleaner 16. Dust below Eight Feet a. remove dirt and dust from countertops, cabinets, shelf tops, wall-hung pictures, cubicle partition caps, and horizontal baseboard surfaces using a clean dry cloth or a cloth dampened with an approved cleaning solution B. Specific Restroom Janitorial Tasks 1. Disinfect Restroom Doors, Door Frames, Door Hardware, and Switchplates a. wipe entire surface area and remove dirt, oil, and fingerprints from doors, door frames, door hardware (including kickplates), and switchplates using a cloth dampened with an approved QAGD solution 2. Refill Restroom Dispensers a. check dispensers for soap, toilet paper, paper towels, and seat covers and refill if necessary b. disinfect dispensers and surrounding surfaces with an approved QAGD solution 3. Disinfect Restroom Countertops Item 4 Packet Page 22 a. wipe entire surface area and remove dirt, oil, and fingerprints from all countertop surfaces using a cloth dampened with an approved QAGD solution b. do not use abrasive products on counter surfaces 4. Disinfect Restroom Sinks a. scrub all sink surfaces using a nylon or plastic bristle brush with an approved QAGD solution b. wipe all plumbing fixtures with an approved QAGD solution c. dry all sink surfaces with clean, dry cloth d. dry bright plumbing fixtures to prevent water spots 5. Spot Clean Restroom Mirrors a. remove streaks, spots, and fingerprints from mirrors using a cloth and an approved cleaning solution 6. Disinfect Restroom Walls and Partitions a. wipe all wall and partition surfaces (including baseboards and cove moldings) with an approved QAGD solution 7. Disinfect Restroom Floors a. remove loose dirt and debris from the floor using a push broom, dust mop, or commercial vacuum cleaner b. wash dirt and grime from the floor using a wet mop and bucket with an approved QAGD solution c. remove stubborn dirt and grime spots from the floor using a plastic or nylon scrubbing pad (either hand-held or mounted on a low-speed buffing machine) with an approved QAGD solution d. remove all excess cleaning solution with a wet mop or wet/dry vacuum cleaner 8. Disinfect and Descale Toilets and Urinals a. scrub all toilet and urinal surfaces using a nylon or plastic bristle brush with an approved QAGD solution b. rinse toilet seat surfaces with clear water c. wipe all exposed plumbing fixtures with an approved QAGD solution d. dry all surfaces with clean, dry cloth e. dry bright plumbing fixtures to prevent water spots f. as necessary, remove scale and water rings in toilets and urinals using an approved bowl cleaner 9. Disinfect Showers and Adjacent Changing Areas a. spray shower walls, floors, and fixtures with an approved QAGD solution b. rinse thoroughly with clear water c. dry fixtures to prevent water spots 10. Clean Shower Drain Grates a. remove hair and other debris from shower drain grates 11. Check for and Correct Minor Plumbing Problems a. clear clogged drains using a plunger b. remove debris from floor drain grates c. if plumbing problems cannot be corrected, notify the City representative before 7:30 a.m. on the next working day 12. Polish Brightwork a. polish all chrome plated or stainless steel surfaces with an approved polishing compound C. Specific Breakroom/Kitchen/Meeting Room Janitorial Tasks Item 4 Packet Page 23 1. Refill Breakroom/Kitchen Dispensers a. check dispensers for soap and paper towels and refill if necessary b. disinfect dispensers and surrounding surfaces with an approved QAGD solution 2. Disinfect Breakroom/Kitchen Countertops a. remove dirt, oil, and fingerprints from all countertop and table surfaces using a cloth damp- ened with an approved QAGD solution b. do not use abrasive products on counter surfaces Item 4 Packet Page 24 3. Spot Clean Exteriors of Breakroom/Kitchen Cabinets, Refrigerators, and Conventional Ovens a. remove dirt, oil, and fingerprints from all cabinet, refrigerator, and conventional oven exterior surfaces using a cloth dampened with an approved cleaning solution 4. Disinfect Breakroom/Kitchen Sinks a. scrub all sink surfaces using a nylon or plastic bristle brush with an approved QAGD solution b. wipe all plumbing fixtures with an approved QAGD solution c. dry all sink surfaces with clean, dry cloth d. dry bright plumbing fixtures to prevent water spots 5. Clean Microwave Ovens a. remove dirt, grime, grease, and food particles from all interior and exterior surfaces of microwave ovens using a clean paper towel dampened with an approved cleaning solution and wipe all surfaces dry 6. Spot Clean Breakroom/Meeting Room Tables and Chairs a. as necessary, remove dirt, grime, grease, and food particles from permanently arranged tables and chairs using a cloth dampened with an approved cleaning solution b. maintain tables and chairs in the configuration specified by the City representative 7. Wipe Down Breakroom/Meeting Room Tables and Chairs a. wipe down all surfaces of permanently arranged tables and chairs using a cloth dampened with an approved cleaning solution DESCRIPTIONS OF PERIODICALLY REQUESTED TASKS D. Complete Window Washing 1. remove any window screens and louvers 2. spray window screens and louvers with water to wash off loose dirt and debris 3. remove loose dirt and debris from interior window sills, sash tracks, and other horizontal surfaces using a vacuum cleaner 4. wash interior and exterior glass surfaces using an approved cleaning solution 5. remove all wash water with a squeegee or cloth 6. ensure that all glass surfaces are free of streaks and spots 7. wipe interior window frames with a dampened cloth 8. reinstall window screens and louvers 9. remove dust and dirt from blinds using a vacuum cleaner with HEPA filter 10. remove dust and dirt from drapes using a vacuum cleaner with HEPA filter E. Exterior Window Washing 1. remove any window screens and louvers 2. spray window screens and louvers with water to wash off loose dirt and debris 3. wash exterior glass surfaces using an approved cleaning solution 4. remove all wash water with a squeegee or cloth 5. ensure that all glass surfaces are free of streaks and spots 6. reinstall window screens and louvers Item 4 Packet Page 25 F. Carpet Extraction 1. notify building occupants at least two days before carpet extraction to allow time for moving personal items off the floor 2. remove loose dirt and debris from carpets using a commercial vacuum cleaner 3. pre-treat carpets using an approved carpet shampoo solution and agitate visible stains 4. extract all carpets using a truck-mounted or portable carpet extraction machine with heated water 5. extract all carpets using a truck-mounted or portable carpet extraction machine without water 6. complete all extraction activity before 12:00 midnight to allow adequate drying time before occupancy the next morning G. Carpet Bonnet-Cleaning 1. notify building occupants at least two days before carpet bonnet-cleaning to allow time for moving personal items off the floor 2. remove loose dirt and debris from carpets using a commercial vacuum cleaner 3. clean carpets using a low-speed buffing machine with a special bonnet-cleaning pad and an approved cleaning solution 4. complete all carpet bonnet-cleaning activity before 2:00 a.m. to allow adequate drying time before occupancy the next morning H. Hard Floor Scrubbing and Recoating 1. remove loose dirt and debris from resilient and terrazzo floors using a push broom, dust mop, or commercial vacuum cleaner 2. wash off dirt and grime using a wet mop and bucket with an approved cleaning solution 3. remove stubborn dirt and grime spots using a plastic or nylon scrubbing pad (either hand-held or mounted on a low-speed buffing machine) with an approved cleaning solution 4. remove all excess cleaning solution with a wet mop or wet/dry vacuum cleaner 5. apply one coat of an approved polymer finish to the entire floor area I. Hard Floor Stripping and Recoating 1. remove loose dirt and debris from resilient and terrazzo floors using a push broom, dust mop, or commercial vacuum cleaner 2. remove all dirt, grime, and stains and strip off all the existing finish using a low-speed buffing machine with a nylon scrubbing pad and an approved stripping solution 3. remove all stripping solution with a wet mop or wet/dry vacuum cleaner 4. apply one coat of an approved polymer base to the entire floor area 5. apply two coats of an approved polymer finish to the entire floor area J. High Dusting above Eight Feet 1. remove loose dust, dirt, and cobwebs from ceilings, beams, ductwork, HVAC diffusers, light fixtures, and horizontal surfaces with a clean cloth, duster, or vacuum cleaner with HEPA filter 2. take care that dust and dirt do not fall onto areas below K. Shower and Changing Area Scrubbing 1. spray shower walls, floors, and fixtures with an approved acid foaming cleaner 2. scrub walls, floors, and fixtures using a nylon or plastic bristle brush 3. rinse thoroughly with clear water 4. dry fixtures to prevent water spots L. Spot Cleaning Folding Tables and Stacking Chai rs 1. remove dirt, grime, grease, and food particles from folding tables and stacking chairs using a cloth dampened with an approved cleaning solution Item 4 Packet Page 26 Exhibit A to Agreement SCOPE OF WORK AND SERVICE LEVELS DETAILED DESCRIPTION OF WORK General. The Contractor shall provide all labor, equipment, and materials required to perform high quality janitorial maintenance at the locations and frequencies listed in this specification. The intent of this specification is to procure high quality maintenance that will result in attractive, clean building appearance at all times. The intent of this section is to describe, but not limit, the janitorial tasks necessary for high quality maintenance. The Contractor shall perform the tasks listed plus any additional tasks needed to achieve a well maintained building appearance. The contractor shall not allow contaminated water or cleaning solution to enter storm drains. Emergencies should be reported to Police Dispatch (781-7312) Daily Tasks: 1. Disinfect and clean restroom sinks, mirrors, countertops, partitions, walls, floors and drinking fountains. 2. Disinfect, clean and de-scale toilets and urinals. 3. Clean all chrome plated or stainless steel surfaces. 4. Clean both interior and exterior doors including entry ways. 5. Refill toilet paper and seat cover dispensers. Empty and reline all trash containers. 6. Provide replacement dispensers as needed for parks staff to install. 7. Lock restrooms and retire two flags at Meadow Park at times indicated in section B. 8. Remove all dirt, debris, trash and foreign objects from the sites, disposing of these materials in an approved manner. 9. Wipe off graffiti using an approved cleaning solution. If graffiti cannot be removed or if paint is worn where graffiti has been removed, notify the City representative within 24 hours. 10. Supply all equipment, materials and supplies used for park restroom janitorial services. All supplies used shall be biodegradable or approved by the City before any application. A “green seal” cleaning supplies shall be used whenever possible. A list of proposed cleaning materials shall be submitted at the time of award. The contractor shall not use any materials, supplies, or equipment that may damage or destroy existing facilities. Materials, supplies, and equipment shall not be stored on City property without prior written permission from the City. 11. Maintain all surfaces in a clean condition. Surfaces are walkways, sidewalks, tops of planters, etc. 12. Correct minor plumbing problems, clear clogged drains using a plunger or toilet auger, remove debris from floor drain grates. In the interests of safety and water conservation if any water leak or problem is noticed water should be shut off to fixture. If plumbing problems cannot be corrected notify the City representative (781-7022) before 7:00 a.m. on the next working day. Monthly Tasks: Pressure wash or machine scrub floors and entryways Quarterly Tasks: Clean ceilings, ceiling fixtures, louvers, window screens and skylights. Additional Tasks: Maintain three cases of toilet paper at Damon Garcia Sports Field Restroom Storage Area as needed. This area needs to be restocked on occasions when large user groups use all the extra toilet paper. Item 4 Packet Page 27 Site Inspection and Reporting. Review entire site on each occasion that a site visit is made and report any problems to City representative the same day by email or before 8:00 a.m. on the next working day. During normal business hours the City representative can be reached at 781-7022 or 781-7220. If the problem is running water that can not be shut off and it is normal working hours call the City representative. If it is after normal working hours or an emergency call the San Luis Obispo Police dispatcher at 781-7312 to request a Parks Maintenance standby person or police assistance. Problems to report may include but are not limited to the following: safety, damage, graffiti, user issues, pest infestations, vandalism, damaged fixtures and furnishings, clogged drains (which could not be cleared with a plumber’s helper or a short snake), inoperable light fixtures, etc. Deliver any lost-and-found articles to the San Luis Obispo Police Station at 1042 Walnut Street, San Luis Obispo, within 24 hours. Item 4 Packet Page 28 Exhibit A to Agreement SCOPE OF WORK AND SERVICE LEVELS LANDSCAPE DETAILED DESCRIPTION OF WORK 1. Litter Control. Ground Litter. The Contractor shall pick up litter as encountered during scheduled visits to the locations listed in Contract Proposal, taking particular care to remove fecal matter from turf areas and from areas that are highly traveled and highly visible, including parking lots. Posted Material. The Contractor shall remove all posters, flyers, signs, and advertisements including staples, tacks, nails, and tape that are attached to trees, poles, and any other structures. Disposal of Gathered Litter and Material. Disposal of collected litter shall be at the Contractor's expense and not deposited in site garbage cans and dumpsters. The City shall remove trash from site garbage cans unless otherwise specified. 2. Walkway Maintenance. Litter Control. The Contractor shall remove all trash, weeds, and foreign objects from walkway surfaces as established for each Service Level. The Contractor shall then remove all trash, weeds and foreign objects from the site. Blow Pack Use. In the downtown area, blow packs may be used between 7:00 AM and 10:00 AM. In residential areas blow packs may be used between 8:00 AM and 5:00 PM. All litter swept with a blow pack shall be picked up and removed from the site. Because of inherent noise and dust problems, the Contractor shall display courtesy and consideration towards citizens and businesses whenever a blow pack is used and shut down or direct blowing away from pedestrians. Washing. Washing walkways shall not be permitted unless specifically authorized by the City's Contract Manager and undertaken with proper controls to prevent pollution of stormwater. Pruning. In addition to the specified scheduled pruning, the Contractor shall prune trees, shrubs and groundcovers whenever necessary to keep walkways clear and to maintain pedestrian safety. Equipment Pads. Equipment pads shall receive the same maintenance as walkways. 3. Irrigation. Manual Irrigation. The Contractor shall manually irrigate vegetation as required to maintain proper plant growth. This manual irrigation shall include watering with hoses, hose bibs, quick couplers, nozzles, and sprinklers furnished by the Contractor. Manual irrigation may be required in addition to, in conjunction with, or in the absence of automatic irrigation. The Contractor shall irrigate at times of the day that shall ensure maximum plant health and minimum inconvenience for people using the area. The Contractor shall avoid water runoff onto roadways, walkways and other hard surfaces. Recycled water shall be prevented from landing on picnic tables and drinking fountains. Schedules. On January 1, April 1, July 1, and October 1 of each year, the Contractor shall submit a proposed irrigation time of day schedule for all areas for the next 3 months. This schedule form will be provided by the city and the schedule must be approved by the City's Contract Manager. Automatic Irrigation. The Contractor shall operate all automatic irrigation systems. Automatic irrigation shall normally take place during night or early morning hours. The Contractor shall program automatic controllers for seasonal water requirements. Item 4 Packet Page 29 During periods of rain, the contractor shall deactivate all automatic programming and go into “rain shut down.”,. The contractor shall notify the City when “rain shut down” is both activated and deactivated. Failure to activate “rain shut down” during rainy weather will result in the contractor being liable for the cost of water used, per location, during rainy periods. If plant material dies due to inadequate water or over watering, the Contractor shall replace all dead plant material within 3 weeks of written notification, at no cost to the City. Irrigation System Inspection and Repair. The contractor shall maintain all irrigation systems in proper adjustment to avoid water runoff or overspray onto adjacent properties, roadways, walkways and other hard surfaces. The Contractor shall perform monthly irrigation system inspections by turning the system on, checking for leaks, overspray and other coverage issues, and making necessary adjustments and repairs. The Contractor shall notify the City of the inspection and submit an irrigation report the first of every month during the irrigation season. The contractor is responsible for repairs and replacements from the lateral line up, including swing-joints, risers, irrigation heads, drip emitters, and tubing. The City shall be responsible for any other irrigation system repairs. The Contractor shall report any irrigation problems that are the City’s responsibility, to the City as soon as noted, particularly any repairs needed for irrigation controllers, or improper coverage that could lead to plant death or site runoff. The Contractor shall manually irrigate an area as needed while an irrigation controller is being repaired. Before fertilization the Contractor shall check each automatic irrigation system for proper operation and adjustment. Non-Potable (recycled) water training. Worker safety training is required for all workers working in identified areas that use non-potable (recycled) water. The training will be provided by the city and scheduled once the reclaimed systems are operable. Water Conservation. All irrigation schedules shall comply with any watering restrictions imposed by the City of San Luis Obispo Utilities Department during drought conditions. When the Utilities Department has imposed watering restrictions, the Contractor shall consult with the City's Contract Manager to determine the best allocation of available water, considering plant species, time of year, location, and other environmental factors. Each month the Contractor shall monitor the effects of manual irrigation. During periods of officially declared water use restrictions, the Contractor shall report each month the amount of water used at each work location. Failure to comply with any mandatory restrictions may result in the contractor being liable for the cost of water used per location. 4. Disease and Pest Control. Protection of Vegetation and the Public. The Contractor shall control and eliminate weeds, insects, rodents, and diseases that harm vegetation. In performing this pest control work, the Contractor shall use only materials and methods that will not harm the vegetation or the public. The City strongly encourages the use of Integrated Pest Management concepts in all parks. Application Plan. The Contractor shall provide a application plan to the City's Contract Manager for approval. This plan shall include the disease or pest to be treated, the type and name of the product proposed to be used and copies of both the product label and Material Safety Data Sheet (MSDS). Following any pesticide application, the Contractor shall submit to the City's Contract Manager on the first of the month a copy of all pesticide use reports identifying the type and brand name of the chemical, the date, rate and specific location of application. Item 4 Packet Page 30 Pesticide Application Licenses and Permits. The Contractor and its employees and subcontractors shall have and maintain all required permits and licenses required by the State of California before applying any pesticide. Pesticide Acceptability. Any pesticide used shall be selected from the list approved by the State of California Department of Pesticide Regulations. Restricted materials may only be used with approval from the City and a permit issued by the San Luis Obispo County Agricultural Commissioner. Rodent Traps. The Contractor shall not use rodent traps without prior written approval from the City's Contract Manager for the location and type of trap to be used. Traps will not be allowed in any area where children could be expected to play. 5. Turf Maintenance. Mowing. The Contractor shall mow all turf areas at the locations and frequencies established for each Service Level. The Contractor shall mow turf in a workmanlike manner that ensures a smooth surface without scalping or leaving excessive cuttings. All mowing equipment shall be adjusted to the proper cut- ting heights and sharpened adequately. Mowing height shall be two inches for all turf areas, unless otherwise specified by the City's Contract Manager for special events and other conditions. Immediately before each mowing, the Contractor shall remove all litter and trash from turf areas. Immediately after each mowing, the Contractor shall clean all adjacent walkways. Mechanical Edging. The Contractor shall mechanically edge all turf areas. The Contractor shall edge all turf borders to leave a neat, uniform line and eliminate all grass invasion into adjacent areas. The Contractor shall also edge around other obstacles within turf areas to leave a neat, well-trimmed appearance and to allow optimum operation of sprinkler heads. When using string trimmers the Contractor shall take care to protect trees and shrubs from damage. Power edgers with rigid blades shall leave a well-defined v-shaped edge that extends into the soil. Chemical Edging and Detailing. With approval from the City's Contract Manager the Contractor may apply edging chemicals around areas such as planters, building walls, trees, fence lines, and sprinkler heads. Before applying chemicals, the Contractor shall trim all areas to the proper height. Fertilizing. The Contractor shall fertilize all turf areas as specified for each Service Level, except at identified areas that use recycled water, where no fertilization will be required. Application dates shall be approved by the City's Contract Manager. Following application, fertilizer shall be thoroughly watered into the soil within 24 hours. The Contractor shall notify the City's Contract Manager via the submitted monthly schedule a minimum of one week before a fertilizer application. The turf fertilizer shall be a complete fertilizer with a ratio of 4-1-2. The Contractor shall evenly broadcast the fertilizer at a minimum rate of one pound actual available nitrogen per 1,000 square feet of turf area per application. Any fertilizer landing outside the turf area shall be swept up and removed. The Contractor shall submit to the City written documentation of the quantities of fertilizer applied at each specified work location. Seed / Sod. Seed or sod replacement for bare areas shall be perennial rye grass or match surrounding turf. Weed Control. The Contractor may apply selective herbicides. The Contractor shall also perform any additional weeding necessary to keep the turf free of weeds. This additional weeding may be performed by hand or by using selective herbicides. 6. Groundcover Maintenance. Item 4 Packet Page 31 Edging. The Contractor shall edge all groundcover areas as specified for each Service Level. The primary purpose for edging the groundcover is to prevent it from growing onto walkways, roadways, hard surfaces, fences, and walls. The Contractor shall not use chemical edging methods without prior approval from the City's Contract Manager. Fertilizing. The Contractor shall fertilize all groundcover areas as specified for each Service Level. Following application, fertilizer shall be thoroughly watered into the soil within 24 hours. The Contractor shall notify the City's Contract Manager via the submitted monthly schedule a minimum of one week before a fertilizer application. The groundcover fertilizer shall be a complete balanced low release fertilizer with a ratio of 12-12-12. The Contractor shall evenly broadcast the fertilizer at a minimum rate of ten pounds per 1,000 square feet of groundcover area per application. Any fertilizer landing outside the groundcover area shall be swept up and removed. The Contractor shall submit to the City written documentation of the quantities of fertilizer applied at each specified work location. Weed Control. The Contractor shall maintain groundcover areas in a weed free condition. This weeding may be performed by hand or by using selective herbicides. 7. Shrub Maintenance Pruning. The Contractor shall prune all shrubbery at the locations as specified for each Service Level. The primary purpose for pruning the shrubbery shall be to encourage healthy and attractive growth according to prescribed industry practices. Such pruning shall encourage the graceful, natural growth of the shrub and shall maintain plant health through removal of dead, diseased, or injured wood. The secondary purpose for pruning the shrubbery shall be to prevent it from growing onto walkways, road- ways, and other hard surfaces. Where the specified pruning frequency is two times per year, the shrubs shall be pruned in the spring and fall. When required, the Contractor shall remove dead shrubbery. Fertilizing. The Contractor shall fertilize all shrub areas at the locations as specified for each Service Level.. Where the specified fertilizing frequency is twice a year, the shrubs shall be fertilized in April and September. Where the specified frequency is other than twice a year, the application dates shall be approved by the City's Contract Manager. Immediately following application, fertilizer shall be thoroughly watered into the soil. The Contractor shall notify the City's Contract Manager one week before a fertilizer application. The shrub fertilizer shall be a complete balanced low release fertilizer with a ratio of 12-12- 12. The Contractor shall evenly broadcast the fertilizer at a minimum rate of ten pounds per 1,000 square feet of shrub bed area per application. The Contractor shall submit to the City written documentation of the quantities of fertilizer applied at each specified work location. Weed Control. The Contractor shall maintain all shrub beds in a weed free condition. At a minimum, the contractor shall perform weeding at the locations as specified for each Service level. This weeding may be performed by hand or by using selective herbicides. When weeding is completed, the Contractor shall rake the shrub beds clear of all leaves and debris. 8. Tree Maintenance. Pruning. The only purposes for pruning the trees shall be to maintain proper pedestrian clearances and to remove suckers. The Contractor shall not make structural changes to the trees. The Contractor shall report the need for any additional pruning to the City's Contract Manager. Staking. The Contractor shall make minor staking repairs to all trees as required. Minor repairs shall include replacing or repairing ties, and refastening boards and braces. The Contractor shall report the need for more extensive repairs to the City's Contract Manager. 9. Miscellaneous Weed Control. Item 4 Packet Page 32 The Contractor shall maintain all fence lines, light standard bases, tree wells, buildings, walls, sidewalks, curbs, gutters, asphalt berms, parking lots, signs structures, and equipment pads etc. in a weed free condition. All non-landscaped areas shall be weed free. Herbicides used for weed control must have prior approval from the City's Contract Manager. The contractor shall perform all annual weed abatement in late May or as required by the San Luis Obispo Fire Department. 10. Drinking Fountain Maintenance. The Contractor shall clean, scrub and disinfect all drinking fountains at the locations as specified for each Service Level. 11. Site Inspection and Reporting. Review entire site on each occasion that a site visit is made for any reason. Report any problems, including irrigation, damage, graffiti or user issues, the same day by email, or phone if immediate repairs are needed. Item 4 Packet Page 33 Page intentionally left blank. Item 4 Packet Page 34 Department Name: Public Works Cost Center: 5101 For Agenda of: July 21, 2020 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Gaven Hussey, Parking Program Manager SUBJECT: ADOPT ORDINANCE NO. 1683 (2020 SERIES) AMENDING MUNICIPAL CODE SECTION 10.52.010 (PARKING METER ZONE RATES) TO REMOVE PREVIOUSLY ADOPTED RATE INCREASE RECOMMENDATION Adopt Ordinance No. 1683 (2020 Series) approving an amendment to Municipal Code section 10.52.010, Parking Meter Zone Rates, to remove previously adopted rate increase. DISCUSSION On June 2, 2020, City Council approved the 2020-21 Supplemental Budget, which included a recommendation to adopt Ordinance No. 1683 (Attachment A) deferring previously approved parking meters rates scheduled to take effect on July 1, 2020. The deferral is part of the City’s COVID-19 pandemic response plan to revitalize the local economy. Ordinance No. 1683 includes the following amendments to the City’s Municipal Code: • 10.52.010 – Parking meter zone – Rates. o B. Unless established otherwise below, the parking meter rate on streets or in municipal parking lots in the lower rate zone shall be one dollar per hour effective January 1, 2018and these parking meter rates shall increase to one dollar and twenty-five cents per hour effective July 1, 2020. o C. Within the area designated on the parking rate zones map (Exhibit A) the rate for parking meters on streets or in municipal parking lots shall be one dollar and fifty cents per hour effective January 1, 2018and these parking meter rates shall increase to one dollar and twenty-five cents per hour effective July 1, 2020. o D. Within the area designated on the parking rate zones map (Exhibit A), the rate for parking meters on streets or in municipal lots shall be one dollar and seventy- five cents per hour effective January 1, 2018and these parking meter rates shall increase to one dollar and twenty-five cents per hour effective July 1, 2020. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. Item 5 Packet Page 35 FISCAL IMPACT Budgeted: Yes Budget Year: 2021 Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Cost Parking Fund $727,300 $0 $727,300 Total $727,300 $0 $727,300 Staff has projected that the deferral of previously approved rate increases in 2020 will result in a potential loss of $727,300 in parking revenue during FY2021. Fiscal impacts to out-year fund projections has not been determined. ALTERNATIVES Deny adoption of the Ordinance. City Council can choose to deny the adoption of the amendments to Municipal Code section 10.52.010. Staff does not recommend this alternative because the amendments are part of the City’s economic revitalization efforts and the fiscal impacts of the deferrals can be absorbed by the Parking Fund’s working balance. Attachments: a - Ordinance No. 1683 (2020 Series) Item 5 Packet Page 36 O 1683 ORDINANCE NO. 1683 (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING SECTION 10.52.010 (PARKING METER ZONE RATES) OF THE SAN LUIS OBISPO MUNICIPAL CODE WHEREAS, State law provides, in Vehicle Code Section 22508, that cities must establish parking meter rates by ordinance; and WHEREAS, the City of San Luis Obispo recognizes the significant economic impacts that the COVID-19 pandemic has created for local businesses and that, as part of the Downtown Vitality Major City Goal, the Parking Fund is responsible for assisting in the revitalization efforts; and WHEREAS, the Parking Fund’s operations and programs provide essential services for customers, employees, and visitors of the downtown area which have been financially impacted by the COVID-19 pandemic; and WHEREAS, the Council considered the 2020-21 Supplemental Budget staff report and held a public meeting on the proposed changes to the Parking Fund’s operations and programs. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows/or that (whatever action is needed): SECTION 1. Section 10.52.010 (Parking meter zone – rates) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.52.010 Parking meter zone – Rates. A. Within the area enclosed by a solid line on the parking rate zone map (Exhibit A) and the area enclosed by the shaded line on Slack Street parking meter zone map (Exhibit B) (more particularly described as: the north side of Hathway Avenue adjacent to Cal Poly to Longview Lane, the east side of Longview Street from Hathway Avenue to Slack Street, the north side of Slack Street from Longview Lane to Grand Avenue, and the south side of Slack Street adjacent to the San Luis Coastal Unified School District parcel from the midblock point of Slack Street (between Longview Lane and Grand Avenue) to Grand Avenue), the parking of vehicles on streets or in municipal parking lots may be controlled and regulated with the aid of parking meters. B. Unless established otherwise below, the parking meter rate on streets or in municipal parking lots in the lower rate zone shall be one dollar per hour effective January 1, 2018. C. Within the area designated on the parking rate zones map (Exhibit A) the rate for parking meters on streets or in municipal parking lots shall be one dollar and fifty cents per hour effective January 1, 2018. D. Within the area designated on the parking rate zones map (Exhibit A), the rate for parking meters on streets or in municipal lots shall be one dollar and seventy-five cents per hour effective January 1, 2018. Item 5 Packet Page 37 Ordinance No. 1683 (2020 Series) Page 2 O 1683 E. Within the shaded area of the map entitled Slack Street parking meter zone map (Exhibit B) the parking of vehicles on streets may be controlled and regulated with the aid of parking meters. The parking meter rate shall be one dollar per hour if controller by meter. SECTION 2. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the val idity or enforcement of the remaining portions of this ordinance, or any other provisions of the city' s rules and regulations. It is the city' s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. SECTION 3. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the 2nd day of June 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ______ 2020, on the following vote: AYES: NOES: ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington, City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick, City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on _____________________. ______________________________ Teresa Purrington, City Clerk Item 5 Packet Page 38 Ordinance No. 1683 (2020 Series) Page 3 O 1683 EXHIBIT A Item 5 Packet Page 39 Ordinance No. 1683 (2020 Series) Page 4 O 1683 EXHIBIT B Item 5 Packet Page 40 Department Name: Police Cost Center: 8001 For Agenda of: July 21, 2020 Placement: Consent Estimated Time: N/A FROM: Deanna Cantrell, Chief of Police Prepared By: Melissa Ellsworth, Senior Administrative Analyst SUBJECT: AUTHORIZATION TO ACCEPT FY 2020-21 GRANT AWARD FROM DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL RECOMMENDATION 1. Authorize the Police Department to accept a grant award from the Department of Alcoholic Beverage Control for FY 2020-21 in the amount of $33,259. 2. Adopt a resolution authorizing the City Manager to execute a grant agreement with the State. 3. Authorize the Chief of Police to execute all grant related documents and authorize the Finance Director to make the necessary budget adjustments. DISCUSSION The purpose of the California Department of Alcoholic Beverage Control (ABC) grant funding is to enable agencies to expand efforts in addressing alcohol related problems through a comprehensive ABC program that encompasses various strategies. The Police Department (the Police Department) has been awarded grant funds from ABC in prior years to conduct education and compliance activities related to businesses that hold alcohol licenses. The goals of the ABC grant program include: 1. Achieving the goals and objectives of the local enforcement agency's grant agreements. 2. Establishing a close working relationship between ABC district offices and the grant agencies. 3. Prioritizing law enforcement efforts and targeting those licensed outlets that cause alcohol- related crimes. 4. Reducing the sales of alcoholic beverages to underage persons. 5. Assisting in the training of local law enforcement. The Police Department submitted its ABC grant application in March and was notified of the award on June 9, 2020. The Police Department intends to utilize grant funds to conduct operations focused on alcohol awareness and enforcement, inspections at licensed establishments, and training. Item 6 Packet Page 41 Policy Context The recommended actions are consistent with the City of San Luis Obispo’s Financial Management Manual, Section 740 - Grant Management Policy. The policy states that Council will approve all grant applications in excess of $5,000 and delegates receipt and contract execution to the City Manager. Public Engagement This item is on the agenda for the July 21, 2020 City Council meeting and will follow all required postings and notifications. The public may have an opportunity to comment on this item at or before the meeting. CONCURRENCES The Director of the Finance Department concurs with the staff recommendation. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report because the action does not constitute a “Project” under CEQA Guidelines Section 15378. FISCAL IMPACT Budgeted: No Budget Year: 2020-21 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund State – ABC GRANT $33,259 Fees Total $33,259 City matching funds are not required for this grant. ALTERNATIVES Council may direct staff to decline the grant award. Staff does not recommend this alternative as funding will aid in the Police Department’s efforts to improve alcohol enforcement activities. Attachments: a - Draft Resolution Item 6 Packet Page 42 RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING GRANT APPLICATIONS FOR FUNDING PROVIDED THROUGH THE DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL TO INCREASE EDUCATION AND ENFORCEMENT PROGRAMS FOCUSING ON REGULATING RETAIL ALCOHOL OUTLETS AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL RELATED GRANT DOCUMENTS WHEREAS, the San Luis Obispo Police Department (the “Police Department”) through the City of San Luis Obispo desires to undertake programs to increase education and enforcement to focus on regulating retail alcohol outlets in the community; and WHEREAS, the Police Department submitted a grant through the Grant Assistance Program (GAP) administered by the Department of Alcoholic Beverage Control (ABC) in March 2020 to conduct education and compliance activities related to local businesses that hold alcohol licenses; and WHEREAS, on June 9, 2020, the ABC awarded the Police Department a grant through the GAP in the amount of $33,259; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The Chief of Police or her designee is hereby authorized to submit grant applications consistent with program requirements to pursue a Grant Assistance Program (“GAP”) grant administered by ABC, including the Police Department’s March 2020 application. SECTION 2. The City Manager of the City of San Luis Obispo is authorized to execute all grant related documents, including the State of California Standard Agreement, any extensions or amendments thereof, and any subsequent contract with the State in relation to the GAP grant administered by ABC. SECTION 3. The City agrees that any liability arising out of the performance of this contract, including civil court actions for damages, shall be the responsibility of the grant recipient and the authorizing agency and acknowledges that the State of California and ABC disclaim responsibility for any such liability. Item 6 Packet Page 43 SECTION 4. Grant funds received hereunder shall not be used to supplant expenditures controlled by this body. SECTION 5. This award is not subject to local hiring freezes. Upon motion of __________________, seconded by___________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this ______day of _____________2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ____________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on __________________. _____________________________ Teresa Purrington City Clerk Item 6 Packet Page 44 Department Name: City Administration Cost Center: 1001 For Agenda of: July 21, 2020 Placement: Business Estimated Time: 60 minutes FROM: Derek Johnson, City Manager Prepared By: Greg Hermann, Deputy City Manager Ryan Betz, Assistant to the City Manager SUBJECT: RESULTS OF PUBLIC ENGAGEMENT AND OUTREACH EFFORTS AND CONSIDERATION OF SUBMITTING TO THE VOTERS A COMMUNITY SERVICES/INVESTMENT MEASURE; AND AN INTRODUCTION OF AN ORDINANCE AMENDING EXISTING CHAPTER 3.15 ESSENTIAL SERVICES TRANSACTIONS (SALES) AND USE TAX AND REENACT IN FULL AMENDED CHAPTER 3.15 COMMUNITY SERVICES AND INVESTMENT IMPOSING A LOCAL TRANSACTIONS AND USE TAX RECOMMENDATION 1.Receive a report on the results of public engagement and outreach efforts regarding SLO Forward, an effort to support community investment and economic recovery by maintaining and improving the type of City services and infrastructure the community values most; and 2.As recommended by Council Members Pease, and Stewart and the Revenue Enhancement Oversight Commission, adopt a resolution (Attachment A) placing for submission to the voters a ballot question whether to amend Chapter 3.15 of the Municipal Code with a Community Services and Investment Local Transactions (Sales) and Use Tax that extends the existing, voter-approved funding at a 1.5-cent rate, until ended by voters; and 3.Introduce an ordinance (Attachment B), subject to voter approval in the November 2020 general election, to approve the Community Services/Investment Measure until ended by voters: and 4.Adopt resolutions (Attachments D and E) directing the City Attorney to prepare the impartial analysis for the ballot measure, setting priorities for filing written arguments, providing for the filing of rebuttal arguments. REPORT-IN-BRIEF SLO Forward is a comprehensive effort to engage with the community about the current and long-range City services, maintenance and infrastructure needs to maintain and improve San Luis Obispo’s unique character and quality of life. As part of the Fiscal Sustainability and Responsibility Major City Goal in the 2017-19 Financial Plan to explore various infrastructure financial plans and options for the City Council, the City conducted a top to bottom review of infrastructure needs informed by hours of community input during the adoption of various City plans. The review also showed a financial gap between the type of infrastructure community members indicated were important and the City’s financial ability to deliver those projects. Item 7 Packet Page 45 After considering several infrastructure financing options including a general sales tax, general obligation bond and community facilities districts, the City Council directed staff to conduct public engagement efforts with the community regarding the potential extension and an increase of the existing Local Revenue Measure (LRM) to support the community’s priorities and needs. The existing LRM is a half (.5)-cent local general sales tax approved by City voters in November 2006 and renewed by City voters in 2014. It protects and maintains essential services and facilities and is subject to voter extension by 2023. The City Council also appointed Council Members Pease and Stewart to serve on an ad-hoc subcommittee to help guide the public engagement efforts. Through these efforts, including two focus groups and two statistically valid surveys, residents identified their top priorities, a need to maintain and increase the level of City services and a need to maintain and improve infrastructure. With the social and economic impacts of the COVID-19 pandemic, the financial gap between community demand and available resources has only increased. The City is facing a revenue shortfall of $8.6 million in its General Fund in 2020-21 and is projecting not to return to 2018-19 revenue levels until 2023-24. As part of the adopted 2020-21 Supplemental Budget, the City’s top priority is San Luis Obispo’s economic stability, recovery and resiliency. SLO Forward, a conversation with residents about community priorities, investment and economic recovery, is a key component of that effort. Based upon recent input from the community about the types of services, maintenance and infrastructure they value most, the recommendation by the Revenue Enhancement Oversight Commission (REOC), the results of a recently conducted statistically relevant survey, the ad hoc subcommittee is recommending to the City Council to submit to the voters a ballot question on the November 2020 ballot on whether to extend the existing, voter- approved funding (one-half cent sales and use tax) with an increase of one (1)-cent rate, until ended by voters. DISCUSSION Background A task of the work plan for the Fiscal Sustainability and Responsibility Major City Goal in the 2017-19 Financial Plan was to explore infrastructure financing options and present those to the Council for consideration and implementation. On April 17, 2018, the Council received a report which identified over 70 infrastructure projects anticipated over twenty years as identified in various approved planning documents. These documents were adopted through extensive public engagement, advisory body review and public hearings. The documents included the 1) City’s General Plan, 2) Bicycle Transportation Plan, 3) Downtown Concept Plan and 4) Mission Plaza Concept Plan and other plans and policies that represent the community’ s interest in maintaining the City’ s character and quality of life into the future. On February 5, 2019, Council received an update on this effort and directed staff to conduct further public engagement efforts including resident focus groups and a statistically relevant community survey. Council also directed staff to return to the Council with the results for consideration. Council appointed an ad hoc subcommittee of Council Members Pease and Stewart to guide and assist with these efforts. Item 7 Packet Page 46 An additional item for consideration and direction by Council was to explore the feasibility of extending and enhancing the existing LRM. The LRM was extended for eight years by voters in 2014, at a .5-cent rate and will expire in 2023 if not renewed by voters. The LRM is critical in providing the funding for basic levels of service and maintenance of existing infrastructure in the City. On December 3, 2019, the Council received a report on the results of the focus groups and statistically relevant survey and directed staff to continue public education and outreach efforts. An independent research firm, FM3, conducted two registered voter focus groups in June 2019 and a statistically relevant survey in September 2019. The following is a summary of the survey results in September 2019: 1. Almost six in ten survey respondents perceive the City needs additional funds to provide the level of services and infrastructure residents need and want. 2. A majority of survey respondents initially support a conceptual local ballot measure at 63 percent. 3. No statistical difference in support between an extension of the current voter approved Local Revenue Measure at a 1.5-cent rate or at a 1-cent rate. Council directed staff to proceed with further public engagement efforts on funding priorities for the City, including the potential extension of the Local Revenue Measure (Measure G) with an increase of one (1)-cent with ongoing citizen oversight by the Revenue Enhancement Oversight Commission. The Council also directed staff to provide an update to the Revenue Enhancement Oversight Commission and discuss potential roles to support and participate in public engagement and outreach efforts. Public Engagement and Outreach Efforts and Impacts of the COVID-19 Pandemic In January 2020, SLO Forward, a comprehensive effort to engage with the community about the current and long-range City services, maintenance and infrastructure needs to maintain and improve San Luis Obispo’s unique character and quality of life was launched. The public engagement efforts included presentations to community groups, advisory bodies, and an online survey. The results of the online survey (678 responses representing approximately 33 hours of public comment) showed the following top priorities ranked (1 being the highest priority): 1. Address homelessness 2. Keep public areas safe and clean 3. Preserve open space and natural areas 4. Maintain police, fire/emergency response 5. Protecting long-term fiscal stability 6. Repair streets and potholes 7. Protect creeks from pollution 8. Prepare for wildfires and other natural disasters 9. Help ensure children have safe places to play 10.Require all funds be used locally to benefit the community Item 7 Packet Page 47 Public engagement and outreach efforts were put on pause and the online survey was suspended in late March as the City focused entirely on the response to the COVID-19 pandemic and continued delivery of essential services to protect the health and safety of the community. Impacts of the COVID-19 Pandemic Over the past four months, the world has faced a health and fiscal crisis brought on by the COVID-19 pandemic that lead to a “shelter at home” order and other mandates that have significantly reduced most economic activity. For most of that time, all but essential businesses remained closed. The impacts to businesses and the community have been unprecedented. The City experienced steep revenue declines in the third and fourth quarter of the FY 2019-20 and projections assume continued declines into FY 2020-21 and beyond as the economy gradually reopens while local governments prepare for continued in cases and additional surges. This situation remains dynamic, as the current cases in the community have increased and the City will continue to take action to slow the spread of the virus. As soon as the City announced the County’s ‘shelter-at-home” directive, it enacted the Fiscal Health Contingency Plan that immediately placed a hiring, purchasing and travel chill on all non-essential City operations. As part of the adoption of the FY 2020-21 Supplemental Budget, the City reduced the General Fund by $4.7M in operations and revised the planned number of LRM funded projects from 102 to 86, a total reduction of $1.8M. Recognizing the impacts of COVID-19 on the community and the long-road to recovery, the City Council consolidated the five current Major City Goals into a single, overarching goal: San Luis Obispo’s economic stability, recovery and resiliency. SLO Forward is an important component of this new goal. With the economic impacts of COVID -19 on City revenues continuing to be analyzed, staff will be returning to the City Council with an updated, long-term financial outlook and potentially additional service and capital project reductions in October 2020. The impacts of COVID-19 on City revenues, including the LRM, increases the importance of SLO Forward with a focus on investment and economic recovery. To continue that conversation, the City relaunched an updated online survey in June 2020 to determine if the community’s top priorities had changed based upon COVID -19. Due to the service and economic impacts of COVID-19 on the businesses and community organizations/non-profits that serve the community’s most vulnerable, both of these categories were added to the updated online survey. Currently, there have been 353 responses, representing an additional 18 hours of public comment. In total, both online surveys had more than 1,000 responses, representing 51 hours of public comment. Item 7 Packet Page 48 Below is a comparison of the results from the two online surveys. Current Online Survey Results (June 1, 2020 – June17, 2020) 1. Keep public areas safe and clean 2. Protecting long-term fiscal stability 3. Preserve open space and natural areas 4. Programs that support economic recovery 5. Maintain public safety, fire and emergency response 6. Address homelessness 7. Support community organizations and non- profits that serve the community's most vulnerable 8. Prepare for wildfires and other natural disasters 9. Requiring all funds used locally to benefit the community 10. Protect creeks from pollution 11. Repair streets and potholes 12. Help ensure children have safe places to play Previous Online Survey Results (December 27, 2019 – April 15, 2020) 1. Address homelessness 2. Keep public areas safe and clean 3. Preserve open space and natural areas 4. Maintain police, fire/emergency response 5. Protecting long-term fiscal stability 6. Repair streets and potholes 7. Protect creeks from pollution 8. Prepare for wildfires and other natural disasters 9. Help ensure children have safe places to play 10. Requiring all funds used locally to benefit the community The results of the current online survey show that four of the top five priorities, with the exception of addressing homelessness, are consistent with the previous online survey results. Again, the online survey is not statistically relevant, but does provide another opportunity to gather input on community members’ highest priorities related to City services, maintenance and infrastructure that could be supported through an extension and increase of the current revenue measure. To gather a more precise perspective of community members’ priorities and the viability of extending and increasing the LRM, a statistically relevant follow-up survey was conducted in June 2020. The purpose of the follow-up survey is to measure if the sentiment of registered voters who live in the City has changed since the previous survey conducted in September 2019. The following is a summary of the survey completed in June 2020: June 2020 Statistically Valid Survey 1. Need for Additional Funds for Services and Infrastructure In 2020, almost seven-in-ten think the City had a great or some need for additional funds to provide the level of City services and infrastructure that residents need and want, an overall increase of 10 percentage points since 2019. Item 7 Packet Page 49 2. Tested Draft Ballot title and Summary Based upon public input from the focus groups, the statistically relevant survey completed in 2019, the ad hoc subcommittee, and in accordance with elections regulations limiting the wording of the ballot statement to 75 words (“City of San Luis Obispo” as one word), the following ballot was tested in June, 2020. City of San Luis Obispo Community Services/Investment - Shall an ordinance to provide funding to protect City of San Luis Obispo’s long-term financial stability; maintain fire, public safety, health emergency, disaster preparedness response; address homelessness; keep public areas clean/safe; help local businesses; repair streets; protect creeks from pollution; maintain youth/senior services, open space, parks/other general services by extending Measure G at a 1.5¢ rate, providing approximately $21,600,000 annually until ended by voters; requiring audits/all funds used locally, be adopted? 3. Having read or heard the potential ballot title and summary, a majority of survey respondents initially supported the local ballot measure at 71%. This is an increase from the previous survey conducted in September 2019 which had an initial support of 63%, though the language used in 2019 was slightly different. Item 7 Packet Page 50 4. Voter Priorities High percentages rated maintain fire, public safety, and emergency health response, disaster preparedness, protecting creeks from pollution, preserving open space and natural areas, helping fund homeless prevention as the most important features to be included in a possible measure. Potential Features of the Measure Rating by Extremely/Very Important Maintaining fire, public safety and emergency health response 79% Maintaining disaster preparedness response 75% Protecting creeks from pollution 74% Preserving open space and natural areas 73% Retaining local businesses 73% Helping fund homeless prevention programs 71% Providing support to local non-profits in the City that help those in need of food 71% Keeping public areas clean and safe 70% Providing support to local non-profits in the City that help prevent domestic violence 66% Maintaining youth services 64% Protecting the City’s long-term financial stability 64% Existing Local Revenue Measure (LRM) and Citizen Oversight The existing LRM was passed by 70 percent of voters in November 2014. The LRM was a renewal of the City’s half-cent sales tax approved in 2006 that focused on the protection and maintenance of essential services and facilities in the following priorities: 1. Open Space Preservation 2. Bicycle and Pedestrian Improvements Item 7 Packet Page 51 3. Traffic Congestion Relief/ Safety Improvements 4. Public Safety 5. Neighborhood Street Paving 6. Code Enforcement 7. Flood Protection 8. Parks and Recreation/Senior Programs and Facilities. 9. Other Vital Services and Capital Projects The funding is generally split with 70 percent supporting capital projects and 30 percent supporting operations. The LRM has an eight-year sunset, scheduled to expire in spring of 2023. In 2014, the Council established a citizen advisory body, the Revenue Enhancement Oversight Commission, to review the half-cent sales tax revenues and expenditures, report on the City’s stewardship of this general purpose tax and provide recommendations directly to the City Council regarding expenditures of these tax revenues as an integral part of the budget process. As an advisory body, comprising of five residents, the REOC provides important citizen oversight of local sales tax revenues and expenditures and serves as a venue for citizen engagement on the highest priority for the use of the funds. Annual reports showing the audited expenditures for the Local Revenue Measure since 2014 can be found at www.slocity.org/budget. At the June 30, 2020 REOC meeting, staff presented a summary of the results from the public engagement and outreach efforts. Based upon the results from those efforts, the REOC recommended that the City Council authorize placing a ballot measure on the November 3, 2020 ballot to extend the existing general sales tax with a one-cent (1) increase, until ended by voters, provided that there is support shown for the tax in the statistically relevant survey. (Attachment F) The results of the statistically relevant survey show a majority (71%) of residents support the measure. As contemplated and if adopted Attachment B, the Revenue Enhancement Oversight Commission would continue its role of citizen oversight, reporting annually to the community on the City’s use of the revenue, fiscal accountability, receiving public input on the future use of the revenue and making recommendations to the City Council. Fiscal Health Response Plan Similar to other member agencies in CalPERS, the City was faced with significant financial challenges due to increased pension costs. To address these challenges, the City adopted and implemented the Fiscal Health Response Plan (FHRP) in 2018. The FHRP contained several components including employees paying more of their retirement costs, operational reductions/ new ways of doing business and revenue options. This has resulted in approximately $8.9M of annual savings. If the FHRP had not been implemented, the City’s financial situation would have been worse due to the economic impacts of COVID-19 on City revenues. Benchmark Study In June 2020, the City published the 2020 Benchmark Study (Attachment G). A benchmark study helps illustrate how the City of San Luis Obispo is performing compared to similar cities across a number of performance measures. The benchmark study evaluates the most current data on financial performance such as revenue diversity, expense allocation, staffing costs, and debt management. Item 7 Packet Page 52 Service costs do not always reflect service levels or efficiency, so the study also compares service outcomes like crime rates, fire response and pavement condition. To ensure consistency with previous completed benchmark studies, the following eight cities were chosen for comparison to San Luis Obispo (46,800 residents, General Fund 72.4M). The results indicate that San Luis Obispo is close to the median on most comparisons. 1. Davis (68,700, $69M) 2. Monterey (28,600, $78M) 3. Napa (79,300, $89M) 4. Palm Springs (48,700, $95M) 5. Santa Barbara (94,800, $131M) 6. Santa Cruz (65,800, $104M) 7. Santa Maria (106,600, $72M) 8. Paso Robles (31,200, $37M) The minimum general sales tax in California is 7.25%, while the average sales tax rate for cities in the state is 8.66%. All eight benchmark cities have add-on local sales tax measures, and the remaining five cities in San Luis Obispo County do as well. Of the other six cities in San Luis Obispo County, five are considering placing an additional, add-on local sales tax ballot measure on the November 2020 ballot. The City of Pismo Beach has already voted to place a Transient Occupancy Tax (TOT) measure for November 2020 (a TOT increase would yield roughly the same amount of revenue as a sales tax would in Pismo Beach given the sales tax base). Retail Sales Analysis According to a 2019 sales tax study, approximately 70% of every dollar the City collects in sales tax is paid by non-residents (Attachment H). Sales tax is the City’s top revenue source; about one-third of total General Fund revenues. San Luis Obispo’s strong sales tax revenues are due to its regional sales draw, tourism, commuters and nearby student shoppers. The additional revenue paid by the sales tax helps maintain a high level of service for City residents, but also helps the City mitigate the impacts created by tourists and regional shoppers in the form of more miles traveled on our roadways, more use of City open space, increased calls for public safety and medical response, and other associated impacts. Item 7 Packet Page 53 Procedures Regarding the Adoption of a Community Services/Investment Measure 1. Ballot Measure Language The following proposed language (Attachment A), as recommended by the Council ad hoc subcommittee and is similar to the language that was tested in the statistically relevant survey in June 2020, is being recommended for the ballot measure. City of San Luis Obispo Community Services/Investment. Shall an ordinance to provide funding to protect City of San Luis Obispo’s financial stability; maintain fire/community safety, health emergency/disaster preparedness; protect creeks from pollution; address homelessness; keep public areas clean/safe; retain local businesses; maintain youth/senior services, streets, open space/natural areas, and other general services, by extending voter-approved funding at a 1.5¢ rate, providing approximately $21,600,000 annually until ended by voters; requiring audits/all funds used locally, be adopted? 2. Complete Ordinance and Election Related Resolutions (Attachments A, B, D & E) The current half-cent general sales tax, referred in the City’s Municipal Code as the Essential Services Measure, is codified as Chapter 3.15. The ballot measure ordinance submitted to the voters (Attachment B), if approved, will amend the existing chapter with an extension of the existing, voter-approved half (.5)-cent general sales tax and an increase of the local transactions (sales) and use tax to one (1) cent for a combined rate at one and half (1.5)-cent rate, until ended by voters. The previous language in the ordinance, including the establishment of citizen oversight and independent annual financial audits, remains intact. Also, attached to this report are election related resolutions for Council's consideration. Attachment D directs the City Attorney to prepare an impartial analysis of the revenue measure and sets priorities for arguments. Attachment E is a resolution that establishes the procedures for rebuttal arguments. Priorities for Written Arguments Elections Code Section 9282 sets priorities for filing written arguments and states: (b) For measures placed on the ballot by the legislative body, the legislative body, or any member or members of the legislative body authorized by that body, or any individual voter who is eligible to vote on the measure, or bona fide association of citizens, or any combination of voters and associations, may file a written argument for or against any city measure. Based on dates established by State election law, primary ballot arguments would have to be submitted to the City Clerk no later than 5:00 p.m. on Tuesday, July 31, 2020. The Elections Code establishes a 300-word limit for primary arguments and also establishes priorities for selecting arguments. The public examination period for these arguments would be from August 7 through August 17, 2020. Item 7 Packet Page 54 It is recommended that the Council appoint an ad hoc subcommittee consisting of two of its members to prepare and submit ballot arguments and rebuttal arguments, if warranted. (Note: public funds may not be used for these purposes. These committee members will meet on their own time and not utilize City resources. The Elections Code allows the City Council to adopt provisions to permit rebuttal arguments to be filed. These provisions must be adopted at the same meeting at which the election is called. The deadline for submitting rebuttal arguments is dictated by State election law and would be 5:00 p.m. on Thursday, August 6, 2020. Public Review Period and Deadlines Election Code Section 9295 provides that the Election Official shall allow a 10 -calendar day public examination period immediately following the filing deadline for submission of specified official election materials (i.e., arguments, rebuttals, analysis). During that 10-calendar day period, any voter of the City or the Election Official may seek court action to require any or all such materials be amended or deleted. Deadlines for Filing the Impartial Analysis and Arguments The following deadlines have been established by the City Clerk for the submission of the impartial analysis, primary arguments in favor and against, and rebuttal arguments: July 23, 2020 at 5:00 p.m. – Final Impartial Analysis Due July 31, 2020 at 5:00 p.m. – Primary Arguments For or Against a Measure Due August 6, 2020 at 5:00 p.m. – Last day to file Rebuttal Arguments For or Against a Measure August 17, 2020 – Final Day of Ten Day Public Review Period Education and Outreach If the Council places this measure on the ballot, staff intends to conduct education and outreach consistent with what is allowed by law. Staff intends to continue to publish materials such as answers to frequently asked questions, provide mail by vote information given likely voting conditions with the pandemic, place informational content on the City's website, and respond to requests for presentations and additional information. Should the Council wish staff to approach this measure in a different manner, further direction should be provided. Previous Council or Advisory Body Action 1. June 30, 2020 – Revenue Enhancement Oversight Commission 2. December 3, 2019 – Resident Focus Groups and Survey Results Regarding Funding Priorities and Potential Local Revenue Options 3. June 18, 2019 - Adoption of the 2019- 21 Financial Plan and the Major City Goal: Fiscal 4. Sustainability and Responsibility Item 7 Packet Page 55 5. February 5, 2019 - Potential Next Steps Regarding the Funding the Future Initiative 6. April 17, 2018 - Future SLO Capital Improvement Program 7. January 16, 2018 - Council review of 10-Year Capital Improvement Plan and funding options 8. December 12, 2017 - Budget Foundation: Fiscal Health Response Plan Policy Context The Major City Goals for the 2017-19 and 2019-21 Financial Plans include the Fiscal Sustainability and Responsibility goal. Specifically, the 2019-21 goal states to ‘Continue to implement the City’s Fiscal Responsibility Philosophy with a focus on efficiencies, strategic economic development, unfunded liabilities, and infrastructure financing (Funding the Future).’ Should the ballot question be approved by the voters in the November 2020 election, Chapter 3.15 would be amended with the Community Services and Investment Local Transactions (Sales) and Use Tax. Public Engagement Public engagement with the community was completed through several means, including 22 presentations to residents, community groups and advisory bodies, focus groups, two statistically valid surveys, and two online surveys. The statistically valid surveys were completed by 976 San Luis Obispo registered voters. The online surveys received 1,011 responses, representing approximately 33 hours of public comment. Prior to the COVID-19 pandemic, the presentations were conducted in person with the presentations transitioning to virtual meetings during the pandemic. In addition, the presentation was recorded and provided both on the online survey and the City’s website. To gain additional awareness about the online surveys, the City placed advertisements in local newspapers, radio, and on its social media channels. CONCURRENCE The City Attorney’s Office has reviewed the resolutions and ordinance and concurs with the language provided. ENVIRONMENTAL REVIEW The resolutions and ordinance have been reviewed for compliance with the California Environmental Quality Act (CEQA), and the CEQA guidelines and have been found to be exempt pursuant to Sec. 15801(b)(3)(general rule) and Sec. 15378(b)(4) of the CEQA guidelines. The transactions (sales) and use tax proposed by the resolutions and ordinance is a general tax that can be for any legitimate governmental purpose and is not a commitment to any particular action. The passage of the resolution and ordinance will not have a significant physical impact on the environment. Item 7 Packet Page 56 FISCAL IMPACT Budgeted: Yes Budget Year: 2020-21 Funding Identified: Yes Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund $10,000 $10,000 State Federal Fees Other: Total 10,000 $10,000 The cost to place this revenue measure on the ballot is estimated to be $10,000, however, due to the County Clerk-Recorder formula for sharing election costs among the cities in the County, the actual cost will not be known until after the election. Should the cost of the election exceed the budgeted amount, staff may bring forth a budget request as part of the 2020-21 Mid-Year Budget. ALTERNATIVES The Council may choose to not place the ballot measure before the voters. Staff does not recommend this based upon results of the public engagement and outreach efforts with the community regarding their priorities, focus groups, and two statistically relevant surveys that show a majority of support for the proposed revenue measure. If new revenues are not identified, it is clear that the City will have a significant and unavoidable gap to fund infrastructure and services and may otherwise will need to 1) reduce service levels 2) reduce planned infrastructure and 3) adjust maintenance levels. The Council has full discretion over the decision to move forward with the recommended action. If the Council would like to make changes, staff will work with Council and respond to any changes needed to move the item forward. Council should be aware that the deadline for placing a new measure on the ballot is August 7, 2020. Item 7 Packet Page 57 Attachments: a - Draft Resolution - Extension of the Local Transactions & Use Tax b - Draft Ordinance - Amending Municipal Code Chapter 3.15 (Essential Services Trasaction & Use Tax) c - Legislative Draft of Proposed Amendments to SLOMC Chapter 3.15 d - Draft Resolution - Impartial Anaylsis and Priorities for Arguments e - Draft Resolution - Enabling Rebuttal Arguments f - REOC Draft Minutes of June 30, 2020 g - 2020 Benchmark Study h - San Luis Obispo Retail Analysis Item 7 Packet Page 58 R _____ RESOLUTION NO. ______ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD TUESDAY, NOVEMBER 3 , 2020, FOR SUBMITTING TO THE VOTERS A QUESTION WHETHER TO EXTEND THE EXISTING, VOTER- APPROVED LOCAL TRANSACTION (SALES) AND USE TAX AT A 1.5¢ RATE, UNTIL ENDED BY VOTERS AND CONTINUE THE VITAL ROLE OF THE CITIZENS REVENUE ENHANCEMENT COMMISSION TO ENSURE FUNDS ARE SPENT CONSISTENT WITH COMMUNITY PRIORITIES WHEREAS, a General Municipal Election on November 3, 2020, has been called for the purpose of the election of officers by Resolution No. 11143 (2020 Series), adopted on July 7, 2020; and WHEREAS, the Elections Code and applicable local law provide the Council with the authority to submit a ballot measure to the electorate; and WHEREAS, the City Council desires to request the voters of San Luis Obispo to extend and enhance Measure G (2014) locally-controlled funding by enacting an additional one (1)-cent Local Transactions and Use Tax (Sales Tax) for a combined rate of one and half (1.5)-cent to remain in effect until ended by voters; and WHEREAS, in 2014, over 70% of San Luis Obispo voters approved a renewal of a local transaction (sales) and use tax funding measure known as Measure G, providing a reliable source of locally controlled funding that cannot be taken away by the state; and WHEREAS, this voter-approved local funding has provided essential services and maintained City facilities, including preserving open space, fire and community safety, street and pothole repairs and other vital services and capital improvement projects that protect our local quality of life; and WHEREAS, approximately 70% of sales tax revenue collected by San Luis Obispo is generated by tourists and visitors to our City, ensuring that visitors are paying their fair share to use our community resources and infrastructure; and WHEREAS, over the past year, City staff have engaged and received input from over a thousand community members on their top priorities and needs; and WHEREAS, the overwhelming majority of residents expressed a desire to maintain and extend Measure G’s locally-controlled funding; and Item 7 Packet Page 59 Resolution No. _____ (2020 Series) Page 2 R _____ WHEREAS, one in every two calls to the San Luis Obispo Fire Department are requests to respond to medical emergencies or rescues, and locally-controlled funding is critical to continue to maintain firefighter-paramedic staffing, infrastructure, life-saving/personal protective equipment, and communications technology to save lives in any type of natural disaster or emergency; and WHEREAS, the impacts of coronavirus (COVID-19) on the local economy, including loss of jobs and closure of businesses, may take years to recover from. A reliable, local funding source will help invest in the businesses in our city and our downtown area through economic recovery programs like Shop Local and local business financing, to make it easier to help businesses thrive and retain and hire more local employees; and WHEREAS, homelessness is a growing problem in San Luis Obispo and this measure will allow the City to provide ongoing and new resources, for which the City does not receive any significant direct county, state, or federal funding, to assist residents and families who are experiencing homelessness or are on the verge of being homeless, while ensuring our public areas are clean, safe and secure for everyone; and WHEREAS, maintaining and protecting creeks from pollution, preserving and maintaining open space, parks and other natural areas; providing youth and senior services and helping local businesses will support San Luis Obispo’s economic recovery, stability and resiliency efforts; and WHEREAS, any extension and enhancement of existing, voter-approved funding will continue to require a citizen revenue enhancement oversight commission, mandatory financial audits, and yearly reports to the community to ensure that funds are spent consistent with community priorities, and this type of sales tax is not applied to prescription medication or food purchased as groceries. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo, as follows: SECTION 1. That the City Council, pursuant to its right and authority, does order submission to the voters at the General Municipal Election on Tuesday, November 3, 2020, the following question: City of San Luis Obispo Community Services/Investment. Shall an ordinance to provide funding to protect City of San Luis Obispo’s financial stability; maintain fire/community safety, health emergency/disaster preparedness; protect creeks from pollution; address homelessness; keep public areas clean/safe; retain local businesses; maintain youth/senior services, streets, open space/natural areas, and other general services, by extending voter-approved funding at a 1.5¢ rate, providing approximately $21,600,000 annually until ended by voters; requiring audits/all funds used locally, be adopted? YES NO Item 7 Packet Page 60 Resolution No. _____ (2020 Series) Page 3 R _____ SECTION 2. That the proposed complete text of the ordinance submitted to the voters is attached as Exhibit A to this resolution, and a summary shall be published as part of the ballot materials, and a complete copy shall be made available for public review in the office of the City Clerk. SECTION 3. In all particulars not recited in this resolution, the election shall be held and conducted as provided by state law, governing the conduct of municipal elections, unless provided otherwise by local Charter or ordinance. SECTION 4. Notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed and directed to give further notice or additional notice of the election, in time, form and manner as required by law. SECTION 5. That the ballots to be used at the election shall be in form and content as required by law. SECTION 6. The City Clerk is hereby directed to file a certified copy of this resolution with the San Luis Obispo County Board of Supervisors and Clerk-Recorder. Item 7 Packet Page 61 Resolution No. _____ (2020 Series) Page 4 R _____ SECTION 7. That the City Clerk shall certify to the passage and adoption of this resolution. Upon motion of Council Member________________, seconded by Council Member_______________ , and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this ____ day of _______ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ____________________. ____________________________________ Teresa Purrington, City Clerk Item 7 Packet Page 62 O _____ EXHIBIT A ORDINANCE NO. ______ (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL AND THE PEOPLE OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING EXISTING CHAPTER 3.15 (ESSENTIAL SERVICES TRANSACTIONS (SALES) AND USE TAX OF THE SAN LUIS OBISPO MUNICIPAL CODE AND REENACTING IN FULL AMENDED CHAPTER 3.15 (COMMUNITY SERVICES AND INVESTMENT) IMPOSING A TRANSACTIONS (SALES) AND USE TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION WHEREAS, in 2006, the voters of San Luis Obispo approved the San Luis Obispo Essential Services Measure (also commonly known as Measure Y, its 2006 ballot designation) with 64.77% of the vote, establishing a half-cent per dollar local transaction (sales) and use tax to address fiscal challenges including State takeaways totaling more than $22 million over the prior 15 years, and ongoing State funding reductions of $3 million annually; and WHEREAS, in 2014, the voters of San Luis Obispo approved the San Luis Obispo Essential Services Measure (also commonly known as Measure G, its 2014 ballot designation) with 70.32% of the vote, renewing the half-cent per dollar local transaction (sales) and use tax to continue protecting and maintaining essential services and facilities, to end March 31, 2023 unless renewed by voters; and WHEREAS, the revenue from Measure G has funded approximately 30% of essential services and 70% of maintaining City facilities but has not been sufficient to fund the level of services, maintenance, and infrastructure improvements the community has identified as priorities; and WHEREAS, one in every two calls to the San Luis Obispo Fire Department are responses to medical emergencies or rescues, and locally-controlled funding is critical to maintain firefighter- paramedic staffing, infrastructure, life-saving/personal protective equipment, and communications technology to save lives in any type of natural disaster or emergency; and WHEREAS, the impacts of coronavirus on the City’s local economy, including loss of jobs and business closures, may take years to recover from and a reliable source of local funding will assist in businesses and downtown investment through economic recovery programs like Shop Local; and WHEREAS, the City's Essential Services Transaction (Sales) and Use Tax includes substantial accountability measures including: requirements for independent annual financial audits; integration of use of funds into the City's budget and goal-setting process; annual community reports; and annual citizen engagement meetings; and Item 7 Packet Page 63 Ordinance No. ______ (2020 Series) Page 2 O ____ WHEREAS, the City’s Essential Services Transaction (Sales) and Use Tax also includes an additional accountability measure, a Citizen's Revenue Enhancement Oversight Commission, to increase transparency and accountability and to ensure the expenditure of revenue measure funds in alignment with evolving community priorities, as defined through citizen engagement and City Council direction; and WHEREAS, approximately 70% of sales tax revenue collected by San Luis Obispo is generated by tourists, visitors, and commuters ensuring that visitors are paying their fair share to use the City’s community resources and infrastructure; and WHEREAS, the City's existing Essential Services Transactions (Sales) and Use Tax Ordinance is found in Chapter 3.15 of the City's Municipal Code; and WHEREAS, Section 3.15.030 of this Chapter sets forth an expiration date of March 31, 2023, at which time Chapter 3.15 will expire, unless extended by the voters of the City at an election called for that purpose; and WHEREAS, this proposed Measure G extension and enhancement will continue to require substantial accountability measures including: requirements for independent annual financial audits; integration of use of funds into the City's budget and goal-setting process; annual community reports; annual citizen engagement meetings; and the oversight role of the Citizen's Revenue Enhancement Oversight Commission; and WHEREAS, the COVID-19 pandemic’s economic impacts on the community, local businesses, and City finances is unprecedented and an extension of Measure G and enhancement of the existing local transactions (sales) and use tax by an additional one (1)-cent per dollar for a total rate at one and half (1.5)-cents per dollar will protect and improve the level of City services, and maintenance and improvements to infrastructure the community values most; and WHEREAS, the funding will support San Luis Obispo’s economic recovery, stability and resiliency to protect and maintain residents’ quality of life. NOW, THEREFORE, BE IT ORDAINED by the Council and the People of the City of San Luis Obispo, as follows: SECTION 1. Chapter 3.15 of the City's Municipal Code is hereby amended and re-enacted in full to read as follows: Item 7 Packet Page 64 Ordinance No. ______ (2020 Series) Page 3 O ____ Chapter 3.15 COMMUNITY SERVICES AND INVESTMENT TRANSACTIONS (SALES) AND USE TAX 3.15.010 Title. This chapter shall be known as the “City of San Luis Obispo community services and investment transactions (sales) and use tax ordinance.” The City of San Luis Obispo hereinafter shall be called the “City.” This chapter shall be applicable in the incorporated territory of the City. 3.15.020 Purpose. This chapter is adopted to achieve the following, among other general municipal purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To provide funding to protect City of San Luis Obispo’s financial stability; maintain fire, community safety, health emergency, disaster preparedness; protect creeks from pollution, address homelessness; keep public areas clean/safe; retain local businesses; repair streets; maintain youth/senior services, streets, open space/natural areas, and other general services by extending an existing, voter-approved, general purpose retail transactions (sales) and use tax of one-half (.5) cent per dollar and enhancing the local transactions (sales) and use tax by an additional one (1) cent per dollar; at a total rate of one and one half (1.5) cent per dollar (1.50% of the gross receipts) in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Di vision 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2, which authorizes the City to adopt this general purpose tax chapter, which shall be operative if two-thirds of the council and a majority vote of the electors voting on the measure vote to approve the extension and enhancement of this general purpose revenue source at an election called for that purpose. B. To adopt a retail transactions and use tax chapter that incorporates provisions identical to those of the transactions and use tax law of the state of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax chapter that imposes a tax and provides a measure therefor that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State sales and use taxes. D. To adopt a retail transactions and use tax chapter that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time minimize the burden of recordkeeping upon persons subject to taxation under the provisions of this chapter. Item 7 Packet Page 65 Ordinance No. ______ (2020 Series) Page 4 O ____ 3.15.030 Termination Date. The authority to levy the tax imposed by this chapter shall expire when ended by the voters of the City. 3.15.040 Fiscal accountability provisions—Citizen oversight and independent annual financial audits. Along with the City’s ongoing commitment to citizen involvement as a fundamental principle of good government, specific citizen oversight and fiscal accountability provisions are hereby established as follows: A. Revenue Enhancement Oversight Commission. A citizen’s commission will be established to provide transparency and maximize city accountability. The commission will be responsible for reviewing and making budget recommendations directly to the city council regarding expenditures from the essential services transactions (sales) and use tax and reporting annually to the community on the City’s use of these tax revenues. B. Accounting and Tracking Expenditures. The funds collected through the City of San Luis Obispo essential services transactions (sales) and use tax ordinance shall be accounted f or and tracked by the City treasurer separately to facilitate citizen oversight. C. Independent Annual Financial Audit. The amount generated by this general-purpose revenue source and how it was used shall be included in the annual audit of the City’s financial operations by an independent certified public accountant. D. Integration of the Use of Funds into the City’s Budget and Goal-Setting Process. The estimated revenue and proposed use of funds generated by this measure shall be an integral part of the City’s budget and goal-setting process, and significant opportunities will be provided for meaningful participation by citizens in determining priority uses of these funds. E. Annual Community Report. A written report shall be reviewed at a public meeting by the revenue enhancement oversight commission, and a summary will be provided annually to every household in the community detailing how much revenue is being generated by the measure and how funds are being spent. F. Annual Citizen Oversight Meeting. An invitation will be extended each year to the entire community inviting them to participate in a forum to review and discuss the use of the revenue generated by this measure. City staff will also be available to meet with any group that requests a specific briefing with their members to discuss and answer questions about the revenues generated by the measure and their uses. 3.15.050 Transactions (sales) tax rate. For the privilege of selling tangible personal property (physical merchandise) at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the total rate of one and one half percent (1.5%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this chapter, prior Item 7 Packet Page 66 Ordinance No. ______ (2020 Series) Page 5 O ____ to which the tax rate shall be as previously imposed by voter approval of Measure G (November 2014). 3.15.060 Use tax rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property (physical merchandise) purchased from any retailer for storage, use or other consumption in said territory at the rate of one and one half percent (1.5%) of the sales price of the property on and after the operative date of this chapter, prior to which the tax rate shall be as previously imposed by voter approval of Measure G (November 2014). The sales price shall include delivery charges when such charges are subject to state sales or use tax, regardless of the place to which delivery is made 3.15.070 Operative date. “Operative date” means the first day of the first calendar quarter commencing more than one hundred ten days after the adoption of the ordinance codified in this chapter. 3.15.080 Contract with state. Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax chapter; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and, in such a case, the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.15.090 Place of sale. For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out- of-state destination or to a common carrier for delivery to an out -of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration. 3.15.100 Adoption of provisions of state law. Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this chapter as though fully set forth herein. 3.15.110 Limitations on adoption of state law and collection of use taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the state of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when: Item 7 Packet Page 67 Ordinance No. ______ (2020 Series) Page 6 O ____ 1. The word “state” is used as a part of the title of the State Controller, State Treasurer, State Board of Control, California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California. 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this chapter. 3. In those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the state of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the state under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property, which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word “City” shall be substituted for the word “state” in the phrase “retailer engaged in business in this state” in Section 6203 and in the definition of that phrase in Section 6203. 3.15.120 Permit not required. If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this chapter. 3.15.130 Exemptions and exclusions. The following transactions shall be exempted and excluded: A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the state of California or by any City, City and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this state, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this section, delivery to a point outside the City shall be satisfied: Item 7 Packet Page 68 Ordinance No. ______ (2020 Series) Page 7 O ____ a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out- of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter. 4. A lease of tangible personal property, which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this chapter. 5. For the purposes of subsections (B)(3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this chapter the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this chapter. 5. For the purposes of subsections (C)(3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. Item 7 Packet Page 69 Ordinance No. ______ (2020 Series) Page 8 O ____ 6. Except as provided in subsection (C)(7) of this section, a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. A retailer engaged in business in the City shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel or aircraft at an address in the City. D. Any person subject to use tax under this chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.15.140 Amendments. All amendments subsequent to the effective date of this chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this chapter; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter. 3.15.150 Enjoining collection forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the state or the City, or against any officer of the state or the City, to prevent or enjoin the collection under this chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. Item 7 Packet Page 70 Ordinance No. ______ (2020 Series) Page 9 O ____ SECTION 2. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect upon adoption by the voters. INTRODUCED on the 21st day of July 2020 by the Council of the City of San Luis Obispo on the following vote: AYES: NOES: ABSENT: PASSED AND ADOPTED by the Voters of the City of San Luis Obispo on November 3, 2020 by the following vote tally: AYES: NOES: FINALLY ADOPTED following declaration of the vote by the City Council on December _______, 2020 ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on __________________. ____________________________________ Teresa Purrington, City Clerk Item 7 Packet Page 71 San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments The San Luis Obispo Municipal Code is current through Ordinance 1681, and legislation passed throug… Chapter 3.15 ESSENTIAL SERVICES COMMUNITY SERVICES AND INVESTMENT TRANSACTIONS (SALES) AND USE TAX Sections: 3.15.010 Title. 3.15.020 Purpose. 3.15.030 Eight-year sunset. 3.15.040 Fiscal accountability provisions—Citizen oversight and independent annual financial audits. 3.15.050 Transactions (sales) tax rate. 3.15.060 Use tax rate. 3.15.070 Operative date. 3.15.080 Contract with state. 3.15.090 Place of sale. 3.15.100 Adoption of provisions of state law. 3.15.110 Limitations on adoption of state law and collection of use taxes. 3.15.120 Permit not required. 3.15.130 Exemptions and exclusions. 3.15.140 Amendments. 3.15.150 Enjoining collection forbidden. 3.15.010 Title. This chapter shall be known as the “City of San Luis Obispo essential services community services and investment transactions (sales) and use tax ordinance.” The City of San Luis Obispo hereinafter shall be called the “City.” This chapter shall be applicable in the incorporated territory of the city. 3.15.020 Purpose. This chapter is adopted to achieve the following, among other general municipal purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To protect and maintain essential services and facilities—such as open space preservation; bike lanes, sidewalks and other traffic congestion relief projects; public safety; neighborhood street paving and code enforcement; flood protection; senior citizen programs including services and facilities; and other vital general purpose services and capital improvement projects—by extending a general purpose retail transactions and use Item 7 Packet Page 72 San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments The San Luis Obispo Municipal Code is current through Ordinance 1681, and legislation passed throug… tax of one-half percent To provide funding to protect City of San Luis Obispo’s financial stability; maintain fire/community safety, health emergency/disaster preparedness; protect creeks from pollution; address homelessness; keep public areas clean/safe; retain local businesses; ma intain youth/senior services, streets, open space/natural areas, and other general services, by extending an existing, voter-approved, general purpose retail transactions (sales) and use tax of one -half (.5) cent per dollar and enhancing the local transactions (sales) and use tax by an additional one (1) cent per dollar; at a total rate of one and one half (1.5) cent per dollar (1.50% of the gross receipts), in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2, which authorizes the city to adopt this general purpose tax chapter, which shall be operative if two-thirds of the council and a majority vote of the electors voting on the measure vote to approve the extension and enhancement of this general purpose revenue source at an election called for that purpose. B. To adopt a retail transactions and use tax chapter that incorporates provisions identical to those of the transactions sales and use tax law of the state of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax chapter that imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization California Department of Tax and Fee Administration in administering and collecting the California State sales and use taxes. D. To adopt a retail transactions and use tax chapter that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time minimize the burden of recordkeeping upon persons subject to taxation under the provisions of this chapter. 3.15.030 Eight-year sunset Termination Date. The authority to levy the tax imposed by this chapter shall expire when ended by voters of the city in eight years, on March 31, 2023, unless extended by the voters. 3.15.040 Fiscal accountability provisions—Citizen oversight and independent annual financial audits. Along with the city’s ongoing commitment to citizen involvement as a fundamental principle of good government, specific citizen oversight and fiscal accountability provisions are hereby established as follows: Item 7 Packet Page 73 San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments The San Luis Obispo Municipal Code is current through Ordinance 1681, and legislation passed throug… A. Revenue Enhancement Oversight Commission. A citizen’s commission will be established to provide transparency and maximize city accountability. The commission will be responsible for reviewing and making budget recommendations directly to the city council regarding expenditures from the essential services transactions (sales) and use tax and reporting annually to the community on the city’s use of these tax revenues. B. Accounting and Tracking Expenditures. The funds collected through the city of San Luis Obispo essential services transactions (sales) and use tax ordinance shall be accounted for and tracked by the city treasurer separately to facilitate citizen oversight. C. Independent Annual Financial Audit. The amount generated by this general purpose revenue source and how it was used shall be included in the annual audit of the city’s financial operations by an independent certified public accountant. D. Integration of the Use of Funds into the City’s Budget and Goal-Setting Process. The estimated revenue and proposed use of funds generated by this measure shall be an integral part of the city’s budget and goal- setting process, and significant opportunities will be provided for meaningful participation by citizens in determining priority uses of these funds. E. Annual Community Report. A written report shall be reviewed at a public meeting hearing by the revenue enhancement oversight commission, and a summary will be provided annually to every household in the community detailing how much revenue is being generated by the measure and how funds are being spent. F. Annual Citizen Oversight Meeting. An invitation will be extended each year to the entire community inviting them to participate in a forum to review and discuss the use of the revenue generated by this measure. City staff will also be available to meet with any group that requests a specific briefing with their members to discuss and answer questions about the revenues generated by the measure and their uses. 3.15.050 Transactions (sales) tax rate. For the privilege of selling tangible personal property at (physical merchandise) retail, a tax is hereby imposed upon all retailers in the incorporated territory of the city at the total rate of one-half percent of the gross receipts one and one half (1.5%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this chapter, prior to which the tax rate shall be as previously imposed by voter approval of Measure G (November 204) Item 7 Packet Page 74 San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments The San Luis Obispo Municipal Code is current through Ordinance 1681, and legislation passed throug… 3.15.060 Use tax rate. An excise tax is hereby imposed on the storage, use or other consumption in the city of tangible personal property (physical merchandise) purchased from any retailer on and after the operative date of this chapter for storage, use or other consumption in said territory at the rate of one-half percent one and one half (1.5%) of the sales price of the property on and after the operative date of this chapter, prior to which the tax rate shall be as previously imposed by voter approval of Measure G (November 2014). The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 3.15.070 Operative date. “Operative date” means the first day of the first calendar quarter commencing more than one hundred ten days after the adoption of the ordinance codified in this chapter. 3.15.080 Contract with state. Prior to the operative date, the city shall contract with the State Board of Equalization California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax chapter; provided, that if the city shall not have contracted with the State Board of Equalization California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.15.090 Place of sale. For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization California Department of Tax and Fee Administration. Item 7 Packet Page 75 San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments The San Luis Obispo Municipal Code is current through Ordinance 1681, and legislation passed throug… 3.15.100 Adoption of provisions of state law. Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this chapter as though fully set forth herein. 3.15.110 Limitations on adoption of state law and collection of use taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the state of California is named or referred to as the taxing agency, the name of this city shall be substituted therefor. However, the substitution shall not be made when: 1. The word “state” is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California. 2. The result of that substitution would require action to be taken by or against this city or any agency, officer, or employee thereof rather than by or against the State Board of Equalization California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this chapter. 3. In those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the state of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the state under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property, which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word “city” shall be substituted for the word “state” in the phrase “retailer engaged in business in this state” in Section 6203 and in the definition of that phrase in Section 6203. Item 7 Packet Page 76 San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments The San Luis Obispo Municipal Code is current through Ordinance 1681, and legislation passed throug… 3.15.120 Permit not required. If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this chapter. 3.15.130 Exemptions and exclusions. The following transactions shall be exempted and excluded: A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the state of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this state, the United States, or any foreign government. 2. Sales of property to be used outside the city which is shipped to a point outside the city, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this section, delivery to a point outside the city shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out- of-city address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-city and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter. Item 7 Packet Page 77 San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments The San Luis Obispo Municipal Code is current through Ordinance 1681, and legislation passed throug… 4. A lease of tangible personal property, which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this chapter. 5. For the purposes of subsections (B)(3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this chapter the storage, use or other consumption in this city of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state- administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this chapter. 5. For the purposes of subsections (C)(3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subsection (C)(7) of this section, a retailer engaged in business in the city shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the city or participates within the city in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the city or through any representative, agent, canvasser, solicitor, subsidiary, or person in the city under the authority of the retailer. 7. A retailer engaged in business in the city shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of Item 7 Packet Page 78 San Luis Obispo Municipal Code Chapter 3.15 – Draft Amendments The San Luis Obispo Municipal Code is current through Ordinance 1681, and legislation passed throug… the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel or aircraft at an address in the city. D. Any person subject to use tax under this chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.15.140 Amendments. All amendments subsequent to the effective date of this chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this chapter; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter. 3.15.150 Enjoining collection forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the state or the city, or against any officer of the state or the city, to prevent or enjoin the collection under this chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. Item 7 Packet Page 79 R _____ RESOLUTION NO. ______ (2020 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING A CITY MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS WHEREAS, a General Municipal Election is to be held in the City of San Luis Obispo, California, on November 3, 2020, at which time there will be submitted to the voters the following measure: City of San Luis Obispo Community Services/Investment. Shall an ordinance to provide funding to protect City of San Luis Obispo’s financial stability; maintain fire/community safety, health emergency/disaster preparedness; protect creeks from pollution; address homelessness; keep public areas clean/safe; retain local businesses; maintain youth/senior services, streets, open space/natural areas, and other general services, by extending voter-approved funding at a 1.5¢ rate, providing approximately $21,600,000 annually until ended by voters; requiring audits/all funds used locally, be adopted? YES NO WHEREAS, Section 9282 of the Election Code of the State of California authorize the filing of arguments for and against the adoption of said measures and for the City Elections Official to enclose a printed copy of such arguments with the sample ballot provided to the electors of the City. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo, as follows: SECTION 1. That the City Council authorizes (i) all or any members of the City Council, (ii) a bona fide association of such citizens, (iii) any individual voter eligible to vote on the above measure or (iv) any combination thereof to file written arguments not exceeding 300 words regarding the City measure specified above, accompanied by the printed names and signatures of the authors submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California and to change the arguments until and including the date fixed by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk. The arguments shall be accompanied by a "Form of Statement to be Filed by the Authors of the Argument." _____________ (Council Member in Favor) ____________(Council Member in Against) _____________ (Council Member in Favor) ____________(Council Member in Against) _____________ (Council Member in Favor) ____________(Council Member in Against) _____________ (Council Member in Favor) ____________(Council Member in Against) _____________ (Council Member in Favor) ____________(Council Member in Against) Item 7 Packet Page 80 Resolution No. ______ (2020 Series) Page 2 R _____ SECTION 2. All arguments shall be filed with the City Clerk, signed with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. An argument may not be signed by more than five authors. In case any argument is signed by more than five authors, the signatures of the first five shall be printed. SECTION 3. Pursuant to Election Code 9287, in the event more than one argument for or more than one argument against the ballot measure is submitted to the City Clerk within the time prescribed, the City Clerk shall select one of the arguments in favor and one of the arguments against each measure for printing and distribution to the voters. In selecting the argument, the City Clerk shall give preference and priority, in the order named, to the arguments of the following: (a) The legislative body, or member or members of the legislative body authorized by that body; (b) The individual voter, or bona fide association of citizens, or combination of voters and associations, who are the bona fide sponsors or proponents of the measure; (c) Bona fide associations of citizens; and (d) Individual voters who are eligible to vote on the measure. SECTION 3. That the City Council directs the City Clerk to transmit a copy of the measure to the City Attorney who shall prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure. The analysis shall include a statement indicating whether the measure was placed on the ballot by a petition signed by the requisite number of voters or by the governing body of the City. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments. Item 7 Packet Page 81 Resolution No. ______ (2020 Series) Page 3 R _____ SECTION 4. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. Upon motion of Council Member, seconded by Council Member, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of ______, 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ____________________________________ Teresa Purrington, City Clerk Item 7 Packet Page 82 R ____ RESOLUTION NO. _______ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS WHEREAS, a General Municipal Election is to be held in the City of San Luis Obispo, California, on November 3, 2020, at which time there will be submitted to the voters the following measure: City of San Luis Obispo Community Services/Investment. Shall an ordinance to provide funding to protect City of San Luis Obispo’s financial stability; maintain fire/community safety, health emergency/disaster preparedness; protect creeks from pollution; address homelessness; keep public areas clean/safe; retain local businesses; maintain youth/senior services, streets, open space/natural areas, and other general services, by extending voter-approved funding at a 1.5¢ rate, providing approximately $21,600,000 annually until ended by voters; requiring audits/all funds used locally, be adopted? YES NO WHEREAS, Section 9285 of the Elections Code of the State of California authorizes the City Council, by majority vote, to adopt provisions to provide for the filing of rebuttal arguments for City measures submitted at municipal elections. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo, as follows: SECTION 1. That pursuant to Sections 9285 of the Elections Code of the State of California, when the Elections Official has selected the arguments for and against the measure which will be printed and distributed to the voters, the Elections Official shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor immediately upon receiving the arguments. The author or a majority of the authors of an argument related to a City measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. A rebuttal argument may not be signed by more than five authors. In case any argument is signed by more than five authors, the signatures of the first five shall be printed. The rebuttal arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing direct arguments. The rebuttal arguments shall be accompanied by a "Form of Statement to be Filed by Authors of Argument." Item 7 Packet Page 83 Resolution No. ______ (2020 Series) Page 2 R ____ Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut. SECTION 2. That all previous resolutions providing for the filing of rebuttal arguments for city measures are repealed. SECTION 3. That the provisions of Section 1 shall apply at the next ensuing municipal election and at each municipal election after that time. SECTION 4. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. Upon motion of Council Member __________, seconded by Council Member _________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on _____________________. ____________________________________ Teresa Purrington, City Clerk Item 7 Packet Page 84 DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of June 30, 2020 Page 1 Minutes - DRAFT REVENUE ENHANCEMENT OVERSIGHT COMMISSION Tuesday, June 30, 2020 Regular Meeting of the Revenue Enhancement Oversight Commission CALL TO ORDER A Regular Meeting of the San Luis Obispo Revenue Enhancement Oversight Commission was called to order on Tuesday, June 30, 2020 at 5:32 p.m., by Chair Coates via webinar. ROLL CALL Present: Commissioners Jim Hamari, Jeannette McClure, Michael Multari, and Chair Chris Coates Absent: Vice Chair Ken Kienow Staff: Deputy City Manager Greg Hermann, Assistant to the City Manager Ryan Betz, and Deputy City Clerk Kevin Christian PUBLIC COMMENT ITEMS NOT ON THE AGENDA None. --End of Public Comment-- APPROVAL OF MINUTES 1. Consideration of Minutes of the Regular Revenue Enhancement Oversight Commission Meeting of May 14, 2020: ACTION: UPON MOTION BY CHAIR COATES SECONDED BY COMMISSIONER MULTARI, CARRIED 4-0-1, to approve the Minutes of the Regular Revenue Enhancement Oversight Commission Meeting of May 14, 2020. Item 7 Packet Page 85 DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of June 30, 2020 Page 2 BUSINESS ITEMS 2. Consideration of a Potential General Sales Tax Renewal Measure Deputy City Manager Greg Hermann and Assistant to the City Manager Ryan Betz provided a PowerPoint presentation and responded to Commissioner inquiries. Public Comment Ken Kienow --End of Public Comment-- ACTION: UPON MOTION BY COMMISSIONER MULTARI, SECONDED BY COMMISSIONER McCLURE, CARRIED 4-0-1 to recommend to the City Council that they authorize placing a ballot measure on the November 3, 2020 ballot to extend the existing half cent ($0.005) general sales tax with a one cent ($0.01) increase, until ended by voters, provided that there is support shown for the tax in the survey currently being conducted. COMMENT AND DISCUSSION 3. Staff Updates Deputy City Manager Greg Hermann recognized Commissioners Multari and Kienow for their service on the Commission since its inception. 4. Commission Communications ADJOURNMENT The meeting was adjourned at 6:58 p.m. APPROVED BY THE REVENUE ENHANCEMENT OVERSIGHT COMMISSION: XX/XX/2020 Item 7 Packet Page 86 A Fiscal Comparison with Selected Benchmark Cities June 2020 Item 7 Packet Page 87 Measuring Our Performance A Fiscal Comparison with Selected Benchmark Cities PROJECT MANAGER Ryan Betz, Assistant to the City Manager CITY STAFF Derek Johnson, City Manager Greg Hermann, Deputy City Manager Jeff Smith, Police Captain Matt Horn, Public Works Director Luke Schwartz, Transportation Manager Jennifer Rice, Transportation Planner/Engineer Devin Hyfield, Recreation Manager Miguel Guardado, Information Technology Manager Shawna Scott, Senior Planner James Blattler, Administrative Analyst, Fire Robert Hill, Sustainability & Natural Resources Official Victoria Tonikian, Interim Executive Assistant to the City Manager / Fiscal Officer Item 7 Packet Page 88 TABLE OF CONTENTS Contents INTRODUCTION .......................................................................................................................... 1 Factors that Affect Benchmark Comparisons ............................................................................. 1 FINANCIAL BENCHMARKS: RESOURCE COMPARISON ................................................... 3 Chart 1: General Fund per Capita ............................................................................................... 3 Chart 2: Sales Tax, Property Tax & Transient Occupancy Tax: Percent of Total General Fund Revenues ..................................................................................................................................... 3 Chart 3: Sales Tax Revenues per Capita ..................................................................................... 3 Chart 4: Property Tax Revenues per Capita ................................................................................ 4 Chart 5: Transient Occupancy Tax (TOT) Revenues per Capita ................................................ 4 Chart 6: Ratio of Fees to Total General Fund Revenues............................................................. 4 FINANCIAL BENCHMARKS: COST COMPARISON .............................................................. 5 Chart 7: Governmental Costs per Capita..................................................................................... 5 Chart 8: General Fund Operating Costs per Capita..................................................................... 5 Chart 9: Percent of Governmental Costs that are Interest Payments .......................................... 5 Chart 10: General Fund Allocations to Public Safety ................................................................. 6 Chart 11: General Fund Public Safety Costs per Capita ............................................................. 6 Chart 12: General Fund Allocations for General Government ................................................... 6 FINANCIAL BENCHMARKS: STAFFING COMPARISON ..................................................... 7 Chart 13: Staffing from General Fund (per 1,000 residents) ...................................................... 7 Chart 14: Sworn Police Staff (per 1,000 residents) ..................................................................... 7 Chart 15: Sworn Fire Staff (per 1,000 residents served) ............................................................. 7 OTHER BENCHMARKS: SERVICE OUTCOMES .................................................................... 8 Chart 16: Violent Crimes (Per 1,000 Residents) ......................................................................... 8 Chart 17: Fire Calls for Service (per 1,000 residents)................................................................. 8 Chart 18: Pavement Condition Index .......................................................................................... 8 CONCLUSION ............................................................................................................................... 9 BEST MANAGEMENT PRACTICES ..................................................................................... 10 SOURCE DATA ....................................................................................................................... 10 Item 7 Packet Page 89 Introduction Page 1 INTRODUCTION The City Council of San Luis Obispo adopted a Major City Goal for Fiscal Sustainability and Responsibility with a focus on efficiencies, strategic economic development, unfunded liabilities and infrastructure financing. Developing a benchmark study helps illustrate how the City of San Luis Obispo is performing compared to similar cities across a number of performance measures. The City is committed to delivering the services, maintenance and infrastructure improvements the community values most. This benchmark study evaluates the most current data on financial performance such as revenue diversity, expense allocation, staffing costs, and debt management. Service costs do not always reflect service levels or efficiency, so the study also compares service outcomes like crime rates, fire response and pavement condition. The results indicate that San Luis Obispo is close to the median on most comparisons. To ensure consistency with the 2014 Benchmark Study, the same eight cities were chosen for comparison to San Luis Obispo (population 46,800, General Fund $72.4M). 1. Davis (68,700, $69M) 2. Monterey (28,600, $78M) 3. Napa (79,300, $89M) 4. Palm Springs (48,700, $95M) 5. Santa Barbara (94,800, $131M) 6. Santa Cruz (65,800, $104M) 7. Santa Maria (106,600, $72M) 8. Paso Robles (31,200, $37M) Each selected city shares many characteristics, including: 1. Full-service city that provides a wide range of core services directly, including police, fire, street maintenance, planning, and parks and recreation. 2. County seat or largest city in the nearby vicinity. 3. Distinct regional identity separate from a large metropolitan area. 4. Major employment, commercial, cultural and government urban center. 5. Quality of life community. 6. Mid-size city, with populations ranging from 28,000 to 107,000. 7. Implemented or re-authorized a sales tax measure during the past 10 years. 8. College community and/or major tourism. 9. Slow growth: between -0.5% and 1.5% population change from 2018 to 2019. The objective is to provide a snapshot of how San Luis Obispo measures up to similar cities in California. The study also provides the opportunity to evaluate San Luis Obispo’s revenue sources in comparison with costs, services and community priorities. FACTORS THAT AFFECT BENCHMARK COMPARISONS Accurately measuring benchmarks between San Luis Obispo and the selected cities can be a difficult task. Comparisons do not tell the entire story because every city differs on a variety of issues, including but not limited to geography, daytime versus resident population, accounting methods, and fund management. Item 7 Packet Page 90 Introduction Page 2 Geography Fire service in San Luis Obispo is impacted by mountains, freeways, railroad tracks and other unique topographical features. To meet the ideal four minute fire response time, the City’s Fire Department has to maintain and staff four separate fire stations, which can inflate costs when compared to other cities with less challenging geography and/or less fire stations. Daytime Population San Luis Obispo’s resident population is approximately 46,800, but the City realizes a peak population of 75,000- 90,000 citizens expecting services during “normal business hours.” In addition, the peak daytime population of nearby Cal Poly is 25,000 citizens that are also covered by contract City services, including Fire Department emergency response service 24 hours a day, seven days a week. Accounting Methods Every city budgets and accounts for service costs differently. For example, some cities account for internal services like printing, fleet maintenance, insurance and information technology using “internal service funds”, which charge user departments for their services. Other cities (like San Luis Obispo) account for internal service costs in the General Fund and use a cost allocation plan in distributing costs to other departments and funds. For public services like paving, street lighting, or storm drain maintenance, some cities account for these services in separate special revenue or enterprise funds, while others account for them solely in their General Fund. The “General Fund” can be a relative term, and those cities that use separate funds to account for services that others account for in their General Fund may appear to have lower General Fund costs. Fund Management The services that cities provide can be divided into two major groups: governmental and enterprise. Governmental activities include: police, fire, capital projects, planning and building inspections, street maintenance, recreation and park maintenance. Governmental activities costs and cash balances are typically tracked using the General Fund, Capital Outlay Fund, and other miscellaneous funds like Debt Service or Special Revenue Funds. Enterprise activities are fee-for-service operations ranging from water services to international airports. Enterprise Funds vary widely which makes them difficult to compare statistically. The majority of financial comparisons provided in this benchmark study focus on governmental activities since they are more uniform across the sample cities and consistently reported in a city’s Comprehensive Annual Financial Report (CAFR). Comparison of Enterprise Services provided by Benchmark Cities Service San Luis Obispo Davis Monterey Napa Palm Springs Santa Cruz Santa Barbara Santa Maria Paso Robles Water X X X X X X X Sewer X X X X X X X Parking X X X X Transit X X X X Golf X X X X Solid Waste X X X X X X Stormwater X X Marina X X Airport X X Cemetery X Presidio X Housing X X Item 7 Packet Page 91 Financial Benchmarks Resource Comparison Page 3 FINANCIAL BENCHMARKS: RESOURCE COMPARISON CHART 1: GENERAL FUND PER CAPITA CHART 2: SALES TAX, PROPERTY TAX & TRANSIENT OCCUPANCY TAX: PERCENT OF TOTAL GENERAL FUND REVENUES CHART 3: SALES TAX REVENUES PER CAPITA Cities typically have two major governmental funds: the General Fund and Capital Outlay Fund. Other minor governmental funds can include Special Revenue Funds, like a Business Improvement District, or Debt Service Funds. The size of San Luis Obispo’s General Fund per capita is the median among benchmark cities. It is primarily used for operating programs (84%), debt service (5%), and capital improvement plan (8%) expenditures. Sales tax, property tax and transient occupancy tax (TOT) account for at least 40% of total General Fund revenues in all benchmark cities. These top three revenues account for only 62% of San Luis Obispo’s General Fund revenues, which implies that there is a diverse revenue base. This financial risk management tool allows San Luis Obispo to weather changes in the economy better than other municipalities that rely on only a few revenues to make up most of the total revenue base. San Luis Obispo has the 2nd strongest sales tax revenues per capita. It is the City’s top revenue source; about one-third of total General Fund revenues. The majority of cities have a local add-on sales tax (Measure G in San Luis Obispo) that generates local revenue (ranging 0.25% to 2% per dollar). San Luis Obispo’s strong sales tax revenues are due to its regional sales draw, tourism, and nearby student shoppers. According to a recent sales tax study, approximately 70% of every dollar the City collects in sales tax is paid by non-residents. $500 $1,500 $2,500 $3,500 $4,500 Palm Springs Monterey Santa Cruz Santa Barbara San Luis Obispo Paso Robles Napa Davis Santa Maria 40%50%60%70%80%90%100% Santa Maria Paso Robles Napa Santa Barbara San Luis Obispo Palm Springs Santa Cruz Monterey Davis $200 $300 $400 $500 $600 $700 $800 $900 Palm Springs San Luis Obispo Santa Barbara Paso Robles Santa Maria Santa Cruz Monterey Napa Davis Item 7 Packet Page 92 Financial Benchmarks Resource Comparison Page 4 CHART 4: PROPERTY TAX REVENUES PER CAPITA CHART 5: TRANSIENT OCCUPANCY TAX (TOT) REVENUES PER CAPITA CHART 6: RATIO OF FEES TO TOTAL GENERAL FUND REVENUES San Luis Obispo’s property tax revenues per capita are in the lower percentile of benchmark cities. Proposition 13, adopted by California voters in 1978, limits the amount of annual growth in assessed values to a maximum of 2% per year. This makes property tax a relatively static revenue source that grows slowly as ownerships change and new property values are assessed. TOT revenue is largely generated by visitors staying in hotels, which can indicate which cities have strong tourist economies. TOT is specialized because it focuses on one part of a local economy: tourism. It is not as broad-based as sales tax. Significant TOT rate increases would be needed to generate the same amount of revenue as a general sales tax; San Luis Obispo’s TOT rate would have to go from 10% to 21.9% to equal revenue from Measure G. Significant increases to TOT could create a competitive disadvantage in the local market. $100 $200 $300 $400 $500 $600 $700 Palm Springs Napa Paso Robles Santa Barbara Santa Cruz Monterey San Luis Obispo Davis Santa Maria $- $200 $400 $600 $800 Monterey Palm Springs Napa Santa Barbara Paso Robles San Luis Obispo Santa Cruz Santa Maria Davis 0%5%10%15%20% Santa Cruz Davis Napa San Luis Obispo Santa Barbara Santa Maria Monterey Paso Robles Palm Springs This chart shows the comparison of how much General Fund revenue is generated by service fees like building permits and business licenses. Increasing cost recovery through service charges is a local City Council decision and has historically been part of San Luis Obispo’s budget-balancing strategy. However, fees should never exceed the actual total cost of providing services. Item 7 Packet Page 93 Financial Benchmarks Cost Comparison Page 5 FINANCIAL BENCHMARKS: COST COMPARISON CHART 7: GOVERNMENTAL COSTS PER CAPITA CHART 8: GENERAL FUND OPERATING COSTS PER CAPITA CHART 9: PERCENT OF GOVERNMENTAL COSTS THAT ARE INTEREST PAYMENTS Governmental activities include costs for police, fire, planning, building inspections, capital projects, recreation and parks maintenance, and general government. All of the benchmark cities provide these essential services. Enterprise operations (fee for service) costs are not included in this comparison. What cities choose to include in enterprise operations varies widely making it a difficult cost category to evaluate. The General Fund is the primary operating fund for most cities. It is used for essential services (e.g. public safety, maintenance), but does not include other governmental activities like capital purchases and construction projects. Most cities maintain a separate Capital Outlay Fund for these costs. This chart shows a comparison of how much interest benchmark cities pay on long-term debt. Cities use debt financing for long-term investments such as a fire station. Costs for debt obligations constrain available resources. Less than 1% of San Luis Obispo’s governmental costs are interest payments on long-term debt, which is below the median, and about 3.6% below benchmark cities on the high end of the spending range. *Santa Barbara did not record any interest payments in 2018-19 $200 $700 $1,200 $1,700 $2,200 $2,700 Monterey Palm Springs Santa Barbara Santa Cruz San Luis Obispo Napa Paso Robles Davis Santa Maria $500 $1,000 $1,500 $2,000 $2,500 $3,000 Monterey Palm Springs Santa Cruz San Luis Obispo Santa Barbara Paso Robles Napa Davis Santa Maria 0%1%2%3%4%5% Palm Springs Paso Robles Monterey Santa Cruz San Luis Obispo Napa Santa Maria Davis Santa Barbara* Item 7 Packet Page 94 Financial Benchmarks Cost Comparison Page 6 CHART 10: GENERAL FUND ALLOCATIONS TO PUBLIC SAFETY CHART 11: GENERAL FUND PUBLIC SAFETY COSTS PER CAPITA CHART 12: GENERAL FUND ALLOCATIONS FOR GENERAL GOVERNMENT Public safety costs for police and fire services are the most significant General Fund allocations in San Luis Obispo, accounting for about 43% of general operating costs. When compared to the eight benchmark cities, San Luis Obispo is below the median (47%). San Luis Obispo’s public safety allocation is 24% Police and 19% Fire. This allocation ratio is consistent with most benchmark cities. The exceptions are Santa Maria (larger allocation to police). San Luis Obispo’s police service and fire service cost per capita is $666. This is below the median. San Luis Obispo’s Fire Department is unique because it is under contract to serve an area beyond the City boundaries, the Cal Poly campus. The total “per capita” number for fire service costs was increased in Chart 11 by the number of beds on campus (8,000) to present a more accurate ratio of public safety costs per total residents served. General government costs include staffing and resources that support all governmental activities including City Administration, Attorney’s Office, City Clerk, Information Technology, Finance, and Human Resources. General government costs may also support enterprise activities. San Luis Obispo adopted a cost allocation plan that reimburses General Fund from Enterprise Funds for administrative support costs. The numbers shown in this chart for San Luis Obispo are net totals after reimbursements. 30%40%50%60%70% Santa Maria Monterey Napa Santa Cruz Santa Barbara Paso Robles San Luis Obispo Davis Palm Springs $- $500 $1,000 $1,500 Monterey Davis Palm Springs Santa Cruz Santa Barbara Napa San Luis Obispo Paso Robles Santa Maria 5%10%15%20% Santa Cruz Paso Robles Palm Springs Napa San Luis Obispo Santa Barbara Santa Maria Davis Monterey Item 7 Packet Page 95 Financial Benchmarks Staffing Comparison Page 7 FINANCIAL BENCHMARKS: STAFFING COMPARISON CHART 13: STAFFING FROM GENERAL FUND (PER 1,000 RESIDENTS) CHART 14: SWORN POLICE STAFF (PER 1,000 RESIDENTS) CHART 15: SWORN FIRE STAFF (PER 1,000 RESIDENTS SERVED) Chart 13 compares the number of regular authorized General Fund staff positions, per 1,000 residents, across all benchmark cities. San Luis Obispo is below the median compared to the benchmark cities. Police staff are a subset of General Fund staffing. According to the Bureau of Justice Statistics, local police departments serving populations of 50,000- 99,999 residents employed an average of 1.7 officers per 1,000 residents. San Luis Obispo has approximately 1.3 officers per 1,000 residents (and has an even lower ratio if daytime population is considered). Fire staff are also a subset of General Fund staffing. San Luis Obispo Fire Department is unique because it is under contract to serve an area beyond the City boundaries, the Cal Poly Campus. The total number of “residents” was increased in Chart 15 by the number of beds on campus (8,000) to present a more accurate ratio of sworn fire staff per total residents served. 2 4 6 8 10 12 14 16 18 Monterey Santa Cruz Palm Springs Santa Barbara San Luis Obispo Davis Santa Maria Napa Paso Robles 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Monterey Palm Springs Paso Robles Santa Barbara San Luis Obispo Santa Cruz Napa Davis Santa Maria 0.0 0.5 1.0 1.5 2.0 Palm Springs Monterey Santa Barbara Santa Cruz San Luis Obispo Santa Maria Paso Robles Napa Davis Item 7 Packet Page 96 Other Benchmarks Service Outcomes OTHER BENCHMARKS: SERVICE OUTCOMES CHART 16: VIOLENT CRIMES (PER 1,000 RESIDENTS) CHART 17: FIRE CALLS FOR SERVICE (PER 1,000 RESIDENTS) CHART 18: PAVEMENT CONDITION INDEX According to the FBI, San Luis Obispo is within the middle range of benchmark cities in terms of violent crime (murder, manslaughter, rape, robbery, and aggravated assault. The FBI also reports that incidences of property crime in San Luis Obispo are the fifth highest of all benchmark cities (Santa Maria, Palm Springs, Santa Barbara, and Santa Cruz are higher). Fire responses includes hazardous material spills, vehicle and vegetation fires, heavy rescues, structure fires and medical emergencies. San Luis Obispo’s low number of responses indicates that proactive fire prevention activities are working well. San Luis Obispo’s Fire Department is unique because it serves an area beyond the City boundaries, the Cal Poly campus. The Pavement Condition Index (PCI) is a National standard on a 0-100 scale that indicates the quality of a city’s pavement. Generally, the scale is: 100 - 70 Good/Excellent; 50-70 At Risk; 0-50 Poor/Failed. The 2018 California Statewide Local Roads Needs Assessment concludes the average California road PCI is 66 (San Luis Obispo was 73). San Luis Obispo’s “Good/Excellent” rating is directly related to the annual average pavement investment from Measure G sales tax revenues. 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Santa Cruz Palm Springs Santa Maria Santa Barbara San Luis Obispo Monterey Napa Davis Paso Robles 40 50 60 70 80 90 100 Santa Maria San Luis Obispo Santa Cruz Monterey Paso Robles Davis Santa Barbara Napa 0 50 100 150 200 250 300 Monterey Palm Springs Santa Maria San Luis Obispo Napa Paso Robles Santa Cruz Santa Barbara Davis Item 7 Packet Page 97 Conclusion Page 9 CONCLUSION The 2020 Benchmark Study was developed using data primarily from FY 2018-19 and before the COVID-19 pandemic. Despite the social and financial impacts of the pandemic, the City continues to deliver essential services and maintain facilities. The City’s financial operations is at the average operating costs and debt levels. In some categories, such as fire service, being below average on costs is especially significant given service level differences among benchmark cities. Santa Maria does not provide advanced life support (paramedic) services, and Santa Barbara, Santa Cruz, and Napa do not provide advanced life support by all emergency response crews. Only San Luis Obispo and Paso Robles provide this service by all emergency response crews. The provision of advanced life support services increases costs related to personnel, training, administration, and equipment, and approximately 70% of San Luis Obispo’s fire emergency response activities are for medical emergencies. Comparison of service outcomes reveals that San Luis Obispo is among the safest communities in terms of violent crime and fire emergencies. San Luis Obispo’s pavement condition index, an indicator of street quality, is slightly above the median compared to the benchmark cities. Staffing levels are consistent with benchmark cities as well, with San Luis Obispo hitting the median in the staffing areas selected for comparison. San Luis Obispo was near the top of the benchmark range on one item: Sales Tax Revenue per Capita. This result indicates that sales tax is vital for delivering quality levels of service to the community. According to the 2019-21 City of San Luis Obispo Financial Plan, 41% of total General Fund revenue comes from sales tax, 28% from property tax, and 13% from TOT. Approximately 30% of sales tax comes from the local revenue measure (Measure G) that adds a half-percent to the County sales tax rate. Measure G generates $7-8 million annually or about 12% of total in General Fund revenue in San Luis Obispo. All eight benchmark cities have add-on local sales tax measures, and the remaining five cities in San Luis Obispo County do as well. Six of the eight benchmark cities generate more revenue from property tax and TOT than San Luis Obispo. As a comparison, the average sales tax rate for cities in the state is 8.66%. The Local Revenue Measure has been in effect for fourteen years and is set to expire in March 2023. More information on Local Revenue Measure, including expenditures, public feedback, and timelines, is available at slocity.org. CITY LOCAL SALES TAX RATE San Luis Obispo 7.75% Benchmark Cities Napa 7.75% Paso Robles 7.75% Davis 8.25% Monterey 8.75% Santa Barbara 8.75% Santa Maria 8.75% Palm Springs 9.25% Santa Cruz 9.25% Other Cities in SLO County (Non-Benchmark) Atascadero 7.75% Arroyo Grande 7.75% Grover Beach 7.75% Morro Bay 7.75% Pismo Beach 7.75% Item 7 Packet Page 98 Conclusion Page 10 BEST MANAGEMENT PRACTICES Beyond benchmark comparisons, it is prudent to evaluate whether San Luis Obispo is implementing general best management practices (BMPs) for local governments. The City has adopted and implemented many BMPs for financial management, including: 1. Multi-year budgeting 2. Long-term fiscal forecasts 3. Integration of goal-setting into the budget process 4. Development of fiscal contingency plans 5. Use of generally accepted accounting principles and audits by independent certified public accountants 6. Effective ongoing monitoring of our financial condition 7. Long-term capital improvement plans 8. Use of comprehensive fiscal policies as the foundation for decision-making Many of these BMPs come from Fitch Ratings (one of the “big three” national credit rating agencies), who has formally integrated them into their rating systems. The City recently received affirmation from the nationally recognized statistical rating organization Standard & Poor’s Ratings (S&P) that City bond ratings remain “AA” and the rating outlook is stable. S&P’s long-term credit ratings are assigned on an alphabetic scale from AAA to C. The bond rating AA means that the City’s investment grade is “quality”. The City’s 2018 Lease Revenue Bonds are rated AA, and the City’s implied General Obligation bond rating is AA+. Currently, the City of San Luis Obispo has no general obligation debt. In reaching its decision, S&P’s analysts lauded the City’s “excellent financial management.” The analysis noted factors that led to their conclusion including (1) active budget monitoring by the City Council and staff, (2) comprehensive financial policies, and (3) the use of long-term budget planning to provide a solid framework for managing financial resources through unexpected budgetary challenges during the economic downturn. S&P analysts noted that the City has robust fiscal management and recovered quickly from the Great Recession. SOURCE DATA • Department of Justice Federal Bureau of Investigation. 2018 Crime in the United States Report. • California Polytechnic State University. 2014. Cal Poly Quick Facts. http://calpoly.edu • Cities of Davis, Monterey, Napa, Palm Springs, El Paso de Robles, Santa Barbara, Santa Cruz, Santa Maria, San Luis Obispo. June 2019. Comprehensive Annual Financial Reports and Budget Documents. • Strategic Economics. 2020. San Luis Obispo Retail Sales Analysis. For questions or comments on this benchmark study, please contact Ryan Betz, City of San Luis Obispo Administration, (805) 781-7589 or rbetz@slocity.org Item 7 Packet Page 99 STRATEGIC ECONOMICS | 2991 SHATTUCK AVE. BERKELEY, CA. 94705 | 510.647.5291 MEMORANDUM To: Georgina Bailey, Management Fellow, City of San Luis Obispo From: Derek W. Braun, Senior Associate Jesse Brown, Associate Date: March 18, 2020 Subject: Retail Sales and Leakage Analysis INTRODUCTION The City of San Luis Obispo retained Strategic Economics to prepare a retail sales analysis to estimate the share of retail spending attributable to city residents compared to non-residents. The City commissioned this analysis in order to inform discussion of renewing or amending the existing, voter- approved Local Revenue Measure (Measure G) as part of City Council’s “SLO Forward” effort. This memorandum describes the methodology and results of the retail sales analysis for both San Luis Obispo as a whole and in five subareas of the city. The first section provides a summary of key findings, and the second describes the retail analysis methodology. SUMMARY OF FINDINGS Citywide Findings Shoppers in San Luis Obispo spent a total of $1.47 billion on taxable and non-taxable retail sales in 2018. Retail sales in the Auto Dealers and Suppliers category accounted for the largest share of sales (22 percent), followed by Eating and Drinking Places (13 percent) and General Merchandise (13 percent). Non-resident spending contributed the largest share of retail sales in San Luis Obispo, accounting for an estimated $1 billion dollars in 2018. As an employment center, tourist destination, and major city within the region, San Luis Obispo attracts a wide variety of non-residents who purchase goods at retail establishments within the city. This analysis indicates that 69 percent of retail sales can be attributed to those living outside the city. Tourists, regional shoppers, and other non-residents generate 54 percent of total retail sales. Those who are employed in the city but do not live in the city account for a smaller but still notable 15 percent of total spending. Item 7 Packet Page 100 San Luis Obispo Retail Sales Analysis 2 FIGURE 1: ESTIMATED SHARE OF RETAIL SPENDING BY GROUP, CITY OF SAN LUIS OBISPO, 2018 (2018 DOLLARS) Spending Group Annual Retail Spending Share Visitors, Regional Shoppers and Other Non-Residents $802,165,751 54% Residents $456,363,155 31% Non-Resident Workers $217,988,809 15% Total $1,476,517,715 Source: HdL, 2018; City of San Luis Obispo, 2018; Strategic Economics, 2020. FIGURE 2: ESTIMATED SHARE OF RETAIL SPENDING BY GROUP, CITY OF SAN LUIS OBISPO, 2018 Source: HdL, 2018; City of San Luis Obispo, 2018; Strategic Economics, 2020. Subarea Analysis Findings Downtown San Luis Obispo is a regional destination that serves city residents, workers, regional shoppers, and out-of-town visitors. Downtown generated 13 percent of all retail sales in the city in 2018, making it the second largest source of sales among the subareas. 41 percent of the area’s retail sales were generated by Eating and Drinking Places and 24 percent from Apparel Stores. While the citywide estimate suggests that about half of the spending in these categories comes from visitors, the share of visitor spending may be higher in Downtown due to its regional draw. The Los Osos Valley Road Corridor generates the largest share of sales among subareas in the city (36 percent in 2018) and is likely a major source of non-resident spending. 43 percent of retail sales in the LOVR Corridor came from Auto Dealers and Supplies, a category likely to attract a high share of spending from non-residents since dealerships draw shoppers from a large regional trade area. Additionally, the large chain and big box stores in the LOVR Corridor, such as Costco, Target, and Home Depot, draw from a large trade area and are likely to capture a high share of non-resident spending. The Madonna Road Area’s diverse range of establishments in Furniture and Appliances, Eating and Drinking Places, Other Retail Stores, and General Merchandise likely serves a mix of both local and Visitors, Regional Shoppers and Other Non- Residents 54% Residents 31% Non- Resident Workers 15% Item 7 Packet Page 101 San Luis Obispo Retail Sales Analysis 3 regional shoppers. The Madonna Road Area is the third largest subarea in terms of retail sales, generating seven percent of citywide retail sales in 2018. The Foothill Area’s businesses likely serve both resident and non-resident shoppers, including non- residents passing through via Highway 1 and living, working, or visiting at the nearby Cal Poly campus. The area contains mostly smaller retail businesses located along Foothill Boulevard and within the University Square Shopping Center. The Foothill Area accounted for three percent of citywide retail sales in 2018. Since the Airport Area largely consists of light industrial uses accommodating a wide range of business types, the area’s retail sales are a relatively small share of the area’s total sales. The subarea largely consists of light industrial uses accommodating production, distribution, and repair service businesses, and airport-related uses such as car rental agencies. While the Airport Area generated four percent of citywide retail sales in 2018, the exact mix of the area’s resident versus non-resident spending is less certain since the types of businesses vary widely. Retail sales also represent a relatively small portion of total sales in the Airport Area since 44 percent of the area’s 2018 sales tax revenue was generated in business-to-business sales categories. Item 7 Packet Page 102 San Luis Obispo Retail Sales Analysis 4 RETAIL SALES ANALYSIS To estimate the share of retail spending within the City of San Luis Obispo that is attributable to city residents compared to non-residents, Strategic Economics prepared a retail leakage analysis that measured the difference between the buying power (demand) of the household population in San Luis Obispo and the actual sales (supply) in the city limits. This type of analysis allows for an evaluation of how much local spending is attributable to residents. The following sections describe the methodology and results of the retail sales analysis, including citywide retail sales, resident spending and non- resident spending. Citywide Retail Sales An estimate of annual citywide retail sales was calculated using data on sales tax revenues in the City of San Luis Obispo, provided by HdL. The HdL data reflected the local one percent share of total taxable sales received by the City under the “Bradley-Burns” state sales tax allocation formula.1 Therefore, total taxable sales were estimated by dividing sales tax revenues by one percent. However, not all items sold are taxable, such as groceries and prescription drugs. To convert taxable sales to total sales, certain categories were adjusted based on assumptions about the share of non-taxable sales in those categories. The estimated retail sales in 2018 for the City of San Luis Obispo total over $1.47 billion. Shoppers spent the most on Auto Dealers and Supplies, about 22 percent of total sales. Eating and Drinking Places and General Merchandise represented the next largest categories, followed by Building Materials and Food stores. FIGURE 3: CITY OF SAN LUIS OBISPO RETAIL SALES, 2018 (2018 DOLLARS) Type of Business Sales Tax Estimated Sales Share of Sales Apparel Stores $727,348 $72,734,800 5% Auto Dealers and Supplies $3,232,724 $323,272,400 22% Building Materials $1,622,945 $162,294,500 11% Drug Stores $161,988 $24,543,636 2% Eating and Drinking Places $1,849,090 $184,909,000 13% Food Stores $471,375 $157,125,000 11% Furniture and Appliances $1,057,352 $105,735,200 7% General Merchandise $1,793,534 $188,793,053 13% Packaged Liquor $152,896 $15,289,600 1% Service Stations $943,203 $99,284,526 7% Other Retail Stores $1,425,360 $142,536,000 10% Total $13,437,815 $1,476,517,715 Note: The growing popularity of online shopping has negatively impacted sales in traditional retail stores across the nation, while spending is typically increasing at restaurants, bars, and entertainment venues that provide experiences that cannot be replicated online. Source: HdL, 2018; City of San Luis Obispo, 2018; Bureau of Labor Statistics, 2018; Strategic Economics, 2020. 1 For an explanation of the Bradley-Burns formula, see https://www.cdtfa.ca.gov/taxes-and-fees/local-and-district-taxes.htm Item 7 Packet Page 103 San Luis Obispo Retail Sales Analysis 5 Resident Spending Analysis This section describes the methodology used to estimate the annual retail spending of residents within the City of San Luis Obispo. According to U.S. Census American Community Survey 2012-2017 estimates, there are 18,728 households located within the City of San Luis Obispo. These households were assumed to conduct most of their spending within city limits, including both convenience goods (daily needs such as food and personal care items) and comparison goods (larger items that are purchased infrequently, such as furniture, appliances, and clothing). METHODOLOGY Retail spending by San Luis Obispo households was calculated by estimating average annual household spending in the city and multiplying this by the number of households. The methodology, data sources, and estimated revenues are described below and shown in Figure 4.  Average annual household spending : The average amount a household spends in each retail category was estimated using data from the U.S. Bureau of Labor Statistics (BLS) 2017-2018 Consumer Expenditure (CE) Survey. To best approximate household spending patterns in the City of San Luis Obispo, the analysis used data for the “Western” region and for households earning between $70,000 to $99,999.  City capture rate: A city sales capture rate was applied to account for the proportion of spending that may take place outside San Luis Obispo. The share of spending within the city was assumed to vary for different retail categories. For example, nearly all of spending on Drug and Food Stores was assumed to take place within the city, while some spending at Eating and Drinking Places and Service Stations was assumed to be distributed outside the city due to travel and vacations.  Annual spending from households in the city: The total amount of resident spending within the city was calculated by multiplying the average household spending within the city by the number of households in the city. RESULTS: TOTAL RESIDENT SPENDING San Luis Obispo households were estimated to spend a total of $456 million each year on retail in the city, with average household spending of $24,368 annually.2 Residents spend the most locally at grocery and other food retail businesses for preparing food at home, with one-fifth of household spending in the Food Stores category. Households in San Luis Obispo also spend a significant share of their total retail spending in the city at businesses in the Eating and Drinking Places (16 percent) and Auto Dealers and Suppliers categories (15 percent). 2 This does not represent the total amount households spend each year, as housing, healthcare and insurance costs are not included and can account for a significant share of annual household spending. Item 7 Packet Page 104 San Luis Obispo Retail Sales Analysis 6 FIGURE 4: ESTIMATED HOUSEHOLD SPENDING, CITY OF SAN LUIS OBISPO (2018 DOLLARS) Type of Business Average Spending Per Household City Capture Rate Average Spending Per Household in the City Annual Spending Households in the City Apparel Stores $2,213 85% $1,881 $35,228,304 Auto Dealers and Supplies $3,926 95% $3,730 $69,849,822 Building Materials $619 95% $588 $11,009,442 Drug Stores $667 95% $634 $11,866,997 Eating and Drinking Places $4,504 85% $3,828 $71,698,275 Food Stores $5,431 95% $5,159 $96,626,180 Furniture and Appliances $3,198 85% $2,718 $50,908,322 General Merchandise $794 85% $675 $12,639,527 Packaged Liquor $806 95% $766 $14,340,030 Service Stations $2,750 75% $2,063 $38,626,500 Other Retail Stores $2,737 85% $2,326 $43,569,756 Total $27,645 $24,368 $456,363,155 Source: Bureau of Labor Statistics, 2018; Strategic Economics, 2020. Note: Total retail household spending does not fully represent total household spending, as housing, healthcare and insurance costs are not included. Non-Resident Spending Analysis Non-resident shoppers include tourists, those who work in San Luis Obispo but do not live in the city, and residents of the surrounding region. Those residents include students, staff, and faculty of California Polytechnic State University (Cal Poly) who live on campus or elsewhere outside the city. This section describes the methodology used to estimate the annual retail spending of non-residents within the City of San Luis Obispo. METHODOLOGY The total amount of spending by non-residents was calculated by subtracting resident spending from the citywide retail sales as shown in Figure 5. Total non-resident spending was further segmented to determine the share of non-resident worker spending. The City of San Luis Obispo is a regional employment center with three-quarters of the workforce living outside the city limits.3 Based on U.S. Census Longitudinal Employer-Household Dynamics data for 2017, of the 32,696 individual jobs in San Luis Obispo, 24,831 of associated workers do not live in the city. These employees likely purchase a variety of goods and services within the city during their workday. The estimated amount of retail spending attributable to non-resident workers was calculated using employee spending patterns data from a national survey conducted in 2011 by the International Council of Shopping Centers (ICSC).4 Average weekly spending per employee was adjusted to an annual basis and to 2018 dollars and then multiplied by the number of non-resident workers. 3 U.S. Census Bureau, Longitudinal Employer-Household Dynamics (LEHD), 2017. 4 Michael P. Niemera and John Connolly, “Office-Worker Retail Spending in a Digital Age,” International Council of Shopping Centers, 2012, http://www.icsc.org/srch/rsrch/wp/USSC_Class_091305.pdf Item 7 Packet Page 105 San Luis Obispo Retail Sales Analysis 7 RESULTS: TOTAL NON-RESIDENT SPENDING In 2018, non-residents spent over $1 billion in the City of San Luis Obispo. This accounts for 69 percent of the city’s total retail sales. A high share of sales in the Building Materials and General Merchandise categories are generated by non-residents, as well as over three-quarters of Auto Dealers and Supplies sales. Non-residents were also estimated to account for a significant share of the spending in Eating and Drinking Places and Other Retail Stores. Local-serving businesses, such as Food Stores and Drug Stores, are less dependent on non-resident spending. FIGURE 5: ESTIMATED NON-RESIDENT SPENDING, CITY OF SAN LUIS OBISPO (2018 DOLLARS) Type of Business Citywide Sales Resident Spending Non-Resident Spending Non-Resident Share Apparel Stores $72,734,800 $35,228,304 $37,506,496 52% Auto Dealers and Supplies $323,272,400 $69,849,822 $253,422,578 78% Building Materials $162,294,500 $11,009,442 $151,285,058 93% Drug Stores $24,543,636 $11,866,997 $12,676,639 52% Eating and Drinking Places $184,909,000 $71,698,275 $113,210,725 61% Food Stores $157,125,000 $96,626,180 $60,498,820 39% Furniture and Appliances $105,735,200 $50,908,322 $54,826,878 52% General Merchandise $188,793,053 $12,639,527 $176,153,525 93% Packaged Liquor $15,289,600 $14,340,030 $949,570 6% Service Stations $99,284,526 $38,626,500 $60,658,026 61% Other Retail Stores $142,536,000 $43,569,756 $98,966,244 69% Total $1,476,517,715 $456,363,155 $1,020,154,560 69% Source: HdL, 2018; City of San Luis Obispo, 2018; Strategic Economics, 2020. Item 7 Packet Page 106 San Luis Obispo Retail Sales Analysis 8 WORKER SPENDING Those who work in the City of San Luis Obispo but live outside the city limits spent nearly $218 million in the city in 2018. Non-resident worker spending represents 15 percent of total retail spending in San Luis Obispo and 21 percent of total non-resident spending in the City. FIGURE 6: ESTIMATED NON-RESIDENT WORKER SPENDING, CITY OF SAN LUIS OBISPO (2018 DOLLARS) Type of Business Annual Per Capita Spending Total Non-Resident Worker Spending Apparel Stores $636 $15,787,547 Auto Dealers and Supplies $0 $0 Building Materials $0 $0 Drug Stores $417 $10,361,430 Eating and Drinking Places $1,585 $39,346,167 Food Stores $1,185 $29,421,008 Furniture and Appliances $490 $12,174,680 General Merchandise $2,517 $62,509,417 Packaged Liquor $0 $0 Service Stations $1,551 $38,517,934 Other Retail Stores $398 $9,870,625 Total $8,779 $217,988,809 Source: ICSC, “Office Worker Retail Spending in a Digital Age,” 2012; Strategic Economics, 2020. OTHER NON-RESIDENT SPENDING Visitors, regional shoppers, and other non-residents make up the remainder of non-resident spending, totaling an estimated $802 million for 2018. Due to the proximity of Cal Poly, a significant share of this spending is likely attributable to students, staff, and faculty who live outside the city. The student population includes nearly 22,000 students. Of this total, approximately 7,744 students live on campus, which is outside of the city limits.5 Visitors from outside of the region and other tourists constitute another large share of non-resident shopping. Specific data about tourist spending in the city was not available; however, information on countywide visitor spending provides some insight. In 2018, retail spending by visitors to San Luis Obispo County was estimated at more than $1 billion (See Figure 6). Since the City of San Luis Obispo is a major destination in the region, a significant share of the total visitor spending is likely occurring in the city.6 5 https://calpolynews.calpoly.edu/quickfacts.html 6 The City of San Luis Obispo accounted for approximately 23 percent of countywide travel spending impacts in 2007. Source: Economic Vitality Corporation, San Luis Obispo County Tourism Analysis Report 2008, prepared by Strategic Marketing Associates and Dean Runyan Associates. Item 7 Packet Page 107 San Luis Obispo Retail Sales Analysis 9 FIGURE 7: VISITOR RETAIL SPENDING BY CATEGORY, SAN LUIS OBISPO COUNTY, 2018 Category Visitor Spending (millions) Food Service $513.2 Food Stores $72.7 Local Transportation & Gas $207.8 Retail Sales $281.0 Total $1,074.7 Source: California Travel Impacts 2010-2018, prepared by Dean Runyan Associates; Strategic Economics, 2020. Finally, a significant portion of non-resident spending in the City of San Luis Obispo is likely attributable to regional shoppers. These shoppers are non-residents who live outside of the city but are attracted to the quantity and variety of the city’s shops and restaurants. SUBAREA ANALYSIS In addition to estimating the citywide share of retail spending that is attributable to non-residents, Strategic Economics conducted an evaluation of five subareas of the city. The five subareas that were analyzed include: the Downtown area, the Los Osos Valley Road (LOVR) Corridor, the Madonna Road area, the Foothill area, and the Airport area (Figure 8). Together the subareas accounted for 62 percent of the total retail sales in the City in 2018 (Figure 9 and Figure 10). FIGURE 8: RETAIL SUBAREAS IN THE CITY OF SAN LUIS OBISPO Source: City of San Luis Obispo, “Sales Tax Newsletter,” 2012. Item 7 Packet Page 108 San Luis Obispo Retail Sales Analysis 10 FIGURE 9: ANNUAL RETAIL SALES BY SUBAREA, 2018 Subarea Retail Spending Share of City's Retail Spending Los Osos Valley Road Corridor $527,615,100 36% Downtown $195,333,200 13% Madonna Road Area $96,319,537 7% Airport $58,063,100 4% Foothill $43,465,700 3% Other $555,721,078 38% Citywide Total $1,476,517,715 100% Source: Strategic Economics, 2020. FIGURE 10: SHARE OF ANNUAL RETAIL SALES BY SUBAREA, 2018 Source: Strategic Economics, 2020 Strategic Economics estimated retail sales in each of the subareas based on sales tax revenue data provided by HdL and by applying the same methodology used to estimate citywide sales. Figure 11 provides a breakdown of retail sales for the top categories in each subarea. The share of non-resident spending in the subareas was not calculated since this would require sidewalk surveys or other data on the residency of individual customers. However, the composition of sales within each subarea provides insight on resident versus non-resident spending based on the findings of the citywide analysis and general trade area sizes typically associated with different retail categories. DOWNTOWN AREA Downtown San Luis Obispo is a regional destination that serves city residents, workers, regional shoppers, and out-of-town visitors. Downtown generated 13 percent of all retail sales in the city in 2018, making it the second largest source of sales among the subareas. Downtown attracts shoppers Los Osos Valley Road Corridor 36% Downtown 13% Madonna Road Area 7% Airport 4% Foothill 3% Other 38% Item 7 Packet Page 109 San Luis Obispo Retail Sales Analysis 11 from around the region to its concentration of restaurants and clothing stores. 41 percent of the area’s retail sales were generated by Eating and Drinking Places and 24 percent from Apparel Stores. While the citywide estimate suggests that about half of the spending in these categories comes from visitors, the share of visitor spending may be higher in Downtown due to its regional draw. LOS OSOS VALLEY ROAD CORRIDOR (LOVR) The LOVR Corridor consists of big box and automobile sales retailers in the southern part of the city. The LOVR Corridor generates the largest share of sales among subareas in the city (36 percent in 2018) and is likely a major source of non-resident spending. 43 percent of retail sales in the LOVR Corridor came from Auto Dealers and Supplies, a category likely to attract a high share of spending from non-residents since dealerships draw shoppers from a large regional trade area (78 percent of citywide spending in Auto Dealers and Supplies is estimated to come from non-residents). Additionally, the large chain and big box stores in the LOVR Corridor, such as Costco, Target, and Home Depot, are represented in the Other Retail category. These stores also draw from a large trade area and are likely to capture a high amount of non-resident spending.7 MADONNA ROAD AREA The Madonna Road Area is located along Highway 101, south of the Downtown and adjacent to the LOVR Corridor. It is the third largest subarea in terms of retail sales, generating seven percent of citywide retail sales in 2018. The subarea includes several large chain stores that are mostly located within the Madonna Plaza Shopping Center. The Madonna Road Area’s diverse range of establishments in Furniture and Appliances, Eating and Drinking Places, Other Retail Stores, and General Merchandise, likely serves a mix of both local and regional shoppers, with General Merchandise stores most likely to attract non-residents. FOOTHILL AREA The Foothill Area is a collection of retail located off Highway 1 in the northern part of the city. The area contains mostly smaller retail businesses located along Foothill Boulevard and within the University Square Shopping Center. These businesses likely serve both resident and non-resident shoppers, including non-residents passing through via Highway 1 and living, working, or visiting at the nearby Cal Poly campus. Apparel Stores generated 37 percent of sales in the subarea in 2018, while sales in all other retail categories accounted for 63 percent of spending. AIRPORT AREA The Airport Area includes commercial and industrial spaces surrounding the San Luis Obispo County Regional Airport west of Broad Street and south of Rockview Place. The subarea largely consists of light industrial uses accommodating production, distribution, and repair service businesses, and airport-related uses such as car rental agencies. Nearly a quarter of 2018 retail sales were in the Building Materials category, 10 percent in Auto Dealers and Supplies, and the remainder in all other categories. Based on the citywide analysis, a high share of sales in these categories are likely generated by non-resident spending. However, the exact mix of resident versus non-resident spending 7 The Other Retail Stores category includes sales in the pet products, toys, hobbies, and other miscellaneous items categories, and a varying mix of other categories that were aggregated due to confidentiality requirements. The categories aggregated in Other Retail Stores varies by subarea since each subarea’s business mix triggers unique confidentiality suppression requirements. Item 7 Packet Page 110 San Luis Obispo Retail Sales Analysis 12 is less certain for the Airport Area since the types of businesses vary widely. Notably, retail sales likely represent a relatively small portion of total sales in the Airport Area. Only 56 percent of the Airport Area’s 2018 sales tax revenue was generated in retail sales categories; the remainder was instead generated in business-to-business sales categories. FIGURE 11: TOP RETAIL CATEGORIES BY SUBAREA, 2018 Total Sales % of Total Subarea Sales Citywide Non-Resident Share of Spending in Category Downtown Area Apparel Stores $47,431,600 24% 52% Eating and Drinking Places $80,155,000 41% 61% Furniture and Appliances $26,676,200 14% 52% Other Retail Stores* $41,070,400 21% 69% Total Retail Sales $195,333,200 100% 69% Los Osos Valley Road Corridor Auto Dealers and Supplies $226,632,500 43% 78% Eating and Drinking Places $13,210,000 3% 61% Furniture and Appliances $11,859,400 2% 52% Other Retail Stores* $275,913,200 52% 69% Total Retail Sales $527,615,100 100% 69% Madonna Road Area Apparel Stores $10,067,400 10% 52% Eating and Drinking Places $15,343,300 16% 61% Furniture and Appliances $36,555,800 38% 52% General Merchandise $10,098,737 10% 93% Other Retail Stores* $24,254,300 25% 69% Total Retail Sales $96,319,537 100% 69% Foothill Apparel Stores $15,876,200 37% 52% Other Retail Stores* $27,589,500 63% 69% Total Retail Sales $43,465,700 100% 69% Airport Auto Dealers and Supplies $5,791,300 10% 78% Building Materials $14,075,600 24% 93% Other Retail Stores* $38,196,200 66% 69% Total Retail Sales $58,063,100 100% 69% *Certain retail categories were aggregated under “Other Categories” in order to preserve merchant confidentiality. The aggregated categories vary by subarea since each subarea’s business mix triggers unique confidentiality suppression requirements. Source: City of San Luis Obispo, 2018; Strategic Economics, 2020. Item 7 Packet Page 111 Page intentionally left blank. Item 7 Packet Page 112 Department Name: Fire Cost Center: 8501 For Agenda of: July 21, 2020 Placement: Business Estimated Time: 30 minutes FROM: Keith Aggson, Fire Chief Prepared By: James Blattler, Administrative Analyst SUBJECT: FIRE DEPARTMENT ANNUAL REPORT AND 2020-2021 STRATEGIC OPERATIONAL PLAN RECOMMENDATION Receive and file the 2019-20 Fire Department Annual Report and 2020-21 Strategic Operational Plan. REPORT-IN-BRIEF The 2019-20 Fire Department Annual Report and 2020-21 Strategic Operational Plan provides an overview of the Fire Department’s past operational year and the plan going into next year. The report provides key tracking statistics that the department utilizes to analyze performance and activity. Included in the report are major accomplishments made by staff during the last year to highlight the work performed by the San Luis Obispo City Fire Department. Fiscal Year (“FY”) 2019-20 had a large focus on disaster preparedness and response. Over the past year, the department oversaw the completion of three major City-wide policies that will help the City prepare for, respond to, and recover from major disasters: 1) the updated 2011 Emergency Operations Plan, 2) the updated 2014 Hazard Mitigation Plan, and 3) the City’s first Community Wildfire Protection Plan. In addition to the policies, the department rolled out the new “Prepare SLO” initiative to help provide resources to the community to ensure they are prepared for the next disaster. Beyond the attention to disaster preparedness, the Fire Department has played a key role in the City’s response to COVID-19, which has had an impact on department operations. Despite the impacts, staff remained committed to delivering day-to-day services including emergency response, fire safety inspections, and developmental plan review. Overall, the department saw an increase in emergency response, training, and mutual aid activity. Throughout the year, staff also continued to make significant progress on the 2018-23 Fire Department Strategic Plan through the execution of the 2019-20 Operation Plan. A more in- depth summary of the progress can be found in this report, along with the operational plan for 2020-21. Item 8 Packet Page 113 DISCUSSION 2019-20 Fire Department Annual Report: As a full-service all-hazard fire department, the San Luis Obispo City Fire Department protects the lives and property of its residents and visitors from the adverse effects of fires, medical emergencies, and other dangers caused by man or nature through prevention activities and emergency response. To provide this service, the Department has four staffed programs totaling 57 Full Time Employees (“FTEs”) and four additional non-staffed programs. Staff has highlighted some of the major achievements the Department made last year and provided some key statistics from the previous year below. Fire Administration: Staffed with 4 FTEs (Fire Chief, Deputy Fire Chief, Administrative Analyst and Administrative Assistant), the Fire Administration program provides strategic leadership to the organization. Fire Administration plans, directs, and evaluates all Fire Department programs and their activities. During FY 2019-20, the Department transitioned to a new Deputy Fire Chief following the appointment of Fire Chief Keith Aggson in the spring of 2019. Fire Administration oversaw many significant accomplishments, which are discussed in the Disaster Preparedness and Assistance section below. Additionally, Fire Administration formalized the role of a public information officer, which has been utilized to improve the Department’s ability to disseminate information to the community. Emergency Response: Staffed with 45 FTEs (3 Battalion Chiefs, 12 Captains, 15 Engineers and fifteen Firefighters), the Emergency Response Program is responsible for protecting life, the environment, and property by responding to a wide variety of emergencies, including, but not limited to: medical emergencies, structure fires, vegetation fires, hazardous materials incidents, vehicle fires/accidents, flooding, utility emergencies, and a wide range of urgent public assists. In calendar year (“CY”) 2019, emergency response staff saw an increase in the number of total responses and a decrease in the number of fire incidents. CY 2018 CY 2019 % Change Fire Incidents 149 127 -14.8% Rescue and Medical Services 3,521 3,870 9.9% Cal Poly On-Campus Incidents 306 340 11.1% Total Responses1 5,856 6,179 5.5% One key metric that the Fire Department tracks is Total Response Time (“TRT”), which is a goal defined by the General Plan Safety Element of 7 minutes or less to 90% of all lights-and-siren emergencies in the City. TRT is calculated from the time of 911 pick-up in the City's Emergency Communication Center until arrival of the first Fire Department personnel at the scene for serious medical emergencies and fires of all types, as rapid arrival at the scene impacts outcomes. 1 Total Fire Reponses do not include cancelled alarms or non-emergency transfers Item 8 Packet Page 114 The established time standard is reflective of the guidance standards of the National Fire Protection Association (“NFPA”). In 2019 the Fire Department saw a decrease in the percentage of calls that met the 7-minute TRT. Several factors can contribute to changes in TRT, one of the most impactful being traffic congestions and road construction activity. The department will continue to work towards completing root cause analysis on changes in TRT to identify ways to make improvements moving forward and achieving the 90% target. The analysis will assist in identifying items that are in the immediate control of staff or help inform long -range planning needs for factors beyond the immediate control of staff. CY 2018 CY 2019 % Change Calls with 7 minute or less TRT 76.2% 72.1% -5.4% Hazard Prevention: Staffed with 6 FTEs (Fire Marshall, Hazardous Materials Coordinator, three Fire Inspectors and Administrative Assistant), the Hazard Prevention Division prevents injury and loss of life, property, and the environment damaged by fire, explosion, or exposure to hazardous materials through inspections, building plan review, investigations and education. Hazard Prevention saw a decrease in both the number of fire and safety inspections and building plan and development plan reviews in CY 2019. Beyond the day-to-day inspections and plan review, Hazard Prevention saw an equal number of fire investigations from the year before. CY 2018 CY 2019 % Change Fire and Safety Inspections2 3,611 3,128 -13% Building Plan and Development Plan Reviews 810 648 -20% Fire Investigations 21 21 0% In September of 2018, the State of California added Section 13146.43 to the California Health & Safety Code, which mandated that Fire Departments perform annual inspections in every building used as a public or private school, hotel, motel, lodging house, apartment house, and certain residential care facilities for compliance with building standards and report annually to the Department’s administering authority. Hazard Prevention had been performing these inspections prior to the mandate but had not been reporting the inspections. Overall, in 2019 , Fire Prevention increased the number of these completed inspections by 8% from 2018, which is attributable to staffing levels as the prevention bureau had an inspector vacancy during the 2018 calendar year. 2 Fire and Safety Inspection totals include Engine Company Inspections 3 13146.4. (a) Every city or county fire department, city and county fire department, or district required to perform an annual inspection pursuant to Sections 13146.2 and 13146.3 shall report annually to its administering authority on its compliance with Secti ons 13146.2 and 13146.3. (b) The report made pursuant to subdivision (a) shall occur when the administering authority discusses its annual budget, or at a nother time determined by the administering authority. (c) The administering authority shall acknowled ge receipt of the report made pursuant to subdivision (a) in a resolution or a similar formal document. (d) For purposes of this section, “administering authority” means a city council, county board of supervisors, or district board, as the case may be. Item 8 Packet Page 115 CY 2018 CY 2019 % Change Occupancy Class Active Inspection Cases in System Inspections Performed % Completed Inspections Performed % Completed4 Educational, through the 12th Grade (E) 20 5 25% 17 85% 240% Institutional, ambulatory health care (I- 2.1) 1 1 100% 1 100% 0% Institutional, day care facilities (I-4) 3 1 33% 1 33% 0% Institutional, jails, prisons, juv. Halls (I-3) 2 1 50% 1 50% 0% Institutional, medical, or custodial care (I-2) 4 4 100% 2 50% -50% Residential, apts, dorms (non-transient) (R-2) 457 400 88% 430 94% 8% Residential, hotels, motels (transient) (R-1) 26 24 92% 19 73% -24% TOTAL 513 436 85% 471 92% 8% Fire Apparatus Services: Staffed with two FTEs (Fire Vehicle Mechanic and Mechanic Helper), the Fire Apparatus Services Program performs fire apparatus services, maintenance, and repair of light and heavy fire apparatus and vehicles. In FY 2019-20, staff placed into service the Department’s replacement of Engine 3, which was a 16-year-old Fire Engine Pumper. In addition to added safety features, the new Engine operates much more efficiently and will leave a significantly lower carbon footprint than the outgoing engine. The Fire Apparatus staff also continued to provide essential maintenance and repairs on Fire Department apparatus including major engine overhaul work on the Department’s Tiller Truck 1. 4 As of 6/25/2020 Item 8 Packet Page 116 Non-Staffed Programs: • Training: During 2019 the Department continued to maintain a high level of training. While COVID-19 reduced the number of off-site trainings that staff could attend, the Department found ways to continue providing essential training and utilized virtual training tools when possible. The new Deputy Chief helped ensure staff continued to meet training objectives through the development of an extensive 2-year training plan. The plan highlights training requirements specific to each position in the organization. Despite the reduced training opportunities, the Fire Department saw an increase in both the total number and average training hours for Emergency Response employees in CY 2019. The large increase was due to seven new firefighters hired in early 2019 and better training documentation and tracking with the new 2-year training plan. CY 2018 CY 2019 % Change Average Hours Per Employee 182 222 21.9% Total Training Hours 6,912 9,983 44.4% • Recruit Academy: In FY 2019-20, the Emergency Response staff only had one vacancy. Due to the lack of efficiency and fiscal responsibility in running a full academy for one recruit, the Department did not hire additional Firefighters. The Department will assess the need for a recruit academy in FY 2020-21 based on staffing needs and vacancies. • Fire Station Facilities Support: The Fire Station Facilities Support Program is managed by a shift Battalion Chief who ensures all Fire facilities are functioning to maintain the ability to provide service and house the emergency responders. In FY 2019-20 the Department increased focus on improving station security. Some of the new safety measures include security cameras and monitors installed at Fire Stations 2, 3, and 4, ballistic films on glass windows and the removal of engine bay door timers to ensure faster closure of the doors after departure. Additionally, a new concrete pad was placed at Fire Station 1 to remove a significant sink created on the blacktop from fire apparatus. The dip was deemed to be a serious tripping hazard by the California Joint Powers Insurance Authority (“CJPIA”) and the new concrete pad provides the necessary reinforcement to prevent another dip from forming. • Emergency Preparedness and Assistance: In FY 2019-20 staff made some major accomplishments for Emergency Preparedness and Assistance. Staff finalized three significant City plans: 1) the updated 2011 Emergency Operations Plan, 2) the updated 2014 Hazard Mitigation Plan, and 3) the City’s first Community Wildfire Protection Plan. These plans are essential in the City’s ability to prevent, respond to, and recover from major disasters that impact the City with new industry standards and practices. Staff also launched the new “Prepare SLO” initiative to assist community members to increase preparedness for disasters. A public workshop was held in September of 2019, which had over 50 participants in attendance. In addition to emergency preparedness, the Fire Department deployed multiple staff Item 8 Packet Page 117 members to a total of 17 mutual aid-incidents across California in FY 2019-20, which was up from the 10 incidents the department responded to in FY 2018-19. The large increase in number of responses was tied to the number of available resources. In FY 2018-19, the department had a high number of employees out on worker’s compensation and needed to maintain minimum staffing availability locally to ensure the City maintained adequate emergency response coverage. FY 2018-19 FY 2019-20 % Change Total Responses5 17 34 100% Gross Revenue6 $456,542 $495,934 8.6% • FY 2019-21 Financial Plan Projects o Injury Reduction Program: The City Council funded a new program for the 2019- 21 Financial Plan to help reduce the frequency and severity of on-the-job injuries to firefighters. Reducing the high prevalence of injuries not only improves the health and safety of the firefighters, but also helps reduce tangible costs associated with worker’s compensation and overtime. The program budget provided the ability to purchase lower impact exercise equipment and provide individual specific functional movement training. In 2019-20, the number of overtime shifts to provide backfill coverage for injured employees reduced by 36 shifts, or 7%, when compared to 2018-19. The Department will continue to analyze the effectiveness of the program as it continues through 2020-21. FY 2018-19 FY 2019-20 % Change Total Work Comp Backfill Overtime Shifts 507 471 -7.1% o Emergency Management (Contract Services): The City Council funded contract emergency management services for both years in the 2019-21 Financial Plan. This funding was intended to hire an outside firm to provide oversight and management of many essential projects such as policy updates and implementation, FEMA based training to all City employees, and hazard mitigation. The Fire Department utilized a Fire Captain on modified duty from an on-the-job injury to perform many of these duties. This program helped oversee the development of the “Prepare SLO” initiative, improve Emergency Operations Center readiness and functionality, and manage the development of FEMA based training scheduled for July of 2021. In addition to the work accomplished “in- house,” staff contracted with a Disaster Preparedness firm to assist with Emergency Operations Center (“EOC”) position specific training. Delays in the training have occurred due to COVID-19 limitations and are scheduled to take place in the summer of 2020. 5 Total Responses include multiple responses to single incidents 6 The Fire Department receives reimbursement through the California Fire Assistance Agreement (CFAA) for the costs associated with sending staff to these incidents and admini stering the programs Item 8 Packet Page 118 COVID-19 Staff would be remiss to not discuss the impacts that COVID-19 has had on the Department in 2020. As an emergency medical services provider to the community, Fire Department staff has been on the front lines of the pandemic and has played a large role in assisting the with the City’s response. Upon activation of the City’s EOC, the Fire Department has provided staff to fill several positions including Operations Section Coordinator, Operations Fire Branch, Safety Officer, Media Contact for the Public Information Officer, Resource Unit Leader , and Planning Section Deputy. While the ongoing support has been a tremendous accomplishment for staff, other projects and initiatives have been delayed due to lack of staff time and capacity. As the City moves into a more operational status during the pandemic, staff anticipates having increased capacity to make progress on important Fire Department projects. 2018-2023 Strategic Plan On August 21, 2018, the Fire Department presented its first Strategic Plan (the “Plan”) to the City Council (Attachment A). The Plan was created to establish priorities, guide decision making, and identify future work efforts surrounding the Department’s mission to provide skilled and compassionate emergency response services and solution-focused fire prevention services facilitated by a healthy organizational culture of engaged, supported, and accountable staff. The Plan also forms the framework for the development of the Department’s one-year operational plans. Provided below is an overview of the both the 2019-20 operational plan and the intended 2020-21 operational plan (Attachment B). 2019-2020 Operational Update: Of the planned strategies, staff successfully completed twenty items while making significant progress on several others listed in the 2019-20 Operational Plan. A detailed summary of the initiated and completed items, including status updates, can be viewed in the 2019-20 Operational Plan Action Tracker (Attachment C). Delays in accomplishing action items occurred due to the staff’s assistance in the COVID-19 pandemic response and physical distancing limitations. Highlighted below is an overview of the progress that staff made in the first-year operational year. 2018-19 Strategies Count % Strategies Complete 13 59% Strategies 50-99% Complete 7 32% Strategies 1-49% Complete 2 9% Strategies Not Yet Initiated 0 0% 2019-20 Strategies Count % Strategies Complete 7 35% Strategies 50-99% Complete 5 25% Strategies 1-49% Complete 4 20% Strategies Not Yet Initiated 4 20% Item 8 Packet Page 119 2020-21 Operational Plan: To continue making progress towards completing the strategies and objectives under the five strategic directions of the Plan, the Department finalized the 2020-21 Operational Plan, which outlines all the strategies intended to be continued or initiated during year three of the five year plan. At the end of the 2020-21 Operation Plan, the department will complete a planned update of the five-year plan to align it based on new organizational conditions and needs. Previous Council or Advisory Body Action • In July 2019 City Council received and filed an update after the first operational period of the Fire Department’s 5-year strategic plan. • City Council received and filed the Fire Department’s Five-Year Strategic Plan on August 21, 2018. At this meeting staff provided an overview of the 5-year plan and targeted actions for FY 2018-19. Public Engagement The public will have the opportunity to submit comment at the meeting regarding this item. The Department also conducted extensive public outreach during the formation of the Strategic Plan. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2019-20 and 2020-21 Funding Identified: Yes The Fire Department is funded through the General Fund’s annual budget appropriation adopted by the City Council. All activities within the report are covered through the annual program allocations as outlined in the City’s Financial Plan. ALTERNATIVES The City Council could choose to not receive and file the report. This is not recommended as the report provides a record of essential statistics and trends that are important for policy makers and the public awareness in our community. Attachments: a - COUNCIL READING FILE - SLO City Fire Strategic Plan 2018 to 2023 b - SLO City Fire Operational Plan 2020 to 2021 c - 2019-20 Operational Plan Action Tracker Item 8 Packet Page 120 1 ConsulƟng Sales Staffing Support SLO CITY FIRE OPERATIONAL PLAN 2020‐2021 The Strategic Plan forms the framework for the development of the department’s one‐year OperaƟonal Plan. AŌer the iniƟal formaƟon of the Strategic Plan staff collaborated to idenƟfy specific strategies in the Plan that would be iniƟated in each fiscal year. The worksheets that follow capture the Strategies intended to be conƟnued or iniƟated in 2020‐2021. Item 8Packet Page 121 21 ConsulƟng Sales Staffing Support   Page 2 of 5 2020‐2021 OPERATIONAL PLAN Strategy Leader Strategic DirecƟon 1 ConnecƟng with our Community Strategic ObjecƟve 1.1   Establish Meaningful Fire PrevenƟon EducaƟon and Programs   Strategy 1.1.1 Enhance opportuniƟes for the community to provide feedback to the Department Aggson Strategic ObjecƟve 1.2 Establish Strong Community EducaƟon Strategies for Increased Public Safety Strategy 1.2.3 Implement ciƟzen fire academy with a goal of increasing public knowledge and understand-ing of fire department services Hais Strategy 1.2.4 Implement a fire academy for local media with a goal of creaƟng a foundaƟonal understand-ing of fire department services and operaƟonal prioriƟes Hais Strategy 1.2.5  Explore expansion of lay person medical training program such as public CPR and first aid  Berryman Strategy 1.2.6  Expand fire crew / City faciliƟes educaƟon program to increase meaningful cross-department relaƟons and enhance City employee emergency and disaster planning preparedness  Hais Strategic DirecƟon 2 ConƟnuously EvaluaƟng Programs and Service Delivery Strategic ObjecƟve 2.1 Strategy 2.1.1  Partner with City AdministraƟon, Community Development, Parks & RecreaƟon, Public Works, regional stakeholders and property owners to develop open space and defensible space inspecƟon and miƟgaƟon program  Maggio Strategy 2.1.4 ConƟnue to enhance community safety by evaluaƟng the fire prevenƟon efficacy of current codes and ordinances, and bringing forward opƟons for further enhancement to the commu-nity and City Council, as appropriate Maggio Collaborate to implement programs to reduce instance and severity of fires and to enhance survivability 2020‐2021 OPERATIONAL PLAN WORKSHEETS Item 8Packet Page 122 31 ConsulƟng Sales Staffing Support Page 3 of 5 2020‐2021 OPERATIONAL PLAN Strategy Leader Strategic DirecƟon 2 (conƟnued) ConƟnuously EvaluaƟng Programs and Service Delivery Strategic ObjecƟve 2.2 Maximize efficiencies through technology and reengineering Strategy 2.2.1 Implement electronic records system for all emergency response, plan review, and fire                construcƟon and fire life-safety inspecƟon acƟviƟes (for Fire PrevenƟon and Emergency                Response inspecƟon programs)  Maggio Strategy 2.2.2 Implement online fire prevenƟon self-inspecƟon program for low-risk occupancies  Maggio Strategy 2.2.3 Develop peer-review program to ensure completeness of emergency response reports and partner with City AƩorney’s Office to develop documentaƟon best pracƟces guidelines and training  Berryman Strategy 2.2.4 ConƟnue to propose updates to local codes that will enhance community safety  Maggio Strategic ObjecƟve 2.3 Enhance and engage staff professional development Strategy 2.3.3 Explore opƟons for offering increased fire service training for dispatch personnel Alforque Strategic ObjecƟve 2.4 Assess and implement internal process improvement Strategy 2.4.1  Develop and maintain clear, current wriƩen standards with healthy, producƟve partnership between Labor and Department leadership  Aggson Strategy 2.4.2 Explore opƟons with medical direcƟon to implement community-based medicine or other pilot programs that maximize effecƟve medical service delivery Alforque/Operations Strategy 2.4.3 Revise aŌer-acƟon incident assessment and implementaƟon of lessons learned  Hais Strategy 2.4.5 Partner with County Emergency Medical Services Agency and San Luis Ambulance to assess emergency response mode efficacy to more criƟcally assess when the use of lights and sirens are necessary based on incident type  Aggson 2020‐2021 OPERATIONAL PLAN WORKSHEETS Item 8Packet Page 123 41 ConsulƟng Sales Staffing Support   Page 4 of 5 2020‐2021 OPERATIONAL PLAN Strategy Leader Strategic DirecƟon 3 Analyzing Relevant Data to Inform Decision Making Strategic ObjecƟve 3.1  Analyze emergency response and fire prevenƟon services data trends  Strategy 3.1.1 Assess workload impacts on emergency response crews given steady increase in emergency response call volume  Aggson Strategy 3.1.2 Create a system for prioriƟzing compeƟng workday expectaƟons for emergency response crews BaƩalion Chief Strategic ObjecƟve 3.2 Establish and/or confirm apparatus and equipment replacement plan Strategy 3.2.1 Develop inventory and budget forecast plan for all durable equipment  BlaƩler Strategic DirecƟon 4 Improving OrganizaƟonal Culture, Sustainability, and Health Strategic ObjecƟve 4.1 Establish an open, respecƞul, inclusive and healthy work environment throughout the enƟre department Strategy 4.1.2 Partner with Human Resources and prioriƟze training funds to implement programs designed to improve organizaƟonal culture  Aggson Strategy 4.1.3  Partner with Human Resources to maximize the recruitment and retenƟon of employees who embrace our service focused mission and aspiraƟonal healthy workplace culture  Aggson Strategy 4.1.5  Establish a system to reward retenƟon and employees and/or work teams who make significant contribuƟons  BlaƩler Strategy 4.1.6  Establish an annual employee recogniƟon program to capture acts of heroism, significant contribuƟons, promoƟons, and other employee milestones to be celebrated  Aggson 2020‐2021 OPERATIONAL PLAN WORKSHEETS Item 8Packet Page 124 51 ConsulƟng Sales Staffing Support   Page 5 of 5 2020‐2021 OPERATIONAL PLAN Strategy Leader Strategic DirecƟon 5 SupporƟng Fiscal Sustainability in Department OperaƟons Strategic ObjecƟve 5.2 Evaluate New Ways of Doing Business Strategy 5.2.1 Analyze and propose staffing and resource levels to meet plan review and construcƟon inspecƟon service delivery goals, or amend goals to align with staffing levels   Maggio Strategic ObjecƟve 5.3 Maximize Revenue GeneraƟon Strategy 5.3.2 Expand fee-for-service medical standby for local events that have the potenƟal to significantly impact normal daily staffing  Hais Strategy 5.3.3 Explore opƟons to bring to Council regarding fee for services related to non-emergency assistance provided to care faciliƟes  Fox 2020‐2021 OPERATIONAL PLAN WORKSHEETS Item 8Packet Page 125 San Luis Obispo City Fire Department2018‐2023 Strategic PlanStrategic Action Tracker as of June 25, 2020Strategy #Strategy DescriptionOperational Year InitiatedStrategy LeaderPercentage CompleteStatus Comments1.1.1 Enhance opportunities for the community to provide feedback to the Department 2019‐20Aggson75% Online (website) 1.1.3 Work with communicatons specialists to develop “our service story,” a consistent and credible message about our purpose, mission, values and performance measures/outcomes2019‐20 Aggson100% Online (website) 1.1.4 Increase utlization of website to communicate “our service story”2018‐19 Timpano 100% Updated website with new homepage, pictures, and safety videos/handouts. Continuously updating with new information and relevant events.1.1.5 Ensure all department members are capable, telling “our service story”2019‐20 Aggson100% combined 1.1.31.2.1 Re‐vision disaster preparedness programs (formerly Community Emergency Response Training or “CERT”) to meet current community needs for increased citizen and business self‐sufficiency during a disaster2018‐19 Aggson100% Rotating disaster preparedness road‐show throughout community to promote disaster preparedness and resiliancy. First Disaster Preparedness/Safety Forum took place on September 12, 2019 in the Libary Community Room and the department will continue to provide informational workshops to the community.1.2.2 Develop multi‐media education and communications plan based on assessment of local emergency response activity and environmental issues2018‐19 Aggson100% Completed PSPS video, 34 in‐house safety, disaster and preparedness videos completed by staff.  Working with City Admin to complete PrepareSLO video, RSG and Earthquake preparedness.1.2.3 Implement citizen fire academy with a goal of increasing public knowledge and understanding of fire department services2018‐19 Hais20% On May 30, 2019 the Fire Department’s labor group sponsored a Fire 101 course for City and Community Leaders. During this time, attendees had the opportunity to learn the emergency operational services the department provides and participated in several training evolutions including a live‐fire drill. This program will build into both a citizen and media academy. COVID‐19 restrictions delayed further implementation of this program1.2.4 Implement a fire academy for local media with a goal of creating a foundational understanding of fire department services and operational priorities2018‐19 Hais20% See 1.2.31.2.5 Explore expansion of lay person medical training program such as public CPR and first aid2018‐19 Berryman 75% Conducted hands‐only CPR training for City employees and exploring offering training at Disaster Preparedness/Safety Forums or other public events. Will re‐explore when COVID‐19 restrictions are lifted1.2.6 Expand fire crew / City facilities education program to increase meaningful cross‐department relations and enhance City employee emergency and disaster planning preparedness2018‐19Hais85%Staff at several City facilities completed emergency/disaster preparedness training in FY 2018‐19. Staff is developing plan for ongoing program city‐wide.1.3.1 Partner with Downtown Association and vendors to enhance safety and preparedness at Farmers’ Market2018‐19 Beres100% Fire Inspector is regularly attending monthly Downtown Association meetings. Checklist with vendors developed by several stakeholders put together, adopted and rolled out in Spring of 2019. Inspections are complaint based but in general have quarterly inspections. New vendors need to be identified and provided by City FD prevention.Item 8Packet Page 126 San Luis Obispo City Fire Department2018‐2023 Strategic PlanStrategic Action Tracker as of June 25, 2020Strategy #Strategy DescriptionOperational Year InitiatedStrategy LeaderPercentage CompleteStatus Comments1.3.2 Partner with property owners, renters, and allied City Departments to enhance fire safety in the home and workplace2018‐19 Brown 100% Service is currently done as requested and the Prevention Bureau is developing improvement of service. Included in the safety and preparedness program. Newly developed handouts1.3.3 Partner with business owners to increase awareness and actions to support safe practices in businesses, including but not limited to occupancy loading adherence, safe practices, and maintenance2018‐19 Maggio 100% Part of exisiting annual inspection program. Current and ongoing. Staff will work to increase disaster prep awareness as part of inspections.2.1.1 Partner with City Administration, Community Development, Parks & Recreation, Public Works, regional stakeholders and property owners to develop open space and defensible space inspection and mitigation program2018‐19 Maggio 75% Committee formed between Parks & Recreation Ranger Services, Natural Resources Manager, Fire Marshal, Fire Chief and Administrative Analyst to facilitate wildfire mitigation programs. Fire Safe Council focus group formation within the City currently being formed. A Community Wildfire Protection Plan completed. Natural Reosurces taken ownership of this item, continued partnerships2.1.2 Partner with Community Development, Public Works, and Utilities to maximize efficiencies and customer satisfaction in development related activities such as plan check and building inspections2018‐19 Maggio 100% Fire Marshal now working as the Fire Marshal / Chief Building Official which has improved relationships and coordination with other departments. Staff continue to continue evaluating opportunities to streamline plan check programs. Signatory on performance plan with com dev and establishing more plan check relationships with third party consultants. Signed agreement with turnaround times and met with new consultants.2.1.3 Maximize use of grant funding and other partnerships to reduce the local cost of fuel reduction efforts2018‐19 Maggio 100% Fire Safe Council relationships and grant programs currently being developed and utilized. Achieved seat on the Fire Safe Council. Largest focus group in the County. Will continue to leverage grant opportunities as they become available.2.1.5 Partner with all City departments and the County of San Luis Obispo to create a regional Local Hazard Mitigation Plan (LHMP)2018‐19 Blattler 100% Multi‐Jurisdictional Hazard Mitigation Plan Adopted in Spring of 20202.2.1 Implement electronic records system for all emergency response, plan review, and fire construction and fire life‐safety inspection activities (for Fire Prevention and Emergency Response inspection programs)2019‐20 Maggio 50% Energov moving to Mobile Eyes to increase electronic capabilities. Funding has been designated for the Mobile Eyes software with an estimated implementation date of Fall 2020.2.2.2 Implement online fire prevention self‐inspection program for low‐risk occupancies 2018‐19 Maggio/Nau 75% A draft 25‐point inspection template has been developed and IT created an inspection form. Fire is working on a list of beta‐test businesses and a certificate of completion. Item assigned to new Admin Assistant to fast‐track completion. All forms have been completed in Laserfiche. Needs to get tested with IT for implementation2.2.3 Develop peer‐review program to ensure completeness of emergency response reports and partner with City Attorney’s Office to develop documentation best practices guidelines and training2018‐19 Berryman 90% A team has been identified for this effort. GO has been updated, Image tredn codes have been updatedItem 8Packet Page 127 San Luis Obispo City Fire Department2018‐2023 Strategic PlanStrategic Action Tracker as of June 25, 2020Strategy #Strategy DescriptionOperational Year InitiatedStrategy LeaderPercentage CompleteStatus Comments2.3.1 Explore opportunities to increase quality training programs to staff 2018‐19 Alforque 100% Brought State Fire Marshall Company Officer, Chief Officer and Executive Chief Officer series courses to the County. Hosted the Executive Chief Officer Class in SLO. Reimagined the Recruit Academy to focus on task level instruction v. classroom. Additionally, staff is exploring a partnership with Allen Hancock College to provide fire related instruction on site to reduce training costs and provide potential revenue.2.3.2 Implement strategies and technologies to provide training to emergency response crews without negative impacts to response times2019‐20 Alforque 100% 2 year training plan. Utilized target solutions to maximuze our training without reducing response time. Utilized virtual training opportunities to ensure continuity of training during COVID restrictions. 2.4.1 Develop and maintain clear, current written standards with healthy, productive partnership between Labor and Department leadership2019‐20 Aggson 75% Summit held in July 20192.4.3 Revise after‐action incident assessment and implementation of lessons learned 2019‐20 Hais 10% Staff continues to perform after‐action incident assessment and will further explore revisions and improvements in 2020‐212.4.4 Assess expanded use of all apparatus, including Medic‐Rescue 1 2019‐20 Battalion Chiefs100% Plan and procedure has been put in place2.4.5 Partner with County Emergency Medical Services Agency and San Luis Ambulance to assess emergency response mode efficacy to more critically assess when the use of lights and sirens are necessary based on incident type2019‐20 Aggson 50% Discussions have began with SLAS and SLO County Chiefs.  Actions towards having SLAS switch to our communication channel and reducing codes from initial dispatch being discussed3.1.1 Assess workload impacts on emergency response crews given steady increase in emergency response call volume2019‐20 Alforque 0% no progress made due to uncomparable unique data that has come with COVID‐19. Deferred to pick up in 2020‐213.1.2 Create a system for prioritizing competing workday expectations for emergency response crews2019‐20 Battalion Chiefs0% To be further explored in 2020‐213.2.1 Develop inventory and budget forecast plan for all durable equipment 2018‐19 Blattler 80% As part of the 2019‐21 financial plan, City Council adopted a public safety equipment replacement program funded through previously earmarked liability funds. This new program allows the City to fund required equipment purchases including emergency response personal protective equipment and essential medical and rescue supplies. Continueing to work to create forecast plan for remaining durable equipment3.2.2 Evaluate light duty fleet to maximize use 2019‐20 Vargas 100%Updated items for replacement with Fleet. Working to identify more sustainable replacement schedule for front‐line apparatus. Will be an ongoing effort.4.1.1 Establish a trust‐based relationship between Labor and Department leadership with enhanced consistency and formality of meetings with candid, forthright, regular dialogue and collaboration2019‐20 Aggson & Gutierrez100% Leading effort to provide high level of communications related labor items4.1.2Partner with Human Resources and prioritize training funds to implement programs designed to improve organizational culture2019‐20 Alforque 25% Will continue to partner with HR and explore opportunities for improvement between Human Resources and the Fire DeparmentItem 8Packet Page 128 San Luis Obispo City Fire Department2018‐2023 Strategic PlanStrategic Action Tracker as of June 25, 2020Strategy #Strategy DescriptionOperational Year InitiatedStrategy LeaderPercentage CompleteStatus Comments4.1.3 Partner with Human Resources to maximize the recruitment and retention of employees who embrace our service focused mission and aspirational healthy workplace culture2019‐20 Aggson90% Continue to work with HR on recrutiment challenges; working with Cal Poly, Cuesta College and Community Groups to host Job Fair at FS#1 with SLOPD, SLAS and SLOFD to bring Athletic teams in. COVID restrictions delayed the department's ability to host such an event. 4.1.4 Institutionalize department‐wide expectations for shared accountability and honesty embraced by all employees and thoughfully enforced by all supervisors2019‐20 Aggson100% Ongoing monthly meetings with Labor Management, Operations Chiefs, Bi‐monthly crew meetings with Chief and Bi‐monthly department newsletter.4.1.5 Establish a system to reward reten on and employees and/or work teams who make significant contributions2019‐20 Blattler0% To be further explored in 2020‐214.1.6 Establish an annual employee recognition program to capture acts of heroism, significant contributions, promotions, and other employee milestones to be celebrated2018‐19 Aggson50% Department Management is working closely with Labor Committee to establish policy and guidelines for recognition of superior work and heroic effort.  Currently in the Labor Groups hands to continue.5.1.1 Implement robust risk management, health, and fitness programs designed to reduce preventable employee injuries and improve morale2018‐19 Blattler100% First year of two year pilot program complete. Reductions in workers compensation backfill overtime shifts have been observed in year of of the program.5.2.1 Analyze and propose staffing and resource levels to meet plan review and construction inspection service delivery goals, or amend goals to align with staffing levels2019‐20 Maggio10% Working with staff to gather data to build current performance. Added more consultants.5.2.2 Explore cooperative agreements to maximize training fund effectiveness2018‐19 Alforque 100% See 2.3.1 ‐ Department staff re‐examined current/past practices. Streamlined training platform to help codify what we are doing and increase other activities to improve training and provide extra layer of protection against liability. Updated 2‐year training plan and tying in with partnering agencies to maximize training opportunities with a reduced cost.5.3.1 Support certification training that facilitates revenue generating mutual aid deployments2018‐19 Alforque 100% Several members have became company officer and chief officer certified. Non‐suppression staff have completed training and one staff member used new certification to respond to a mutual aid incident. Implemented training opportunities for all staff for certification tracks that leads to mutual aid reimbursement.5.3.2 Expand fee‐for‐service medical standby for local events that have the potential to significantly impact normal daily staffing2019‐20 Hais0% To be further explored in 2020‐215.3.3 Explore options to bring to Council regarding fee for services related to non‐emergency assistance provided to care facilities2019‐20 Fox10% Researching options and programs being used by other agencies. To be further explored in 2020‐21Item 8Packet Page 129