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HomeMy WebLinkAbout12-03-2020 Item 3, MageeCity of San Luis Obispo, Council Memorandum DE&I Task Force Agenda Correspondence DATE: November 30, 2020 TO: Diversity, Equity and Inclusion Task Force Members FROM: Dale Magee, DE&I Task Force Coordinator SUBJECT: Item 3 – Development of Recommendations to Council for Advancing DEI Efforts Hello TF Members, We hope you all enjoyed a long weekend. We’re looking forward to seeing you on Thursday, and thank you again for all that you have done to get the Task Force so far, and for the work you are doing to get to our next millstone. As there is much going on (and quickly!) we want to provide a recap and lookahead here: 1) The Recommendation Report is not an implementation report (i.e. not a workplan, strategic plan; not needing deep details, SMART goals, etc.). It is meant to be a guiding framework to show Council what is needed to enhance DE&I in SLO through layered and comprehensive approach. The goal of the report is to increase the Council’s awareness and understanding of what is needed to infuse DE&I throughout the City, and have Council say YES to the commitment to do so. More detailed implementation reports will follow. 2) Please see the attached Recommendation Report completed by SLCUSD’s Blue Ribbon Committee as a sample. This committee was convened a few years ago to provide budget recommendations to the Superintendent in light of Diablo Canyon closure. Its purview was similar to this Task Force’s: convene for set period of time, a focused task, present recommendations. You may find its final report helpful in both content and format; it’s a good example of a recommendation (vs implementation) report. 3) For Thursday’s meeting: a. We’ll work as a full group to go through the recommendations, refine what is there, gather any new ideas from you, and reduce some that are not so pressing. b. AND…Please come with your Top 10 Priority Recommendations (the LEFT column of any of the tables). We want to get a sense of where the group is. We won’t be debating or finalizing – this is our first straw poll. But it will be informative. c. Please come ready to dig in and discuss. (Feel free to send us comments ahead of time) 4) Timeline / Upcoming Meetings • Dec 3 Meeting – Refine recommendations; Priority straw poll; confirm 2 people to write with Beya and Dale • Dec 4 – 10 – drafting report ; working framework, begin narrative • Dec 10 Meeting - Recommendations and Priorities confirmed, approved. (No limit on recommendations, needed. All can be reflected in Appendix) DEI-TF Agenda Correspondence Page 2 • Between Dec 10 – 13 – final draft of report. Release to TF for review • Dec 17 Meeting – HRC progress + recommendations; approve draft Recommendation Report • Dec 18 – 22 – final edits to Recommendation Report. Submit to City for circulation to Council • Jan 12 – Presentation of Recommendations to Council Whew! That’s enough from us for now. Thank you, Beya and Dale 1 COMPILATION of RECOMMENDATIONS V3.0**    For  review and additions and note your “first round” of priorities    this is preparatory work leading to the Recommendation Document presented to City Council Jan 12,  2021      City’s Goal, in general, what it’s working towards:   Embed a commitment to diversity, equity, and inclusion within the City of SLO and advance its DEI  efforts and systems. (draft language for development purposes)    Desired Outcomes, what the work (the TF’s recommendations) will brings:   (the context for DEI Task Force recommendations)    draft ideas/wording:    San Luis Obispo is a city committed to policies, practices and structures that increase equity and  inclusion, reduce bias, and protect the well‐being, safety, and empowerment of all its residents,  marginalized communities, and its employees....    The City demonstrates this commitment through intentional and proactive inclusion of historically  marginalized and underrepresented communities in all aspects of City planning, funding, goal‐setting,  and policy‐ and decision‐making.     ...The City is committed to increasing our cultural competence, strengthening the sense of belonging  for everyone, addressing  and our culture of anti‐racism and exclusion, and the elimination of barriers  to participation...Leverage diversity for greater collective strength    ...Become Welcoming for all....Welcome inclusive City that is actively creating a more diverse, more  just and equitable, and inclusive community for all its members.                             **Recommendations collected  from TF meetings and member discussions, Learning Session panels, community members,  DEI practitioners and best practices, etc.     V3.0 11.21.20 updated 11.30.20 2   Three Main Recommendations     from DEI Task Force to City Council  to achieve Desired Outcomes  1: Adopt Diversity, Equity & Inclusion Major City Goal for FY21‐23   2: Implement DEI Initiatives, Actions, Policies, Practices, Behaviors   (These can be used as a framework and workplans for an adopted MCG. Can  also be implemented if MCG not adopted)  3: Enhance the Scope and Influence of the Human Relations Commission     Details on Recommendations Follow, sorted by Focus Area...    Recommendation Focus Areas Include (working titles):  ● City Structure and Organization  ● City Policies & Practices  ● City‐led Economic Development / Minority Business Support & Attraction  ● City‐Sponsored Activities ‐ Promoting Awareness & Inclusion  ● Law Enforcement / SLOPD & Community   ● BIPOC Communities ‐ Public Visibility & representation   ● Multicultural Center / Safe Space  ● City/ Cal Poly/ Cuesta Partnership   ● NGO Partnerships  ● City as Influencer   ● Enhance the HRC                  3 The following Recommendations (ideas, suggestions) from the DEI Task Force are  1) to help build a FRAMEWORK for a 2021‐2023 DEI MAJOR CITY GOAL (if adopted by Council)  2) for ADVANCING the City’s DEI competency and efforts ‐  – in many areas    Review Notes  ● Focus Area titles are working titles ‐ suggest other wording  ● Recommendations /suggestions/ideas (left column) are in no rank order  ● Please use TRACK CHANGES and REVIEW COMMENTS for your edits, additions, deletions,  noting priorities  ● Please note your TOP 10 priority Recommendations (LEFT column) – for discussions Dec 3,  2020.    FOCUS AREA: City Structure and Organization  Recommendation / idea General description ‐ details NOT necessary at this stage, not exhaustive, just  giving general notion  Establish Office of DEI  within the City   Create position to oversee DEI efforts, not charged with doing it all ‐ DEI  Manager/Director/CDO / Diversity Liaison ‐  to ensure DEI is prioritized,  embedded, ongoing   Staff appropriately to achieve goals   Office oversees implementation of TF recommendations / DEI Strategic  Plan   Report to City Manager (or Asst Manager?) – meet regularly   Develops, coordinates, tracks, facilitates work plans   Assists efforts of all Depts related to DEI   Acts as staff liaison to Poly, community (conduit to community, point  person)   Coordinate and align with current internal DEI education efforts   Staffs the HRC   City's rep on Multicultural Center Viability / Design Group (need more  than one rep from community)   Retains Subject Matter Expert, seeks SMEs   Consider all stakeholders in the community including resistors and their  educational needs   Staffing with expertise in public processes, prioritization, grants, know  and maneuver in bureaucracy ‐ draw on DEI SMEs experience with racial  equity, diversity, and inclusion.   Liaison to the community, all areas of the community of SLO    Could provide input into the hiring process for SLO City, help ensure that  the City workforce is able to effectively support DEI efforts  DEI Strategic Plan  Develop, implement, update annually with work plans  BIPOC / LGBTQ+ /   roundtable/Advisory     + Religious Groups  (MK)  Community Rep from each community ‐ meet monthly/quarterly with City  Manager + Mayor   Community representatives vetted by HRC community engagement. (MK)  4 (Faith Community roundtable exists? To confirm. This community may be  different than  DEI primary focus – Dale)  Grant writer Position  Part time? Shared with nonprofits? Fund DEI programs ‐ city + community .  Partner w Community Foundation (DCW)  Leadership position in City  for LGBTQ+ issues  Need info on this ‐ was mentioned in learning session...  This where the creation of a DEI Office within City org structure should  include multiple positions (DCW)  Liaison to religious  organizations (MK)  How is this different than the BIPOC/LGBTQ+/Religous Group above?    Is this outside DEI prime focus?  Others?     FOCUS AREA: City Policies & Practices  Recommendation / idea General description ‐ details NOT necessary at this stage, not exhaustive, just  given general notion  City DEI values  statement/commitment  Create strong, clear goals, vision, and mission around DEI  Clear, uncompromising message from Council that attitudes of racism,  discrimination, bias(privilege?) are not acceptable  Fund DEI Community  Grants annually   Support BIPOC community's efforts thru funding and other supports  At least $150,000 annually  Assess existing policies and  practices.   Recommend to have the TF continue and to complete this assessment as a  first step.     [this could be something the HRC does, TF members join work group – DM]  Adopt policy to require  underrepresented  communities have seat on  City‐controlled  commissions, boards,  advisories, committees, etc.  – ala CA AB979   (AB979 = Underrepresented communities + people who identify as Black, Latino,  Native American, Asian American, Pacific Islander, Native Hawaiian, or Alaska  Natives, gay, lesbian, bisexual, or transgender.)  Remove any discriminatory  CC&Rs within City's purview   Waive fees for property owner to do so  Free or reduced public  transportation options  For people in the hospitality or service industry  City Website – improve,  enhance  Create an anonymous comment box. Place to receive comments on bias,  inequities, DEI suggestions, concerns, etc.   5 Links to training, articles, FAQs, education  Highlight DEI businesses, DEI Directory  More …  Pride Index ‐ LGBTQ+  Inclusion  City should take this; identify its rating on LGBTQ+ inclusion  Support of the  Undocumented Community   "Undocu‐friendly" logo ‐  Use on City documents , where applicable   Create UnDocu Resource Guide  Public signifiers of "Undocu‐friendly"  city/businesses/opportunities  Undocu friendly logo on virtual zoom backgrounds (OV)    Offer ESL classes through the SLO Public Library to help undoc members  and newly arrived immigrants to help get access to English learning skills.  (OV)    Offer job training course for immigrants and undocu members (OV)  "Equity Lens"   "Cultural Competency Lens"   Run all forms, web pages, documents by "cultural competency" reader (e.g.  County Mental Health has a committee that does this. Can be quick, embed  the practice. Catch things. Internal staff could be trained.   City Advisory Boards /  Commissions ‐ Facilitate  participation    Provide stipends, child care, non‐traditional meeting hours, transportation  Hiring, Recruitment &  Outreach  All applications, ads in Spanish, run ads on Spanish radio stations‐  ask radio  stations for comped ads. Include Diversity questions in hiring, interviews  Bilingual forms ‐ Increased  usage  Every City form should state that Spanish translation is available via phone  (call for translator) or via Google translation ‐ highlight the link  Marketing ‐ City sponsored Should include diverse representation ( Currently predominantly white and  not bilingual)  Align with internal DEI  strategies & Efforts    Others?      6 FOCUS AREA: City‐led Economic Development / Minority Business Support & Attraction  Recommendation / idea General description ‐ details NOT necessary at this stage, not  exhaustive, just given general notion  Innovative funding   Loans, grants, what can the City do,  have access to?  Use City funds, offer attractive terms, go after businesses,  help them come to SLO. (e.g. Paso's loan for Sandbox‐ A  model for attracting businesses as part of its econ dev plan,  entrepreneurial plan.)     First focus on existing businesses of color, make them  successful, give them support and make them feel supported  by the city and then have them as ambassadors to bring in  other businesses owners of color (MK)  Promote Local BIPOC + Queer  Entrepreneurship   What are these tactics, best practices?  Attract businesses that attract  diverse communities ‐ grocery stores,  barbershops  Identify tactics, best practices  Host BIPOC+Queer Entrepreneurs  Panel (OV)  Speak about their journey and experience of building a  startup that is minority owned business to attract BIPOC  SLO City residents about potential start up ideas.  Diversity Pop‐Up BIPOC business from across county and neighboring counties  increase representation and diversity in SLO via access to  food, art, clothes, music etc. Businesses could rotate.  Reoccurring business could be aided in finding permanent  leases by City. (MK)  Create Entrepreneurship for  Dreamers  Follow Undocu Hustle's curriculum that helps undocu and  dreamers build their own business  Invite Cuesta college entrepreneurship summit who are  helping dreamers and undocumented students build their  own business in the time of COVID.(OV)  City recognizes local businesses that  exhibit DEI excellence     How is this measured? DEI rubric?  Who has models?  City highlights  BIPOC, LGBTQ, Minority owned or managed  businesses   DEI ‐advocate businesses ‐Businesses that have invested  time, energy, resources to DEI commitment; have DEI value  statement; Use diverse vendors,   Reward businesses, promote on website, other ways (how?  Incentives ?).     SLO City DEI logo sticker in front of business (VP)    7 Business could self‐certify they are DEI advocates ‐ What are  requirements of this? Training/educating of all staff,  something?    Businesses could be required to post a DEI statement or  something of this sort , a measurable rubric ‐  to receive  recognition   City provides (optional) cultural  training for businesses (NK)  receive a certification of some sort, in addition to noting a  business’s best practices, hiring philosophy, etc.   CIE / SBDC opportunities‐ partner  with Cal Poly    Entrepreneurial opportunities ‐ BIPOC residents,  Undocumented students  Commitment to get BIPOC communities in front of investors  venture capital pitch contests with DEI Focus (increased  access for Spanish speakers) –   - bilingual (Spanish/English) around this opportunity.  Radio ads in Spanish would be preferrable.    Work with the SBDC which is already setup to do this for all  of the Central Coast communities. (MK)    Research and recommend what BIPOC + Queer  Entrepreneurship are influential and recommend a list of  venture capitalist investors that is looking to invest in BIPOC  business. (OV)  Stronger partnerships with EVC,  Reach (DCW)  [City funds EVC, REACH]    What are the DEI pieces to push/infuse?  Consider moving this entire topic to  private arena as oppose to the City  (Chamber?) (VP, MB, DC)    Others?        8   FOCUS AREA: City‐Sponsored Activities ‐ Promoting Awareness & Inclusion  Recommendation / idea General description ‐ details NOT necessary at this stage, not  exhaustive, just given general notion  Town Halls & Community Listening  Session  City hosts and goes out to communities    Topics such as: current events, current climate, lived  experiences, community needs  Trainings ‐ City hosts    Education for dominant community. Inclusivity Toolkit (implicit  bias, privilege, cultural competence, anti‐racism)  Web site  DEI info, FAQ, references, build community understanding ,   Northern Chumash History, APIDA history, Community  Contacts (VP)  Survey ‐ community at large  Gather data re community’s understanding, concerns and  suggestions regarding DEI issues and advancement   Citizen Leadership Academy/ City  101  How to be involved ‐ how to get on boards, councils,  advisories, committees, task forces ‐ needs to be relevant,  attainable to these communities. In Spanish, too.  (In progress)  City Spaces ‐use, actively promote  DEI activities, sponsor    Mission Plaza   Ludwick Center / City Hall     What other City facilities could  spotlight marginalized communities?  Mission: Host cultural events, resource fairs     City Host Art Show. The winner of the art show can make  recommendations to the City Council about what and how the  next mural would get created. to help focus on BIPOC  representation in the city of SLO. (DCW)    Displays honoring Indigenous communities (Ludwick, City Hall)  Public art /murals with Parks and  Rec    Minority community representation and history  Where? How? Who funds?  Possible Locations: Airport, library, Farmers’ Markets  much of these can be referred to  private and/or allocated to specific  City advisory bodies. (VP, MB, DC)    increase amount of grants (VP, MB,  DC)    Others?      9 FOCUS AREA: Law Enforcement / SLOPD & Community  Recommendation / idea General description ‐ details NOT necessary at this stage,  not exhaustive, just given general notion  Police Training & Mindset De‐escalation/restorative practices should be priority         Required cultural competency training for police.     Shift burden from communities understanding  Police/centering on the Police, to the Police understanding  BIPOC/ centering on BIPOC communities.        Strengthen partnership with  Restorative Partners program  Fund a restorative position.  Clear relationships with mental health  organizations and cultural centers    Stronger PD community liaison position  / relationship to BIPOC comms    Revise PACT Increase community awareness of PACT, what it does, why  it exists…(DCW)  SLOPD ‐ Poly PD ‐ Student Coalition   TF members be included in hiring of  new chief    Chief + BIPOC Advisory Group Work with the Sherriff’s departments’ Unity Council (MK)  Clearly defined code of conduct for  officers that is accessible and  comprehensible to the community at  large.  Could look like something as simple as a “10 point” list of  promises officers make to our community – especially in  regards to interactions with marginalized communities.  (DCW)  New SLOPD Chief Training in social work / therapy ; socio‐emotional learning  others?        10   FOCUS AREA: Multicultural Center / Safe Space/ A Hub / Cultural Center?   Recommendation / idea General description ‐ details NOT necessary at this stage, not  exhaustive, just given general notion  Phase I  Planning / Viability Study  /  Design   Convene planning team / study team ‐ community led, City  participates, Poly input  Who’s the lead?  Determine level of support, sustainability, vision  Vet operating model(s)  Write business plan  Public/Private partnership. Include Poly?  City commits resources to planning period, ongoing    MOUs / SLAs  What's needed / What's wanted?  Secure location  Secure ongoing funding  Phase II  On‐going Operations  BIPOC ‐ centered   Community Driven   Near a bus line  What are the offerings/programming?   Free for DEI nonprofits to host workshops  Workshops   Workshops for Immigrants, skill development series/program as  mentioned during the APIDA listening session (VP)    Participative leisure activities   Cultural Events / Showcases  Trainings  Commercial Kitchen  ‐ essential to the operation of an effective  Multicultural Center – food connects and is an integral part of  cultural identities (DCW)  Recognize and celebrate all heritage months (OV)  Much more…  Other?        11   FOCUS AREA: BIPOC Communities ‐ Public Visibility & Representation   Recommendation / idea General description ‐ details NOT necessary at this stage, not  exhaustive, just given general notion  Chamber of Commerce Visitor Center   work in tandem with the Promotional  Coordinating Committee Advisory Body as  they are the City entity that directly funds a  significant portion of the Visitor Center’s  operations.(DCW)  More education about our diverse community  Feature Northern Chumash tribe  Airport Displays  honoring Indigenous people of this region  Other displays  City push County for this. See examples of other airports  provided by Northern Chumash presenters   Partner with Visit SLOCAL for marketing and display efforts  within the Airport (DCW)  Public art /murals – County buildings,  schools, private bldgs.  Minority community representation and history  Where? How? Who funds?    Use vacant downtown spaces to  highlight minority communities.   Feature a group for a month ‐– rotate  Partner/incentivize landlords to participate (DCW)  Involve Faith community /Leaders in  outreach efforts    TF: are there additional community‐  specific recommendations that should  be forwarded here?    Others?         12   FOCUS AREA: City/ Cal Poly/ Cuesta Partnership  Recommendation / idea General description ‐ details NOT necessary at this stage, not  exhaustive, just given general notion  Regular Leadership roundtable VP Diversity & Inclusion  Office of D&I  City Manager  ASI president  Teach In Program Offer to Community  Change the Status Quo  Conference (OV)  Offer to Community  Poly’s “State of” Series  Expanded access to Community ‐ how? when?  Cuesta’s 21 Day Challenge Replicate for City residents  CP/ Cuesta Programs in Mission  Plaza   Cosponsor with Parks &Rec  Student Centers  Partner to fund and operate in the City   Education for Dominant /  majority community   Increase knowledge, change perceptions/attitudes, concerns  Volunteer opps for BIPOC  students to intern at the City (OV)    Other?     FOCUS AREA: City / Non‐profit/NGO Partnerships  DCW: I don’t think this is necessarily its own category, rather elements should be in the various other  scopes.  Recommendation / idea General description ‐ details NOT necessary at this stage,  not exhaustive, just given general notion  DEI, racial justice, social justice  NGOs   Social service providers (e.g. CAPSLO,  Promotores, Food Bank)    Other?        13   FOCUS AREA: City As Influencer   Recommendation /  idea  General description ‐ details NOT necessary at this stage, not exhaustive, just  given general notion  County ● Mental Health   providers need to have "undocumented" and LGBTQ+, cultural  competency    ● Sheriff  Fund Restorative Partners and restorative justice programs    ● DA  Fund Restorative Partners and other restorative justice programs    ● Social Services    ● Other County Depts?   Housing Equity –  County, People’s Self  Help Housing  WHO ELSE?   Push for fair zoning,   reduce discrimination in Section 8,   eliminate restrictive covenants  SLCUSD    Should Education have  its own section?.(NK)      Schools need systemic  change, what can the  City realistically  influence? Support  other groups who have  direct in roads? Other  ideas?   Curriculum changes, fixes, enhancements such as….    Northern Chumash education – more accurate    Host restorative justice approaches to help educators provide emotional  support to BIPOC students in current events, climates, and national and  state crisis and tragedy events (OV)    YOUTH Empowerment programs  NK: Youth programming and support should be its own category. We need  to empower all BIPOC youth. In school, from a very young age, BIPOC  children and youth are outcasted and bullied. This needs to be addressed.    School district should hire a DEI Director    training and cultural competency programming for teachers  Chamber of  Commerce   A "Leadership SLO" for diverse populations (Vision Unida was a parallel  program for Latinx) [What would this look like? Would all diverse groups be  put together? If so, it doesn’t feel equitable at surface‐level. Need more info  – NK].    Visitor Center suggestions per note in the previous section  Community  Foundation  participatory grantmaking ‐ How can City bring in the wealth that is in the  community, “crowd source” grants to BIPOC applicants .    14 start new donor‐advised DEI fund    fund a DEI‐focused grant writer  Others?           15 RECOMMENDATIONS to Enhance the Scope and Influence of the Human Relations Commission  Updated 11.21.20   Please note: You are welcome to provide ideas now, but HRC is engaged in its own strategic planning, many of  the below are currently being considered. Update will be provided to TF after Dec 7.     Human Relations Commission ‐ ENHANCE THE HRC   (NOT DEPENDENT ON ADOPTION OF MCG)  Increase community’s awareness that it exists and understanding of what it does  Expand scope, expand impact. To be taken more seriously, appropriately tasked, supported,  resourced  A driver for change  How can it hold City Council accountable for its commitments to DEI? (What is realistic authority,  capacity, resources?)  Increase advisory role to City, Increase advocacy role within the community  Name change   e.g. SLO City Commission on Justice, Equity, Diversity and Inclusion  Host Town Halls, listening sessions, conduct bi‐annually DEI community survey   Responsible for intentional outreach, engagement and understanding current experiences and needs  of marginalized and underrepresented communities in the City  A conduit for the community A body the community can bring concerns or complaints of inequity,  bias, suggestions for DEI improvements.   A conduit for URM communities to City/Council ‐ via more outreach  Regularly assess needs and priorities of underrepresented communities  Steward City's DEI Action Plan ‐ be an implementation partner  Revamp its structure. Increase Number of Subcommittees (call Action Groups?) to work on various  target areas ‐ Housing, Homelessness, DEI, Others ?  Create Subcommittee (Action Group)  Model that includes a commissioner and Community Advocates  Increase Ways for Community and SMEs to be involved  Natural transition for interested TF members  Youth involvement on the Commission ‐ Create CP, Cuesta Commission positions, internships  Remove Community Development Block Grants tasks; Administer future DEI grant funding cycles  Allow non City residents to serve – have to be in County, with strong ties to City. If not as  Commissioner, at least can serve on Action Team  Others?      San Luis Coastal Unified School District Superintendent’s Blue Ribbon Committee | Final Report | December 12, 2017 2 Superintendent’s Blue Ribbon Committee Dr. Jim Brescia – County Superintendent of Schools Kevin Bumen – Director, SLO Regional Airport, SLCUSD parent Monica Grant – CEO, SLO County YMCA Melissa James – SLO Chamber of Commerce Director of Economic Initiatives and Regional Advocacy, SLCUSD parent Christine Johnson – Development & Communications Director, Stand Strong (Formerly the Women’s Shelter Program of SLO County), former Morro Bay City Council, SLCUSD parent Dr. Jane Maxwell – A former public schools Superintendent, SLO Rotary executive, SLO High graduate Nelda Olvera – Operations & Planning Director, National Compadres Network; SLCUSD parent Refujio Rodriguez – Division Chief, Santa Barbara County Mental Health, SLCUSD parent Dr. Gil Stork – President, Cuesta College, SLCUSD graduate, former SLCUSD parent, current SLCUSD grandparent Bob Wacker – CEO, Wacker Wealth Partners, former SLCUSD parent 3 Superintendent’s Blue Ribbon Committee Report December 12, 2017 Background and Purpose In the wake of PG&E’s announcement in June 2016 that the utility intends to close its Diablo Canyon Power Plant by 2025, San Luis Coastal Unified School District officials worked to gauge the community impact on the public school system fiscally, culturally, and qualitatively. As just one of several efforts to engage the community about the substantial economic impacts of PG&E’s decision, Superintendent Eric Prater assembled this “Superintendent’s Blue Ribbon Committee” to serve as an independent advisory body and asked it to: ● Conduct “a completely independent review of the long-term financial issues facing the District” as a result of the direct loss of $8 million annually in property tax revenues generated by the nuclear power plant; ● Understand the key drivers of expenses and revenues; ● Make specific recommendations to address the loss of these tax revenues, “mindful that the central focus of the review is to ensure the present and future success of the students.” The Committee’s Membership and Approach We are 10 volunteers reflecting a cross-section of the District’s stakeholders. Among us are education professionals, parents of current district students as well as district graduates, and other civic leaders, all with an ardent commitment to our students and teachers, as well as to our community’s overall intellectual and economic well-being. In preparing this report, we likened the District’s budget challenge to a person recently diagnosed with a complicated illness. The good news is the illness is not fatal; there are a variety of treatment options. But all involve some pain, side effects, and a change in lifestyle. We are not prescribing which options should be chosen. We are simply describing options that can work and recommending the administration, the Board, teachers and the community engage in a robust discussion about which treatments are best for the District’s current and future students. Justifiably, the high quality of education provided by San Luis Coastal Unified School District has been a source of community pride for a long time. Due in large part to the property taxes that PG&E pays because of Diablo Canyon, the District’s attributes include the following: 4 ● The District is able to provide high-quality curriculum with extensive teacher training, small class sizes, and small neighborhood schools compared to most of California. ● The District is a consistently high-achieving district in the State of California. ● The District’s students posted the best English and math test scores in San Luis Obispo County on recent California standardized tests. ● The District has been able to implement a broad range of curriculum and course offerings, combined with robust teacher training, allowing students to reach their potential. ● Annual parent surveys indicate a high degree of satisfaction with the District's schools and programs. The Problem: A Structural Budget Gap The June 2016 announcement that PG&E intends to close Diablo Canyon sent economic shock waves throughout San Luis Obispo County. While not alone in feeling the jolt, no other entity in the county is as dependent on Diablo Canyon property taxes as San Luis Coastal Unified School District. When Diablo Canyon closes, San Luis Coastal will suffer a direct loss of at least $8 million a year in property tax revenues, the equivalent of about 10% of the District’s current operating budget. For context, that $8 million is the equivalent of about 15% of the District’s spending on personnel. This represents approximately 100 teachers, or all the administrators, or 150 support staff from a workforce of 800 full-time positions. This represents a loss of $1,700 per pupil per year. In addition to enabling the District to provide high-quality curriculum with extensive teacher training, small class sizes, and small neighborhood schools, Diablo Canyon’s property tax revenue also enables the District to offer relatively higher wages and benefits. This combination enables the District to attract and retain a highly talented faculty and staff. The District’s Progress So Far District officials responded swiftly and urgently to the announced closure of the Diablo Canyon Nuclear Power Plant. Through presentations made at District Board meetings and in other public informational forums, residents have had an opportunity to weigh the facts and consider possible solutions. More such sessions are needed in the months to come. This initial community input was provided to our committee and was an important consideration in our discussions. 5 In a commendable effort to lead by example, the District’s administrators demonstrated further urgency by immediately identifying $2 million in annual savings of the projected $8 million annual budget shortfall. These are being achieved, in part, by taking advantage of attrition to downsize District office management as well as District and site-support staff. Additionally, District officials deserve commendation for working closely with PG&E and community stakeholders in negotiating a tentative mitigation agreement to address some of the short-term economic impacts. Announced in November 2016, that proposed mitigation agreement calls for PG&E to pay the District $36 million over nine years. Included in that amount would be $10 million dedicated to an educational foundation that the District would establish and use in ways similar to how universities deploy endowment investments to help support short- and long-term objectives. This mitigation agreement, if ultimately approved, would provide the District with needed breathing room to develop an orderly transition to a post-Diablo era. However, the agreement has run into strong objections from an Administrative Law Judge assigned to review the agreement for the California Public Utilities Commission (CPUC). While the judge did not dispute the need for mitigation, he recommended the CPUC deny PG&E’s proposal for a short-term rate increase to pay for the mitigation funds, thus jeopardizing the agreement. He also recommended PG&E’s retention package for Diablo Canyon employees be greatly reduced. In making its arguments for the agreement, PG&E officials warned that without resources to fund adequate employee-retention incentives, Diablo faces the loss of its highly specialized workforce needed to operate the plant safely. Should a critical mass of workers leave before the licenses expire in 2024-25, PG&E could close the plant years earlier. The proposed agreement awaits a decision from the CPUC. Also worth noting: The fate of the $36 million in mitigation money is in the hands of a state agency (CPUC), and the remaining operating life of the nuclear plant is in the hands of a private company (PG&E). The District has no direct control over these outcomes. While we recommend the District work tirelessly to secure the deserved mitigation money to help prepare an orderly transition, we also recommend the District be prepared for the worst – a denial of mitigation money and a premature closing of the plant. In that scenario, some combination of the recommendations described later in this report would require swift implementation. 6 The Committee’s Process The committee was given full access to any and all data it requested from District officials as well as the authority to look at any documents. Since its first meeting in April 2017, the committee has held 10 meetings, each lasting three hours. The committee requested and heard nearly a dozen presentations from numerous stakeholders including administrators, school principals, teachers, staff, and union representatives. The committee’s recommendations were arrived at after considerable reflection on the complexities of the District’s budget and operations, with an acknowledgment of these hard truths: ● This budget gap is significant. ● There is no easy solution. ● Absent new revenues, deep cuts in expenditures will need to be considered and put into effect. This will be especially painful in light of our community’s enormous pride in our schools and gratitude for the devotion to students shown by our teachers and staff. ● The gap must be addressed with urgency, especially considering: 1. The very real possibility that the CPUC will agree with the Administrative Law Judge and deny the proposed mitigation settlement, thus denying the District the aforementioned $36 million in bridge funding. 2. PG&E could close Diablo Canyon years earlier than 2024-25, which would cause deeper and more immediate strain on the budget. While the School Board has the ultimate responsibility and authority to decide how to close this budget gap, we strongly urge a collective, solutions-based approach. Toward that end, we advise: ● The School Board and administrators maintain frequent communication with the entire San Luis Coastal community and create multiple forums for the purpose of candid, robust, and constructive discussions with all stakeholders. ● All stakeholders set aside self-interests, engage in good-faith efforts to identify potential solutions, and fully share the responsibility for finding ways to minimize any negative impact on current and future students. Further, that all stakeholders support reasonable, though difficult solutions. ● The District set an aggressive timeline for identifying and implementing measures to close the gap in order to manage a premature closing of Diablo. 7 Closing the Budget Gap In arriving at our recommendations, the committee kept in mind these Key Budget Drivers: ● Wages & Benefits: 85%, or about $68 million, of the District’s operating budget is spent on wages and benefits including health care. Education is a labor-intensive effort. Smaller class sizes and enriched curriculum offerings require extra instructional staff. ● Services & Operations: Almost 10%, or nearly $8 million, is spent on non- personnel services and operations such as utilities, maintenance, bus fuel, etc. ● Materials & Supplies: About 5%, or just under $5 million, is spent on program materials and supplies. ● Collective Bargaining: Of the $68 million spent on wages and benefits, 95% is subject to collective bargaining, thus precluding unilateral changes in pay or benefits. ● Health Care: The District’s current spending on employee health care benefits is about $7.1 million, and is expected to increase nearly 50% to $10.5 million by 2025 when Diablo is planned to close. The estimated $3.4 million increase in health care costs is in addition to the $8 million in losses of Diablo property tax revenue. Currently, the District provides employees with health care benefits more generous than any other school district in the county. While some stakeholders may be tempted to believe this structural gap can be closed through revenue enhancements alone, it is difficult to imagine any scenario that does not require expense reductions, especially considering the increase in health care and retirement costs that virtually all school districts face. Significant revenue enhancements will require substantial community support. A parcel tax, for example, requires two-thirds voter approval. Other revenue enhancements would also require a degree of public support and could not, by themselves, erase this budget gap. Summary of Recommendations With this background in mind, the committee recommends that the District: ● Act Swiftly: Identify remedies sooner rather than later. The District has no guarantees that it will receive the $36 million in bridge funding. Further, there are no guarantees Diablo will continue to operate through 2025. In fact, Diablo could close years earlier. These uncertainties can be offset only by acting swiftly. 8 ● Communicate Frequently: Create frequent opportunities for citizens, faculty, staff, and students to engage in the process; maintain frequent, clear, and comprehensive communications with the entire San Luis Coastal community. ● Respond to Emerging Opportunities: Continue to be proactive in making practical reductions whenever opportunities arise, with heightened focus on leveraging staff attrition due to voluntary departures/retirements; as well, aggressively seek new opportunities for revenue generation, and pursue with the State any and all alternatives to reduce the effect of Diablo’s planned closure. ● Prioritize: Rigorously analyze and prioritize District programs and services – taking into account public input – before targeting reductions. ● Engage the Private Sector: Seek to develop entrepreneurial private-sector partnerships, much as universities do, to enrich faculty and student experiences, and to generate revenue. ● Preserve Basic Aid Status: Basic aid status enables more flexibility in maintaining a rich and varied curriculum. For example, among other programs, the District currently provides: o Free preschool programs at four Title I elementary schools targeting students and families in need; o State-of-the-art equipment that gives students access to the tools and settings that mirror the 21st Century workplace; o One of the largest Adult School programs on the Central Coast; and o Interventions, counseling services, arts and music, and other enrichment opportunities supporting success for all students. ● Explore Revenue Enhancements: o Parcel Tax: Undertake a formal feasibility study to determine the public’s understanding and willingness to support a parcel tax, which could generate ongoing funds to mitigate the loss of Diablo Canyon tax revenue. In order to generate $3 million-$6 million annually, the parcel tax would have to be somewhere between $80 and $160 per year. o Sell/Rent/Develop Surplus Property: Compile a complete inventory of currently unused sites and prospective surplus sites. Use these public education assets to fund public education programs for the future. Obtain professional assessments of highest and best uses to estimate values and potential revenue streams. Surplus sites could be rented out, possibly generating $200,000 or more annually; sale of other sites could generate $3 million to $5 million each. As a possible approach, surplus property could generate revenue from rental income 9 for employee housing of some kind, similar to Cal Poly’s Bella Montaña project. Such a project could be beneficial not only to the teachers, but also to the entire District. Any one-time revenue generated from selling surplus property should be deposited in an endowment or capital improvement fund for one-time projects, and should not be spent on annual operating costs. o Inter-district Student Transfers: Seek revenue from districts that send students to San Luis Coastal on inter-district transfers. Currently, the District educates more than 160 students from other districts, shouldering the burden of those educational costs without receiving additional revenue. A fair restructuring of the inter-district transfer agreements could generate an estimated $400,000 annually. o Create a Permanent Endowment: The District’s tentative mitigation agreement with PG&E includes a $10 million contribution to an educational foundation. A foundation with a permanent endowment would present the District with a significant, long-term benefit. Conservatively invested, even a relatively small endowment of $10 million could generate up to $400,000 a year to support educational programs. Regardless of the mitigation agreement’s ultimate disposition, the District should seek to fund an endowment as a revenue mechanism to enhance opportunities for learning and to support student achievement. ● Implement Cost-Containment Measures: o Class Size: Teachers and parents will understandably be concerned by suggestions to increase class size. Nonetheless, in the spirit of our conviction that “everything must be on the table,” we note that current average class sizes are below the county average and below the negotiated maximums in the current contracts. An increase could realize significant savings. The District currently staffs its classrooms at the following levels on average (individual class sizes can be larger, according to the contract): ▪ K-3: an average of 23.35 students per teacher ▪ 4-6: an average of 26.76 students per teacher ▪ 7-12: an average of 26 students per teacher Current negotiated average class maximums are at the following levels: ▪ K-3: an of an average of 28 students per teacher ▪ 4-12: an average of 32 students per teacher A range of increases in the average class sizes, not to exceed the negotiated contract maximums, could save the District as much as approximately $2.5 10 million annually, and could also enable the District to retain its current breadth and depth of curriculum. The District could consider a sliding scale for increasing class sizes, with smaller class sizes during the critical early years (K- 3) and then progressively increasing class size in later years while taking advantage of attrition in order to avoid layoffs. o Early Retirement Program: Well-conceived early-retirement plans can save money, protect newer teachers, and provide retirement incentives for senior teachers. After careful review, the committee did not see benefit in an early- retirement program. In the short term, such a program would be unlikely to achieve useful savings and could provoke an unintended shortage of teachers in certain difficult-to-fill subject areas. The committee recommends evaluating this annually as a potential savings over the longer term. o School Closures: The Committee would be remiss if it didn’t acknowledge that the District has underutilized facilities. The District has smaller enrollments in its neighborhood elementary schools compared to most districts. A school closure is a painful option and should be considered with care. Nonetheless, it’s conceivable that a school closing could yield savings for a relatively small tradeoff given all other factors. A factual analysis and discussion should occur about the merits, deficits, and adjustments involved in closing a school. It’s conceivable that a school closure could save $500,000 annually and possibly enable expansion of other programs. Although a school closure could generate substantial savings for the District, the community impact of such a decision must be considered carefully. o Compensation: With 85% of the District's budget spent on wages and benefits, no scenario can avoid addressing the components of this key budget driver. ▪ Health Care Costs: Working through the collective bargaining process, seek the phasing in of a cap on the employer’s share of health care costs. The District’s current annual spending on employee health care benefits is expected to increase nearly 50%, from about $7.1 million this year to $10.5 million by 2025. These health care increases are in addition to the challenges imposed by the loss of Diablo property tax revenue. If the District had the kind of capped health care plan typical among other school districts, annual savings of $2-$3 million could be realized. ▪ Salary Stabilization: Working through the collective bargaining process, review all salary schedules for both union and exempt employees to make sure salaries and “step-up increases” based on length of service remain compatible with the District’s resources post- Diablo. 11 Conclusion: A Shared Responsibility Regardless of when Diablo Canyon closes or whether the $36 million in mitigation funding is provided, the District faces substantial and negative change to its finances. This change will result in a structural budget gap of at least $8 million annually. This budget gap is not anyone’s fault, but it will be everyone’s burden. The State of California shifted its energy goals away from nuclear power. That, in turn, altered PG&E’s economic calculus for continuing to operate Diablo Canyon, an asset that has benefited the District for several decades. Those decisions are far outside the District’s control, but the impacts fall to the District to reconcile. The District must now do everything possible to ensure those impacts are absorbed with as little disruption as possible. As a committee, we are confident we have identified a credible list of potential actions, which, if utilized in a balanced way, would achieve that goal. We recognize none of these steps will be easy to execute; neither do we claim to have thought of all possible remedies. We strongly encourage the Board to provide every opportunity for all stakeholders – parents, students, employers, teachers, staff, community members and union leaders – to engage in a process that helps the Board reach fair and workable decisions, and avoid unilateral decision-making. We also urge all stakeholders to be constructive in expressing their concerns and avoid reflexive opposition. We want to doubly underscore our belief that the community must confront this budget challenge with open minds – and with urgency. It’s difficult enough to face the financial impacts of losing Diablo Canyon eight years from now. But it is possible that Diablo Canyon could close years earlier than 2025. With that in mind, the District should plan to have identified and implemented measures to completely close this structural gap within the next three fiscal years. Despite the impersonal, clinical tone of this report, we are mindful that our recommendations pose potentially startling and dramatic effects on people we care about deeply – ambitious students, committed teachers and staff, as well as devoted parents. Our hope is that this report serves as a foundation for a community-wide conversation that brings together all stakeholders to ensure San Luis Coastal Unified continues to be a vibrant center of learning for years to come.