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HomeMy WebLinkAbout03-02-2021 City Council PresentationsCity Council Regular Meeting March 2, 2021 •All attendees enter the meeting muted. •You can rename yourself by following the steps below. •When Public Comment is called for an item you would like to speak on,please raise your virtual hand. •When your name is called,you will be moved to a Panelist.After a brief moment,you will be able to unmute your mic and turn on your video. •Please state your first and last name and address (optional)for the record. •After providing your comments you will be moved back to an attendee. Directions for Public Comment _______________________________________________________ Recommendation: Receive a brief report from City Manager Derek Johnson. Item #1 CITY MANAGER REPORT Staff Presentation By: Derek Johnson, City Manager / Emergency Services Director Emergency Services Director Update March 2, 2021 4 Recommendation 1.Receive an update from the Emergency Services Director related to COVID-19 5 6 As of 3/2/2021 at 1:00 PM 0 100 200 300 400 500 600 700 3/14/2020 4/14/2020 5/14/2020 6/14/2020 7/14/2020 8/14/2020 9/14/2020 10/14/2020 11/14/2020 12/14/2020 1/14/2021 2/14/2021 COVID-19 Cases in SLO County Daily New Cases 14-Day Average 7 As of 3/2/2021 at 1:00 PM 0 10 20 30 40 50 60 3/23/2020 4/23/2020 5/23/2020 6/23/2020 7/23/2020 8/23/2020 9/23/2020 10/23/2020 11/23/2020 12/23/2020 1/23/2021 2/23/2021 COVID-19 Hospitalizations and ICU Admissions Hospital (non-ICU)ICU As of 3/2/2021 at 1:00 PM State’s Reopening Criteria Effective tomorrow, SLO County will be in the red tier 11As of 2/26/2021 Vaccination –SLO County Status 12As of 3/2/2021 People Vaccinated by SLO Co. Public Health: Total Who Got First Doses: 31,737 Total Who Got Second Doses: 14,638 People Scheduled for Vaccination this week: Paso POD 445 1st dose (M-F) totaling 2,227 683 2nd dose (W-F) totaling 2,049 AG POD 169 1st dose (M-W) totaling 507 (Includes teachers and childcare) 683 2nd dose (M-W) totaling 2,049 SLO POD 728 1st dose (M-Th) totaling 2,912 300 2nd dose (M-TH) totaling 1,200 TOTAL 10,944 Additional Distribution Information: Vaccine appts are now open to 65+appointments open Thursday 9am. Planning for +12,000 vaccinations next week. SLO City Employee 1,246 potential exposures 25 confirmed cases 6 of the 25 were work related 4% employees Safe Practices Physical Distancing Remote Work Reporting Response Communication Recommendation 1.Receive an update from the Emergency Services Director related to COVID-19 14 _______________________________________________________ Recommendation: Mayor Harmon will proclaim the month of March as “Women’s History Month.” Item #2 WOMEN’S HISTORY MONTH PROCLAMATION PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA •If you would like to speak on items NOT ON THE AGENDA,please raise your virtual hand. •When your name is called,you will be moved to a panelist. •Before you begin speaking,unmute your mic and turn on your video. Please state your First and Last name and address (optional)for the record. •After you complete your comments you will be moved back to an attendee. Public Comment Items #3 –#7 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. __________________________________________________________ Recommendation: 1.Adopt a Resolution approving a General Plan Amendment and Rezone for a Neighborhood Park,including a parking reduction and associated improvements within City right-of-way (533 Broad Street,PARK-0320-2020, GENP-0612-2019,RZ-0322-2020 and EID-0321-2020);and 2.Introduce an Ordinance approving a rezone for a Neighborhood Park.The Project includes amending the Zoning Regulations map to change the Zoning Designation of the associated property from Conservation/Open Space (C/OS)to Public Facility (PF),respectively,including a Mitigated Negative Declaration of Environmental Review, as represented in the staff report and attachments dated March 2,2021 (533 Broad Street:PARK-0320-2020, GENP-0612-2019,RZ-0322-2020,and EID-0321-2020);and 3.Adopt a Resolution approving a General Plan Amendment for a Neighborhood Park.The Project includes amending the General Plan designation of the site from Open Space (OS)to Park (P).The Project includes a Mitigated Negative Declaration of Environmental Impact as represented in the staff report and attachments dated March 2,2021 (533 Broad Street,PARK-0320-2020,GENP-0612-2019,RZ-0322-2020 and EID-0321-2020). Item #8 GENERAL PLAN AMENDMENT AND REZONE FOR A NEIGHBORHOOD PARK AT 533 BROAD STREET Staff Presentation By: Michael Codron, Community Development Director Kyle Bell, Associate Planner Shelsie Kloepper, Engineer III North Broad St. Neighborhood Park PARK-0320-2020, GENP-0612-2019, EID-0321-2020 Applicant: City of San Luis Obispo Representative: SWCA Environmental Consultants Review of the North Broad Street Neighborhood Park Project March 2, 2021 Project History and Background 20 ▪Need for a park in this area identified through public outreach ▪2018-19 Supplemental Budget allocated funds for a neighborhood park at 533 Broad Street ▪Additional public outreach was conducted to gain input on design and amenities Previous Review ▪Parks and Recreation Commission Review ▪Provided directional items regarding design during September 2, 2019 meeting ▪Overall consensus was reached in favor of the final design during November 6, 2019 meeting 21 Previous Review ▪Planning Commission Review ▪Reviewed project at January 27, 2021 hearing ▪Recommended approval of the project with addition of three new conditions of approval 22 Council’s Purview ▪Review project for consistency with the General Plan, Zoning Regulations, Community Design Guidelines (CDG), and applicable City development standards and guidelines. ▪Determine final action on project. 23 Project Location 24 SITE Project Description ▪Conversion of an existing community garden to a neighborhood park ▪General Plan Designation change from Open Space (OS) to Park (P) ▪Rezone from Conservation Open Space (C/OS) to Public Facilities (PF) 25 Project Description ▪Roadway improvements within City Right -of-Way ▪New sidewalk, gutter, and red-painted curb along Broad St. and Lincoln St./Broad St. intersection ▪New accessible curb ramps at Broad St. and Lincoln St. intersection ▪New high-visibility crosswalks along Broad St. and Lincoln St. 26 Project Site Plan 27 Project Site Plan 28 Consistency with City Regulations ▪General Plan ▪Zoning Regulations ▪Community Design Guidelines 29 Consistency with City Regulations 30 ▪General Plan ▪Parks and Recreation Element identifies need for a neighborhood park in Broad Street area ▪Zoning Regulations ▪Project includes 14 bicycle parking spaces and no vehicle parking spaces Planning Commission Recommended Conditions 31 6) Plans submitted for a building permit shall provide exterior lighting within the park to improve safety, subject to the satisfaction of the Community Development Director. The locations of all lighting, including bollard style landscaping or path lighting, shall be included in plans submitted for a building permit. The selected fixture(s) shall be shielded to ensure that light is directed downward consistent with the requirements of the City’s Night Sky Preservation standards contained in Chapter 17.70.100 of the Zoning Regulations. Planning Commission Recommended Conditions, cont. 32 7) Plans submitted for a building permit shall provide specific attention to the selection of tree species and landscaping to maximize screening along the east property line to preserve privacy and provide additional noise reduction from Highway 101, subject to the approval of the Community Development Director. 8) City staff shall investigate the feasibility of installing traffic calming and/or pedestrian safety measures along Broad Street between U.S. Highway 101 on -and off- ramps and Lincoln Street. This assessment shall consider current traffic speed and collision data, concurrence from Caltrans, adjacent property owners, and the City Transportation manager. If supported by these stakeholders, staff shall endeavor to incorporate traffic calming measures along the park frontage as part of the final park designs to the satisfaction of the City Engineer. Environmental Review 33 ▪Mitigated Negative Declaration (MND) ▪Circulated December 24th,2020 through January 25 th, 2021; ▪Identified mitigation measures to reduce all potential impacts to less than significant ▪Revised to address addition of pathway lighting within park development site ▪No new or more severe impacts were identified Recommendation ▪Adopt the Draft Resolution (Attachment 1) recommending approval of the project to City Council based on findings and conditions. 34 Questions/Comments 35 36 37 Noise ▪Noise Element establishes maximum noise level for neighborhood parks at 65 dB and 70 dB for playgrounds ▪Based on LUCE EIR, site is within 70 dB contour of U.S. Highway 101 ▪Per City’s Noise Guidebook, the presence of dense vegetation, such as the riparian corridor between the highway and the project site, reduces noise levels by five decibels 38 Noise In accordance with Noise Element Policy 1.8.2, noise reduction measures in descending order of preference are detailed below: a.Provide distance between noise source and recipient; b.Provide distance plus planted earthern berms; c.Provide distance and planted earthern berms, combined with sound walls; d.Provide earthern berms combined with sound walls; e.Provide sound walls only; f.Integrate buildings and sound walls to create a continuous noise barrier. Air Quality 39 ▪Proximity to U.S. 101 raised potential health concern from vehicle emissions ▪City staff consulted SLOAPCD directly ▪Based on intermittent and temporary use, health risk would be negligible, and no further assessment was required ▪Project air quality specialist concurred 40 Biological Resources ▪Old Garden Creek and Stenner Creek converge on-site ▪Project would protect sensitive riparian habitat with fencing ▪Mitigation measures incorporated to reduce temporary disturbance impacts during project construction ▪Lighting would be designed to avoid impacts to riparian areas 41 42 43 44 45 46 PUBLIC COMMENT •If you would like to speak on this item,please raise your virtual hand. •When your name is called,you will be moved to a panelist. •Before you begin speaking,unmute your mic and turn on your video. Please state your name and address (optional)for the record. •After you complete your comments you will be moved back to an attendee. Public Comment __________________________________________________________ Recommendation: As recommended by the Human Relations Commission (HRC),adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo,California, approving the 2021 Community Development Block Grant (CDBG)Program”to approve funding allocations for an estimated $513,086 of CDBG funds for the 2021-22 Program Year. Item #9 CONSIDERATION OF THE FISCAL YEAR 2021-22 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING RECOMMENDATIONS Staff Presentation By: Michael Codron, Community Development Director Cara Vereschagin, Housing Coordinator 2021-22 Community Development Block Grant (CDBG) Funding Recommendations __________________________________________________ City Council March 2, 2021 Item #9 Recommendation As recommended by the Human Relations Commission (HRC), adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, CA, approving the 2021 Community Development Block Grant (CDBG) Program” to approve funding allocations for an estimated $513,086 of CDBG funds for the 2021- 22 Program Year. 50 Community Development Block Grant (CDBG) Program Federal program administered by HUD City participates in the Urban County Incorporated cities eligible to receive formula based annual grants Funding distributed is non-competitive City funding decisions supported by County, included in annual Action Plan City Share of CDBG Funding *This is an estimated amount for the funding year. Final allocations have yet to be determined. 52 $681,579 $568,370 $506,558 $510,756 $498,446 $466,109 $461,224 $442,462 $444,380 $453,691 $496,355 $513,086 * $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Funding AmountYear City of San Luis Obispo CDBG Funding Allocations 2010-2021 CDBG Program Objectives Benefit low-income persons and households with incomes below 80% of area median income (SLO County median is currently $97,300 for a 4-person household) Prevent or eliminate slum or blighted areas Mitigate issues and combat urgent community development needs that pose a serious, immediate threat to public health or welfare, such as floods, earthquakes, and other disasters 53 CDBG Process Timeline Date Action September 1, 2020 Applications available October 23, 2020 Applications due by 5:00 p.m. November 17, 2020 Council approves funding priorities December 2, 2020 HRC reviews and votes on funding recommendations January 2021 County publishes Draft Action Plan March 2, 2021 Council hearing to consider HRC funding recommendations April/May 2021 County Board of Supervisors approves 2021 Action Plan CDBG Adopted Funding Priorities (ranked) 1)Provide emergency and transitional shelter, homelessness prevention and services. 2)Develop and enhance affordable housing for low and very-low income persons. 3)Enhance economic development (including seismic retrofit, economic stability, low and moderate income jobs). 4)Promote accessibility and/or removal of architectural barriers for the disabled and elderly. 55 56 CDBG HRC Funding Recommendations HRC Funding Recommended City Sources Requested Outside Grant Sources Requested No. Activity (Note 1)(Note 2)(Note 3) 1 40 Prado Homeless Services Center*70,963$ 86,000$ 157,000$ 84,000$ 327,000$ 2 Supportive Housing Program -$ 16,809$ -$ 52,384$ 69,193$ 3 Foster child intervention to avert homelessness 2,500$ 2,500$ -$ 52,500$ 55,000$ 4 Subsistence Payments, Homeless Assistance, &Security Deposits 3,500$ 3,500$ -$ 85,500$ 89,000$ 76,963$ 108,809$ 157,000$ 274,384$ 540,193$ 5 Toscano Family Apartments 333,506$ 333,506$ 335,000$ TBD 668,506$ 6 Safe Housing (SH) Project * -$ 8,000$ -$ 8,000$ 16,000$ 7 Permanent Supportive Housing II -$ $300,000 (Note 4)-$ 300,000$ 300,000$ 333,506$ 641,506$ 335,000$ 308,000$ 984,506$ 8 CDBG Administration 17,958.00$ 17,958$ -$ -$ 17,958$ 9 Capacity Building 17,958.00$ 17,958$ -$ -$ 17,958$ 10 CDBG Administration 66,701$ 66,701$ -$ -$ 66,701$ 102,617$ 102,617$ -$ -$ 102,617$ 513,086$ 852,932$ 492,000$ 582,384$ 1,627,316$ 1 Estimated Funding for CDBG Program Year 2021-22: $513,086 2 Tenative Other City Funding Sources (i.e. General Fund Allocations, Affordable Housing Fund Awards) 3 Other Grant Sources Applied for Outside the City (i.e. HOME, Title 29, other CDBG Allocations, PLHA Funds, ESG Funds etc.) 4 Applicant requested a total of $300,000 for the proposed project, but is open to locate the project in any of the particpatory jurisdictions. 5 CDBG City Administration Funding 35% Share of Total Admin Allowance per 2021-23 Cooperation Agreement with the County of SLO 6 CDBG City Administration Funding 65% Share of Total Admin Allowance per 2021-23 Cooperation Agreement with the County of SLO *In the case the City receives a greater CDBG allocation, excess funding is recommended for these projects Total Funding Requested City 2021 CDBG SUBTOTAL SUBTOTAL Administration (20% of $513,086 = $102,617) Housing & Public Facilities (65% of $513,086 = $333,506) Public Services & Economic Development (15% of $513,086 = $76,963) SUBTOTAL TOTAL NOTES: San Luis Obispo Non-Profit Housing Corporation (in collaboration with HASLO) City of San Luis Obispo (Note 5) Stand Strong, formerly the Women's Shelter Program of San Luis Obispo County Salvation Army County of San Luis Obispo (Note 6) Funding Requested Applicant Community Action Partnership of San Luis Obispo (CAPSLO) City of San Luis Obispo (Note 5) Other Pending Fund Awards 5 Cities Homeless Coalition (5CHC) Court Appointed Special Advocates (CASA) Peoples' Self-Help Housing Corporation (PSHH) Public Services and Economic Development Projects (15% of Total) #1 CAPSLO -40 Prado Homeless Services Center Requested: $86,000; Recommended: $70,953 Operating costs of homeless programs at 40 Prado Historically have awarded 100% of Public Services & Economic Development allocation Aligns with Funding Priority #1 #2 Peoples’ Self -Help Housing -Supportive Housing Program (SHP) for Low-Income Households Requested: $16,809; Recommended: $0 Funds to assist with providing clinical social services and case management of SHP for residents of their affordable rental properties City currently supporting program through GIA Only ~4% of SHP clients reside in the City Aligns with Funding Priority #1 57 cont…Public Services and Economic Development Projects (15% of Total) #3 CASA –Foster Child Intervention to Avert Homelessness Requested: $2,500; Recommended: $2,500 Funds to recruit, train, and supervise community volunteers to advocated for abused children City currently supports CASA through GIA Aligns with Funding Priority #1 #4 5 Cities Homeless Coalition –Subsistence Payments, Homeless Assistance & Security Requested: $3,500; Recommended: $3,500 Funds to assist with various activities supported by the Housing First model In past 12mos housed 7 households in the City (~16% of total clients served) & assisted 3 City households with eviction prevention (~11% of total clients served) Aligns with Funding Priority #1 58 Housing and Public Facilities Projects (65% of Total) #5 SLONP/HASLO –Toscano Family Apartments Requested: $333,506; Recommended: $333,506 Funds for property acquisition for new 38-unit 100% affordable housing project in the City Funding will help leverage other additional funding sources Aligns with Funding Priority #2 #6 Stand Strong (formerly the Women’s Shelter) -Safe House Project Requested: $8,000; Recommended: $0 Funds to assist with replacement of existing roof of emergency safe house, which provides shelter and supportive services to clients Eligible CDBG project, could use other City funding sources Aligns with Funding Priority #2 #7 Salvation Army –Permanent Supportive Housing Project Requested (from all jurisdictions): $300,000; Recommended:$0 Funds to acquire an existing house worth ~$600,000 to provide 4 units of permanent supportive housing for homeless persons Eligible CDBG project; other projects propose more units Aligns with Funding Priority #1 59 Administration Projects (20% of Total) #8 City of SLO –CDBG Administration Requested: $17,958; Recommended: $17,958 Limited to 35% of the City’s CDBG Admin allocation CDBG Administration implemented by City’s Housing Programs Staff #9 City of SLO –Capacity Building Requested: $17,958; Recommended: $17,958 Limited to 35% of the City’s CDBG Admin allocation Funds anticipated to be used for affordable housing- related programs #10 County of SLO –CDBG Administration Requested: $66,701; Recommended:$66,701 Limited to 65% of the City’s CDBG Admin allocation 60 Recommendation As recommended by the Human Relations Commission (HRC), adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, CA, approving the 2021 Community Development Block Grant (CDBG) Program” to approve funding allocations for an estimated $513,086 of CDBG funds for the 2021- 22 Program Year. 61 (This slide intentionally left blank) 63 Community Development Block Grant (CDBG) Grants-in-Aid (GIA) •Assistance to meet urgent community development needs •Large grant amounts •Assistance to non-profits that promote the economic and social well-being of the community •Small grant amounts CDBG vs. GIA Funding PUBLIC COMMENT •If you would like to speak on this item,please raise your virtual hand. •When your name is called,you will be moved to a panelist. •Before you begin speaking,unmute your mic and turn on your video. Please state your name and address (optional)for the record. •After you complete your comments you will be moved back to an attendee. Public Comment _________________________________________________________________ Recommendation: 1.Introduce an Ordinance entitled “An Ordinance of the City Council of the City of San Luis Obispo, California,amending Municipal Code Title 10 Chapter 36 regarding stopping,standing and parking for certain purposes or in certain places”to allow multi-family properties of five to eight units to participate in the Dana Street Parking District and to adjust replacement permit fee amounts;and 2.Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California,modifying the Residential Parking Permit District for the Dana Street area of the City, establishing days and hours of operation of said District,and time of renewal for a parking permit”to include multi-family properties of five to eight units. Item #10 INTRODUCE AN ORDINANCE TO AMEND TITLE 10 OF THE MUNICIPAL CODE AND ADOPT A RESOLUTION MODIFYING THE DANA STREET PARKING DISTRICT Staff Presentation By: Matt Horn, Public Works Director Gaven Hussey, Parking Program Manager Alexander Fuchs, Parking Services Supervisor Introduce an Ordinance Amending Title 10 and Adopt a Resolution for the Dana Street Parking District City Council 3-2-2021 Recommendations 1.Introduce an Ordinance amending Title 10 of the Municipal Code to allow multi-family properties of five to eight units to participate in the Dana Street Parking District and to adjust replacement permit fee amounts; and 2.Adopt a Resolution modifying the Dana Street Parking District to include multi-family properties of five to eight units. Direction from Council After Study Session in December 2020 ❑Remove the timed parking overlay that was implemented along with the parking district; ❑Survey multi-family properties of five to eight units to ensure a majority of these properties wish to be included in the Dana Street Parking District;and ❑Return to Council with necessary Municipal Code amendments and Residential Parking District Resolution to allow for the inclusion of eligible Dana Street multi-family properties within this parking district that will expire with the construction of a new parking structure at Palm/Nipomo unless revised by the Council. Action Taken on Council’s Direction ❑Timed parking overlay restrictions were removed at the end of January.Vehicles parked in the district boundaries during enforcement hours must display a valid permit or be subject to citation; ❑Multi-family properties were surveyed in January.Of the 28 properties surveyed,16 completed and returned surveys.15 (94%)of which support be included in the district.Surveys not completed and returned are not counted;and ❑Staff drafted an Ordinance and Resolution,before Council tonight,to make the inclusion official. Another Item –Update to Replacement Permit Fees ❑The replacement fee for residential parking permits was not increased at the beginning of this fiscal year when the costs for the annual permits increased.The increase in replacement fees has been included in the ordinance revisions introduced tonight. ❑Staff will work to include all administrative fees for parking related services,except for parking meter rates,in the City’s Master Fee Schedule to avoid missing fee increases in the future. Recommendations 1.Introduce an Ordinance amending Title 10 of the Municipal Code to allow multi-family properties of five to eight units to participate in the Dana Street Parking District and to adjust replacement permit fee amounts; and 2.Adopt a Resolution modifying the Dana Street Parking District to include multi-family properties of five to eight units. 10.36.170(A)(3) –Designation of Parking Permit Areas Limiting the parking of vehicles along the streets in the area to vehicles registered or controlled and exclusively used by persons residing in the area is necessary in order to preserve the character of the existing neighborhood as defined in resident petition and approved by a sixty percent majority of households in the area. Households will be determined using the city’s address database (there may be more than one household per parcel)and will be limited to non-multifamily units of less than five dwelling units with the exception of the residential parking permit district on Dana Street which allows for multi-family units of five to eight dwelling units to be eligible to receive permits.This exception will be in effect until the completion of construction of the Palm-Nipomo parking structure or until nullified by City Council action. 10.36.220 –Residential Parking Permit -Issuance Annually,the director of public works shall issue two residential parking permits to the registered property owner,or the registered property owner’s representative,as authorized in writing,of each property shown with a unique number on the latest county of San Luis Obispo assessment roll within each residential parking permit area established by resolution as set forth in Section 10.36.180.Qualified households that have multiple,separate dwelling units shall be eligible for additional permits,providing the total number of permits issued to one parcel does not exceed twice the number of residential dwelling units on the parcel with exception of multi-family units of five to eight units in the Dana Street residential parking permit district which shall be eligible to receive permits equal to one per dwelling unit per parcel.All parking permits may be picked up in person at the office of the city parking manager or will be mailed to the address of the property on written request of the property owner. 10.36.221 –Lost, Stolen, or Defaced Permit Replacement Any permit lost,stolen,defaced or otherwise altered shall be deemed invalid and a replacement permit shall be issued to the qualified property owner for a fee of twenty fifteen dollars.If the replacement permit is again lost, stolen,or defaced,a replacement permit will be issued for a fee of thirty twenty-five dollars.No additional replacement permits shall be issued within a twelve-month period.All permits shall be picked up by the property owner or a representative authorized in writing by the registered property owner,with proof of identification,at the office of the city parking manager.The property owner or a representative authorized in writing by the owner shall certify that the original permit was lost,stolen,or in the case of damaged permits shall submit the damaged permit,stating the permit shall be used by qualified residents and their bona fide visitors. PUBLIC COMMENT •If you would like to speak on this item,please raise your virtual hand. •When your name is called,you will be moved to a panelist. •Before you begin speaking,unmute your mic and turn on your video. Please state your name and address (optional)for the record. •After you complete your comments you will be moved back to an attendee. Public Comment _________________________________________________________________ Recommendation: Review and accept the TDA and Single Audits for Fiscal Year 2019-20 including auditor’s finding and management’s responses. Item #11 ACCEPTANCE OF THE TRANSPORTATION DEVELOPMENT ACT (TDA) AND FEDERAL SINGLE AUDITS FOR FISCAL YEAR 2019 -20 Staff Presentation By: Michael Codron, Community Development Director Cara Vereschagin, Housing Coordinator 2019-20 TDA & Single Audit Reports 78 Recommendation Review and accept the Transportation Development Act and Single Audits for Fiscal Year 2019-20. 2019-2 0 T D A & S i n g l e A u d i t 79 Audit Requirements Single Audit ▪organization-wide financial statement and federal awards’ audit of a non- federal entity ▪$750,000 or more in federal funds in one year. ▪To provide assurance to the Federal Government that a non-federal entity has adequate internal controls in place ▪Generally, in compliance with program requirements. Transportation Development Act ▪California Code of Regulations, Title 21, section 6662 ▪Annual audit of accounts and records within 12 months of the end of the fiscal year 802019-2 0 T D A & S i n g l e A u d i t Transportation Development Act Funding for two specific purposes Development and construction of local streets, roads, pedestrian facilities, and bicycle facilities Transit 812019-2 0 T D A & S i n g l e A u d i t TDA Funds Special Revenue $48,608 •TDA funds are legally restricted. The City has a special revenue fund created for TDA revenues. •Revenues went unspent at the end of FY 2019-20 and will be utilized in a transportation project delayed due to COVID-19 in FY 2021. Transit $779,666 •The Transit Fund is an enterprise fund to account for revenues received pursuant to the TDA, the Federal Transit Authority, and revenues from transit operations. 822019-2 0 T D A & S i n g l e A u d i t Fare Box Recovery Revenue Ratio The fare box recovery revenue ratio measures the profitability of a transit system. User Fares Operating Expenditures •Per PUC Section 99268.3 in Article 4 of the TDA requires a ration of at least 20% •For the year ended June 30, 2020, the City ended with 18%. Revenues decreased due to the affects of COVID-19 •AB 90 -prohibits imposing a penalty on an operator that does not maintain the required ratio during 2019-20 or 2020-21. (Note 7 of TDA report) •Where are we now? 832019-2 0 T D A & S i n g l e A u d i t 84 Single Audit FY 2019-20 •What is a Single Audit? •An audit of both financial statements and federal awards. •What information does a single audit provide? •A report on the City’s internal control for financial reporting. •A schedule of expenditures funded by Federal Grants and the City’s compliance with Federal regulations. •A schedule of findings and questioned costs, if any. These findings are areas of improvement for the City when it comes to internal controls. 2019-2 0 T D A & S i n g l e A u d i t 85 Single Audit FY 2019-20 Grant Title City Project/Department Program Expenditures Highway Planning and Construction Marsh Street Bridge Replacement $ 1,828,107 Highway Planning and Construction Widen 50 Higuera 30,937 Federal Transit Formula Grants Transit services 2,307,593 Coronavirus Emergency Supplmental Funding Police 41,431 Bulletproof Vest Partnership Program Police 7,583 Edward Byrne Memorial Justice Assistance Grant Police 12,871 Capitalization Grants for State Revolving Funds Utilities -WRRF upgrade 4,000,000 Total Expenditure of Federal Awards $ 8,228,522 2019-2 0 T D A & S i n g l e A u d i t Addressing Auditor’s Findings 86 2019-2 0 T D A & S i n g l e A u d i t Seven Findings ➢All internal control functions ❖Year-end closing ❖Bank Reconciliation ❖Journal Entry numbering ❖Capital Assets ➢No findings on revenue and expenditure accounting. ❖Segregation of Duty in AP ❖Payroll System Configuration ❖Late Performance Reviews Addressing Auditor’s Findings 87 Each of these findings represents an opportunity for continuous improvement and City staff take each one seriously. Any ERP system implementation requires processes and procedures to change and adapt. Continuous improvement occurs frequently in the first few years of a major ERP change. Resolving these findings will require internal and external resources, at the same time as day-to-day operations continue. But this is an investment that will pay dividends. 2019-2 0 T D A & S i n g l e A u d i t Year-end Closing & Reconciliations •Finding: The City recorded a large number of adjusting entries after the closing process was complete to record transactions not previously recorded or to correct transactions •Response: This is the second year of Oracle Cloud financial system. There were fewer adjustments and delays than the prior year. Checklist for year-end close is under development. Monthly closing has been implemented, which will further assist with review and reconciliation prior to the start of the audit. 882019-2 0 T D A & S i n g l e A u d i t JE posting & numbering •Finding: Journal entries should be independently prepared, reviewed, and posted to the general ledger with unique identification number and include supporting documentation. •Response: The City is exploring the Oracle system’s approval functionality and workflow to ensure that all journal entries receive appropriate level of review and approval before posting. In addition, looking at possible configuration changes that would assist with generating sequential numbering, rather than current unique ID numbers. Staff are utilizing the system’s ability to upload and save documentation with the journal entry. 892019-2 0 T D A & S i n g l e A u d i t Addressing Auditor’s Findings –Bank Reconciliation •Finding: Bank reconciliations were not performed timely. June 2020 bank reconciliation had an unreconciled variance of around $600,000 •Response: The City is working with Oracle Consulting Services to configure the Bank Reconciliation functionality that is part of the system. The large discrepancy is an unreversed journal entry related to accrued payroll and is a result of the implementation and configuration of the Oracle software and transition between systems. All employees have been paid and expenses have been recorded appropriately. However, the cash balance and accrued payroll liabilities were not reduced accordingly and remain in the pass -through account. Since April 2020, the bank reconciliations are being prepared monthly as part of the month end close. 902019-2 0 T D A & S i n g l e A u d i t Capital Asset –Additions and Deletions •Finding: Capital asset additions and deletions were not captured in the general ledger. A completed project was still reflected as construction-in-progress. In addition, infrastructure assets were added to replace fully depreciated items, however the fully depreciated assets were not removed from the general ledger. •Response: The City continues to refine the process and procedure of recording capital assets in the Oracle system and has revised the approach to include additional cross checks. Accounting and GIS are working to cross reference assets mapped in GIS. Additional configuration of the Oracle system will assist in the management of capital asset additions throughout the fiscal year. Efforts to conduct a City-wide inventory are underway. 912019-2 0 T D A & S i n g l e A u d i t Segregation of Duty in AP •Finding: The Accounts Payable Accounting Assistant is able to edit the vendor master file, has access to check printing and invoice data entry. •Response:The City will improve the internal controls in the accounts payable function by implementing configuration changes in the Oracle system, as possible and appropriate.Development of a vendor master file changes report is underway.In addition, staff are reviewing possible segregation of duties between Purchasing and Accounts Payable. 922019-2 0 T D A & S i n g l e A u d i t Payroll System Configuration •Finding: The Oracle payroll module has overtime configuration implemented incorrectly, resulting in manual tracking and correction of payroll. •Response: The City is working with Oracle Consulting Services to correct the payroll configurations. In the interim, the payroll team is manually tracking the overtime results of each payroll and manually correcting any calculation errors that result. 932019-2 0 T D A & S i n g l e A u d i t Late Performance Reviews •Finding: The City has not implemented the Goals and Performance module in Oracle for all employees. Manual tracking and reporting of performance reviews results in delayed reviews, which then requires manual retroactive payroll calculations. •Response: The City is working with Oracle Consulting Services to correct the payroll configurations for retroactive calculations. In the interim, manual calculations and payments are being performed. Current on-time performance review rate: 88% 942019-2 0 T D A & S i n g l e A u d i t PUBLIC COMMENT •If you would like to speak on this item,please raise your virtual hand. •When your name is called,you will be moved to a panelist. •Before you begin speaking,unmute your mic and turn on your video. Please state your name and address (optional)for the record. •After you complete your comments you will be moved back to an attendee. Public Comment LIAISON REPORTS AND COMMUNICATIONS 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 Meeting of the City Council is scheduled for Tuesday, March 16, 2021 at 6:00 p.m., via teleconference. The Regular Meeting of the San Luis Obispo City Council will resume shortly *Recess in Progress*