HomeMy WebLinkAbout03-02-2021 City Council PresentationsCity Council
Regular Meeting
March 2, 2021
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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
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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
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As of 3/2/2021 at 1:00 PM
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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
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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
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PUBLIC COMMENT
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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
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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
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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
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item,please raise your virtual
hand.
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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
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Transportation Development Act
Funding for two specific purposes
Development and construction of local streets, roads, pedestrian facilities, and
bicycle facilities
Transit
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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.
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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?
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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.
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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
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Addressing Auditor’s Findings
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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%
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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*