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HomeMy WebLinkAboutItem 10 - COUNCIL READING FILE_a_Strategic Budget Direction ReportStrategic Budget Direction   for the   2021‐23 Financial Plan  Council Meeting: April 20, 2021 Table of Contents (Linked)  A: General Fund Long Term Forecast…………. Pg. 3  B: Major City Goals ……………………………………. Pg. 5  C: Ongoing Community Services…………………  Pg. 44  D: Local Revenue Measure…………………………  Pg. 50   E: Significant Operating Budget Changes …... Pg. 62  F: Capital Improvement Plan ……………………… Pg. 76  G: Enterprise Funds …………………………………… Pg. 99 1 Section A:   General Fund Long-term Forecast  2 Long‐term Forecast Footnotes:  1 ‐ Development review revenue was increased based on historical actuals and expected five‐year forecasted revenue. This revenue is offset by  an increase in expenditures for development review resources in the Planning, Engineering, Building and Housing divisions.   2 ‐ American Rescue Plan Federal Stimulus Funding: San Luis Obispo will receive $8.93 million to counter‐act the far‐reaching effects of the  pandemic on the community’s well‐being. For a jurisdiction such as the City, funding will come through the State which has 60 days to release  the first half with the second 50% being distributed a year later. Jurisdictions have until December 31, 2024 to spend the funding.  3 ‐ FY21 beginning balance includes prior‐period adjustment to audited financials. The insurance fund balance is now included within the General  fund for purposes of financial reporting.  4 ‐  Per  Resolution  No.  11203,  $3,425,000  in  undesignated  fiscal  year  2018‐19  General  Fund  Balance  was  allocated  towards  economic  development and homeless services. $2 million of this funding was assigned to locally invest in short term Certificates of Deposit to generate  interest for a grant program to help offset the cost of a TI permit. One of the recommended SOBCs for the 21‐23 Financial Plan is to utilize  $250,000 of this principal to continue funding the TIPP‐fast permitting program in FY 21‐22. 3 Section B:   Major City Goals  4       STRATEGIC BUDGET DIRECTION – SECTION B     MAJOR CITY GOALS (MCGs)  Included in this section:   Overview – MCG Goal Statements and summary of total investments in MCGs.   MCG Detail ‐ Individual MCG summaries and tasks/actions associated with each goal.  MCG Goal Statements  Economic Recovery, Resiliency & Fiscal Sustainability – Goal Statement  In collaboration with local partners, continue to support economic recovery for all from the COVID  pandemic and support a thriving local economy by supporting local businesses, arts and culture,  downtown vitality, practicing fiscal responsibility, paying down unfunded pension liabilities, and  investing in critical infrastructure  Housing and Homelessness – Goal Statement  To expand housing options for all, continue to facilitate the production of housing, including the  necessary supporting infrastructure, with an emphasis on affordable and workforce housing. Collaborate  with local non‐profit partners and the county, the state, and federal governments to discover and  implement comprehensive and effective strategies to reduce chronic homelessness.  Diversity, Equity, Inclusion (DEI) – Goal Statement    In response to our commitment to making San Luis Obispo a more welcoming and inclusive city for all,  continue  to  develop  programs  and  policies  to  support  diversity,  equity,  and  inclusion  initiatives  and  advance the recommendations of the DEI Task Force.    Climate Action, Open Space, and Sustainable Transportation – Goal Statement   To proactively address the climate crisis, continue to update and implement the Climate Action Plan for  carbon neutrality, including preservation and enhancement of open space and the urban forest,  alternative and sustainable transportation, and planning and implementation for resilience.    The following sections go into the detail of each Major City Goal and associated tasks.  Operating Capital Total  Investment Operating Capital Total  Investment 1 Climate Action, Open Space, Sustainable  Transportation 870,876$              14,592,660$   15,463,536$   683,202$         14,397,731$    15,080,933$    2 DEI 769,130$             345,000$        1,114,130$    841,097$        95,000$          936,097$         3 Economic Recovery 9,115,732$          3,462,500$    12,578,232$  8,223,204$     8,089,500$     16,312,704$    4 Housing & Homelessness 2,288,961$          9,090,100$    11,379,061$  2,208,550$     25,105,817$   27,314,367$    5 Total 13,044,699$        27,490,260$  40,534,959$  11,956,054$  47,688,048$  59,644,102$   2021‐22 2022‐23 Table 5: Total Major City Goal Investment MCG 5 Section B: Major City Goals – Economic Recovery      Goal Statement:   In  collaboration  with  local  partners,  continue  to  support  economic  recovery for all from the COVID pandemic and support a thriving local  economy by supporting local businesses, arts and culture, downtown  vitality, practicing fiscal responsibility, paying down unfunded pension  liabilities, and investing in critical infrastructure.     Expectations:  The City will engage and expand up on its community partnerships and invest in infrastructure,  promotion, programs, and polices that support the economic and social recovery and resiliency of the  community while ensuring fiscal sustainability. Additional focus will be placed on the retention of  existing businesses, the recovery of arts and culture, the vitality of the downtown, and supporting  underserved groups and populations. Additionally, all actions will be viewed through the lens of the  City’s sustainability and DEI efforts.     Stakeholders/Responsible Departments  For the purposes of MCG administration, monitoring, and reporting, Administration is the lead  department. However, the Economic Recovery, Resiliency & Fiscal Sustainability (ERR&FS) require the  support and engagement from all City departments with special focus provided by Community  Development, Public Works, Parks and Recreation, and the Police Departments. The City will also  continue to engage current partners like the Chamber, Downtown SLO, REACH, SLOMA, SLOREP, Cal  Poly, Cuesta and other existing and new partners to support our efforts.     Strategic Approach  Strategy 1.1:  For all members of the Community‐ The language “for all” in the goal statement  ensures that the Economic Development efforts will work in conjunction with the City’s DE&I efforts  to support BIPOC, LGTBQ+ and other under‐served communities as we recover from the pandemic  and build resiliency.     Strategy 1.2: Business Support‐ The City will support the SLO business community through a mix of  traditional and non‐traditional economic development efforts. The efforts will focus on:  a. Creation, Retention, Attraction, Promotion and Programs for new and existing businesses.   b. Planning, Permit, Policy support for recovery and resiliency efforts.   c. Infrastructure investment.    Strategy 1.3: Support Arts and Culture‐ The City will support the recovery of the Arts and Cultural  activities by working with existing and new community partners.   Strategy 1.4: Downtown Vitality‐ In partnership with Downtown SLO, the City will support the  downtown business community through a mix of traditional and non‐traditional economic efforts.  The efforts will focus on:  a. Creation, Retention, Attraction, Promotion and Programs for new and existing businesses,   b.  Planning, Permit, Policy support for recovery, resiliency, and downtown vitality,  d. Support for Arts and Culture,  d. Infrastructure investment,  e. Clean and Safe programs.  1. Economic Recovery, Resiliency & Fiscal Sustainability  6 Section B: Major City Goals – Economic Recovery                Within existing  resources* New Resources  (SOBCs)Capital Within existing  resources* Resources  (SOBCs) Capital 1.1 For all members of the Community  $            80,000  400,000$          155,000$       1.2 Business Support  $     2,600,000   $       1,147,241 2,600,000$    571,261$       1.3 Arts and Culture Support  $        100,000   $            50,000 100,000$        25,000$         1.4 Downtown vitality  $     1,237,364   $          520,679  3,062,500$      1,087,364$    348,600$      8,089,500$       1.5 Practicing fiscal responsibility  $          76,200   $          756,048 61,200$          739,679$       1.6 Paying down unfunded pension liabilities   $     2,500,000 2,500,000$     1.7 Investing in critical infrastructure  $            9,200   $            39,000 9,200$            25,900$         SUB TOTAL 6,522,764$     2,592,968$      3,462,500$      6,357,764$    1,865,440$   8,089,500$      TOTAL Total Investment in Economic Recovery, Resiliency & Fiscal Sustainability 21‐22 22‐23 12,578,232$                                                              16,312,704$                                                          Strategic Approach * Estimated calculation of current resources or budget that will be used to help advance major city goals (ex: staff hours, overhead, etc.)   Strategy 1.5: Practicing Fiscal Sustainability: The City will continue to focus fiscal sustainability  through all work efforts, programs, and the required budget appropriations. It will review its revenue  sources ongoingly and maximize collection and return on its investments.     Strategy 1.6:  Paying down unfunded pension liabilities: The City will work to pay down the unfunded  liabilities and allocate additional annual payment in pursuit of a 20‐year paydown.     Strategy 1.7:  Investing in critical infrastructure: The City will invest in critical infrastructure based on  the approved 2021‐23 CIP or as otherwise directed by the City Council. Projects that 1) facilitate  economic recovery, 2) enhance safety, resilience, fire prevention, 3) address past commitments  (previously budget, approved planning documents), 4) are partnership projects with a significant  portion of the cost covered by private development, 5) address existing core infrastructure  maintenance needs and 6) provide positive impact towards climate change goals and/or Diversity  Equity and Inclusions needs that will be prioritized for inclusion and Council’s consideration in the  2021‐23 CIP.      7 Capital Expense Expense Expense Expense 1.1 For all members of the Community 1.1 a. Establish a process for the City to recognize and promote Minority-owned businesses.No 1.1 b. Implement protocols within the City’s Office of Economic Development to reach out to existing and new Minority-owned/operated businesses to learn of their experiences operating in SLO, and to identify ways the City can be of support.No 1.1 c. Evaluate and potentially establish a City Leadership/Chamber of Commerce / Minority Business Owners’ roundtable.No 1.1 d. Research, explore and potentially utilize innovative practices such as micro-loans, targeted-sector recruiting and promotion, City facilitated lending, grants, private support and crowdfunding to support businesses owned by or serving underserved/underrepresented communities. The City will also leverage its partner network, including the Chamber, Downtown SLO, REACH and others to support the DEI initiatives as they relate to economic development including creation, retention and attraction efforts. EXPENSE IS LISTED IN DEI Yes -$ 1.1 e. Update and maintain a listing of resources for BIPOC, LGBTQ+ and other underserved communities on the City's Doing Business section of the website. No 1.1 f. Establish an internal working group to research methods to support local contractors, local vendors and labor through workforce agreements, local purchasing requirements, alternative project delivery methods and other options to support local businesses and employees. No 1.1 g. Develop and implement a scorecard to track visitation to key areas of the City, employment, DEI economic efforts and other relevant economic indicators. Yes 30,000$ 30,000$ 1.1 h. Update the City's Economic Development Strategic plan Yes 100,000$ 1.1 i. Review the Economic Development program structure based on the outcome of the EDSP update. No 1.1 j. Ensure adequate temporary and flex resources available to develop and execute required initiatives. Yes 50,000$ 25,000$ 1.1 h. Legal Support No 1.1 h. Legal Support SOBC Yes 1.1 k. Downtown safety enhancements - bollards No 400,000$ -$ 1.2 Business Support (a. Creation, Retention, Attraction, Promotion and Programs, b. Planning, Policy, Permitting, c. Infrastructure) PROGRAMS/PROJECTS Strategic Approach # 2021-22 Operating Capital Operating Funded through SOBC 2022-23 Economic Recovery Task/ Action 8 Capital Expense Expense Expense Expense PROGRAMS/PROJECTS Strategic Approach # 2021-22 Operating Capital Operating Funded through SOBC 2022-23 Economic Recovery Task/ Action 1.2 a-1. Set aside funding for activations, promotions and programs like "Light Up Downtown", "Buy Local Bonus", Shop local to aid in the recovery from the impacts of COVID-19 through out the City and including downtown. Yes 500,000$ $250,000 1.2 a-2. Elevate the promotion and branding of the Economic Development activities of the City highlighting the efforts around Sustainability and DE&I through the website, videos and other collateral. ($60k communications support for Administration) Yes 140,000$ $60,000 1.2 a-3. Continue to work with our partners at the Chamber, REACH, Cal Poly, Downtown SLO, SCORE and others to support the business community through retention, creation, attraction, education and communication efforts. No 50,000$ 50,000$ 1.2 a-4. Work with REACH and other partners to offset the loss of the Diablo Canyon Nuclear Power plant through business attraction, H-o- H job creation and other relevant efforts. No 1.2 a-5. Evaluate the continuation and/or modification of the Open Slo program Fitness in the Parks.No NA NA 1.2 a-6. Review transitioning the Business Ambassador program from a COVID response action to an ongoing program with an available hotline as well as an online form option. No 1.2 a-7. Continue to promote the City to tourists, visitors and locals through the efforts of the TBID and the PCC. No 1,550,000$ 1,550,000$ 1.2 a-8. Provide childcare programming to the community to enable residents to work and fuel the local economy.No 1,000,000$ 1,000,000$ 1.2 b-1. Continue to implement the TIPP-FAST program to fast track tenant improvement permits and support business recovery. Incorporate subsidies into program when funding is available.Yes 250,000$ 1.2 b-3. Develop a streamlined and easy to understand process for businesses to allow activities encouraged by Outdoor SLO, and other programs implemented in response to Covid-19, to continue - especially in relation to outdoor dining. No 1.2 b-4. Improve efficiency and transparency in the permitting process through implementation of paperless permitting, performance management reporting, and enhanced customer transparency tools.Yes 46,528$ $39,234.05 1.2 b-5. Review and establish policies as required to support broadband to the home to take advantage of the opportunities to work from home to support the Climate Action Plan and Quality of life. No 9 Capital Expense Expense Expense Expense PROGRAMS/PROJECTS Strategic Approach # 2021-22 Operating Capital Operating Funded through SOBC 2022-23 Economic Recovery Task/ Action 1.2 b-d. Staff Resources to improve permitting efficiency and support development services program capacity Yes 210,713$ 222,027$ 1.2 c-1. Ensure the business community is updated and aware of major City projects (CIP and others) that will impact their operations. Coordinate with business adjusting working hours and construction impacts to reduce impacts. No 1.2 c-2. Set aside funding for the potential to expand the various Open Slo programs (Parklets, Street closures) to other areas of the City to support busines recovery. No 1.2 c-3. Legal Support No 1.2 c-4. Legal Support SOBC Yes 1.3 Arts and Culture Support 1.3 a. Support the recovery of Arts and Cultural activities throughout the City. No 1.3 b. Support the recovery of Arts , Culture and Community programs through a PCC program similar to GIA. Yes 50,000$ 25,000$ 1.3 c. Continue to support local community non-profit organzations through the Cultural GIA program facilitated by the PCC. No 100,000$ 100,000$ 1.3 1.3 Legal Support No 1.3 1.3 Legal Support SOBC Yes 1.4 Downtown vitality (a. Promotion and Programs b. Planning, Policy, Permitting c. Arts and Culture d. Infrastructure e. Clean and Safe) 1.4 a-1. Continue to partner with Downtown SLO to ensure the recovery and growth, and vitality of the Downtown. No 245,000$ 245,000$ 1.4 a-2. Support Downtown SLO in expanding the Holiday "Light up Downtown" program and incentivize private participation through a matching program.(For example $100K base with $ for $ match on $50K) Yes 150,000$ 150,000$ 1.4 a-3. Continue the work of the Vacancy and Vibrancy Task force in cooperation with Downtown SLO with a focus on a activating and re-leasing vacant store fronts. No 10 Capital Expense Expense Expense Expense PROGRAMS/PROJECTS Strategic Approach # 2021-22 Operating Capital Operating Funded through SOBC 2022-23 Economic Recovery Task/ Action 1.4 a-4. Review, evaluate and execute on the outcomes from the Downtown Future Forum ensuring the required public participation and Council approval as needed. No 1.4 a-5. Continue to enhance and modify the Open SLO program "Downtown Dining" within Mission Plaza as needed to contribute to downtown vitality. Yes 13,687$ 27,375$ 1.4 a-6. Support the restart of the various Downtown SLO activations like Farmers, Concerts in the Plaza and the Holiday Parade. No 1.4 a-7. Continue to promote the Downtown to tourists, visitors and locals through the efforts of the TBID and the PCC. No 1.4 b-1. Update the Zoning Regulations to allow for more flexible administration of allowed uses, especially downtown, to support desired pop-up, shared-resource and new business model approaches to facilitate business opportunities in the community. Yes 75,000$ 1.4 b-2. Update the Zoning Regulations to allow for more flexible administration of allowed uses, especially downtown, to support desired pop-up, shared-resource and new business model approaches to facilitate business opportunities in the community. Yes 50,000$ 1.4 c-1. Support Arts and Culture in the downtown while ensuring appropriate efforts are made to support DEI through available programs.200,000$ 1.4 c-2. Support the recovery of Arts and Cultural activities by working with new and existing community partners.142,500$ 142,500$ 1.4 c-3. Activation of public spaces in downtown through events and programming such as pop up activities and temporary public art that celebrates the proliferation of public art. 1.4 c-4. Explore options of creative placemaking and temporary public art in the downtown i.e. adjacent to Bubblegum Alley and Rose Alley. 1.4 c-5. Support creation and partnership of a Downtown Mural Program with Downtown SLO and SLOMA. 1.4 d-1. Develop and present a long term plan for the initiatives started under the Open SLO like parklets and street closures in the downtown. No 1.4 d-2. Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza Concept Plan and Council Direction.No 150,000$ 1,035,000$ 1.4 d-3. Construct the new Palm/Nipomo structure in coordination with SLO REP theatre.850,000$ 5,582,000$ 1.4 d-4. Continue with the City banner program.100,000$ 25,000$ 11 Capital Expense Expense Expense Expense PROGRAMS/PROJECTS Strategic Approach # 2021-22 Operating Capital Operating Funded through SOBC 2022-23 Economic Recovery Task/ Action 1.4 d-5. Establish and implement a plan to make the Zig Zag lights permanent in the current locations as well as other locations in the downtown.No 250,000$ 1.4 d-6. Ensure the downtown business community is updated and aware of major City projects (CIP and others) that will impact their operations and set aside funding to minimize the impacts where possible. 1.4 d-7. Investigate opportunities to develop a Downtown Wi-Fi Mesh.No -$ -$ -$ -$ 1.4 d-8. Expansion to gateless parking structure to improve the customer access and experience when visiting downtown.No 40,000$ 90,000$ 1.4 d-9. Assist with the continuation of Open SLO parklets and courtesy curbside pick up locations No 350,000$ 200,000$ 350,000$ 1.4 d-10. Expansion of enforcement to ensure on-street, off-street, and residential compliance and safety and to improve overnight safety in the parking structures Yes (199,008)$ (269,775)$ 1.4 d-11. Expansion of maintenance to ensure parking structures and adjoining areas remain safe, clean and orderly (see above for fiscal impact)Yes 1.4 d-12. Parking structure maintenance at 842 Palm, 871 Palm, and 919 Palm. No 900,000$ 900,000$ 1.4 d-13. City Hall lighting No -$ 15,000$ 1.4 e-1. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors and homelessness support. No 66,000$ 66,000$ 1.4 e-2. Continue to enhance downtown cleanliness through daily sidewalk scrubbing, street sweeping and trash clean up and the improvement of the existing creek walk. Yes 430,000$ 440,000$ 1.4 e-3. Continue to provide public safety presence in the downtown. Includes costs of Downtown Bike Patrol, Sergeant, and Officers)no 426,364$ 426,364$ 1.4 e-4. The Police department will develop an educational program, which will include in- person presentations for business owners (including visitor serving) to know how to deal with situations requiring public safety support. Costs are associated with materials. Yes 1,000$ 1,000$ 1.4 e-5. Develop a CAT staffing plan with a second social worker, to ensure public safety and social service resources in both the downtown and creek area. FUNDING LISTED IN HOMELESSNESS MCG Yes 1.4 e-6. Evaluate a plan to reestablish a downtown sub station for public safety. (Potential of adding to Mission Plaza Project)No 12 Capital Expense Expense Expense Expense PROGRAMS/PROJECTS Strategic Approach # 2021-22 Operating Capital Operating Funded through SOBC 2022-23 Economic Recovery Task/ Action 1.4 e-7. Track hours worked (regular and overtime hours) by the downtown sergeant and downtown officers and tracking crime statistics. No 1.4 Project: Roudabout Publis Art Installations No 300,000$ 300,000$ 1.4 Project: Mission Plaza Railing Replacement No 80,000$ 1.4 Legal Support No 1.4 Legal Support SOBC Yes 1.5 Practicing fiscal responsibility 1.5 a. Practicing fiscal responsibility: The City will continue to focus fiscal sustainability through all work efforts, programs, and the required budget appropriations. It will review its revenue sources ongoingly and maximize collection and return on its investments. No 1.5 b. Staff Resources: Continued enhancements to the Oracle Cloud system through the MOTION program to increase efficiencies and overall effectiveness of the system. Additionally help maintain the City's accounting and financial information.Yes 674,879$ $700,810 1.5 c. Negotiate successor agreements with employee groups in alignment with Council adopted Labor Relations Objectives.No 21,200$ 21,200$ 1.5 c. Negotiate successor agreements with employee groups in alignment with Council adopted Labor Relations Objectives.No 10,000$ 10,000$ 1.5 d. Complete benchmark compensation survey for SLOCEA, Management, and Confidentials groups.Yes 30,000$ 1.5 d. Complete benchmark compensation survey for SLOCEA, Management, and Confidentials groups.No 15,000$ 1.5 e. Continue to monitor and reduce liability and workers’ compensation claims through actions aimed at reducing liability and workers’ compensation costs. No 30,000$ 30,000$ 1.5 f. Injury Reduction Programs, Compliance Software, Onboarding Software, and transitioning to electronic files Yes 51,169$ 38,869$ 1.5 1.5 Legal Support No 1.5 1.5 Legal Support SOBC Yes 1.6 Paying down unfunded pension liabilities 13 Capital Expense Expense Expense Expense PROGRAMS/PROJECTS Strategic Approach # 2021-22 Operating Capital Operating Funded through SOBC 2022-23 Economic Recovery Task/ Action 1.6 Paying down unfunded pension liabilities (includes all funds): The City will work to pay down the unfunded liabilities and allocate additional annual payment in pursuit of a 20- year paydown. No 2,500,000$ 2,500,000$ 1.6 1.6 Legal Support No 1.6 1.6 Legal Support SOBC Yes 1.7 Investing in critical infrastructure 1.7 a. Investing in critical infrastructure: The City will invest in critical infrastructure based on the approved 2021-23 CIP or as otherwise directed by the City Council. Projects that 1) facilitate economic recovery, 2) enhance safety, resilience, fire prevention, 3) address past commitments (previously budget, approved planning documents), 4) are partnership projects with a significant portion of the cost covered by private development, 5) address existing core infrastructure maintenance needs and 6) provide positive impact towards climate change goals and/or Diversity Equity and Inclusions needs will be prioritized for inclusion and Council’s consideration in the 2021-23 CIP. 9,200$ 9,200$ 1.7 b. Administrative Costs Associated with Investment in CIP Yes 39,000$ 25,900$ 1.7 1.7 Legal Support No 1.7 1.7 Legal Support SOBC Yes Total 9,115,732$ 3,462,500$ 8,223,204$ 8,089,500$ Total Cost Per Fiscal Year $ 12,578,232 16,312,704$ 14 Section B: Major City Goals ‐ DEI        Goal Statement:  In response to our commitment to making San Luis Obispo a more  welcoming and inclusive city for all, continue to develop programs and  policies to support diversity, equity, and inclusion initiatives and advance  the recommendations of the DEI Task Force.    Expectations:  The City will engage in initiatives that advance DEI within the organization and community:  1. Develop and implement strategies, programs and policies that build a workplace culture and  community of inclusion, fairness and belonging for all.  2. Involve marginalized communities and diverse voices in program development and delivery to  ensure current lived experiences are understood, priorities are addressed, and the City’s  efforts are relevant and meaningful.  3. Partner with proven community providers and utilize best practice models to leverage City  resources and maximize effectiveness and impact of initiatives.  4. Identify and track measurable results as the City progresses in maturing diversity and  inclusion efforts.    Stakeholders/Responsible Departments  Administration, Human Resources, Police Dept, Parks & Recreation, Public Works.  All Departments share responsibility for supporting and prioritizing DEI initiatives to advance the  City’s strategies, ambition, and goal.    Strategic Approach  Strategy 2.1 – Establish Office of DEI  The Office of DEI is the City’s forward‐facing commitment to meaningful, structural, and lasting  change. It will create and establish activities, outreach, programs, policies, and structures to advance  equity and inclusion, cultural and systemic anti‐racism, and cultural competence within the  organization and throughout the community. It will strengthen relationships with marginalized  communities and their leaders, manage the City’s comprehensive approach to improving community‐ based and internal DEI initiatives, and support departments in embedding DEI in all  practices,  policies, processes throughout the organization.    Strategy 2.2 –  Develop & Implement DEI Strategic Plan  Create a strategic plan for a comprehensive DEI Initiative. Include assessments of City policies,  practices, environments, community need, priorities, and available resources. Utilize DEI Task Force  Recommendations, and Internal D&E Audit as a foundation, and the Cal Poly Experience report and  other documents as reference and for benchmarking. Subsequent project and implementation plans  will include qualitative and quantitative metrics to measure impact of DEI projects and overall DEI  initiative. implementation of prioritized programs and projects will be scoped as resources allow.    Strategy 2.3 –  Workforce Recruitment & Retention  Develop and implement proven strategies, programs, and policies that successfully attract, engage,  retain, and develop a diverse workforce. Emphasize the development of internal candidates, broaden  2. Diversity, Equity, Inclusion  15 Section B: Major City Goals ‐ DEI    outreach & advertising, and eliminating screening and selection bias to recruit and hire a more  diverse pool of candidates.    Strategy 2.4 – Inclusive & Equitable Workplace  Continue to develop an environment where all employees feel valued and included. Focus on  providing DEI training and professional development, building interpersonal connections,  improving/increasing communications, integrating DEI into every department’s operations and daily  practices, and growing interest in DEI among all employees.    Strategy 2.5 – Community‐based Policing and Restorative Practices  To align with national trends and best practices, identify strategies for alternative methods to policing  in the City, and increase the ability for social service providers to support in situations where police  are currently serving as both responders and providers. Maintain cultural competency training for  officers. Seek opportunities to increase understanding, strengthen relationships, and intentionally  center the needs of the BIPOC community.    Strategy 2.6 – Cal Poly & Cuesta College Partnerships  Increase shared training, programs, community‐building resources, and collaborative planning to  increase access and enhance belonging for all City residents. Partner with campus programming to  present educational and cultural events to the community at large. Convene regular roundtables with  City, Cal Poly, Cuesta College leadership and students.    Strategy 2.7 – Access, Inclusion, Support for Underrepresented Communities  Revise and expand the City’s existing practices and programs, and support development of leadership  and internship opportunities ‐ especially for youth, BIPOC and LGBTQ+ residents ‐ to increase  understanding, access, and participation in local government. This seeks to increase and diversify the  community members who understand, navigate, feel connected to, and actively participate in the  systems essential to creating meaningful improvements in the City. Sponsor public art and cultural  activities that center the history, experiences, and contributions of the City’s historically marginalized  populations. Increase understanding of the needs and ways to support undocumented residents;  enlist efforts to ensure they know they are eligible for and how to receive City services.    Strategy 2.8 – Community Education & Programming  Partner with DEI experts and providers to expand ongoing awareness and  educational programs and  forums. Topics such as how to be anti‐racist, increasing intercultural competence, understanding  unconscious bias, and convening listening and learning sessions may be offered.    Strategy 2.9 –  Support & Attract Minority‐Owned Businesses  Focus efforts to support and promote existing minority‐owned businesses and attract new  businesses. Develop outreach and recognition programs. Recognize other businesses that are actively  engaged in advancing DEI and those that demonstrate support of  minority‐owned businesses.      16 Section B: Major City Goals ‐ DEI      Within existing  resources* New Resources  (SOBCs) Capital Within existing  resources* Resources  (SOBCs) Capital 2.1 Establish Office of DEI  $          220,039 239,340$       2.2 Develop & Implement DEI Strategic Plan  $            40,000 15,000$         2.3 Workforce Recruitment & Retention  $          13,000   $          101,691 18,000$          43,257$         2.4 Inclusive & Equitable Workplace  $            6,500   $            20,000  25,000$            4,500$            20,000$        75,000$            2.5 Community‐based Policing and Restorative  Practices  $          10,000   $            15,400 10,000$           2.6 Cal Poly & Cuesta Partnerships 2.7 Access, Inclusion, Support for  Underrepresented Communities  $        151,000   $          186,500  320,000$          158,500$        172,500$      20,000$            2.8 Community Education & Programming  $              5,000 10,000$         2.9 Support & Attract Minority‐Owned Businesses 150,000$       SUB TOTAL  $     180,500   $       588,630   $      345,000 191,000$       650,097$      95,000$            TOTAL 1,114,130$                                                                936,097$                                                               Total Investment in Diversity, Equity & Inclusion Strategic Approach 21‐22 22‐23 * Estimated calculation of current resources or budget that will be used to help advance major city goals (ex: staff hours, overhead, etc.) 17 Capital Expense Expense Expense Expense 2.1 Establish Office of DEI 2.1 a. Design DEI Administration, Function, and Operations of the Office No 2.1 b. Develop DEI Base Operating Budget Yes 20,000$ 5,000$ 2.1 c. Identify and secure office space (2000/mo @ 7 mos Y1, 12 mos Y2)Yes $14,000 24,000$ 2.1 d.Develop positions; Hire Staff No 2.1 e. Hire Diversity position - 1.0 FTE Yes $111,898 115,995$ 2.1 f. Hire -DEI Administrative Support - .5 FTE Yes $30,555 34,158$ 2.1 g. Hire CivicSparks Fellow - Y2 - .75 FTE Yes 30,000$ 2.1 h. Hire Interns - Cal Poly, Cuesta, community candidates - .25 FTE - 2 positions Y1 @ midyear / 2 - Y2, full year Yes $13,586 15,187$ 2.1 i. Consultant - DEI SME - 360 total hours Yes 30,000$ 15,000$ 2.1 j.Create and establish formal and informal activities, outreach, programs, policies, structures to advance equity and inclusion, cultural and systemic anti-racism, and cultural competence in the organization and community, and support underrepresented communities No 2.1 k.Implementation of prioritized activities – internal and community-based No 2.1 l. Support DEI efforts throughout each department No 2.1 m. Coordinate activities of the DEI Employee Committee No 2.1 n. Community-based outreach, education, programming No 2.1 o. DEI High Impact and GIA grant administration and management No 2.1 p. Cal Poly & Cuesta collaborations No 2.1 q. Support the HRC No 2.1 2.1 Legal Support No 2.1 2.1 Legal Support SOBC Yes 2.2 Develop & Implement DEI Strategic Plan 2.2 a. Conduct needs, priority, and resource assessments. Create comprehensive DEI initiatives and programming for the organization and community. Yes 35,000$ 2.2 b. Utilize DEI Task Force Recommendations, Internal D&E Audit as foundation; Cal Poly Experience report and other documents as reference and for benchmarking No 2.2 c. Present comprehensive plan to City Council for Adoption No PROGRAMS/PROJECTS 2022-23Diversity, Equity, Inclusion Task/Action Strategic Approach # Funded through SOBC 2021-22 Operating Capital Operating 18 Capital Expense Expense Expense Expense PROGRAMS/PROJECTS 2022-23Diversity, Equity, Inclusion Task/Action Strategic Approach # Funded through SOBC 2021-22 Operating Capital Operating 2.2 d. Create project designs and implementation plans. Identify applicable qualitative and quantitative metrics to measure impact of DEI projects and overall DEI program No 2.2 e. Begin implementation of prioritized programs and projects; scoped as resources allow. To be determined through Strategic Planning process. Yes 5,000$ 15,000$ 2.2 2.2 Legal Support No 2.2 2.2 Legal Support SOBC Yes 2.3 Workforce Recruitment & Retention 2.3 a.Improve DEI-Focused Recruitment, Screening, Hiring Practices No 2.3 b. Improve DEI-focused language in job descriptions, announcements and other recruitment materials. Identify gaps and opportunities to increase inclusivity in materials. - supported by consultant, 2.1.4.g No 4,000$ 4,000$ 2.3 c. Provide DEI-focused screening and interviewing training to personnel and panels - supported by consultant, 2.1.4.g No 4,000$ 4,000$ 2.3 d. Implement applicable recommendations from Internal Audit, as well as other industry best practices. Continue to ensure final selection guidelines are consistent with DEI best practices No 5,000$ 5,000$ 2.3 e. Conduct Pay Equity Audit Yes 30,000$ 2.3 f. Conduct Pay Equity Audit No 5,000$ 2.3 g. Examine Policies and Programs to Support for Primary Caretakers No 2.3 h. Review, evaluate and implement findings of SLO County Child Care Study (First 5’s analysis) of childcare for working families, as applicable; 22-23 Supplemental Plan as resources permit.No 2.3 i. Continue communicating childcare options and resources for City employees; additional to First 5 findings. Explore flex schedules, job share, remote options, etc.No 2.3 j. Expanded Recruitment Services Expenses to Augment HR Yes 20,000$ 20,000$ 2.3 k. Fire: Recruit Academy Support and Intern Program - enhance DEI recruitment efforts Yes 51,691$ 23,257$ 2.3 2.3 Legal Support No 2.3 2.3 Legal Support SOBC Yes 2.4 Inclusive & Equitable Workplace 19 Capital Expense Expense Expense Expense PROGRAMS/PROJECTS 2022-23Diversity, Equity, Inclusion Task/Action Strategic Approach # Funded through SOBC 2021-22 Operating Capital Operating 2.4 a. Develop and Adopt Diversity Statement for the Organization No 2.4 b. Assist Departments in infusing DEI into their programs, policies, and practices in relevant and practical ways No 2.4 c. . Further develop purpose, role, activities and enhance impact of DEI Employee Committee – (e.g. ERGs, cultural celebrations, activity budget, speakers, self-study materials, public web pages)Yes 5,000$ 5,000$ 2.4 d. Grant equal standing and priority to the tasks and responsibilities periodically assigned to DEI committee members as is given to their other duties 2.4 e. DEI-related Staff Development / Training Yes 15,000$ 15,000$ 2.4 f. Implement a DEI module in new hire onboarding No 2,000$ 2.4 g. Provide training and other learning opportunities for all levels. E.g. inclusive leadership, cultural competency, assessments, speakers, self-study, etc. No 2.4 h. Continue Clarity Collective training as foundation training - ASSIGNED / RESOURCED TO HR No 4,500$ 4,500$ 2.4 i. Training for Council, Commission, Advisory Board – tailored for roles, Brown Act, etc.No 2.4 j. Complete a planning study for gender-inclusive restroom and sleeping facilities for Fire Stations 3 and 4. Proceed with design work pending results of study. No 25,000$ 75,000$ 2.4 2.4 Legal Support No 2.4 2.4 Legal Support SOBC Yes 2.5 Community-based Policing and Restorative Practices 2.5 a. Implement After Action Report recommendations No 2.5 b. Review and implement Governor’s recommendations regarding protests when issued No 2.5 c. Implement federal government changes in law enforcement. Implement RIPA Spillman Module: the Racial and Identity Profiling Act (RIPA) was formed as part of AB953. California law enforcement agencies will be required to collect data for stops made by law enforcement personnel. Annual reporting to DOJ is a requirement. Yes 15,400$ 20 Capital Expense Expense Expense Expense PROGRAMS/PROJECTS 2022-23Diversity, Equity, Inclusion Task/Action Strategic Approach # Funded through SOBC 2021-22 Operating Capital Operating 2.5 d. Continue to focus on de-escalation and diversity training No 10,000$ 10,000$ 2.5 e. Review new Police Station building program and budget for opportunities to reduce costs to preserve resources for community service investments No 2.5 2.5 Legal Support No 2.5 2.5 Legal Support SOBC Yes 2.6 Cal Poly & Cuesta Partnerships 2.6 a. Solidify relationships and collaborations No 2.6 b. CP Office of University Diversity and Inclusion (OUDI) and City DEI Office/City Manager Leadership quarterly planning meetings No 2.6 c. Host City / Cal Poly Office of Student Diversity & Belonging quarterly roundtable (City & CP leadership, DEI committee, HRC, Cal Poly students, DEI leaders, etc.) - re community / student experience, relationship-building No 2.6 d. Utilize Faculty Fellow assigned to Office of DEI in partnership with CP OUDI to research best practices, grants for internships, programs, outreach, innovative practices, etc. – seeking sponsorship from Cal Poly No 2.6 e. Explore opportunities and build collaborations with Cuesta College No 2.6 f. Provide City facilities as available to campus DEI programs delivered to and in the community No 2.6 g.Utilize interns from Cal Poly and Cuesta within the Office of DEI No 2.6 2.6 Legal Support No 2.6 2.6 Legal Support SOBC Yes 2.7 Access, Inclusion, Support for Underrepresented Communities 2.7 a.High Impact DEI Grants Yes 150,000$ 150,000$ 2.7 b. GIA Grants No 150,000$ 150,000$ 2.7 c. HRC Operating Budget for enhanced presence, advocacy, community building, etc. (such as awareness campaigns, access/fairness efforts, citizen award, etc.). Activities TBD Yes 3,000$ 5,000$ 2.7 e. Support feasibility study for Multicultural Center; provide City liaison/staff support No 2.7 f. Contribute to planning / feasibility study Yes 2,500$ 2,500$ 21 Capital Expense Expense Expense Expense PROGRAMS/PROJECTS 2022-23Diversity, Equity, Inclusion Task/Action Strategic Approach # Funded through SOBC 2021-22 Operating Capital Operating 2.7 g. Update City's formal Public Engagement & Noticing (PEN) procedures as well as other public outreach, input efforts to increase diverse participation. Develop tactics and cost to implement Yes 15,000$ 2.7 h. City 101 / Community Academy to increase understanding / access / participation in City government Yes 15,000$ 15,000$ 2.7 i. City 101 – first stage, short program, easy access/commitment. Overview of City, how to access, ways to be involved. Extensive outreach to Underrepresented minorities, community-based sessions. Design, pilot Y1 No 2.7 j. Community Academy – second stage, longer program. Partner with Chamber, others. Test demand, develop. Pilot Y2 No 2.7 a. Develop “Undocu-Friendly” logo for City documents, as allowable by law No 1,000$ 1,000$ 2.7 k. Develop “Undocu-Friendly” logo for City documents, as allowable by law Yes 1,000$ -$ 2.7 l. BIPOC youth artists' public art project. Feature work that provides a fuller representation of all communities. Artists are stipended. Pilot in Y2 - ASSIGNED & RESOURCED TO P&R No 7,500$ 2.7 d-14. Park major maintenance and repairs specific to Cheng Park improvements and Mission Plaza railing improvements. No 300,000$ -$ 2.7 Parks Major Maintenance - ADA Transition Plan Implementation 20,000$ 20,000$ 2.7 2.7 Legal Support No 2.7 2.7 Legal Support SOBC Yes 2.8 Community Awareness & Education 2.8 Trainings, workshops, speakers, forums, townhalls, listening sessions, outreach, etc. for youth, marginalized communities and community-at-large [in addition to CP's programming]Yes 5,000$ 10,000$ 2.8 a. Utilize proven providers rather than City develop program. City serves as coordinator, sponsor, convener, etc. No 2.8 b. Determined by interest, guidance by BIPOC, other URMs, DEI committee, HRC + public input, etc. No 2.8 2.8 Legal Support No 22 Capital Expense Expense Expense Expense PROGRAMS/PROJECTS 2022-23Diversity, Equity, Inclusion Task/Action Strategic Approach # Funded through SOBC 2021-22 Operating Capital Operating 2.8 2.8 Legal Support SOBC Yes 2.9 Support & Attract Minority-Owned Businesses – ASSIGNED & RESOURCED BY MCG ERRS - SEE THAT WORK PROGRAM 2.9 a.Establish a process for the City to recognize and promote Minority-owned businesses No 2.9 b.Implement protocols within the City’s Office of Economic Development to reach out to all existing and new Minority-owned/operated businesses to learn of their experiences operating in SLO, and to identify ways the City can be of support. No 2.9 c.Establish a City Leadership/Chamber of Commerce / Minority Business Owners’ roundtable.No 2.9 d. Research, explore and potentially utilize innovative practices such as micro- loans, targeted-sector recruiting and promotion, City-facilitated lending, grants, private support and crowdfunding to support underserved/underrepresented communities. Leverage City's partner network, including the Chamber, Downtown SLO, REACH and others to support the DEI initiatives as they relate to economic development including creation, retention and attraction efforts. Yes 150,000$ 2.9 e. Update and maintain a listing of resources for BIPOC, LGBTQ+ and other underserved communities on the City's Doing Business section of the website. No 2.9 f. Establish a process for the City to recognize and promote Minority-owned businesses No 2.9 2.9 Legal Support No 2.9 2.9 Legal Support SOBC Yes Total 769,130$ 345,000$ 841,097$ 95,000$ Total Cost Per Fiscal Year $ 1,114,130 936,097$ 23 Section B: Major City Goals – Housing & Homelessness  Goal Statement:   In order to expand housing options for all, continue to facilitate the production of  housing, including the necessary supporting infrastructure, with an emphasis on  affordable and workforce housing. Collaborate with local non‐profit partners and  the county, the state, and federal governments to discover and implement  comprehensive and effective strategies to reduce chronic homelessness.  Expectations:  The City will prioritize new and ongoing Housing Element policies and programs that focus on facilitating the  increased production of affordable and workforce housing, in addition to market rate housing; and the City will  engage with the community, regional agencies, local non‐profit partners, and the Federal government to  leverage resources to be utilized to implement strategies that reduce homelessness.  Housing   1. Implement the Housing Element by continuing ongoing programs and by completing new programs such as achieving more “by right” non‐discretionary review with Objective Design Standards, update of the Inclusionary Housing Ordinance, and by establishing a Flexible Density program and “Missing Middle” housing program to expand housing opportunities downtown and in single‐family neighborhoods. 2. Update the City’s Inclusionary Housing Ordinance. 3. Utilize a consultant to optimize management of the City’s substantial Below Market Rate (BMR) Housing portfolio. 4. Manage HRC Grants‐in‐Aid (GIA), CDBG, the Affordable Housing Fund, and conduct effective grant research, application, and implementation. 5. Provide ongoing advisory body, council support, and outreach and support the transition of the Human Relations Commission (HRC) to the Office of Diversity, Equity and Inclusion. Homelessness 6. Enhance City Homeless Team coordination among various key staff from City Departments and develop a strategic plan to guide City actions. 7. Improve environmental protection and water quality with cleanups of creeks, open spaces, public spaces, and parks. 8. Initiate and participate in regional collaboration efforts and seek out grant opportunities to support regional solutions to reduce chronic homelessness. 9. Expand the Community Action Team (CAT) to support public safety and community member access to critical homeless services. 10. Lead by example with the implementation of a Mobile Crisis Unit (MCU) to support the chronically homeless population, which can be adopted by other agencies and scaled up to meet the regional need. 11.The City will continue and work to expand its support for funding of non‐profit social service providers that specialize in services to help people transition into housing. 3. Housing and Homelessness 24 Section B: Major City Goals – Housing & Homelessness    Stakeholders/Responsible Departments  For the purposes of MCG implementation, administration, monitoring, and reporting, Community  Development is the lead department. However, several of the tasks outlined in the MCG will include the  participation of the following City Departments: Administration, City Attorney, Police, Public Works, Parks and  Recreation, and Fire.     The City will also engage with the following stakeholders to support Housing and Homelessness efforts  including, but not limited to:     1. Residents  2. Homeless individuals and families  3. Homeless advocates  4. Business/Property Owners  5. Chamber of Commerce  6. Economic Vitality Corporation (EVC)  7. Social service agencies  8. San Luis Obispo County Housing Trust Fund  (HTF)  9. Affordable housing and market rate  developers  10. Non‐profit organizations    11. Owners and renters of affordable housing in the  City  12. Homeless Services Oversight Council (HSOC)  13. County of San Luis Obispo Administration,  Behavioral Health, and other key regional  partners  14. Mid and Large‐Scale Employers  Strategic Approach  Housing  Strategy 3.1 ‐ Implement the Housing Element   The City will be implementing the recently adopted 6th cycle Housing Element (HE), which consists of key  policies and programs intended to incentivize and make feasible a range of housing options with an emphasis  on affordable and workforce housing types.    Strategy 3.2 ‐ Implement Inclusionary Housing Ordinance  Continue internal coordination procedures ensuring development applications include a clear and complete  inclusionary housing proposal consistent with the Inclusionary Housing Ordinance. This review process would  include a formal application routing to the Housing Policy and Programs section of the Planning Division during  application completeness review. This review will allow housing staff to verify Inclusionary Housing Ordinance  compliance while also allowing the opportunity to negotiate for more affordability in development projects  through the application of available alternatives and incentives.  Strategy 3.3 ‐ Below Market Rate Portfolio Management  This is a service contract with a qualified consultant that has expertise in the area of management and  administration of the City's Inclusionary Housing Inventory, including ownership units, rental units and project  financing. The contract would include updating program materials, tracking and reporting of program  activities, monitoring, income qualifications, and underwriting applicants for new loans (first‐time homebuyer,  long‐term affordable, and equity‐share programs), including title and escrow services.    Strategy 3.4 ‐ Financial Management  This effort includes the ongoing program administration and management of federal, state and local grants  including: 1) Community Development Block Grant (CDBG); 2) Grants‐In‐Aid (GIA); and 3) Affordable Housing  Fund (AHF). In addition to ongoing grants, the City is the recipient of the following one‐time grants that  support Housing & Safety Element updates and program implementation: 1) SB2 grant in the amount of  $160,000 to fund the Flexible Density Program; 2) LEAP grant in the amount of $150,000 to fund the Housing  Element Update; 3) REAP grant in the amount of $283,003 to fund the Inclusionary Housing Ordinance Update  and Objective Design Standards; and 4) Sustainable Communities grant in the amount of $435,000 to fund the  Safety Element Update.   25 Section B: Major City Goals – Housing & Homelessness    Strategy 3.5 ‐ Advisory Body & Council meetings & support  Staff will continue to provide updates on legislation and state laws related to housing policies pertinent to City  operations, including workforce and affordable housing, and will continue to provide public information  related to ongoing City efforts to implement Housing Element policies and programs. Updates will be provided  to advisory bodies regarding overall housing policy context, and to provide updates in state law and City  policies that inform decisions and recommendations under their purview. This effort will improve advisory  body participation in various implementation strategies described in the overall Housing and Homelessness  Major City Goal, and in ongoing review of individual projects and community discussions surrounding these  topics.    Homelessness  Strategy 3.6 ‐ City Homelessness Team Coordination (Homelessness Response Manager)  Coordination of staff from various City departments (Public Works, Parks and Recreation, Police, Fire,  Administration) focused on addressing issues associated with homelessness, including:  1. Develop a Strategic Plan to guide a sustained effort of engagement by regional partners, non‐profit  partners, and community members to identify and implement coordinated solutions to chronic  homelessness.  2. Maintain and update informational resources, such as the City's Homelessness Solutions web page,  about City actions to help the unhoused population, and the scope of services provided to address the  challenges of homelessness by the County, State, City, and regional partners.  3. Work to prevent homelessness through a Safe Housing Outreach and Education Program that will  provide, among other duties, information about rental assistance programs, eviction protection  programs, and new housing opportunities.  4. Pursue a coordinated lobbying strategy to motivate action at the State and regional level, and research  and secure additional sources of funding to address local challenges.  Strategy 3.7 ‐ Environmental Protection and Water Quality  Environmental clean‐ups in creek and open space areas associated with abandoned personal property and  trash.  Strategy 3.8 ‐ Regional Engagement and Grant Management  Ensure active participation and representation of the City in the County's regional strategic planning efforts to  develop regional solutions to chronic homelessness. Attend HSOC & PACT meetings, support City Elected  Officials on the HSOC, and report status of agenda items back to staff. Support the Housing Policy and  Programs section and Office of DEI on homelessness‐related funding opportunities, such as CDBG, GIA, DEI,  and other State/Federal/local sources.  Strategy 3.9 ‐ Community Action Team (CAT) and Downtown Bike Team Resources  Expand the current Community Action Team by adding an additional social worker position and continue to  provide public safety services by utilizing the Community Action Team; includes two officers and a social  worker. Continue to provide public safety services by utilizing the downtown bike team.  Strategy 3.10 Mobile Crisis Unit (MCU) Pilot Program Implementation  Pair a crisis worker with an Emergency Medical Technician (EMT) to provide non‐emergency response and care  to unhoused community members. Implement the program with the goals of reducing emergency dispatch of  paramedics and law enforcement to community members who need non‐emergency support. Engage with the  County of San Luis Obispo in the implementation of the pilot program so that if it is successful it can be scaled  up and replicated across the region.  Strategy 3.11 – Non‐Profit Partner Funding Support  Research and partner with non‐profit partners in pursuing funding sources such as CARES Act and Project  Homekey grants. Support additional safe parking opportunities in the City and support coordinated regional  efforts for expanding transitional housing, and shelter resources. Provide ongoing funding support to CAPSLO  from the City’s General Fund, which in addition to grant sources will enable programs such as the Homeless  Services Center, safe parking, and warming center functions to continue and expand. Continue to administer  26 Section B: Major City Goals – Housing & Homelessness                                          Within existing  resources* New Resources  (SOBCs) Capital Within existing  resources* Resources  (SOBCs) Capital 3.1 Implement Housing Element  $          140,000  9,090,100$       115,000$       25,105,817$    3.2 Implement Inclusionary Housing Ordinance 3.3 Below Market Rate Portfolio Management  $          60,000   $          117,000  30,000$           117,000$       3.4 Financial Management  $          35,000  35,000$           3.5 Advisory Body & Council meetings & support 3.6 Homelessness Team Coordination  $          322,583 295,212$       3.7 Environmental Protection and Water Quality  $        177,400  $            65,000 183,360$        70,000$         3.8 Regional Engagement and Grant Management 3.9 Community Action Team Resources  $        629,964   $          125,188 629,964$        116,188$       3.10 Mobile Crisis Unit Pilot Program  $          300,000 300,000$       3.11 Non‐Profit Partner Support  $        253,000   $            63,826 253,000$        63,826$         SUB TOTAL  $ 1,155,364   $   1,133,597   $   9,090,100 1,131,324$    1,077,226$   25,105,817$    TOTAL Total Investment in Housing and Homelessness Strategic Approach 21‐22 22‐23 11,379,061$                                                              27,314,367$                                                          * Estimated calculation of current resources or budget that will be used to help advance major city goals (ex: staff hours, overhead, etc.) CDBG and other federal, state and local grants in support of services and facilities that benefit unhoused  community members.     27 Housing & Homelessness Task/ Action Capital Expense Expense Expense Expense 3.1 Implement Housing Element 3.1 a. Inclusionary Housing Ordinance (HE programs 2.13 & 4.6) Yes $90,000 $30,000 3.1 b. Flexible Density Program (HE Program 2.15)No 3.1 c. Develop Objective Design Standards & Update Development Review Process (HE 6.22 & 6.23)No 3.1 d. Zoning Regulations Update - Housing (HE 5.5, 8.18, 8.23, 2.17 and AB 2345)No 3.1 e. Subdivision Regulations Update (HE 6.20)Yes $35,000 3.1 f. Missing Middle Housing (HE 5.4)Yes $50,000 $50,000 3.1 g. Additional Housing Element Program Implementation (HE 2.16, 2.18, 3.10, 4.7 & 4.8)No 3.1 h. Regional Coordination (HE Chapter 4)No 3.1 i. Housing Element Program Implementation (Chapter 3) No 3.1 j. Legal Support No 3.1 k. Legal Support SOBC Yes 3.1 l. Construct Prado Road Creek Bridge Replacement & S. Higuera/Prado Road intersection reconstruction, adding protected bicycle lanes, sidewalks and a bicycle protected intersection, as recommended in the Active Transportation Plan.No 7,070,100$ 14,972,220$ 3.1 m. Complete construction of the Prado Road Interchange project, providing more efficient connectivity for motor vehicles and transit service (reducing VMT), and providing physically-separated facilities for bicycles and pedestrians, as recommended in the Active Transportation Plan. No 500,000$ 5,849,571$ 3.1 n. Development related park improvements specific to Laguna Lake and Orcutt Area. No 1,520,000$ 4,210,026$ 3.1 o. CDD Fleet Replacement No -$ 74,000$ 3.2 Implement Inclusionary Housing Ordinance 3.2 a. Development review project referrals No 3.2 b. Legal Support No Operating Funded through SOBC 2022-23 PROGRAMS/PROJECTS Strategic Approach # 2021-22 Operating Capital 28 Housing & Homelessness Task/ Action Capital Expense Expense Expense Expense Operating Funded through SOBC 2022-23 PROGRAMS/PROJECTS Strategic Approach # 2021-22 Operating Capital 3.2 c. Legal Support SOBC Yes 3.3 Below Market Rate Portfolio Management 3.3 a. Inventory Management; Monitoring; Escrow services; Homebuyer & rental services; BEGIN/FTHB Yes $117,000 $117,000 3.3 b. Attorney advice and support of legal documents no $60,000 $30,000 3.3 c. Legal Support No 3.3 d. Legal Support SOBC Yes 3.4 Financial Management 3.4 a. CDBG Program Administration No 35,000$ 35,000$ 3.4 b. GIA Progarm Administration No 3.4 c. Affordable Housing Fund Administration No 3.4 d. Grant research; applications; coordination No 3.4 e. Legal Support No 3.4 f. Legal Support SOBC Yes 3.5 Advisory Body & Council meetings & support 3.5 a. Reports, Community meetings, presentations (does not include time associated with tasks identified herein)No 3.5 b. HRC liasion No 3.5 c. Legal Support No 3.5 d. Legal Support SOBC Yes 3.6 City Homelessness Team Coordination 3.6 a. Coordination of staff from various City departments (Public Works, Parks and Recreation, Police, Fire, Administration) focused on addressing issues associated with homelessness.No 3.6 b. Develop a Strategic Plan to guide a sustained effort of engagement by regional partners, non-profit partners, and community members to identify and implement coordinated solutions to chronic homelessness.Yes $35,000 29 Housing & Homelessness Task/ Action Capital Expense Expense Expense Expense Operating Funded through SOBC 2022-23 PROGRAMS/PROJECTS Strategic Approach # 2021-22 Operating Capital 3.6 c. Maintain and update informational resources, such as the City's Homelessness Solutions web page, about City actions to help the unhoused population, and the scope of services provided to address the challenges of homelessness by the County, State, City, and regional partners.No 3.6 d. Work to prevent homelessness through a Safe Housing Outreach and Education Program that will provide, among other duties, information about rental assistance programs, eviction protection programs, and new housing opportunities.Yes 3.6 e. Pursue a coordinated lobbying strategy to motivate action at the State and regional level, and research and secure additional sources of funding to address local challenges.No 3.6 f. Housing and Homelessness City Staff Yes 287,583$ 295,212$ 3.6 f. Legal Support No 3.6 g. Legal Support SOBC Yes 3.7 Environmental Protection and Water Quality 3.7 a. Environmental clean-ups in creek and open space areas associated with abandoned personal property and trash Yes 10,000$ 15,000$ 3.7 b. Environmental clean-ups in creek and open space areas associated with abandoned personal property and trash No 132,400$ 138,360$ 3.7 c. Environmental clean-ups in City Parks and public spaces associated with abandoned personal property and trash Yes 55,000$ 55,000$ 3.7 d. Environmental clean-ups in City Parks and public spaces associated with abandoned personal property and trash No 45,000$ 45,000$ 3.7 e. Legal Support SOBC No 3.7 f. Legal Support SOBC Yes 3.8 Regional Engagement and Grant Management 3.8 a. Active participation and respresentation of the City in the County's regional strategic planning efforts to develop regional solutions to chronic homelessness. No 30 Housing & Homelessness Task/ Action Capital Expense Expense Expense Expense Operating Funded through SOBC 2022-23 PROGRAMS/PROJECTS Strategic Approach # 2021-22 Operating Capital 3.8 b. Attend HSOC & PACT meetings, support City seat on the Commission, and report status of agenda items back to staff No 3.8 c. Support the Housing Policy and Program section and the Office of Diversity, Equity and Inclusion on homelessness related funding opportunities, such as CDBG, GIA, DEI, and other sources.No 3.8 d. Legal Support SOBC No 3.8 e. Legal Support SOBC Yes 3.9 Community Action Team (CAT) Resources 3.9 a. Expand the current Community Action Team by adding an additional social worker position.Yes 125,188$ 116,188$ 3.9 b. Continue to provide public safety services by utilizing the Community Action Team; includes two officers and a social worker. (Costs include existing social worker position, but funding for the position is provided by the County).No 376,724$ 376,724$ 3.9 c. Continue to provide public safety services by utilizing the downtown bike team.No 253,240$ 253,240$ 3.9 d. Legal Support No 3.9 e. Legal Support SOBC Yes 3.10 Mobile Crisis Unit Pilot Program Implementation 3.10 a. Pair a crisis worker with an Emergency Medical Technician (EMT) to provide non-emergency response and care to unhoused community members. Yes 300,000$ 300,000$ 3.10 b. Implement the program with the goals of reducing emergency dispatch of paramedics and law enforcement to community members who need non- emergency support. Yes 3.10 c. Engage with the County of San Luis Obispo in the implementation of the pilot program so that if it is successful it can be scaled up and replicated across the region.Yes 3.10 d. Legal Support No 3.10 e. Legal Support SOBC Yes 31 Housing & Homelessness Task/ Action Capital Expense Expense Expense Expense Operating Funded through SOBC 2022-23 PROGRAMS/PROJECTS Strategic Approach # 2021-22 Operating Capital 3.11 Non-Profit Partner Funding Support 3.11 a. Support non-profit partners in pursuing funding resources, such as CARES Act and Project Homekey grants.No 3.11 b. Support a 25% expansion of the number of beds at the 40 Prado Homeless Services Center.Yes $63,826 $63,826 3.11 c. Continue to expand Safe Parking opportunities and support coordinated regional efforts for Safe Parking, transitional housing, and other shelter resources.Yes 3.11 d. Ongoing General Fund support to CAPSLO for 40 Prado (includes safe parking, warming center, operational support)No 143,500$ 143,500$ 3.11 e. Bus Token in-kind program to CAPSLO No 13,500$ 13,500$ 3.11 f. General Fund low income utility subsidies No 20,000$ 20,000$ 3.11 g. Federal CDBG Grant for social services (Provided to CAPSLO to help fund Homeless Services Center operations)No 76,000$ 76,000$ 3.11 h. Legal Support No 3.11 i. Legal Support SOBC Yes Total $2,288,961 9,090,100$ $2,208,550 25,105,817$ 32 Section B: Major City Goals – Climate Action, Open Space & Sustainable Transport    Goal Statement:  To proactively address the climate crisis, continue to update and implement  the Climate Action Plan for carbon neutrality, including preservation and  enhancement of open space and the urban forest, alternative and sustainable  transportation, and planning and implementation for resilience.    Expectations:  The City will engage in projects and initiatives that contribute positively toward:    1. Reducing greenhouse gas emissions at both the municipal and community level on a trajectory  consistent with the Climate Action Plan target of carbon neutrality by 2035;  2. Achieving the vision to complete and sustain the San Luis Obispo Greenbelt;  3. Integrating best practices for urban forestry throughout the community and City landscape in order to  accrue the multiple benefits that trees provide including shading and cooling, beautification, habitat,  stormwater retention, and carbon sequestration;  4. Implementation of Tier 1 projects identified in the Active Transportation Plan (ATP), and planning and  investment in transit service enhancements and transit fleet electrification, in order to achieve the  mode‐share split objectives identified in the Circulation Element of the General Plan;  5. Adapting and becoming more resilient to the impacts of climate change through the Resilient SLO  planning process and through increased implementation efforts that address public health and safety.    In addition, it is expected that this work must necessarily be integrated and cohesive with the parallel Major  City Goals of Diversity, Equity, and Inclusion; Housing and Homelessness; and Economic Recovery, Resilience,  and Fiscal Sustainability.  Stakeholders/Responsible Departments:  For the purposes of this Major City Goal (MCG) administration, monitoring, and reporting, City Administration  is the lead department. However, this goal will require a “whole of government” approach, including  participation by all City departments with special attention provided by Public Works, Parks and Recreation,  Community Development, and Utilities. To ensure accountability and ongoing collaboration, the City will  convene an internal quarterly MCG working meeting to ensure strategic coordination, while also continuing to  administer the Green Team to develop tactical responses and ongoing prioritization of work efforts.    Strategic Approach  Strategy 4.1 – Provide capacity to achieve Council's adopted goals  To implement Council’s goals, the City will need to rely effectively and adequately on increased staffing  support, contract resources, and external community partners to build needed capacity.  This includes either  new or realigned staffing resources in the Office of Sustainability, Solid Waste Program, Urban Forestry, and  4. Climate Action, Open Space and Sustainable  Transportation  33 Section B: Major City Goals – Climate Action, Open Space & Sustainable Transport    Ranger Service.  Contract resources are needed for tasks including grant writing and communications support,  open space vegetation management, tree maintenance, and building / facility energy assessment and  management.  The City is fortunate to enjoy numerous community partnerships and relationships pertinent  to this Major City Goal; notable partners anticipated to play key roles in this work program include the SLO  Climate Coalition, ECOSLO, and the Coastal San Luis Resource Conservation District.    Strategy 4.2 ‐ Continue to update and implement the Climate Action Plan for carbon neutrality.  The City’s Climate Action Plan for Community Recovery (2020) identifies projects, programs, and policy  development across six main organizing pillars: 1. Lead by Example, 2. Clean Energy Systems, 3. Green  Buildings, 4. Connected Community, 5. Circular Economy, and 6. Natural Solutions.  In “Volume II: Technical  Foundation and Work Program” specific tasks and timelines are identified for implementation; the work  program for this Major City Goal, therefore, is attendant to those work products scheduled for the 2021‐23  Financial Plan time horizon in order to stay on track with the larger goal of achieving carbon neutrality by  2035.    Strategy 4.3 ‐ Preserve and enhance open space and the urban forest.  The City enjoys a proud land conservation legacy that it has achieved through its signature Greenbelt  Protection Program over the past 25 years.  This Major City Goal work program affirms the City’s commitment  to continuing to purchase open space land interests for permanent conservation, habitat and watershed  protection, and ensuring the integrity of wildlife corridors and ecosystem functions.  As the City’s open space  system continues to grow, building capacity to adequately maintain, manage, and provide land stewardship  and educational activities also becomes paramount.  Installation of sustainable trail systems for hiking and  biking is vital for community well‐being and mental and physical fitness.  Open space and natural systems also  play a critical role in storing and sequestering carbon and provide valuable climate resilience benefits.    The City is also long recognized for the past 37 years as part of the Arbor Day Foundation’s “Tree City USA”  network that extends across the entire country.  This Major City Goal provides an opportunity to focus  renewed efforts on the City’s cherished urban forest by completing the first ever Urban Forest Master Plan,  providing a comprehensive update of the City’s tree inventory and assessing overall tree canopy,  implementing a contemporary tree database and tracking system, working towards the goal of planting  10,000 new trees by 2035 in partnership with ECOSLO and the community, and moving towards an integrated  approach to urban forestry that accounts for street trees, park trees, open space trees, and riparian trees in a  more holistic manner.    Strategy 4.4 – Alternative and sustainable transportation  To achieve this vital component of the Major City Goal, the City will implement projects and programs that  have shown the ability to effectively shift mobility from single‐occupant, fossil fuel powered vehicles to active  and shared transportation modes, and in doing so will provide for a sustainable and equitable circulation  system consistent with the City’s General Plan mode split objectives. Specific actions will support  implementation of the City’s Active Transportation Plan (2021), transit service enhancements and transit fleet  electrification, Vision Zero efforts aimed towards eliminating traffic‐related deaths, and local and regional  efforts to support sustainable growth while reducing vehicle miles traveled and greenhouse gas emissions.    34 Section B: Major City Goals – Climate Action, Open Space & Sustainable Transport          Within existing  resources* New Resources  (SOBCs) Capital existing  resources* Resources  (SOBCs) Capital 4.1 Provide Sustainability Resources to achieve  Council's Adopted Goals  $         10,000   $       319,536 ‐$                    10,000$        292,892$      ‐$                  4.2 Continue to update and implement the  Climate Action Plan ("CAP") for carbon   $                  ‐    $                  ‐    1,005,000$       25,000$        100,000$          4.3 Continue preservation, maintenance, and  enhancement of the City's open space and  urban forest  $       170,000   $         95,000  750,000$           170,000$      20,000$        630,000$          4.4 Alternative and sustainable transportation  $         23,500   $       105,350  10,337,660$     23,500$        31,071$         12,737,731$    4.5 Planning and implementation for resilience  $                  ‐     $       147,490  2,500,000$       ‐$                110,739$      930,000$          SUB TOTAL  $    203,500   $    667,376   $  14,592,660 228,500$      454,702$      14,397,731$    TOTAL 15,463,536$                                                           15,080,933$                                                        Total Investment in Climate Action, Open Space and Sustainable Transportation Strategic Approach 21‐22 22‐23 * Estimated calculation of current resources or CIP budget that  will be used to help advance major city goals (ex: staff hours, overhead, etc.) Strategy 4.5 – Planning and implementation for resilience  In the face of a rapidly changing climate and observable associated weather‐related impacts, the City will  work to improve community resiliency to climate risks and hazards by taking the following actions: 1.  assessing vulnerabilities of the City’s physical assets, critical infrastructure, and social and economic  conditions, 2. update the City’s General Plan Safety Element, 3. create approaches across key sectors for City  operations and ensure City residents and businesses are equipped with the information and strategies  needed to build collective capacity to adapt and thrive into the future, and 4. continue to implement and  build increased capacity for known priority actions such as reducing fuel loads within the Wildland‐Urban  Interface on City property and reducing the potential for local flooding along creeks and drainage areas.    35 Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense  Expense  Expense Expense4.1 Provide Sustainability Resources to achieve Council's Adopted Goals4.1a. To ensure consistent maintenance and adequate oversight of City Open Space lands, add one net new Ranger Maintenance Worker to maintain level of service standards following recent Open Space acquisitions.  The City's level of service standard for Open Space is 1 Ranger per 1,000 acres.Yes 70,854$                           74,105$                     ‐$                             4.1b. To address Ranger Services staffing, recruitment, and retention, convert 5 Ranger Specialist positions (currently limited benefit temporary) to full‐time regular permanent positions. Yes84,561$                          92,421$                    4.1c. Create a limited term Sustainability & Natural Resources Analyst position to support open space conservation planning, implement Climate Action Plan actions that were established for 2021‐23 on time, and support the completion of the Resilient SLO climate adaptation work effort.Yes62,753$                          ‐$                 62,753$                    ‐$                             4.1d. Restore the Sustainability & Natural Resources Intern position to support open space administration and planning efforts and climate action plan implementation efforts, including completion of the Community Forest Master Plan. Costs include $10,000 in Yr 1 for minor office retrofits to support the office of sustainabilityYes22,368$                          ‐$                 13,613$                    ‐$                             4.1e. Hire a CivicSpark Fellow for one year to initiate, complete, and begin implementing a municipal solid waste reduction initiative.Yes29,000$                          ‐$                 ‐$                             4.1f. Continue grant writing consulting support to ensure focused and competitive proposals for state, federal, and private grants. Yes50,000$                          ‐$                 50,000$                    ‐$                             4.1h. Orient the Green Team to support "Lead by Example" implementation, "Resilient SLO" implementation, and all‐staff educational efforts.No‐$                                     ‐$                 ‐$                               ‐$                             4.1i. Continue SLO Climate Coalition support to provide a resource for community members to participate in climate action initiatives and build overall community capacity. No10,000$                          ‐$                 10,000$                    ‐$                             4.1j. Convene an inter‐departmental staff team to assess and provide recommendations for the Urban Forest Program's future role in advancing sustainability goals and objectives.No4.1 4.1 Legal SupportNo4.1 4.1 Legal Support SOBCYes4.2 Continue to update and implement the Climate Action Plan ("CAP") for carbon neutrality4.2a. Complete the Biennial Climate Action Plan Update, as called for by CAP Administrative Action 3.No ‐$                                      ‐$                  ‐$                                ‐$                             2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐2336 Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense  Expense  Expense Expense2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐234.2b. Implement the Lead by Example Municipal Operations Carbon Neutrality Plan, as called for by CAP Lead by Example task 1.1. Specific projects include: ‐ i. Install electric vehicle chargers to support the transition to all‐electric fleet vehicles. ‐ ii.  Initiate and complete Building and Facility Energy and Decarbonization Study in order to identifiy and prioritize projects for City facilities.‐ iii. Complete installation of lighting retrofits at City Hall and Fire Station 1 using available on‐bill financing.‐ iv. Complete installation of solar panels at the City's Bus Yard, Fire Station 1, and Sinsheimer Pool.‐ v. Review options to further integrate climate action into the 2023‐25 Financial Plan. No290,000$         100,000$                4.2c. Provide for ongoing support for Central Coast Community Energy Policy and Operations Board Members, and engage in staff level policy and program development, as called for by CAP Clean Energy task 1.1.No‐$                                     ‐$                 ‐$                               ‐$                             4.2d. Update the Clean Energy Choice Program for New Buildings for consistency with the 2022 California Building Code update, as called for by CAP Green Buildings task 1.1.No‐$                                     ‐$                 25,000$                    ‐$                             4.2f. Initiate a new grant program to catalyze energy efficiency and decarbonization retrofit projects in existing buildings that will also serve as demonstration and showcase projects, in support of CAP Green Buildings task 2.1.Yes‐$                                     ‐$                 ‐$                             4.2g. Provide support for community electric mobility work being led by the SLO Climate Coalition, in support of CAP Connected Communities task 3.1.No‐$                                     ‐$                 ‐$                               ‐$                             4.2g. Implement organic waste reduction measures required by California Senate Bill 1383, which are also called for by CAP Circular Economy tasks 1.1, 1.2, 1.3, and 2.1.No4.2 4.2 Legal SupportNo4.2 4.2 Legal Support SOBCYes4.2 Transit Facility EV Charging InfrastructureNo715,000$         ‐$                             4.3 Continue preservation, maintenance, and enhancement of the City's open space and urban forest4.3a. Working with the Coastal San Luis Resource Conservation District, complete existing planning efforts and pilot program implementation at Johnson Ranch Open Space and City Farm intended to improve soil health and remove and store carbon, as called for at CAP Natural Solutions task 1.1.No‐$                                     ‐$                 ‐$                               ‐$                             37 Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense  Expense  Expense Expense2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐234.3b. Complete an Urban Forest Master Plan including a comprehensive update of tree inventory update, assessment of tree canopy coverage, and implementation of an ongoing tracking system, as called for by CAP Natural Solutions task 2.1.No140,000$         ‐$                             4.3c. Establish a contract service for enhanced tree pruning and maintenance to ensure the long‐term health and vigor of the City's Urban Forest, as well as public safety and identify a strategy for a prioritized replacement schedule for downtown ficus trees, and begin implementation in order to ensure the long‐term preservation of the Downtown street tree canopy. 175,000$         175,000$                4.3e. Partner with ECOSLO to support the 10,000 Trees by 2035 goal through a tree planting and maintenance program, as well as continue with the SLO Stewards Docent Program, annual creek clean up efforts, and administration of the SLO Green Business Program.Yes20,000$                          ‐$                 20,000$                    ‐$                             4.3f. Actively pursue opprtunities to purchase open space lands and permanent land conservation agreements in furtherance of the City's Greenbelt Protection Program.No250,000$         250,000$                4.3g. Update the existing Cerro San Luis Natural Reserve Conservation Plan (2005), including a contemporary natural resources inventory, mapping, policy review, and identification of land stewardship needs and priorities. No‐$                             4.3h. Implement priority projects and actions at Cerro San Luis Natural Reserve consistent with the updated Conservation Plan.No4.3i. Update the existing South Hills Natural Reserve Conservation Plan (2007), including a contemporary natural resources inventory, mapping, policy review, and identification of land stewardship needs and priorities.No4.3j. Implement priority projects at South Hills Natural Reserve consistent with the updated Conservation Plan.No4.3k. Create the Righetti Hill Open Space Conservation Plan in order to guide the long‐term protection and approrpriate public use of this new City Open Space property.No4.3l. Implement priority projects at Righetti Hill Open Space consistent with the Conservation Plan.No4.3m. Complete installation of adopted trail systems and establish regular Ranger Service patrol at Miossi Open Space.No4.3n. Complete installation of adopted trail systems at the Waddell Ranch addition to the Irish Hills Natural Reserve. No4.3o. Continue Open Space education activities including the "hikes with experts" series, Junior Ranger Camp, supporting the SLO Stewards Docents, and ongoing public information and programming.No38 Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense  Expense  Expense Expense2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐234.3p. Implement Open Space Winter Hours of Use at Cerro San Luis Natural Reserve, including Biological Studies & CEQAYes75,000$                          ‐$                 ‐$                               ‐$                             4.3q. Continued implementation by Ranger Service staff of all Open Space maintenance activites including establishing a replacement schedule for Open Space trailhead improvements, as well as replacement or repair of Open Space fencing currently in disrepair, all as set forth in the adopted Open Space Maintenance PlanNo170,000$                        85,000$           170,000$                  105,000$                4.3r. Continued, ongoing Ranger Service patrol of Open Space areas ensuring compliance with the City Open Space regulations, the safety of users, and protection of natural resources values and functions.No4.3s. Implement Laguna Lake Dredging and Sediment Management and Shoreline Stablizations Projects in order to begin restoration of the lake for recreation and habitat improvement purposesNo4.3 4.3 Legal SupportNo4.3 4.3 Legal Support SOBCYes4.3 Mid‐Higuera BypassNo100,000$         100,000$                4.4 Alternative and sustainable transportation4.4a. Establish consistent mode split tracking and reporting method, consistent with performance monitoring recommendations as called for in the Active Transportation Plan and CAP Connected Communities task 1.1.No‐$                 4.4b. Prepare a Mobility as a Service Study to guide potential implementation of programs and software tools to create an integrated platform linking access to transit, future bikeshare and ridesharing services, as called for in CAP Connected Communities task 1.2.Yes25,000$                          ‐$                 ‐$                               ‐$                             4.4c. Prepare a Transit Innovation Study to provide a blueprint to guide the transition to increased service frequency, electrification and feasibility of no‐fare service for students, seniors, and others as called for in CAP Connected Communities tasks 4.2, 4.3, and 4.4.Yes50,000$                          ‐$                  ‐‐39 Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense  Expense  Expense Expense2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐234.4d. Active Transportation Plan (ATP) Implementation:Implement infrastructure improvements and programs specifically identified in the City's Active Transportation Plan to improve access, mobility and safety for walking and bicycling citywide. Actions support the CAP Connected Communities task 2.1, ATP. Specific projects and programs within the current work program include:‐ i. Plan, Design and Construct the ATP Tier 1 Network ‐ ii. Construct Minor Bicycle and Pedestrian Access & Safety Improvements‐ iii. Complete preliminary design and right‐of‐way acquisition for the Railroad Safety Trail (Tiburon to Orcutt Road)‐ iv. Implement complete street improvements as part of 2021 and 2022 Roadway Sealing Projects‐ v. Continue to monitor trends in the Micromobility industry and feasibility of future SLO Bikeshare Program.‐ vi. Complete construction of the Broad/Woodbridge Pedestrian Hybrid Beacon crossingNo 550,000$          550,000$                4.4e. Perform additional sweeping to remove debris and obstructions along sidewalks, shared‐use paths, and bike lanes, including use of narrow street sweeping machinery and manual sweeping to clear protected bike lanes, parklets and painted bulbouts. FUNDING IN ECONOMIC RECOVERY 1.4 e‐2.Yes‐$                             4.4f. Construct sidewalk repairs and new ADA curb ramps to improve access and safety for pedestrians, particularly those with mobility challenges.No 235,461$          250,000$                4.4g. Acheive meaningful progress towards the "Vision Zero" goal by implementing recommendations from the City's Annual Traffic Safety & Operations Program, with particular focus on eliminating injury collisions involving vulnerable road users such as bicyclists, pedestrians, seniors and children.No 1,000$                             50,000$            1,000$                       50,000$                  4.4h. Construct the Anholm Neighborhood Greenway Phases 1B and 2, completing the priority bicycle and pedestrian route between Foothill Boulevard and Downtown SLO, including safety lighting and public artwork at the US 101/Chorro UndercrossingNo 2,450,000$      ‐$                             4.4i. Complete construction of the Orcutt Road/Tank Farm Road Roundabout, reducing congestion and auto emissions and improving access and safety for bicycles, pedestrians and drivers.No upd4.4j. Complete construction of the California/Taft Roundabout, reducing congestion and auto emissions and improving access and safety for bicycles, pedestrians and drivers.No300,000$         2,798,000$            3.4k. Install new streetlights throughout the cityNo75,000$           75,000$                  40 Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense  Expense  Expense Expense2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐234.4k. Install new solar path lights along the Bob Jones and Railroad Safety Trails, utilizing solar options where feasible, to improve safety for active transportation users. No 100,000$          1,350,000$            4.4 Higuera St. Widening ‐ Bridge to Elks & Fontana to Chumash510,000$          ‐$                             4.4n. Continue Active Transportation Education and Outreach to encourage safe behaviors for all road users and to encourage interest and use of active transportation modes.No22,500$                          22,500$                    4.4o. Prepare Feasibility Study for Potential City VMT Mitigation Program, providing a programmatic mechanism to reduce VMT and GHG production of new development projects within the city.No4.4p. Continue advancing the electrification of the SLO Transit vehicle fleet, including electrification of buses and bus charging infrastructure. No1,854,000$     1,910,000$            4.4q. Replace SLO Transit bus shelters to maintain a quality environment for new and future transit users.No105,000$         ‐$                             4.4 r. Transportation Interns (assistance with sustainable transportation efforts)Yes30,350$                          31,071$                    4.4 4.4 Legal SupportNo4.4 4.4 Legal Support SOBCYes4.4 Neighborhood Traffic ImprovementsNo75,000$           75,000$                  4.4 Parking Lot Maintenance ‐ Bus YardNo5,000$             500,000$                4.4 Pedestrian & Bicycle Pathway MaintenanceNo370,000$         200,000$                4.4 Street Reconstruction & Resurfacingno3,513,199$     4,239,731$            4.4 Traffic Signs & Striping Maintenanceno25,000$           25,000$                  4.4Development Agreement ‐ City Share (Buckley Extension Class I Bike Path and 600 Tank Farm Frontage Improvements)no120,000$         715,000$                4.5 Planning and implementation for resilience4.5a. Complete the "Resilient SLO" planning project (Safety Element Update and associated CEQA) to assess community vulnerability to the impacts of climate change and adopt a resilience policy framework in the City's General Plan, as required by California Senate Bill 379. Yes25,000$                          ‐$                 ‐$                               ‐$                             4.5b. Following successful piloting at Terrace Hill Open Space, implement and expand vegetation management for fire fuel reduction, as well as to promote soil health and recruitment of native perennial bunchgrasses, using goats and sheep with a professional contractor in order to ensure a safe and effective operation.Yes20,000$                          ‐$                 20,000$                    ‐$                             4.5c. Proactively conduct pre‐season inspections of the creek system and implement the removal of woody debris, hazardous trees, and other obstacles that could lead to an increased potential for local flooding in accordance with the City's Routine Maintenance Agreement permit issued by the California Department of Fish and Wildlife.No41 Climate Action, Open Space and Sustainable TransportationCapital Task/ ActionExpense  Expense  Expense Expense2021‐22Operating Capital OperatingStrategic Approach # Funded through SOBCPROGRAMS/PROJECTS 2022‐234.5d. Replace or repair Open Space fencing that is currently in disrepair at Cerro San Luis Natural Reserve, Irish Hills Natural Reserve, Bowden Ranch Open Space, and the Bob Jones Trail. (Includes existing Creek and Flood Protection Staffing resources)No4.5e. Respond quickly to instances when hazardous trees are identified on City Open Space lands or creek areas where the City has a property interested.Yes20,000$ ‐$                 20,000$  ‐$ 4.5g. Conduct a microgrid feasibility assessment to identify City properties that could add solar, battery storage, and controls to allow operation during times of electrical grid outages as an uninterruptable power supply. No‐$  40,000$           ‐$ ‐$ 4.5h. Establish an Open Space Fire Fuel Reduction Crew (part‐time staff, 4,000hours), including procurement of necessary machinery and equipment, in order to ensure that the City's has a reliable means of conducting fuel reduction activities.Yes64,640$ ‐$                 61,589$  4.5i. Expand Technical Rescue Team roster from 3 to 6 firefighters to improve the City's open space rescue capabilities and improve self‐sufficiency following the first 72 hours of a regional disaster such as earthquake or flood where resources are often limited. Yes17,850$ 9,150$4.5 4.5 Legal SupportNo4.5 4.5 Legal Support SOBCYes4.5 Project: Storm Drainage Infrastructure ReplacementNo850,000$         500,000$                4.5 Project: Woodbridge Groundwater Runoff DiversionNo10,000$           175,000$                4.5 Project: Creek Trash CaptureNo50,000$           50,000$  4.5 Project: Pismo/Johnson/San Luis Creek Bank StabilizationNo50,000$           ‐$ 4.5 Project: Hydration Stations at Various ParksNo15,000$           15,000$  4.5 Project: Laguna Lake DredgingNo840,000$         6.5 Project: Ludwick Community Center ‐ Roof and Solar ReplacementNo40,000$  4.5Water Treatment Plant Emergency Power ‐ PSPSNo465,000$         ‐$ 4.5 Water Treatment Plant ‐ Power Storage Units Tesla Battery Grantno30,000$           ‐$ 4.5SGMA GSPNo150,000$         150,000$                Total870,876$  14,592,660$   683,202$                  14,397,731$          Total Cost Per Fiscal Year $15,463,536 15,080,933$ 42     Section C:   ONGOING COMMUNITY SERVICES                 43 Ongoing Community Services  C‐1: OVERVIEW  As an incorporated city, San Luis Obispo provides the community with services that are specific to government and  are paid for by taxes and fees. Over the years, those “basic” services have been adjusted to the needs and desires  of the community and encompass now a large spectrum of departments, programs, and objectives.   These established services are considered “ongoing” and therefore form the base for every budgetary analysis and  the  point  of  departure  for  the  two‐year  Financial  Plan.  However,  those  services  could  change  based  on  the  community  engagement  and  goal‐setting  process  as  the  needs  of  the  community  change  and  other,  not  yet  established  services,  might  become  more  urgent  or  desired.  It  is  therefore  important  to  consider  the  current  programs as a switch often requires a trade‐off due to available funding. Considering the ongoing services will assist  the City Council in the decision‐making process and provide the background for potential trade‐offs in the services  to the Community.   C‐2: CURRENT SERVICES AND PROGRAMS  Community  services  provided  by  the  City  evolve  over  time  and  become  a  manifestation  of  the  community’s  priorities  and  values.  The  City  of  San  Luis  Obispo  has  established  new  programs  and  grown  its  ongoing  service  delivery over many decades. At a glance, they consist of:  44 Section C – Community Services    C‐3 – BASE BUDGETS FOR ONGOING SERVICE DELIVERY    COMMUNITY SERVICES GROUP ADMINISTRATION   2021‐22 2022‐23  1009 ‐ Community Services Group                                  $ 480,349                                                 $ 491,351       COMMUNITY DEVELOPMENT   2021‐22 2022‐23  4001 ‐ Community Dev Admin                  844,382                          867,663   4002 ‐ Commissions and Committees                    34,939                            34,939   4003 ‐ Development Review              1,640,399                      1,698,461   4004 ‐ Engineering                 590,693                         599,217   4006 ‐ Building and Safety              1,708,588                      1,750,394   4008 ‐ Housing Policy and Programs                  410,558                          416,217   Grand Total  $ 5,229,559   $ 5,366,891       PARKS & RECREATION   2021‐22 2022‐23  7001 ‐ Recreation Admin                            808,259                           838,208   7002 ‐ Recreation Facilities                           270,378                           283,363   7003 ‐ Youth Services                        1,161,921                        1,200,245   7004 ‐ Community Services                           639,046                           674,728   7005 ‐ Ranger Service                           587,816                           621,107   7006 ‐ Aquatics                           559,167                           594,856   7007 ‐ Golf Course                           700,871                           721,653   7008 ‐ Jack House                              10,500                             10,500   Grand Total  $ 4,737,956   $ 4,944,660               45 Section C – Community Services       PUBLIC SAFETY  FIRE 2021‐22 2022‐23  8501 ‐ Fire Admin                          998,407                        1,023,553   8502 ‐ Emergency Response                     10,715,511                      11,068,556   8503 ‐ Hazard Prevention                          853,567                           886,417   8504 ‐ Training Services                          151,352                           150,930   8505 ‐ Recruit Academy                          175,975                                      ‐    8506 ‐ Fire Apparatus Services                           457,849                           465,923   8507 ‐ Fire Station Facility Support                             44,955                              42,305   8509 ‐ Mobile Crisis Support                                     ‐                                       ‐    8599 ‐ Disaster Preparedness                                7,175                               7,175   Grand Total  $ 13,404,792   $ 13,644,858   POLICE 2021‐22 2022‐23  8001 ‐ Police Admin                       2,000,645                        2,054,367   8002 ‐ Patrol                       9,673,938                      10,173,791   8003 ‐ Investigations                       3,362,963                        3,518,298   8004 ‐ Police Support Services                        2,779,065                         2,899,202   8005 ‐ Neighborhood Services                          263,241                           267,440   8006 ‐ Traffic Safety                          881,108                           910,143   Grand Total  $ 18,960,959   $ 19,823,240       PUBLIC WORKS   2021‐22 2022‐23  5001 ‐ Public Works Admin                          820,910                           860,405   5002 ‐ Parks Maintenance                       3,151,245                        3,279,785   5003 ‐ Swim Center Maintenance                           528,561                           552,752   5004 ‐ Urban Forest Services                          441,419                           457,534   5005 ‐ Facilities Maintenance                        1,323,398                        1,359,285   5006 ‐ Streets Maintenance                       1,520,852                        1,576,153   5007 ‐ Traffic Signals and Lighting                           477,586                           494,510   5008 ‐ Fleet                       1,202,749                        1,220,365   5009 ‐ CIP Project Engineering                        2,122,337                        2,195,837   5010 ‐ Transportation Plan and Eng                          958,631                           996,433   5301 ‐ Stormwater & Flood Control                        1,047,816                         1,074,225   6107 ‐ Solid Waste Recycling                          170,699                           176,280   Grand Total  $ 13,766,203   $ 14,243,564     46 Section C – Community Services        ADMINISTRATIVE SERVICES   2021‐22 2022‐23  CITY ADMINISTRATION AND IT    1001 ‐ Administration                            1,153,350                        1,204,380   1002 ‐ City Council                               214,151                            216,352   1003 ‐ Cultural Activities                               347,632                           357,963   1004 ‐ Economic Dev                               323,667                           327,271   1005 ‐ Natural Resource Protection                               644,776                           654,840   1007 ‐ Community Promotion                                405,085                           405,826   1021 ‐ City Clerk                               570,667                           657,638   1101 ‐ Network Services                            3,067,952                        3,235,295   1103 ‐ Information Services                            1,094,697                         1,128,005   Grand Total  $ 7,821,976  $8,187,589      CITY ATTORNEY    1501 ‐ City Attorney 703,157  735,588   Grand Total  $ 703,157   $ 735,588       FINANCE    2001 ‐ Financial Admin 492,719  492,334   2002 ‐ Budgets 155,510  185,543   2003 ‐ Revenue Management  401,907   416,939   2004 ‐ Purchasing 225,183  236,398   2005 ‐ Accounting 761,240                 780,365   2006 ‐ Finance Support Services 352,700  352,700   2007 ‐ Finance Non‐Departmental*  377,658   1,809,228   Grand Total  $ 2,766,918   $ 4,273,508   * Including city‐wide staffing contingency amount      HUMAN RESOURCES    3001 ‐ Human Resources Admin 1,164,937  1,195,158  3003 ‐ Wellness                                       17,411                             17,411   Grand Total  $ 1,182,348  $ 1,212,569      47 Section C – Community Services  OVERALL TOTAL   2021‐22 2022‐23  Total Program Cost $ 69,054,217  $ 72,923,819  Cost Allocation ($ 4,717,442)  ($ 4,811,791)  Assumed Savings ($ 1,679,000)  ($ 1,488,466)  Total $ 62,657,775 $ 66,623,532  Proposed SOBCs (Section E) $ 7,336,742 $ 6,623,532  Total with SOBCs $ 69,994,518 $73,249,058  48     Section D:   Local Revenue Measure               49 LOCAL REVENUE MEASURE    D‐1: OVERVIEW    One aspect of the financial planning process is recommending how to allocate General Fund revenues from the  Local Revenue Measure. As a General Purposes Tax, the City’s Local Revenue Measure (G‐20) expenditures are  categorized as General Fund capital improvement project costs or operating costs. Capital Improvement Projects  (CIP) fall into three categories; annual asset maintenance, asset replacement and new assets valued at over $25,000.  General fund operating expenses are for staffing and programs that provide services and/or support capital project  implementation.    D‐2: REVENUE ENHANCEMENT OVERSIGHT COMMISSION    The role of the Revenue Enhancement Oversight Commission (REOC) in this process is to make recommendations  to the city council regarding the uses of revenue generated by the essential services measure. The REOC shall take  into consideration the input provided by residents and community members during the annual citizen oversight  meeting, the purpose of the essential services measure, the major city goals established by the city council, and the  amount of revenue available from past fiscal years and projected to be available during the next fiscal year, in  making its budget recommendations to the council. On March 31, 2021, this report was presented to the REOC and  they unanimously support the proposed 2021‐23 Local Revenue Measure Expenditures presented in this report.     D‐3: COMMUNITY INPUT    There has been significant community engagement leading up to the development of the 2021‐23 Financial Plan.  Prior to the bi‐annual Community Forum, over 1,285 individual responses (or 64.3 hours of public comment) were  received for the Community Priority survey. Additionally, over 150 members of the community attended the virtual  Community Forum on January 14, 2021 (which also served as the Annual Citizen Oversight Meeting). Lastly, over  634 individual responses (or 31.7 hours of public comment) were completed proceeding the Community Forum.  Responses from 21‐23 Community Forum Local Revenue Measure Priority Ranking Exercise have been included as  Attachment 2.    D‐4: SPENDING PRIORITIES     Based on community input used to create the ballot language for Measure G‐20, the REOC at the February 18, 2021  meeting approved the following ten spending priorities that were used to create the recommend projects and  services to be included in the 2021‐23 Financial Plan:    1. Protect Financial Stability  2. Community Safety and Emergency Preparedness  3. Creek and Flood Protection  4. Address Homelessness  5. Safe and Clean Public Areas  6. Economic Development and Business Retention  7. Youth/Senior Services and Recreation Facilities  8. Street Maintenance and Transportation (includes bicycle and pedestrian improvements)  9. Open Space/Natural Areas Preservation and Maintenance  10. Other Services and Projects      50 Section D – Local Revenue Measure        D‐5: REVENUE    The current revenue projections for the Local Revenue Measure for the 2021‐23 Financial Plan are as follows:    2021‐23 LRM Revenue Projections  FY 2021‐22 $24,279,000  FY 2022‐23  $25,202,000  Total $49,481,000    These projections reflect the passage of Measure G‐20 by the voters in November 2020. These forecasted revenue  amounts will change over time and updates will be provided to the REOC and City Council accordingly.    These revenue amounts are based on the latest forecast from HDL which the City contracts with to analyze regional  and local trends and translate these into revenue forecasts.  The “tripling” of revenues from the previously approved  measure means that the LRM is the City’s largest revenue stream.  It also means that the capital improvement  projects which can occur going forward may be much larger in budget, scale, and impact than the past.    D‐6: BALANCE OF CAPTIAL VERSUS OPERATING COST     Previous input from the community and REOC has been to prioritize Local Revenue Measure funds for CIP. In recent  years, expenditures have been split approximately 70% capital and 30% operating costs. Operating program costs  frequently follow and/or support the implementation of CIP projects; for instance, the construction of a new park  will require staff to maintain it. In addition, operating programs deliver essential services that align with Local  Revenue Measure priorities. Given this interrelationship, it would not be sustainable to allocate all Local Revenue  Measure dollars solely to CIP projects without related operating program support to implement the projects nor  would this approach address some of the expectations from the public for services.     In the 2021‐23 Financial Plan, expenditures are proposed to be budgeted at 75% capital and 25% operating costs,  with an expectation of a range in future years of approximately 85% capital and 15% operating costs. The reason  for the increased operating allocation during the 2021‐23 Financial Plan is two‐fold. First, there is an increase of  one‐time funding that will help provide immediate economic recovery resources and other operating resources  needed to help the local economy recovery from the COVID‐19 pandemic and other emergent priorities. Second, it  allows the City time to ramp‐up the operating resources necessary to deliver on the ambitious Capital Improvement  Plan. The balance of CIP and operating costs for the 2021‐23 Financial Plan are listed below:     CIP Expenditure  Percentage  Operating Expenditure   Percentage  FY 2021‐22 73.6% 25.9%  FY 2022‐23 74.5% 24.9%      51 Section D – Local Revenue Measure    D‐7: RECOMMENDED PROJECTS AND SERVICES     As highlighted above, at the February 18, 2021 REOC meeting, the REOC approved 10 long‐term Community Services  and Investment priorities. Projects and Services were evaluated using both these priorities and the Major City Goals  established by the City Council to align funding for projects and services with revenue projections and recently  approved ARP funding. Each project and service were reviewed by the CIP Committee and the Financial Plan  Steering Committee comprised of department heads and staff from multiple City departments. The identified  projects and services were then reviewed for final recommendations by the City Manager.    The following discusses proposed Local Revenue Measure capital and operating expenditures for each fiscal year in  more detail.    FY 2021‐22 Local Revenue Measure Uses  The following chart illustrates the breakdown of proposed FY 2021‐22 Local Revenue Measure Uses by spending  priority:        A detailed list of the projects and services funded through the Local Revenue Measure in FY 2021‐2022 is included  in Attachment 1, but specific highlights include: funding for Police Officers and Firefighters, contributions to expand  capacity at the 40 Prado Homeless Services Center, creation of pilot Mobile Crisis Unit to address calls for service  related  to  mental  health,  an  additional  social  worker  to  work  in  coordination  with  the  Police  Department’s  Community Action Team, additional funding for business support programs and other economic development  activities, an additional Ranger Maintenance Worker, funding for open space fuel reduction, funding for future open  space acquisition, replacement of the 911 system, permanent Downtown zig‐zag lighting and Downtown public art  installations,  playground  equipment  replacement  at  several  parks,  Railroad  Safety  Trail  fencing,  Laguna  Lake  1% 14% 7% 3% 4% 8% 14% 35% 8% 6% 2021‐22 LRM Uses ($24.1 M) Protect Financial Stability Community Safety and Emergency Preparedness Creek and Flood Protection Address Homelessness Safe and Clean Public Areas Economic Development and Business Retention Youth/Senior Services and Recreation Facilities Street Maintenance and Transportation (includes bicycle and pedestrian improvements) Open Space/Natural Areas Preservation and Maintenance Other Services and Projects 52 Section D – Local Revenue Measure  dredging, pedestrian and bicycle pathway maintenance, implementation of Phase II of the Anholm Neighborhood  Greenway  Plan  and  street  reconstruction  and  resurfacing  Downtown  including  bicycle  and  pedestrian  improvements.  FY 2022‐23 Local Revenue Measure Uses  The following chart illustrates the breakdown of proposed FY 2022‐23 Local Revenue Measure Uses by spending  priority:  A detailed list of the projects and services funded through the Local Revenue Measure in FY 2022‐23 is included in  Attachment 1, but specific highlights include: replacement of critical equipment for the Fire Department, a new Fire  Training/Safety Captain, additional resources to remove trash and debris from parks, open space and creeks,  support for holiday lighting and activation Downtown, support for arts and culture based businesses and non‐ profits, supplies and equipment for recreation facilities and programs, replacement of storm drain infrastructure,  safety lighting for the Bob Jones trail, funding for restroom replacement and kiosk café in Mission Plaza, traffic  congestion  relief  and  safety  improvements  projects,  replacement  of  playground  equipment  at  Mitchell  Park,  funding  for  Prado  Road  bridge  and  widening,  traffic  signal  and striping  maintenance,  street  and  sidewalk  maintenance services, public safety vehicle replacements, and electric vehicle charging stations at various City  facilities.  2021‐2023 LRM Capital and Operating Uses  The following charts illustrate the proposed LRM uses over the two‐year financial plan by spending priorities for  both the CIP and operating expenses.  1% 12% 6% 3% 12% 3% 9% 41% 4% 9% 2022‐23 LRM Uses ($25 M) Protect Financial Stability Community Safety and Emergency Preparedness Creek and Flood Protection Address Homelessness Safe and Clean Public Areas Economic Development and Business Retention Youth/Senior Services and Recreation Facilities Street Maintenance and Transportation (includes bicycle and pedestrian improvements) Open Space/Natural Areas Preservation and Maintenance Other Services and Projects 53 Section D – Local Revenue Measure  0% 10% 4%0% 9% 3% 14% 46% 5% 9% 2021‐2023 LRM Capital Uses ($36.6 M) Protect Financial Stability Community Safety and Emergency Preparedness Creek and Flood Protection Address Homelessness Safe and Clean Public Areas Economic Development and Business Retention Youth/Senior Services and Recreation Facilities Street Maintenance and Transportation (includes bicycle and pedestrian improvements) Open Space/Natural Areas Preservation and Maintenance Other Services and Projects 5% 23% 10% 11%4% 14% 5% 16% 8%4% 2021‐2023 LRM Operating Uses ($12.5 M) Protect Financial Stability Community Safety and Emergency Preparedness Creek and Flood Protection Address Homelessness Safe and Clean Public Areas Economic Development and Business Retention Youth/Senior Services and Recreation Facilities Street Maintenance and Transportation (includes bicycle and pedestrian improvements) Open Space/Natural Areas Preservation and Maintenance Other Services and Projects 54 2021-222022-232021-222022-23Protect Financial Stability1 Fire Policy Research Software (Lexipol)11,169 9,369 E2 Fire Injury Reduction Program18,000 18,000 E3 Application Systems Specialist (1 FTE)105,312 110,384 E4 Financial Specialist - Accounting (1 FTE)73,882 77,281 E5 Accounting Assistant (1 FTE)68,004 71,106 E6 Half-Time Technology Project Manager (.5 FTE)52,444 54,669 ESubtotal328,811 340,809 - - Community Safety and Emergency Preparedness7 General Plan - Safety Element Environmental Review25,000 - C8 Police Records Reporting Software15,400 - D9 Emergency Response Live - Fire Training Improvements20,045 17,570 10 Fire Intern Program22,691 23,257 -- D11 Fire Recruitment Academy Support and Supplies29,000 - D12 Fire Emergency Operations Center Training (Emergency Management Services)30,000 30,000 13 Police - Public Safety Equipment Replacement and Supplies12,600 70,881 14 Fire Equipment Replacement (PPE, AED, etc.)177,499 15 Fire Inspection Management Software (Mobile Eyes)12,200 12,200 16 Fire Technical Rescue Team Expansion17,850 9,150 C17 Open Space and Creeks Hazardous Tree Removals20,000 20,000 C18 Fire Training/Safety Captain (1 FTE)191,276 191,276 19Community Safety and Emergency Preparedness (Firefighters, 2; Downtown Police Patrol Officers, 3, Downtown Sergeant, 1): FTE 6936,747 1,003,483 E20 Initial Design Study - Police Station Replacement100,000 300,000 21Police - Information Technology (Storage Area Network (SAN), Computer Aided Dispatch Hardware, Security Cameras, Interview Recording System)446,000 316,000 22 Police Evidence Storage Bldg. and Police Range - Roof Replacement5,000 47,200 23 Fire Station #1 Administration Bldg. Roof Replacement270,000 -24 Fire Station #1 Roof Access Ladders50,000 -25 Fire Station # 2 Parking Lot Maintenance45,000 -26 Fire Station #3 & #4 Remodel Space Study and Design25,000 75,000 D27 Fire Station #4 Exterior Paint-27,500 28 Fire Hydrant Replacement40,000 40,000 29 Facility Roll Up Door Replacements - Various Locations17,000 15,000 30Police - Fleet Replacement (Patrol Hybrid SUV, 2/YR; Motorcycles; SNAP SUV, 1; Investigations SUV, 1)220,000 235,000 31Fire - Fleet Replacement (1/2 ton truck, 1; Heavy Duty Truck, 1; Heavy Duty Truck w/ Utility Bed, 1; Compact Truck, 1; Open Space Rescue Truck, 1)275,000 465,000 Project TitleOperating ProgramsCapital Improvement PlanMCG2021-23 Local Revenue Measure ExpendituresThe following uses of local sales tax revenue are consistent with Council goals and objectives, the spending priorities of voter-approved Local Revenue Measure (Measure G-20), and the recommendations of the Citizens' Revenue Enhancement Oversight Commission (REOC). The categories listed were developed and approved by the REOC.#MCG Key: E: Economic Recovery, Resiliency and Fiscal Sustainability; D: Diversity, Equity, and Inclusion (DEI); H: Housing and Homelessness; C: Climate Action, Open Space and Sustainable Transportation. *Light gray shaded projects are one-time funded.55 2021-222022-232021-222022-23Project TitleOperating ProgramsCapital Improvement PlanMCG#32 Radio Handhelds & Mobiles (Police and Fire)116,758 - 33 Uninterruptible Power Supplies 42,465 - 34 VMware Infrastructure Upgrade110,250 -35 Pipe Inspection Software & Licenses23,500 -36 911 Phone System Replacement250,000 -Subtotal1,332,809 1,555,316 2,035,973 1,520,700 Creek and Flood Protection 37 Creek and Flood Protection ( Wastewater Collection Operators and Supervisor, Environmental Compliance Inspectors, Stormwater Management, Environmental Programs Manager): FTE 6 632,567 659,031 C38 Storm Drainage Infrastructure Replacement (multiple locations)850,000 500,000 C39 Woodbridge Groundwater Runoff Diversion10,000 175,000 C40 Creek Trash Capture 50,000 50,000 C41 Pismo/Johnson/San Luis Creek Bank Stabilization50,000 - CSubtotal632,567 659,031 960,000 725,000 Address Homelessness 42 Homelessness Strategic Plan35,000 - H43 Expansion of 40 Prado Homeless Services Center Bed Capacity 63,826 63,826 H44 Housing and Homelessness Contract Services Support117,000 117,000 H45 Mobile Crisis Unit (Paramedic and Social Worker Pilot Program)300,000 300,000 H46 CAT Team Social Worker125,188 116,188 H47 Parks and Open Space Environmental Clean-Up Resources65,000 70,000 HSubtotal706,014 667,014 - - Safe and Clean Public Areas48 Increased Trash and Recycling Services in Public Spaces125,000 125,000 E49 Additional Landscape Maintenance Contract Services55,000 65,000 E50 Safe and Clean Public Areas (Parks Maint. Specialist): FTE 178,271 82,650 E51 Bob Jones Trail and Railroad Safety Trail Solar Lighting100,000 1,350,000 C52Mission Plaza Concept Plan Implementation (Phase 1 - Restroom Replacement and Kiosk Café)- 1,035,000 E53 Mission Plaza Railing replacement80,000 - E54 Downtown Safety Enhancement (street bollards)400,000 - E55 Curb Ramps and Sidewalks Replacement (various locations)50,000 150,000 C56 Sidewalk Replacement and Installation (includes street trees)100,000 100,000 C57 Street and Pathway Lighting (various locations)75,000 75,000 CSubtotal258,271 272,650 805,000 2,710,000 Economic Development and Business Retention 58 Arts, Culture and Community Partner Support50,000 25,000 E59 Business Promotions and Communication Support80,000 E60 Open SLO - Downtown Dining Temporary Staffing13,688 27,375 -- E61 Economic Development Program Support50,000 25,000 E62 Economic Development Data Tracking and Reporting30,000 30,000 E63 New Economic Development Strategic Plan-100,000 EMCG Key: E: Economic Recovery, Resiliency and Fiscal Sustainability; D: Diversity, Equity, and Inclusion (DEI); H: Housing and Homelessness; C: Climate Action, Open Space and Sustainable Transportation. *Light gray shaded projects are one-time funded.56 2021-222022-232021-222022-23Project TitleOperating ProgramsCapital Improvement PlanMCG#64 Support for Underserved/Underrepresented Community Businesses- 150,000 D65 TBD Business Retention/Recovery Programs 500,000 250,000 E66 Zoning Regulations Update for Downtown Uses and Flexible Outdoor Spaces Citywide 125,000 - E67 Holiday Activation Support in Downtown for Lighting and Other Features 150,000 150,000 E68 Downtown Zig-Zag Lighting250,000 - E69 Downtown Public Art Installations200,000 - E70 Additional Banner Arms, Bench Arm Rests, Signs100,000 25,000 E71 Downtown Renewal (Open SLO: Supplemental funding for Curbside Parklets)200,000 - E72 Annual Public Art Maintenance and Projects (Utility Box Beautification, Small Public Art Projects, Maintenance) 92,500 92,500 ESubtotal998,688 757,375 842,500 117,500 Youth/Senior Services and Recreation Facilities 73 One-Time Aquatics Supplemental Staff due to COVID-19 Protocols62,000 - 74SLO Swim Center Minor Capital Maintenance and Operating Costs (Electricity conversation for solar)55,000 55,000 75 Swim Center Supplies (pool chemicals, etc.)25,000 25,000 76 Youth Services Staffing Resources (Equivalent to 1.5 FTEs)93,227 132,045 - - 77 Youth/Senior Services and Recreation Facilities (Parks Maint. Specialist): FTE 1 72,932 77,425 78 Parks and Recreation Master Plan Implementation200,000 200,000 79 DeVaul Ranch Playground Equipment Replacement60,000 - 80 Vista Lago Mini Park Playground Equipment Replacement50,000 - 81 Mitchell Park Playground Equipment Replacement- 100,000 82 Cheng Park Revitalization300,000 - D83 Meadow Park Pathways Refurbishment250,000 - 84 Orcutt Area - Linear Park Planning and Construction- 815,000 H85North Broad Street Neighborhood Park Construction175,000 - 86 Mission Plaza Arbor Refurbishment15,000 70,000 87 Jack House Arbor refurbishment- 7,500 88 Meadow Park Exercise/Par Course Equipment Replacement- 20,000 89 Parks Play Area Surfacing30,000 30,000 90 Santa Rosa Park Barbecue Replacements- 7,500 91 Poinsettia Creek Walk Pathway Refurbishment200,000 - 92 Laguna Lake Golf Course Maintenance20,000 20,000 93 Sinsheimer Park Hardscape Replacement135,000 - 94 Concrete Bench & Table Replacement Various Locations15,000 15,000 MCG Key: E: Economic Recovery, Resiliency and Fiscal Sustainability; D: Diversity, Equity, and Inclusion (DEI); H: Housing and Homelessness; C: Climate Action, Open Space and Sustainable Transportation. *Light gray shaded projects are one-time funded.57 2021-222022-232021-222022-23Project TitleOperating ProgramsCapital Improvement PlanMCG#95 Hydration Stations Various Parks and Facilities15,000 15,000 C96 Railroad Safety Trail Fencing350,000 - 97Parking Lot Maintenance - (Meadow Park; Ludwick Community Center; Islay Park; Laguna Lake Park; Santa Rosa Park; French Park; City Facilities)130,000 205,000 98 Ludwick Community Center - Roof and Solar Replacement- 40,000 C99 Swim Center Furnaces Replacement- 40,000 100 Ludwick and Senior Center - Exterior Paint and Shell Rehabilitation- 30,000 101 Water Stations and Supply Lines25,000 25,000 102 Sinsheimer Stadium Irrigation and Drainage Replacement650,000 - 103 Irrigation Mainline Leak Repair15,000 15,000 104 Parks Major Maintenance - ADA Transition Plan Implementation 20,000 20,000 D105 Park Maintenance - Fleet Replacement: (Mower, 1; Tractor, 1; Trailers, 4;) 75,000 108,000 106Parks and Recreation - Fleet Replacement: (Golf Mower, 1; Golf Trailer, 1; P&R Trailer, 1; Minivan, 1; Dump Trailer, 1; Masticator, 1)139,000 103,000 107 Swim Center - Pool Automatic Vacuum- 18,000 108 Swim Center Olympic Pool Thermal Blankets5,000 - 109 Swim Center Bath House Ceiling5,000 - 110 Swim Center Therapy Pool Boiler85,000 - 111 Swim Center Pool Water Chemical Regulator50,000 - 112 Jack House Windows Walk Railing100,000 - Subtotal308,159 289,470 3,114,000 1,904,000 Street Maintenance and Transportation (includes bicycle and pedestrian improvements) 113 Accessibility and Process Improvement Support Services 34,000 12,000 114 Mobility as a Service Study25,000 - C115 One-Time Streetlight and Signal Electrical Costs60,000 - 116 Supplemental Street and Parklet Sweeping 250,000 250,000 E117Transportation Interns30,350 31,071 C118 Additional Street Operator for Maintenance of Streets and Right of Way78,312 119 Increased Asphalt and Concrete Budget60,000 60,000 120 Increased Budget for Signals and Street Light Equipment and Electricity25,000 25,000 121 Street Maintenance and Transportation (Engineering, Streets Maintenance, Active Transportation) FTE 4.60 532,105 557,962 122 Prado Road Interchange (YR 1 PA/ED Phase & YR 2 Design Phase)500,000 1,910,000 H123 California & Taft Roundabout Construction300,000 2,720,000 C124 Pavement Management (Downtown areas)2,404,647 2,425,000 MCG Key: E: Economic Recovery, Resiliency and Fiscal Sustainability; D: Diversity, Equity, and Inclusion (DEI); H: Housing and Homelessness; C: Climate Action, Open Space and Sustainable Transportation. *Light gray shaded projects are one-time funded.58 2021-222022-232021-222022-23Project TitleOperating ProgramsCapital Improvement PlanMCG#125 Active Transportation Plan Implementation205,000 305,000 C126 21-22 Sealing Project Complete Street Components200,000 200,000 127 Concrete Street - Monterey - CA to Santa Rosa- 800,000 128 Prado Road Bridge & Road Widening 427,780 146,573 H129 Streets Maintenance - Fleet Replacement (F550 with Hooklift, 1; F550 with Utility Bed and Crane, 1; Axle Kneeling Trailer, 1; Asphalt Zipper,1) 390,000 - 130 Buchon-Santa Rosa Intersection Improvements- 250,000 131 Madonna Inn Frontage Bike Pathway (Madonna to Fernandez)150,000 132 Neighborhood Traffic Improvements75,000 75,000 C133 Bridge Maintenance - 100,000 134 Railroad Safety Trail from Cal Poly to Taft Street- 50,000 135 Engineering Pickup, 2; 3 Yr. Temp66,000 - 136 Transportation Safety & Operations 30,000 30,000 C137 Traffic Signs & Striping Maintenance25,000 25,000 C138 Pedestrian and Bicycle Pathway Inventory and Pavement Condition Index Study 20,000 - 139 Anholm Neighborhood Greenway Plan Implementation - Phase II2,450,000 - C140 South Street Median Landscaping240,000 - 141 Avila Ranch - Buckley Extension Class I Bike Lane120,000 - C142 Transportation Monitoring & Modeling Update70,000 Subtotal1,016,455 1,014,345 7,453,427 9,256,573 Open Space/Natural Areas Preservation and Maintenance143ECOSLO partnership - SLO Stewards, Tree Planting & Maint., Green Business, Creek Clean Up20,000 20,000 C144 Fuel Reduction Crew Tools and PPE 4,500 C145 Sustainability & Natural Resources Analyst 62,753 62,753 - - C146 Sustainability & Natural Resources Intern/ Urban Forest Master Plan Intern - 13,613 - - C147 Fuel Reduction Crew (4000 Supplemental Staff Hours) 60,140 61,589 C148Open Space Vegetation Management and Fuel Reduction20,000 20,000 C149 New Ranger Maintenance Worker (1 FTE)70,854 74,105 C150 Ranger Services Staffing Resources (Equivalent to 2 FTEs)84,561 92,421 C151Open Space/Natural Areas Preservation and Maintenance (2 FTE Ranger Maintenance Workers ) 169,599 159,196 C152 Laguna Lake Dredging and Sediment Management Project Implementation840,000 - C153 Open Space Acquisition250,000 250,000 C154 Open Space Maintenance60,000 80,000 C155 Open Space Fencing25,000 25,000 C156 Urban Forest Maintenance175,000 175,000 C157 Urban Forest Master Plan140,000 - CSubtotal492,407 503,677 1,490,000 530,000 Other Services and Projects158 CIP Interns5,000 5,900 E159 Contract Heavy Equipment Mechanic85,220 89,065 MCG Key: E: Economic Recovery, Resiliency and Fiscal Sustainability; D: Diversity, Equity, and Inclusion (DEI); H: Housing and Homelessness; C: Climate Action, Open Space and Sustainable Transportation. *Light gray shaded projects are one-time funded.59 2021-222022-232021-222022-23Project TitleOperating ProgramsCapital Improvement PlanMCG#160 Fleet Intern20,991 18,398 161 City Fleet Vehicle Repairs20,000 20,000 162 Increased Contract Funds for Specialized Mechanic Services50,000 50,000 163 Funding for Increased Cost of Facilities Maintenance Materials and Supplies 30,000 30,000 164 Electric Vehicle Charing Stations (Various City Facilities, Including Parks and Rec and Corp Yard) 100,000 100,000 C165 City Hall Landing Repair60,000 - 166 Council Hearing Room Modification and Functionality Improvements- 130,000 167 Information Technology Room Heat Pump Replacements20,000 - 168 Energy Management Controls Upgrade75,000 50,000 169 Citywide Wireless System Replacement- 70,641 170 City Storage Area Network (SAN)- 178,136 171 Major Facility Maintenance - ADA Transition Plan Implementation10,500 10,500 172 Fleet Maintenance Stationary Generator (200kw)100,000 - 173 Facilities Maintenance 3/4 ton Pickup with Utility Bed- 60,000 174 Capital Projects Engineering Staff500,000 1,000,000 175 Roundabout Public Art Installations300,000 400,000 ESubtotal211,211 213,363 1,165,500 1,999,277 Total 6,285,392 6,273,051 17,866,400 18,763,050 MCG Key: E: Economic Recovery, Resiliency and Fiscal Sustainability; D: Diversity, Equity, and Inclusion (DEI); H: Housing and Homelessness; C: Climate Action, Open Space and Sustainable Transportation. *Light gray shaded projects are one-time funded.60     Section E:   Significant Operating Budget Changes (SOBCs)                 61 SIGNIFICANT OPERATING BUDGET CHANGES (SOBCS)      E‐1: OVERVIEW  As a cost control measure, the City requires increases to departmental budget line items in the programs above  $7,500 to be justified and approved by the City Manager before being brought forward for Council consideration.  A request can be brought forth for a variety of reasons, but is generally considered under the following  circumstances:      A. Essential for the protection of health and safety.  B. Needed for the advancement of Major City Goals  C. Needed to provide ongoing services to the community.  D. Realign ongoing services after budget cuts due to Covid‐19.    SOBC requests are divided into two categories: 1) one‐time for specific deliverables without ongoing service  requirements; 2) ongoing to adjust the operating program budget for long‐term service delivery.    Given the short‐term saving measures required due to the onset of the Covid‐19 health emergency, a multitude of  requests were submitted to bring service levels back to pre‐pandemic levels and adjust to forecasted workload  and service level requirements.       The pie chart below shows the distribution of SOBCs by Type. The largest area of request was for additional core  services resources.      The next sections go into detail on each SOBC, categorized by funding source.  Table E1 ‐ SOBC Overview by Funding Source: General Fund SOBCs FY 21‐22 FY 22‐23 One‐time 3,764,923$            2,487,918$            General Fund (non‐LRM) 1,022,285$             538,777$                Local Revenue Measure G20 2,370,132$             1,851,197$             Other Funding Sources * 372,506$                97,945$                  Ongoing 3,571,819$            4,137,607$            General Fund (non‐LRM) 1,165,143$             1,316,075$             Local Revenue Measure G20 1,493,039$             1,882,106$             Development Review Offset 913,637$                939,426$                TOTAL 7,336,742$            6,625,526$            * see section E‐4 for detail 62 E‐2: General Fund SOBCsGeneral Fund SOBCDescriptionOne‐time/ OngoingMCG or Core Services  FY 21‐22   FY 22‐23 Community Services Group Administration1Conversion of Supplemental Position to CSG Marketing Coordinator FTE Under the Community Services Group, the Marketing focused Community Coordinator is a business support position that provides communications for fee for service activities and promotion of these fee for service activities across the CSG departments. This position supplants a variety of advertising and marketing contracts previously utilized by City staff for marketing and communication purposes. This position also compliments the City's current contract resource with AMF Media Group. Staff is requesting this position (temporary contract was approved during the 2019 Organization of the Future Symposium) become permanent and the funding is on‐going.OngoingCore Services40,043$             43,016$             2Reallocation of Contract Services Budget to Part‐Time Administrative AssistantStaff has assessed staffing and organizational structure needs as related to the Organization of the Future effort and is requesting reallocation of $37,000 in Contract Services (1009.61013) to a part‐time (20 hours/week) Administrative Assistant II (+.5 FTE) to support the Assistant City Manager, Business Manager and Community Services Group analysts when working on cross‐departmental projects under the Business Manager's direction (1009.51001). OngoingCore Services‐$                    ‐$                    3Administration and IT Department4Better Buildings SLO, Phase II ‐ Demonstration Project Implementation/Targeted Grant (4.2.e)Initiate a new grant program to catalyze energy efficiency and decarbonization retrofit projects in existing buildings that will also serve as demonstration and showcase projects, in support of CAP Green Buildings task 2.1. Funding within existing PO.One‐time Climate Action5Minor Office RetrofitsRetrofit existing Office of Sustainability work stations to accommodate return to work with reduced office space. One‐time Climate Action10,000$             6"Undocu‐Friendly" Logo ‐ create. Part of effort to support undocumented communityFunding will be used to develop a visual marker to put on City documents indicating a service or program eligible to undocumented residents.One‐timeDEI1,000$                ‐$                    7Administrative Support for MCG Efforts This funding will be used to support the Office of DEI with Administrative Support dedicated to the office of DEI. This position will be responsible for supporting the DEI Manager and the overall success of the new program. One‐timeDEI30,555$             34,158$             8Central DEI Position (1 FTE)Funding will be used for the creation and recruitment of a Central DEI Position that will lead the Office of DEI and the DEI Major City Goal.OngoingDEI111,898$           115,995$           9City 101/Community Academy ‐ development & pilotFunding will be used for the development of a City 101/Community Academy to increase understanding / access / participation in City government throughout the community. One‐timeDEI15,000$             15,000$             10Community‐based Awareness, Education, Outreach ProgrammingFunding will be used to increase community‐based Awareness, Education, and Outreach Programming provided by Cal Poly and other proven providers.OngoingDEI5,000$                10,000$             11Community‐based Multicultural Center feasibility study Funding will be used to support a feasibility study for a Multicultural Center.One‐timeDEI2,500$                2,500$                12Comprehensive DEI Strategic PlanningThis funding is requested to conduct needs, priority, and resource assessments for the City and Community. The outcome of this initiative is to create comprehensive DEI initiatives and programming for the organization and community. One‐timeDEI35,000$             13DEI Civic Spark FellowsThis funding will be used to contract with CivicSparks for a CivicSparks Fellow. Staff have had great success in utilizing the AmeriCorps/Civic Sparks organization to support initiatives such as the Climate Action Plan. This request is to hire 1 CivicSparks Fellow to support the implementation of Year 2 DEI Major City Goal initiatives. One‐timeDEI30,000$             14DEI Consultant/subject matter expertThis funding will be used to  retain consultation from DEI expert(s) to advise on and conduct system, policy and procedure assessments and improvements, inform community outreach approaches, and create change plans and actionable tactics. SME(s) will have specialty skills in data‐driven DEI solutions, deep understanding of societal and organizational system issues including bias, power dynamics, privilege and historical oppression, and local community knowledge.One‐timeDEI30,000$             15,000$             Key63 General Fund SOBCDescriptionOne‐time/ OngoingMCG or Core Services  FY 21‐22   FY 22‐23 15DEI Employee Committee Development/OperationsFunding will be used to provide the internal DEI Employee Committee with training and development opportunities.Ongoing DEI 5,000$                 5,000$                16DEI High Impact Grants ‐ community programsFunding will be used to sustain the creation of the 20‐21 High‐Impact DEI Grants that successfully provided $109,800 in funding to 8 non‐profits to advance DEI in the City of San Luis Obispo.One‐time DEI 150,000$            150,000$           17DEI InternsThis funding will be used to hire Cal Poly, Cuesta, or Community Candidate Interns to support the Office of DEI. One‐time DEI 13,586$              15,187$             18DEI Office SpaceThis is a one‐time funding request for office space rental for the proposed DEI positions. As this is a new program there is currently no desk space for these positions to operate.Ongoing DEI 14,000$              24,000$             19DEI Trainings for Staff / Org Development efforts This funding  will be used to implement and maintain DEI training for all City Employees, and organizational development. Ongoing DEI 15,000$              15,000$             20HRC Operating BudgetThis request is to increase the HRC's Operating Budget for enhanced presence, advocacy, community building, etc. (such as awareness campaigns, access/fairness efforts, citizen award, etc.). Ongoing DEI 3,000$                 5,000$                21Implementation of DEI Programs ‐ Both in the Community and for Internal City Staff.Funding will be used for training, cultural celebrations, speakers, forums, workshops, etc. for both the community and internal City staff.Ongoing DEI 5,000$                 15,000$             22PEN Manual Update to enhance input from underrepresented groupsThis funding is needed to update the City's formal Public Engagement & Noticing (PEN) procedures as well as other public outreach, input efforts to increase diverse participation. The funding will be used to develop and implement new tactics. One‐time DEI 15,000$              ‐$                    23Start‐Up and Ongoing Costs for the Office of DEIFunding will be used for the start‐up costs associated with the creation and maintenance of the Office of DEI.OngoingDEI20,000$             5,000$                24Communications Program SupportFunding is to maintain the current level of resources and production in the City's Communication Program. In addition to the Public Communications Manager role, contract support is needed for communications core services including web content, social media content and press releases as well as specialized needs including graphic design, video production and crisis communications support. This request will maintain the current level of funding for the program on an ongoing basis and also replaces ongoing funding that was removed from the budget due COVID‐19 budget reductions.  OngoingEconomic60,000$             60,000$             25Grant Writing Support Services (4.1.d)Funding is for the continuation of grant writing consultant support.  FY2019‐21 efforts have resulted in approx. $3.4 million in grant awards with approx. $13.8 million currently under review.OngoingClimate Action50,000$             50,000$             26Half‐time regular Application System SpecialistThis request is part of an effort to support necessary core GIS services to the organization in light of increasing GIS demands. This position will share the roles and responsibilities of the Enterprise EnerGov System and allow for redundancy on other Citywide enterprise applications. The EnerGov System is the backbone of Community Development permitting, building, safety, development and fee calculations. Costs offset by reductions in other operating areas.  MCG 1.7OngoingEconomic17,542$             19,949$             27Reclass existing Information Technology System Engineer position to Security Engineer. This request is to reclass an existing Information Technology System Engineer to a Security Engineer. This is a specialized function in the Information Technology field requiring specific training and certification that is best accomplished through an identified single position focused on cyber security. The City has seen a dramatic increase over the last year in cyber attacks and invested in multiple security detection, mitigation, and reporting tools. A dedicated resource is needed to monitor and manage these systems as well as respond to threats. Minor cost increases offset by other savings. MCG 1.7OngoingEconomic‐$                    ‐$                    28Open Space Winter Hours of Use ‐ CEQA and technical studies (if directed to proceed) (4.3i) Implement Open Space Winter Hours of Use at Cerro San Luis Natural Reserve, including Biological Studies & CEQAOne‐time Climate Action75,000$             29Regular half‐time Administrative Assistant to Regular Full‐time. This request is to align resources with the workload for the division and allow technology staff to focus on technical issues in lieu of administrative work. Costs partially offset by reductions in other operating areas.OngoingCore Services829$                   1,077$                64 General Fund SOBCDescriptionOne‐time/ OngoingMCG or Core Services  FY 21‐22   FY 22‐23 30Utilities Locator Position Salary‐Split Cost CentersAdministrative change to change the funding for the Utilities Locator from the Water Fund to the Water, Sewer, and General Funds to better reflect the position's benefit to each of the funds. The Utilities Locator is an existing position responsible for all physical mark‐outs of underground City utilities: water, sewer, storm sdrains, street light conduits, and fiber optic conduits. OngoingCore Services3,592$                3,592$                31Community Development Department32919 Office Reconfiguration Funding is needed to plan and implement changes at 919 Palm to accommodate increased staff associated with high development permit activity as well as increased Capital Improvement Project activity. The plan will incorporate all CDD and PW employees and include space sharing in support of ongoing remote work opportunities. One‐time Core Services150,000$           50,000$             33Cannabis Business Program PosititonThis request is for a dedicated support position for the City's Cannabis Business Program and is funded through business fees in addition to a position reduction in the Police Department. This position is necessary to support the implementation and oversight of the City's Cannabis Program, including leading all cannabis permitting, coordinating all cannabis‐related activities within the City, working with and monitoring cannabis operators, developing cannabis policies, supporting ongoing, current or proposed cannabis projects, coordinating with all local, state and federal entities on regulatory and policy efforts, and implementing all City Council directives and recommendations for the Cannabis Program.OngoingCore Services111,898$           115,996$           34Cannabis Business Support Contract ServicesThis request is for required consultant support of the Cannabis Business Program and is funded through business fees. The new fee structure approved by the Council includes consultant support for application completeness checks, proctored application review, principal and employee background checks, compliance checks and other support efforts to respond to the needs of the program.OngoingCore Services52,095$             57,345$             35Code Enforcement Body‐Cams This request will help provide for the safety of code enforcement officers as they operate independently and conduct inspections in a wide variety of places, including on private properties. Currently code officers have no protective gear other than their phones. OngoingCore Services5,440$                1,440$                36Housing Element Program Implementation; Consultant SupportConsultant support is needed to complete four specific Housing Element Programs (2.13, 4.6, 5.4, 6.20). This includes updating our Inclusioanry Housing Ordinance, Missing Middle Housing and Subdivision Regulations. Inclusionary Housing Ordinance = 120k; Missing Middle Housing = 100k; Subdivision Regulations = 35k. One‐time Housing & Homelessness 140,000$           115,000$           37City Attorney Department38Staffing Reconfiguration39Paralegal (contract hire until Org Assessment complete)Ongoing Core Services 84,045$              87,709$             40Deputy City Attorney (contract resource until Org Assessment complete)Ongoing Core Services 130,174$            135,039$           41Legal Assistant (contract hire until Org Assessment complete)Ongoing Core Services 65,442$              68,131$             42Part‐time Asst. City AttorneyOne‐time Core Services 108,646$           43Short‐term, Part‐time Legal Asst. 2One‐time Core Services 11,055$             44Short‐term, Full‐time Legal Asst. 1One‐time Core Services 7,552$                45Department Org AssessmentContract to evaluate the workload and organization of the City Attorney's Department and provide direction as to staffing needs and methods by which greater efficiency can be achieved.One‐time Core Services60,000$             46eDiscovery/Document Review SoftwareA software program for the review of records produced in response to subpoenas, litigation discovery, and public records requests. It replaces an inefficient system of using software not designed for document review which causes frequent loss of work and extended response times.OngoingCore Services12,995$             11,395$             Years of experience, and reliance on temporary supplemental staff or contract services, has lead department staff to believe increasing workload demand requires an increase in permanent staffing. This set of requests will staff the department in the short‐term to allow capacity to complete a Department Org Assessment that will either confirm more permanent staffing is needed or provide guidance on another path forward. Requests that are listed as ongoing were written as such so funds are included in the long‐term forecast and available should the Assessment recommend additional FTEs; if not, then funds would be removed from the budget.65 General Fund SOBCDescriptionOne‐time/ OngoingMCG or Core Services  FY 21‐22   FY 22‐23 47Legal Analyst (reclassification)Reclassification of existing Paralegal to Analyst. Skill level required to complete workload is recognized to be different than the previous classification. Cost absorbed within operating budget.Ongoing Core Services 2,504$                 5,935$                48Finance Department49Financial Specialist ‐ Payroll ‐ reclassificationReclassification of an existing Accounting Assistant to a Payroll Specialist for account for the increased workload and higher level duties. OngoingCore Services3,520$                3,566$                50Reallocate Temporary Resources to Ongoing FTEReallocation of funding to help offset the addition of one Accounting Assistant FTE (LRM Funded)OngoingCore Services(25,157)$            (25,759)$            51MOTION Subject Matter Expert  (.5 FTE Supplemental)This request is for a subject matter expert to help continue the implementation and enhancement of the Oracle ERP system in support of relevant, accurate and timely accounting processes. One‐time Core Services34,017$             35,568$             52Cannabis Auditing ResourcesThis request is to augment the current budget for annual Cannabis audits required for local Cannabis businesses. This ongoing requests assumes all business are open by FY 22‐23.OngoingCore Services18,000$             53Fire Department54Fire Station Generator Maintenance ‐ Moved from Public WorksThis request is to transfer $8,300 in budget from Public Works Fleet Division to Fire Apparatus Services to maintain fire station generators  due to newly agreed upon Service Level Agreement between the Fire Department and Public Works. OngoingCore Services‐$                    ‐$                    55Recruit Academy Overtime Reduction ‐ Training/Safety Captain OffsetReduction in bi‐annual overtime amount due to the hiring of a full‐time Fire Training Captain (LRM Funded)OngoingCore Services(67,775)$            ‐$                    56Human Resources57Pay Equity AuditThis request will allow the Human Resources Department to conduct an internal pay equity audit through use of consultant support. This project is in support of the Major City Goal of Diversity, Equity, and Inclusion.One‐timeDEI30,000$             58Onboarding softwareThis request provides funding for onboarding software. The onboarding software allows the Human Resources Department to effectively communicate with new hires, and efficiently track that the onboarding process is fully complete.OngoingEconomic11,000$             11,500$             59HR Reorganization to support organizational demandsAdditional 1.5 Human Resources Analyst II to support demands and complexities of the citywide organization. 0.5 FTE is for a leave and benefits focus. 1.0 FTE is for support for labor negotiations, meet and confer, performance management, and general high‐level analytics of changing legislation and regulations. Additionally reclassification of the HR Manager to oversee core HR.OngoingEconomic165,589$           172,175$           60Convert 2.5 FTE Contract staff to Regular staffConvert contract staff that have been retained for the past five years. Support includes: 1 FTE for employee data entry, transferred from Finance to HR and increased with system capabilities. 1 FTE for general administrative support, as the previous admin support is now dedicated to the benefits module. 0.5 FTE to support leave and worker's comp administration.OngoingEconomic192,106$           195,246$           61Office furniture to support Contract to Regular Staff This request is for an office reorganization and additional furniture to support staff.One‐timeEconomic20,000$             62Office furniture and equipment to support new staff This request is for additional furniture and computer equipment to support new staff. One‐timeEconomic14,000$             63Compensation StudyThis request is to fund consultant support for a compensation study.One‐timeEconomic30,000$             64Transition to electronic filesThis request is to hire a scanning company to transition files from paper to electronic. One‐timeEconomic11,000$             65Increased tuition reimbursementFunding to bring the total tuition reimbursement budget in line with recent historical averages.OngoingCore Services7,500$                7,500$                66Increases to recruitment‐related expensesIncreases to recruitment‐related expenses to utilize technology for more efficient and effective recruitment processes. Includes text‐messaging capabilities for candidates and software for dispatch testing.OngoingCore Services6,300$                7,800$                67Funding for InvestigationsThis request provides funding for 2 Investigations per year outside of the City Attorney's capacity.OngoingCore Services15,000$             15,000$             68Intern FundingFunding for an ongoing Human Resources Intern to assist with special projects and succession planning. One‐time Core Services16,005$             16,364$             69Professional RecruiterAnticipated need for a Department Head recruitment using a professional recruiter.One‐time Core Services40,000$             66 General Fund SOBCDescriptionOne‐time/ OngoingMCG or Core Services  FY 21‐22   FY 22‐23 70Police Department71Reclassification for Police Operations Support Specialist Reclassifying the Police Operations Support Specialist from a supplemental to FTE position, but annual hours will remain at 1040.  Staff will work with Human Resources to change pay grade Ongoing Core Services 12,200$              13,751$             72EvidenceOnQ and DigitalOnQ EvidenceOnQ is software that integrates with Spillman, but has a much more robust tracking/reporting capability for evidence data.  DigitalOnQ is specific to the storage of digital evidence, which will be stored on the cloud and provide a proper chain of command.OngoingCore Services8,555$                8,555$                73Reclassification for SNAP EmployeesChanging the pay grade of SNAP employees is intended to help with recruitment and retention of civilian supplemental employees that has become increasingly difficult to retain over the past few years.  Increases in parking districts have resulted in an increased work load for SNAP and the change in pay grade would bring the positions in line with a Parking Enforcement Officer.OngoingCore Services9,622$                9,622$                74Lead Records Clerk This position will assist the Records Supervisor with Public Records Requests and other time sensitive/complex tasks. The workload for the Supervisor has increased related to public records requests which are time consuming and also involve working with the City Attorney to ensure compliance.OngoingCore Services93,696$             97,868$             75Ongoing costs related to Cannabis backgrounds and operation complianceFunding for police will be used to assist with operator and employee background checks, monitoring and investigating all criminal service calls and complaints related to cannabis businesses, conducting non‐qualified sales operations, and staying involved with decisions regarding the oversight and the implementation of the cannabis programOngoingCore Services95,272$             105,292$           76Eliminate Cannabis Officer PositionEliminate an officer position due to fewer  business permits than anticipated; as a reuslt, the program has been reassessed and modified.OngoingCore Services(192,150)$          (194,026)$          77Public Works Department78Office ModificationsThis one‐time request is to fund office modifications to accommodate anticipated additional CIP Engineering staff at the 919 Palm office.One‐timeEconomic‐$                    20,000$             79Public Works Department80Utilities Locator Position Salary‐Split Cost CentersAdministrative change to change the funding for the Utilities Locator from the Water Fund to the Water, Sewer, and General Funds to better reflect the position's benefit to each of the funds. The Utilities Locator is an existing position responsible for all physical mark‐outs of underground City utilities: water, sewer, storm sdrains, street light conduits, and fiber optic conduits. OngoingCore Services14,367$             14,367$             81TOTAL2,187,428$        1,854,852$        67 LRM SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22   FY 22‐23 Administration and IT Department1ECOSLO partnership ‐ SLO Stewards, Tree Planting & Maint., Green Business, Creek Clean Up (4.3.c)Partner with ECOSLO to support the 10,000 Trees by 2035 goal through a tree planting and maintenance program, as well as continue with the SLO Stewards Docent Program, annual creek clean up efforts, and administration of the SLO Green Business Program.One‐time Climate Action  $            20,000   $            20,000 2Open Space ‐ Vegetation Management / Fuel Reduction (Goats & Sheep contractor) 4.5.b)Following successful piloting at Terrace Hill Open Space, implement and expand vegetation management for fire fuel reduction, as well as to promote soil health and recruitment of native perennial bunchgrasses, using goats and sheep with a professional contractor in order to ensure a safe and effective operation.Ongoing Climate Action  $            20,000   $            20,000 3Open Space and Creeks ‐ Hazardous Tree Removals (4.5.f)Provide resources to be able to respond quickly to instances when hazardous trees are identified on City Open Space lands or creek areas where the City has a property interested.Ongoing Climate Action  $            20,000   $            20,000 4Sustainability & Natural Resources Analyst (4.1.a)Create a limited term Sustainability & Natural Resources Analyst position to support open space conservation planning, implement Climate Action Plan actions that were established for 2021‐23 on time, and support the completion of the Resilient SLO climate adaptation work effort. Costs offset by elimination of Civic Spark Fellow on temporary basis.One‐time Climate Action  $            62,753   $            62,753 5Sustainability & Natural Resources Intern/ Urban Forest Master Plan Intern (4.1.b)Restore the Sustainability & Natural Resources Intern position to support open space administration and planning efforts and climate action plan implementation efforts, including completion of the Community Forest Master Plan. (Funded by GF in year 1)One‐time Climate Action $            12,368  $            13,613 6Focused efforts to attract & retain businesses owned by minorities and underrepresented communities. Support businesses serving underserved/underrepresented communities (1.1)Research, explore and potentially utilize innovative practices such as micro‐loans, targeted‐sector recruiting and promotion, City facilitated lending, grants, private support and crowdfunding to support businesses owned by or serving underserved/underrepresented communities. The City will also leverage its partner network, including the Chamber, Downtown SLO, REACH and others to support the DEI initiatives as they relate to economic development including creation, retention and attraction efforts. One‐time DEI $         150,000  X7Arts, Culture and Community Partner Support Funding to support the recovery of arts, culture and community partners. One‐time Economic  $            50,000   $            25,000 8Business Promotions and Communication Support(1.2) Elevate the promotion and branding of the Economic Development activities of the City highlighting the efforts around Sustainability and DE&I through the website, videos and other collateral. One‐time Economic  $            80,000 9Business Retention/Recovery Programs (1.2)Funding set aside for activations, promotions and  programs such as "Light Up Downtown", "Buy Local Bonus" and "Shop local" to aid in the recovery from the impacts of COVID‐19  through out the City and including downtown. One‐time Economic  $         500,000   $         250,000 10Economic Development Program Support (1.1.)Funding to ensure adequate temporary and flex resources available to develop and execute required initiatives. One‐time Economic  $            50,000   $            25,000 11Economic Development Recovery scorecard (1.1.)Funding to develop and implement a scorecard to track visitation to key areas of the City, employment, DEI economic efforts and other relevant economic indicators.One‐time Economic $            30,000  $            30,000 12Fund approved Application Systems Specialist positionMaintain the Application System Specialist position as recommended by the Motion Steering Committee and best practices for program management of an ERP system (Motion).  The ongoing core services for Motion are needed to maintain the ERP system, as well as the testing required before mandatory quarterly updates are released. MCG 1.5bOngoing Economic  $         105,312   $         110,384 13Holiday Activation support downtown(1.4)Support Downtown SLO in expanding the Holiday "Light up Downtown" program and incentivize private participation through a matching program.Ongoing Economic  $         150,000   $         150,000 14New Economic Development Strategic Plan (1.1.) Funding to update the Economic Development Strategic plan. One‐time Economic $         100,000 15Regular half‐time Technology Project Manager to Regular Full‐timeThe Technology Project Manager will continue to drive improvements to the Motion ERP necessary to achieve the desired efficiency and effectiveness from the system. This position will support the completion of approximately 15 high priority projects over the next two years. This request has been recommended by the Motion Steering Committee and follows best practices for program management of an ERP system and IT project management.  MCG 1.5bOngoing Economic  $            52,444   $            54,669 E‐3: General Fund ‐ LRM ‐ SOBCsKey68 LRM SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22   FY 22‐23 16Community Development Department17Safety Element Environmental ReviewOne‐time expense for consultant support to complete the environmental review for the safety element udpate. Use of a consultant ensures that the environmental documents can be completed in a timely manner, in coordination with the project team. The expense is not eligible for grant funding via the Cal Trans Resilient SLO grant.One‐time Climate Action  $            25,000   ‐ 18Zoning Regulations Update for Downtown Uses and Flexible Use of Outdoor Spaces CitywideTwo major updates to the Zoning Regulations will require consultant support for graphics, strategic input, best practices review and public outreach. The first project will look directly at Downtown SLO to identify and implement appropriate changes to allowed uses, and simplify the process of "re‐tenanting" vacant buildings. The second project looks at commercial uses city‐wide to implement changes that will allow more effective use of outdoor spaces, including parking lots. One‐time Economic  $         125,000   $                     ‐   19Homelessness Strategic Plan The Homelessness Response Manager position includes the creation of a strategic plan to help guide the efforts of all City staff engaged in managing the many challenges associated with helping unhoused City residents and addressing the impacts of homelessness on the community. The funding will be used for materials, public outreach, and limited consultant support.One‐timeHousing & Homelessness $            35,000   $                     ‐   20Pilot: Housing and Homelessness Major City Goal (25% Expansion of 40 Prado HSC Beds) ‐ Proportions City share to County contributionWork with CAPSLO to help fund an expansion of shelter beds at the HSC by 25%. CAPSLO has capacity but not funding for additional shelter beds. This one‐time increase in funding will help match the local need with available services.One‐timeHousing & Homelessness $            63,826   $            63,826 21Pilot: Housing and Homelessness Major City Goal (Consultant Contract)This consultant contract is necessary for the overall management and administration of the City's Inclusionary Housing Inventory, including ownership units, rentals and financing. Over the past several years the City's Inclusionary Housing Inventory has grown substantially. Staff does not have the necessary training, expertise, capacity or resources to effectively accomplish the management and administration of this effort moving forward.One‐timeHousing & Homelessness $         117,000   $         117,000 22Finance Department23Accounting AssistantOngoing Economic  $            68,004   $            71,106 24Financial Specialist ‐ AccountingOngoing Economic  $            73,882   $            77,281 25Fire Department26Technical Rescue Team ExpansionThis request is to fund the increase of the City's Technical Rescue Team roster from 3 to 6 firefighters to improve the City's open space rescue capabilities and improve self‐sufficiency following the first 72 hours of a regional disaster such as earthquake or flood where resources are often limited. Costs of the roster increase include training, PPE and salary pay incentives. This is not an increase in FTEs, but rather increasing the capabilities of existing staff members.Ongoing Climate Action  $            17,850   $              9,150 27Pilot: Mobile Crisis UnitThe Mobile Crisis Unit includes a social worker paired with an Emergency Medical Technician. The unit will be dispatched to non‐emergency calls for service involving unhoused residents and is intended to improve residents' ability to access needed social services and reduce law enforcement and paramedic response in non‐emergency situations, when possible. One‐timeHousing & Homelessness $         300,000  $         300,000 28Fire Intern ProgramRequest to implement a Fire Intern Program that serves all areas of the department. Staff will focus intern recruitment on younger individuals in the community that do not traditionally seek the fire service out as a career and used as a tool to improve diversity within the Department. The department has a strong history of hiring previous interns for full time positions in the department and an intern program would improve the department's ability to increase diversity within the department's permanent position ranks.One‐time DEI  $            22,691   $            23,257 These requests are to right‐size the finance department resources in line with the growth of the City and the workload associated with protecting the City's financial stability. These positions are vital to track and account for the additional measure G‐20 revenue that the City will be managing.69 LRM SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22   FY 22‐23 29Training and Permit Compliance SoftwareThis request is to fund the costs of Lexipol software which ensures policy compliance and tracking for emergency response staff. Lexipol software helps reduce liability for the department to ensure department polices are in‐line with regional, state and national standards and includes the ability to ensure all personnel that are impacted by the policy have read it. One‐time Economic  $            11,169   $              9,369 30Mobile Eyes SoftwareThis request is to fund the ongoing costs of a mobile fire inspection software that the Fire Department implemented in FY2021. The fire department was able to secure one‐time funding to implement the software and now need ongoing budget to fund the annual service costs. The new software has eliminated significant inefficiencies including paper records that require manually entry after an inspection has occurred. Ongoing Core Services  $            12,200   $            12,200 31Public Safety Equipment Replacement ProjectThis request is for the ongoing contribution amount for the Public Safety Equipment Replacement Sustainability Project that was established and funded beginning in FY20. The project funds the replacement of essential personal protective equipment (PPE), and critical gear such as cardiac monitors/AEDs, rescue equipment and fire hose/nozzles. The initial funding covered the first three years of the project until the project's annual contribution amount levels out after near term equipment replacement needs take place.Ongoing Core Services  $                     ‐     $         177,499 32Suppression Staff Training Support33Fire Training/Safety CaptainOngoing Core Services  $         191,276   $         191,276 34ER Live‐Fire Training  ImprovementsOne‐time Core Services  $            20,045   $            17,570 35Injury Reduction ProgramOngoing Economic  $            18,000   $            18,000 36Recruit Academy SupportThis request is to fund additional background investigations and purchase additional personal protective equipment for fire recruits selected for the department's planned recruit academy in FY 2022. The department's base budget for the recruit academy budgets for four recruits and the department is anticipating a larger than normal academy size of six to seven.One‐time DEI  $            29,000   $                     ‐   37Emergency Management ServicesIn the absence of a full‐time emergency manager, this request is to support emergency management services both FY22 and FY23.  This funding will help provide key staff with Emergency Operation Center (EOC) position specific training, EOC readiness and City costs associated with the FEMA Emergency Management Institute Community Specific Training Course in Emmitsburg, MD awarded to the City in 2019 and scheduled for calendar year 2022. One‐Time Core Services  $            30,000   $            30,000 38Parks and Recreation39Open Space Fire Fuel Reduction Resources (MCG 4.5)40Fuel Reduction Crew (4000 Supplemental Staff Hours)Ongoing Climate Action  $            60,140   $            61,589 41Fire Fuel Reduction Crew Tools and PPEOne‐time Climate Action  $              4,500 This request is to support the fire department's ability to carry out essential training to protect the health and safety of both firefighters and the community. A training/safety captain is needed to deliver a consistent and effective training program. Additionally, the Training/Safety Captain will increase needed capacity for the Deputy Fire Chief and Administration staff to focus on emergency management duties for the City including City training, certification, policy management and public preparedness education. The added Training/Safety Officer will result in a reduced need for overtime budget that was previously utilized to pull a fire captain away from normal duties to run the recruit academy. The overtime savings will be realized every other year moving forward as the recruit academy is budgeted every other year. Live‐fire training facility improvements are needed to ensure live‐fire trainings are both frequent and sustainable and the injury reduction program funding is needed to further the reduction of on job injuries related to Musculo‐skeletal injuries.This request is to establish an Open Space Fire Fuel Reduction Crew (part‐time staff, 4,000 hours), including procurement of necessary equipment, in order to ensure that the City has a reliable means of conducting fuel reduction activities.70 LRM SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22   FY 22‐23 42Ranger Staffing Resources (MCG 4.1)43Net New Ranger Maintenance Worker (1 New FTE)Ongoing Climate Action  $            70,854   $            74,105 44Conversion of Ranger LBTs to FTE (Equals 4 FTE Additions)Ongoing Climate Action  $            84,561   $            92,421 45Open SLO Downtown Dining Resources (MCG 1.4a)This request is for additional supplemental staffing budget to support the Open SLO Program Downtown Dining within Mission Plaza.One‐time Economic  $            13,688   $            27,375 46Open Space Environmental Clean‐up Resources (MCG 3.7)This request is to provide additional financial resources for environmental clean‐ups in the City's Open Spaces associated with increased volume of abandoned personal property and trash. The trash poses environmental issues, specifically related to water quality and fire safety. OngoingHousing & Homelessness $            10,000   $            15,000 47Aquatics Resources to Implement COVID‐19 Safety ProtocolsThis request is for additional staffing resources to adhere to COVID‐19 safety guidleines at the SLO Swim Center. Additional staff are required to conduct health screenings, clean all surfaces and equipment (kickboards, pull buoys) in between swim times, as well as adhere to class ratio requirements (smaller class sizes).One‐time Core Services  $            62,000   $                     ‐   48SLO Swim Center Minor Capital MaintenanceThis request is for resources to update and replace operational safety equipment such as lane lines, lane line reels, and stanchion posts for participant safety at the SLO Swim Center. These purchases are based on life expectancies (5‐10 yrs).One‐time Core Services  $            30,000   $            30,000 49Youth Services Staffing Resources (MCG 1.2a)This request is for equitable wages and benefits for Youth Services Site Specialists to provide a sustainable staffing model to support quality childcare programming and program enhancements due to retention and recruitment challenges.Ongoing Core Services  $            93,227   $         132,045 50Police Department51Supplies for Downtown Sergeant's educational programOngoing costs for supplies created and used by the downtown Sergeant for educational programs for downtown business owners.  This may include printed materials,  easels, binders, etc.Ongoing Economic  $              1,000   $              1,000 52Social Worker ‐TMHA Support ‐ Fully Burdened CostAdding a second social worker to the Community Action Team to enhance current service levels and enable the team to reach out to more homeless persons in need of assistance.  Position will be hired by THMA and contracted with the City.OngoingHousing & Homelessness $         118,688   $         116,188 53One time costs for Social Worker positionSet up costs related to office supplies, desk, and phone for Social Worker position.  Office will be located at the Police Department.One‐timeHousing & Homelessness $              6,500 54Public Safety SuppliesCosts related to ammunition have increased significantly and the amount of officers requesting monthly allotment (per the POA MOA) has increased as well.  Duty ammunition must replaced annually based on the manufactorers recommendations.Ongoing Core Services  $            11,600   $            11,600 55Spillman RIPA Module  The Racial and Identity Profiling Act (RIPA) was formed as part of AB953.  California law enforcement agencies will be required to collect data for stops made by law enforcement personnel.  Annual reporting to DOJ is a requirement.  One‐timeDEI  $            15,400 56Public Safety Equipment Replacement ProjectOngoing Contribution amount for the Public Safety Equipment Replacement Sustainability Project that was established and funded beginning in FY20. The Funding covered the first three years of the project until the project's annual contribution amount leveled out as near term equipment replacement needs took place. Ongoing funding for this project was added to the long‐term budget forecast for Police.Ongoing Core Services  $                     ‐     $            58,281 This request is to add an additional Ranger Maintenance Worker and convert supplemental staff to full‐time to create a sustainable Ranger staffing model in response to increased Open Space acreage. The additional staffing resources are needed to properly maintain the City's Open Spaces, including recent aquisitions in fall 2018 of the Miossi property and Waddell Ranch property in fall 2016, resulting  in a combined increased Open Space to 4,050 acres (55+ miles of trail system). Staffing resources have not been augmented since either acquisition.71 LRM SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22   FY 22‐23 57Public Works Department58Mobility as a Service StudyPrepare a Mobility as a Service Study to guide potential implementation of programs and software tools to create an integrated platform linking access to transit, future bikeshare and ridesharing services, as called for in CAP Connected Communities task 1.2.One‐time Climate Action  $            25,000 59Transportation InternsThis request will provide 2 paid Transportation Interns at 1,000 hours/yr @ minimum wage. Prior to the pandemic, Transportation has had 2 interns throughout the year to perform traffic volume and speed survey data collection, administer red curb permits, perform intersection/driveway sight distance studies, assist with AutoCAD drafting for design projects, assist with mailers for public meeting noticing, and enter traffic collision data into the database used for our Annual Traffic Safety Report. Current staffing levels cannot handle all of these tasks.One‐time Climate Action  $            30,350   $            31,071 60Variable Electricity Costs until Solar Costs are Known at Swim CenterThe Swim Center is converting to solar power in fall of 2021.  The total cost of electricity is anticipated to increase, however the ultimate amount is still unknown.One‐time Core Services  $            25,000   $            25,000 61CIP InternsIncrease hours on 2 paid CIP Interns from 740 to 1,000 hours/yr @ minimum wage. Historically, CIP Engineering Program has used paid interns to assist with delivering CIP projects including assisting engineers with preparing plans, specifications, and estimates for capital improvement projects, as well as assisting inspection staff with their duties and represent a good value to cost.One‐time Economic  $              5,000   $              5,900 62Increased budget to existing Landscape Maintenance ContractsThis contract funding  will fund increase maintenance in Mission Plaza and Downtown to maintain creek walk, and maintain newly City owned landscape improvements in developments  and landscape improvments within separated bike lanes.Ongoing Economic  $            55,000   $            65,000 63Pilot: Contract Services for increased trash and recycling services in Public SpacesIncreased solid waste in the parks has been challenging as a result of Covid dining restrictions and increased use of the facilities.  This increased funding will provide contract services to address the solid waste levels in the parks and continue to test the recycling pilot program within the parks.  This level of funding provides trash services to the parks system 3 days a week and recycling  service in 8 to 10 parks 2 days a week.One‐time Economic  $         125,000   $         125,000 64Supplemental Street and Parklet SweepingThe City's current street sweeping program consist of over 260 miles of curb and gutter and is at capcity.  Currently, arterial streets, alleys, new developments, and center medians are not included in the regular sweeping program, and are swept as staff has ability.   This additional funding will allow the department to increase sweeping throughout the City and will support the ongoing weekly sweeping and cleaning of downtown parklets and new protected bikeways proposed in Active Transportation Plan on a contract basis.  One‐time Economic  $         250,000   $         250,000 65Increased contract services budget for abandoned personal property and trash cleanup for parks, paths, bridges, and rail road right of wayThe number of homeless camps and the amount of property the City is responsible for addressing is increasing.  This additional funding will allow the department to keep up with the anticipated work.OngoingHousing & Homelessness $            55,000   $            55,000 66Additional Streets Operator for Maintenance of Streets and Right of WayThe City is scheduled to accept multiple new residential developments as well as separated bike lanes.  This additional infastructure will cause increased maintenance for the Streets program.Ongoing Core Services  $                     ‐     $            78,312 67Continue supplmental  Accessabilty and Process Improvement Manager for Project CompletionThis position will assist the department with completing the ADA ROW assessment and transitioning this into work plans, as well as reprogramming in the City's asset management system to align work flows with optimal efficiencies.   Additional duties include: programing software for workflow efficiencies, training on programing, assistance with a variety of reports and requests for proposals, document fleet disposal auction process.One‐time Core Services  $            34,000   $            12,000 72 LRM SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22   FY 22‐23 68Contract Heavy Equipment MechanicThis funding will provide added capacity in the Fleet program and addresses a current staffing shortage.  In addition, this will provide flexibility as the program evaluates long term needs in light of transitioning the fleet to electric vehicles.One‐time Core Services  $            85,220   $            89,065 69Contract with Body Shop for Vehicle Accident RepairsThis request is for specialized repair work performed by body shops to repair accidents on City vehicles.  These repairs are outside the scope of the fleet maintenance function. Ongoing Core Services  $            20,000   $            20,000 70Fleet InternThis funding would allow the City to partner with Cuesta College's Automotive Technology Intern Program.  The intern will assist the fleet program with non‐technical preventative maintenance, vehicle transport, and parts runs.  This method will allow mechanics and other Fleet staff to focus on higher level tasks.One‐time Core Services  $            17,991   $            18,398 71Increased Asphalt and Concrete BudgetThe City is scheduled to accept multiple new residential developments as well as separated bike lanes.  This additional infastructure will cause increased maintenance for the Streets program.  This budget is used for asphalt and concrete used for street patching and sidewalk repair within the different pavement zones by City staff. Ongoing Core Services  $            60,000   $            60,000 72Increased budget for Signals and Street Light EquipmentThis will provide for miscellaneous traffic signal and street light equipment to support increasing signal/streetlight maintenance costs with many new installations from new development and high rate of damaged equipment from vehicle collisions. This funding increase provides for at least one additional replacement signal cabinet and controller annually.  Current funding is unsustainable to support increased needs with expanded signals in the network.Ongoing Core Services  $            15,000   $            15,000 73Increased Chemical Costs at the Swim CenterThe Swim Center is a popular City Facility and the increased programming over the years has resulted in higher than budgeted chemical costs. With Covid the Health Department is requiring  a higher sanitizer level.  To keep up expected increased chemical costs and increased supply requirements additional funds are needed.Ongoing Core Services  $            25,000   $            25,000 74Increased Contract Funds for Specialized Mechanic ServicesAdditional funding is needed to provide specialized mechanic services while the City's fleet transitions to electric vehicles.  Ongoing Core Services  $            50,000   $            50,000 75Increased Electricity Costs for New Signals and Street LightsThis provides budget for the continued acceptance of privately developed lights and signals associated with new residential developments as well as other increases in light and signal inventory.Ongoing Core Services  $            10,000   $            10,000 76Increased Misc. Materials and Supplies ‐ need for detail for LRM REOCFacilities maintenance has hitorically overspent in materials and supplies and made up the differance with utilities savings that were a result of efficency projects.  As the peak time of day electricity rates significantly increase, the savings historically used to offest these purchases is no longer available.Ongoing Core Services  $            30,000   $            30,000 77One Time Tools and City uniforms ‐ Mechanic interns These are one time costs associated with the Mechanic Intern program.One‐time Core Services  $              3,000   $                     ‐   78Payment Correction Hwy 227 Signals/Street LightsThis is a one‐time request to correct an error in transitioning the billing for signal/street electrical costs mistakenly billed to Caltrans, instead of the City, during the relinquishment of Highway 227.One‐time Core Services  $            60,000   $                     ‐   79TOTAL 3,863,171$      3,733,302$      73 E‐4: General Fund (Unique Funding Sources) SOBCsOther Funding Sources SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22   FY 22‐23 1Civic Spark FellowThe CivicSpark fellow will  execute waste reduction measures aligned with the vision of the SW&R section and the City’s Climate Action Plan pillar, “Circular Economy”. The fellow will, under supervision by the SW&R Coordinator, create a Municipal Operations Waste Reduction Plan and assist in getting the City certified as a zero‐waste organization. One‐time Climate Action 29,000$            ‐$                  23TIPP Fast 2.0 ‐ Utilize $250k from $2 million restrictedThe TIPP‐FAST program provides expedited Tenant Improvement permits for new businesses. The City is working to offer these permits free of charge for a limited period of time. One‐time Economic250,000$          ‐$                  45Building and Safety Division Streamlining and Succession Planning (1 FTE ‐ Deputy Building Official)This new position will provide supervision to all three programs in the Building and Safety Division (Inspections, Permits, Code Enforcement), and will provide for continuity following the conclusion of the current assignment of the Fire Marshall/Chief Building Official. This request will improve customer service, program development, implementation of performance management and transparency projects, and support for the Construction Board of Appeals. Ongoing Core Services 138,291$          143,497$          6Building and Safety Division Streamlining and Succession Planning (Net Cost of Reclassification of Building and Safety Supervisor and Permit Services Coordinator)This SOBC would implement an organizational structure change to align all building permit plan check and permit issuance activities under a single supervisor. This requires reclassification of the Permit Services Coordinator to a Building Permit Services Manager. In addition, the Building and Safety Supervisor position would be reclassified as a Supervising Building Inspector to provide more field resources for inspections and an improved level of customer service in the field.Ongoing Core Services40,000$            40,000$            7Development Services Program Capacity Building (1 FTE ‐ Assistant Planner)This request is to convert a current contract position into a regular FTE. The position was originally funded as a contract during the 2019‐21 Financial Plan. The Assistant Planner works at the front counter and responds to e‐mail and phone calls from customers. Although the duty used to be shared by many staff, the workload has grown to where it is far more efficient to have a single planner be the public point of contact for planning and development inquiries.Ongoing Core Services78,844$            82,983$            8Development Services Program Capacity Building (1 FTE ‐ Associate Planner)This request is to convert a current contract position into a regular FTE. The position was originally funded as a contract during the 2019‐21 Financial Plan. The Associate Planner manages complex development review and long‐range planning projects. On‐going workload indicates that the position is necessary to maintain appropriate response times on planning applications and will reduce the use of consultants for both long‐range and current planning projects.Ongoing Core Services99,978$            104,773$          9Training & Education / Trips & MeetingsThis request will help fund training and education activities that were delayed during the pandemic in FY 20‐21. This request also reflects the training and education (including required certifications) needed for staff hired during FY 20‐21.OngoingCore Services11,700$            11,700$            10Building and Safety Division Streamlining and Succession Planning (2 FTE ‐ Building Permit Technicians)Convert two current contract Building Permit Technicians to FTE positions.  These regular positions are necessary to accomplish the intake and issuance of building permits and the City has funded the positions under contract for the past two years. Permit technicians provide a critical customer service function by ensuring applications are complete and ready for plan check, and assisting customers with fee estimates and other informational assistance. Ongoing Economic122,507$          132,619$          Use of $2.0 million restricted funding allocated for tenant improvement Investments (see long term forecast line 39)AB939 (GF): Carryover at Year EndDevelopment Services Resources Offset by Development Review Base Revenue Projection IncreasesKey74 Other Funding Sources SOBCDescriptionOne‐time/ OngoingMCG or Core Services FY 21‐22   FY 22‐23 11Building and Safety Division Streamlining and Succession Planning (software for reporting, performance management, and customer transparency)Software Support, maintenance, and project implementation for: 25 BlueBeam licenses, IG Workforce APPs, Energov License & Regulatory Suite, Socrata Citizen Connect, Energov Decision Engine, Socrata‐Energov Executive Insights, and Energov e‐Review. These software packages will help the Building Division improve customer service and transparency into the permit process by allowing customers to access plan check status and submit plans and plan revisions online.  Ongoing Economic46,528$            39,234$            12Development Services Program Capacity Building (temp salaries for Engineering Division)The Engineering Development Review Division in Community Development uses temporary salary budget to address two key functions ‐ building permit plan check and surveyor services. The alternative to using temporary staff would be to utilize the County for surveyor services at a significantly increased cost. Temporary staff have also proved helpful with managing peak building permit plan check workload.Ongoing Economic88,206$            89,408$            13Housing and Homelessness Major City Goal (1 FTE ‐ Code Enforcement Tech II ‐ 75% Safe Housing, 25% Homelessness Prevention)Request for a regular, full‐time Code Enforcement Technician II to perform safe housing inspections, homelessness prevention, and outreach and education on safe housing. This activity is consistent with 2017 City Council direction provided in relation to code enforcement priorities. At least 25% of staff time will be allocated to eviction protection support ‐ connecting community members with needed services available in the  community for rental assistance and landlord‐tenant dispute resoluƟon.Ongoingousing & Homelessne73,882$             77,281$            14Housing and Homelessness Major City Goal (1 FTE ‐ Housing and Homelessness Division Manager)This position is necessary to provide management and oversight for a new Housing Policy and Programs section in the Planning Division. The position will supervise the Housing Coordinator, Homelessness Response Manager, and Assistant Planner. This manager will also oversee work of Associate Planner's in the Planning Division working on implementation projects for the City's 6th cycle Housing Element. Ongoingousing & Homelessne124,143$           124,143$          15Housing and Homelessness Major City Goal (1 FTE Assistant Planner)This position is necessary to assist with Housing Element Program implementation for the City’s 6th cycle Housing Element. The Assistant Planner will support the rest of the team in the division (including the Housing Policy and ProgramsManager, Homelessness Response Manager, and Housing Coordinator) on high level tasks and work assignments to support implementation of the Major City Goal, including implementation of Housing Element programs.Ongoingousing & Homelessne89,558$             93,788$            1617Stormwater InspectorThis position will oversee storm water compliance on all construction sites across the City to remain compliant with storm water permit requirements to inspect construction sites. This position will report to the Supervising Building Inspector and follow the guidance provided in the City's internal Stormwater MOU between operating departments engaged in storm water permit compliance efforts.One‐time Core Services93,506$            97,945$            TOTAL1,286,144$      1,037,371$      One‐time Allocation of Development Services Designation Balance75 Section F:   Capital Improvement Plan  76 Section F : Capital Improvement Plan    CAPITAL IMPROVEMENT PLAN (CIP)  F‐1: Purpose of CIP  The CIP and its annual implementation of projects is one of the primary functions of local  government.   Through  its  adopted  CIP,  the  City  meets  community  needs  by  providing  the  infrastructure  required for economic vitality, neighborhood wellness, housing, transportation, sustainability,  active and passive recreation, public safety, cleanliness, and other basic amenities.   With each two‐year Financial Plan, the City prepares five‐year CIP program recommendations for  Council consideration and approval. Even though only the first two years are funded within the  Financial Plan, five‐year planning is a best practice and is recommended to achieve objectives of  the Capital Improvement Plan.   The  City  systematically  plans,  schedules,  and  finances  capital projects  to  ensure  cost‐ effectiveness and conformance with established policies. Comprehensive policies governing the  development and management of the CIP are set forth in the City’s fiscal policies. All the City’ s  construction projects and equipment expenditures costing $25,000 or more are included in the  Capital Improvement Plan.   A Note on Unprecedented CIP Circumstances.  As Council is aware at the writing of this CIP, the  City continues to provide ongoing emergency response associated with the COVID pandemic.  As  such, staff, including those who support the CIP, continue to wear multiple hats.  In addition to  that unique circumstance, the CIP budget has tripled because of the voters’ passage of Measure  G20, the City’s local sales tax measure. On top of that, the City is receiving funds from the  American Recovery Plan and has the potential to receive additional grant funds for capital  projects.  What this means is that there is continued uncertainty, but alongside that is continued  effort by staff to identify additional funds to continue to meet the significant needs of our  community in providing it vital and meaningful infrastructure projects.  F‐2: Types of CIP Projects and Framework Used to Develop Recommendations  To assist the City Manager in developing the recommended CIP for the 2021 ‐23 Financial Plan, a  designated  CIP  Review  Committee  comprised  of  the  Assistant  City  Manager,  Deputy  City  Manager, Finance Director, Fire Chief, Utilities Director, Parks and Recreation Director, and Public  Works Director, evaluated all departmental requests. Based on prior Council direction and public  input regarding the importance of maintaining existing infrastructure, City staff puts all project  requests in the following three categories.  77 Section F : Capital Improvement Plan    In categorizing projects and recommending them for funding consideration, the CIP Review  Committee engaged in a rigorous ranking and review framework to develop the proposed  projects for both the General Fund and all Enterprise Funds.  In general, projects that maintain  existing infrastructure are ranked ahead of asset replacement projects, and asset replacement  projects are ranked ahead of building new assets. It is important to note that generally new assets  are related to Major City Goals or are critical infrastructure associated with development areas.  This “ranking” however is a general guideline and is complemented by the following questions  which were asked and applied equally to all projects as well.  F‐3: Key Questions the CIP Committee Asks About Projects  Asset Maintenance Asset Replacement New Assets Does the project address a Measure G20 Priority? Does the project address pandemic response needs (safety, economic recovery)? Does the project enhance safety, resiliency, or fire prevention? Does the project make good on past commitments (e.g. previously approved by paused projects or consistent with adopted plans)? Does the project address core infrastructure maintenance needs? Will the community be able to see, touch, use, the improvement? Does the project have positive impacts toward climate change goals (e.g. reductions in fossil fuel/energy consumption or increased carbon storage with tree plantings)? Does the project address diversity, equity, and or inclusion needs? 78 Section F : Capital Improvement Plan    F‐4: Capital Project Delivery  As mentioned previously, the City’s capital budget has grown significantly because of the local  sales tax measure and the potential for leveraging precious capital budget dollars further with  historic federal government grants.    With this increase in available funds comes a significant growth in proposed General Fund  projects, as well as significant Enterprise Fund Capital Projects as noted in the summaries below.   To “deliver” these projects, staff anticipates that the City may need additional engineering and/or  project delivery staffing resources. Staff is currently analyzing the project staff required to deliver  the projects over both the two ‐year and the five‐ year time horizon. While City staffing levels are  adequate to deliver the current capital program (2019‐21), additional funding from the Local  Revenue Measure (LRM), SB 1 and SB 1090, and increased Parking, Water and Sewer projects,  are expected require additional staffing. Currently, this staffing is not reflected in the SOBC lists  above.  Instead, staff has placed a general cost estimate and future expansion of CIP staff  anticipated to be incorporated into the cost of the projects. Staff is working with a consultant  group, Management Partners, to best determine the organizational structure, job types, and  functions and methods of costing to address this “good problem to have”.  This consultant group  has performed this service for other agencies, including Midpeninsula Regional Open Space  District when they have experienced a similar circumstance of increased capital budgets, thanks  to revenue measures.    79 Section F : Capital Improvement Plan    80 Section F : Capital Improvement Plan    F‐5: CIP Project Categories  The City categorizes CIP projects into broad functional areas that represent the support for  fundamental local government activities.  Projects in support of these categories extend the life  of existing City assets such as streets, bike and pedestrian pathways, parks and play equipment,  bridges, water and sewer infrastructure, trees, and open spaces and much more. In addition to  maintenance of existing assets, there are some aged assets, such as a building or a public  restroom, that may need replacement or substantial remodel.  Less frequent but more significant  is design and construction of new projects based on community and Council priorities that  enhance the overall quality of life in the City.  81 Section F : Capital Improvement Plan    F‐6: Funds and Funding Sources  The project revenues for the City and expenditures by asset replacement, maintenance, and new,  and projected staff costs to be added to projects following the Management Partners “ramp up  analysis” can be summarized with this chart.  These revenues and expenditures are made up by a wide variety of funds.  As noted, the LRM is  one the most significant contributors. But there are numerous other financial resources that are  brought to bear in funding capital projects. ID Project Type FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 Sum of 2  Year Total Sum of 5  Year Total 1 Asset Replacement $27,634,664 $22,686,846 $11,255,001 $2,920,001 $63,182,001 $50,321,510 $127,678,513 2 Annual Asset Maintenance $19,738,490 $23,033,876 $18,692,315 $19,103,830 $17,807,501 $42,822,366 $98,376,012 3 New Asset $13,019,500 $20,243,597 $46,902,000 $67,555,000 $6,265,000 $33,263,097 $153,985,097 4 CIP Project Delivery Aug. $500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,500,000 $4,500,000 5 Grand Total $60,892,654 $66,964,319 $77,849,316 $90,578,831 $88,254,502 $127,906,973 $384,539,622 82 Section F : Capital Improvement Plan    83 Section F : Capital Improvement Plan    84 Section F : Capital Improvement Plan      85 Section F : Capital Improvement Plan      86 Section F : Capital Improvement Plan    F‐7: Grants and Debt  The City’s CIP program, while largely comprised of funds arising from local revenues and impact  fees, also includes funding from grants and for larger projects include debt issuance (such as the  Water Resources Recovery Facility).  The City typically receives grant funds from State or Federal  agencies  that  either offset  a  burdensome cost  for  infrastructure needs, advance a positive  environmental or ecological improvement, or stimulate the economy.  These grant funds are  categorized into prescriptive or discretionary grants. Prescriptive grants are those grants the City  receives based upon some rule or methodology, such as the City’s population.  Discretionary  grants are those grants where the City competes for limited funds to advance a specific project  or a new way of doing business.  Some of these discretionary grants are programmed into the  City’s 2021‐23 Financial Plan since some granting agencies require this to even be eligible to  compete for these grant funds. These unsecured discretionary grants are largely programmed  into the City’s transit program for bus replacement needs.    Debt issuance occurs with costly projects that have a longer‐term useful life.  The table below  shows how the City might fund large scale significant projects by debt financing them. For  example, although the Palm‐Nipomo Parking Structure is a project managed and funded by the  Parking Fund and its revenue stream associated with fees for service, its debt is secured by the  General Fund.  Additionally, the Prado Road Interchange is expected to be a debt financed  project, as are major facility replacements should they arise in the future for various building  reconstruction and/or rehabilitation. Grants by Project FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 State or Federal Grant $5,634,000 $2,875,000 $2,055,000 $2,025,000 $2,175,000 Emerson Park Amenity Upgrades and  Beautification $2,810,000 $0 $0 $0 $0 Bus Replacements with EV $1,854,000 $1,910,000 $1,965,000 $2,025,000 $2,085,000 Transit Facility EV Charging Infrastructure$715,000$0$0$0$0 Bus Shelter Replacements $105,000 $0 $90,000 $0 $90,000 Bus Wash Replacement $75,000 $450,000 $0 $0 $0 Transit Supervisor ADA EV Van $70,000 $0 $0 $0 $0 Parking Lot Maintenance ‐ Bus Yard $5,000 $500,000 $0 $0 $0 Vault Room Addition Design Study $0 $15,000 $0 $0 $0 Unsecured State or Federal Grant $5,542,320 $6,384,911 $0 $3,200,000$0 Prado Road Bridge & Road Widening  $5,542,320 $4,540,000 $0 $0 $0 Prado Road Interchange $0 $1,844,911 $0 $3,200,000 $0 USHA Grant $360,000 Higuera St. Widening ‐ Bridge to Elks &  Fontana to Chumash $360,000 Federal HBP Grant $0$6,000,000$0$0$0 Prado Road Bridge & Road Widening $0 $6,000,000 $0 $0 $0 SLOCOG Grant $0 $0 $0 $6,000,000 $0 Prado Road Interchange $0 $0 $0 $6,000,000 $0 Grand Total $11,536,320 $15,259,911 $2,055,000 $11,225,000 $2,175,000 87 Section F : Capital Improvement Plan    F‐8: CIP Revenue Forecast for General Fund Projects  Project FY  21/22 FY  22/23 FY  23/24 FY  24/25 FY  25/26 Sum of 2  Year Total Sum of 5  Year Total Bonds, Infrastructure Loan (Debt) $0 $0 $37,052,000 $38,650,000 $52,000,000 $0 $127,702,000 Palm ‐ Nipomo Parking Structure $0 $0 $37,052,000 $0 $0 $0 $37,052,000 Prado Road Interchange  $0 $0 $0 $38,650,000 $0 $0 $38,650,000 Major Facility Replacements $0 $0 $0 $0 $52,000,000 $0 $52,000,000 Grand Total $0 $0 $37,052,000 $38,650,000 $52,000,000 $0 $127,702,000 ID FY21‐22  FY 22‐23 FY 23‐24 FY 24‐25 FY 25‐26 1 LRM Cap Budget 17,866,400$     18,763,050$     21,089,020$     21,808,620$     22,026,560$      2 Replenishment towards reserve 342,850$           138,450$           546,880$           43,180$              43,690$               3 Capital Reserve Carryover Balance 3,299,000$        3,641,850$        3,780,300$        4,327,180$        4,370,360$         4 Total Capital Reserve (20%)3,641,850$        3,780,300$        4,327,180$        4,370,360$        4,414,050$         5 LRM Revenue 18,209,250$     18,901,500$     21,635,900$     21,851,800$     22,070,250$      6 LRM Capital Total 21,508,250$     22,543,350$     25,416,200$     26,178,980$     26,440,610$      7 8 LRM 17,866,400$      18,763,050$      21,089,020$      21,808,620$      22,026,560$       9 GF Contribution 7,362,916$        7,949,558$        3,237,912$        3,201,001$        3,145,779$         10 GF + LRM Subtotal 25,229,316$      26,712,608$      24,326,932$      25,009,621$      25,172,339$       11 SB1 918,500$            964,425$            983,714$            1,003,388$        1,023,456$         12 TOTAL 26,147,816$      27,677,033$      25,310,646$      26,013,009$      26,195,795$       Long Term Forecast ‐ Capital  88 Section F : Capital Improvement Plan    45% 33% 21% 1% FY 21/22 CIP by Project Type Asset Replacement Annual Asset Maintenance New Asset CIP Project Delivery Augmentation 34% 34% 30% 2% FY 22/23 CIP by Project Type Asset Replacement Annual Asset Maintenance New Asset CIP Project Delivery Augmentation 89 Section F : Capital Improvement Plan    F‐9: CIP Expenditures by Category  CIP Categories FY 21‐22 FY 22‐23  Multimodal Transportation 29% 53%  Environmental Protection 26% 1%  Utility Services 14% 19%  Neighborhood Wellness 9% 3%  Roadway Infrastructure 8% 9%  Recreational Services 3% 7%  Stormwater 2% 2%  Information Technology 2% 1%  Open Space 2% 0%  Facilities 2% 2%  Cultural Services 1% 1%  Staffing 1% 1%  Governance 1% 0%  Fire Safety  0% 1%  Police Protection 0% 0%  ID Project Category FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 Sum of 2  Year Total Sum of 5  Year Total 1 Multimodal Transportation $17,729,100 $35,281,791 $45,179,000 $70,821,000 $8,027,000 $53,010,891 $177,037,891 2 Environmental Protection $16,020,563 $531,625 $80,000 $80,000 $80,000 $16,552,188 $16,792,188 3 Utility Services $8,374,500 $12,854,000 $11,354,000 $7,238,000 $7,075,000 $21,228,500 $46,895,500 4 Neighborhood Wellness $5,640,000 $1,700,000 $3,934,693 $1,890,000 $8,435,000 $7,340,000 $21,599,693 5 Roadway Infrastructure $4,648,660 $6,064,731 $4,841,258 $3,820,829 $3,817,501 $10,763,391 $23,192,979 6 Recreational Services $1,915,000 $4,430,026 $5,270,000 $20,000 $35,000 $6,345,026 $11,670,026 7 Stormwater $1,312,272 $1,325,000 $1,100,000 $950,000 $1,050,000 $2,637,272 $5,737,272 8 Information Technology $1,112,558 $606,445 $559,864 $2,472,501 $1,582,500 $1,719,003 $6,333,868 9 OpenSpace $1,090,000 $250,000 $925,000 $250,000 $925,000 $1,340,000 $3,440,000 10 Facilities $1,072,501 $1,473,201 $2,705,501 $651,501 $55,537,501 $2,545,702 $61,440,205 11 Cultural Services $642,500 $442,500 $240,000 $240,000 $240,000 $1,085,000 $1,805,000 12 Staffing $500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,500,000 $4,500,000 13 Governance $315,000 $230,000 $100,000 $100,000 $100,000 $545,000 $845,000 14 Fire Safety $300,000 $540,000 $315,000 $780,000 $0 $840,000 $1,935,000 15 Police Protection $220,000 $235,000 $245,000 $265,000 $350,000 $455,000 $1,315,000 16 Grand Total $60,892,654 $66,964,319 $77,849,316 $90,578,831 $88,254,502 $127,906,973 $384,539,622 90 Section F : Capital Improvement Plan    F‐10: CIP Expenditures by Fund – All Funds  ID Fund with Contributing Funding  Sources FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 Sum of 2  Year Total Sum of 5  Year Total 1 Sewer Fund $21,013,401 $8,188,483 $9,602,482 $2,858,015 $2,070,745 $29,201,884 $43,733,126 2 Local Revenue Measure $17,353,900 $18,370,550 $21,353,060 $18,868,620 $21,786,560 $35,774,450 $97,732,690 3 Local Revenue Measure $17,353,900 $18,370,550 $21,353,060 $18,868,620 $21,786,560 $35,774,450 $97,732,690 4 Infrastructure Investment Fund $5,662,320 $7,099,911 $0 $3,200,000 $0 $12,762,231 $15,962,231 5 Unsecured State or Federal Grant $5,542,320 $6,384,911 $0 $3,200,000 $0 $11,927,231 $15,127,231 6 Local Revenue Measure $120,000 $0 $0 $0 $0 $120,000 $120,000 7 General Capital Outlay $0 $715,000 $0 $0 $0 $715,000 $715,000 8 Capital Outlay Fund $5,195,596 $8,005,907 $3,155,912 $46,101,829 $54,830,279 $13,201,503 $117,289,523 9 State or Federal Grant $2,810,000 $0 $0 $0 $0 $2,810,000 $2,810,000 10 General Capital Outlay $1,670,596 $425,647 $3,010,912 $1,306,829 $2,685,279 $2,096,243 $9,099,263 11 USHA Grant $360,000 $360,000 $360,000 12 Zone 9 $310,000 $100,000 $100,000 $100,000 $100,000 $410,000 $710,000 13 Transportation Development Act TD $45,000 $45,000 $45,000 $45,000 $45,000 $90,000 $225,000 14 Bonds, Infrastructure Loan (Debt) $0 $0 $0 $38,650,000 $52,000,000 $0 $90,650,000 15 SLOCOG Grant $0 $0 $0 $6,000,000 $0 $0 $6,000,000 16 San Luis Obispo County $0 $1,435,260 $0 $0 $0 $1,435,260 $1,435,260 17 Federal HBP Grant $0 $6,000,000 $0 $0 $0 $6,000,000 $6,000,000 18 Water Fund $2,863,998 $5,215,253 $1,881,000 $3,212,917 $5,160,322 $8,079,251 $18,333,490 19 Transit Fund $2,825,201 $2,878,157 $2,059,910 $2,045,704 $2,185,415 $5,703,358 $11,994,387 20 State or Federal Grant $2,824,000 $2,875,000 $2,055,000 $2,025,000 $2,175,000 $5,699,000 $11,954,000 21 Transit Fund $1,201 $3,157 $4,910 $20,704 $10,415 $4,358 $40,387 22 Parking Fund $1,799,161 $6,731,280 $38,003,694 $376,092 $318,228 $8,530,441 $47,228,455 23 Parking Fund $1,799,161 $6,731,280 $951,694 $376,092 $318,228 $8,530,441 $10,176,455 24 Bonds, Infrastructure Loan (Debt)$0 $0 $37,052,000 $0 $0 $0 $37,052,000 25 OASP Park Fund $1,520,000 $220,000 $250,000 $0 $0 $1,740,000 $1,990,000 26 Parkland Development Impact Fees $1,520,000 $220,000 $250,000 $0 $0 $1,740,000 $1,990,000 27 Whale Rock Fund $885,888 $671,121 $75,000 $1,943,515 $128,301 $1,557,009 $3,703,825 28 SB1 $835,228 $914,731 $941,258 $977,967 $1,014,152 $1,749,959 $4,683,336 29 Public Art Fund $442,500 $442,500 $240,000 $240,000 $240,000 $885,000 $1,605,000 30 Local Revenue Measure $392,500 $392,500 $240,000 $240,000 $240,000 $785,000 $1,505,000 31 General Capital Outlay $50,000 $50,000 $0 $0 $0 $100,000 $100,000 32 Citywide Transportation Impact Fee $310,000 $3,940,000 $60,000 $2,060,000 $60,000 $4,250,000 $6,430,000 33 Transportation Development Impac $310,000 $3,940,000 $60,000 $2,060,000 $60,000 $4,250,000 $6,430,000 34 Major Facility Replacement $100,000 $300,000 $10,000 $146,000 $190,000 $400,000 $746,000 35 General Capital Outlay $100,000 $300,000 $10,000 $146,000 $190,000 $400,000 $746,000 36 SB1186 CASP Certify Fund $85,461 $85,461 $85,461 37 Fleet Replacement Fund $0 $74,000 $155,000 $125,000 $125,000 $74,000 $479,000 38 General Capital Outlay $0 $74,000 $155,000 $125,000 $125,000 $74,000 $479,000 39 Info Tech Replacement $0 $0 $62,000 $1,123,172 $145,500 $0 $1,330,672 40 General Capital Outlay $0 $0 $62,000 $1,123,172 $145,500 $0 $1,330,672 41 Development Fee Fund $0 $78,000 $0 $7,300,000 $0 $78,000 $7,378,000 42 Developer Contribution $0 $78,000 $0 $7,300,000 $0 $78,000 $7,378,000 43 MASP Transportation Impact Fee Fun $0 $529,400 $0 $0 $0 $529,400 $529,400 44 Park Improvement Impact Fee Fund $0 $300,000 $0 $0 $0 $300,000 $300,000 45 Parkland Development Impact Fees $0 $300,000 $0 $0 $0 $300,000 $300,000 46 AASP Impact Fee Fund $0 $130,000 $0 $0 $0 $130,000 $130,000 47 AASP Impact Fee Fund $0 $130,000 $0 $0 $0 $130,000 $130,000 48 Quimby/Parkland‐in‐Lieu Fund $0 $2,875,026 $0 $0 $0 $2,875,026 $2,875,026 49 Parkland Development Impact Fees $0 $2,875,026 $0 $0 $0 $2,875,026 $2,875,026 50 Grand Total $60,892,654 $66,964,319 $77,849,316 $90,578,831 $88,254,502 $127,906,973 $384,539,622 91 Section F : Capital Improvement Plan    F‐11: CIP Expenditures by Major City Goal  Staff over the next two years will be learning more about what capital projects are responsive  to the MCG to advance Diversity, Equity, Inclusion (DEI).  CIP Exp - All Funds 58% 21% 15% 6% 0% FY 21/22 CIP Major City Goals Other Climate Action, Open Space and Sustainable TransportationHousing and Homelessness Economic Recovery, Resiliency and Fiscal Sustainability 92 Section F : Capital Improvement Plan    30% 20% 38% 12% 0% FY 22/23 CIP Major City Goals Other Climate Action, Open Space and Sustainable TransportationHousing and Homelessness Economic Recovery, Resiliency and Fiscal Sustainability 93 Section F : Capital Improvement Plan    F‐12: CIP Expenditure by Project Type    ID Row Labels Sum of  2021‐22 Sum of  2022‐23 Sum of  2023‐24 Sum of  2024‐25 Sum of  2025‐26 1 Annual Asset Maintenance $19,738,490 $23,033,876 $18,692,315 $19,103,830 $17,807,501 2 Street Reconstruction & Resurfacing  $3,513,199 $4,239,731 $3,266,258 $3,345,829 $3,292,501 3 Wastewater Lift Station Rehabilitation $2,020,000 $70,000 $100,000$0 $0 4 Park Major Maintenance & Repairs  $1,835,000 $160,000 $1,000,000 $690,000 $840,000 5 Wastewater Collections System  Improvements $1,571,000 $5,345,000 $2,475,000 $1,410,000 $1,685,000 6 IT Replacement  $1,112,558 $606,445 $559,864 $2,472,501 $1,582,500 7 Storm Drain System Replacement $910,000 $725,000 $550,000 $550,000 $550,000 8 Whale Rock Reservoir ‐ Major Facility  Maintenance $815,000 $110,000 $20,000 $120,000 $45,000 9 Major Facility Maintenance  $772,500 $633,200 $710,500 $226,500 $505,500 10 Waterline Replacements $730,000 $1,650,000 $100,000 $1,230,000 $3,240,000 11 Fleet Replacement: Public Works $565,000 $298,000 $1,152,000 $1,286,000 $377,000 12 871 Marsh Street Structure Maintenance $400,000 $400,000 $400,000 $125,000 $125,000 13 842 Palm Parking Structure Maintenance $400,000 $400,000 $400,000 $125,000 $125,000 14 Pedestrian and Bicycle Pathway  Maintenance $370,000 $200,000 $150,000 $150,000 $150,000 15 Fleet Replacement: Utilities $315,000 $535,000 $115,000 $310,000 $250,000 16 Urban Forest Maintenance $315,000 $175,000 $175,000 $175,000 $175,000 17 Roundabout Public Art Installations $300,000 $300,000 $200,000 $200,000 $200,000 18 Water Meters and Boxes $286,000 $330,000 $335,000 $343,000 $350,000 19 Treatment Major Facilities Maintenance $274,000 $109,000 $109,000 $180,000 $150,000 20 Sidewalk Replacement and Installation $235,461 $250,000 $250,000 $250,000 $250,000 21 Fleet Replacement: Police $220,000 $170,000 $245,000 $265,000 $350,000 22 Silt Removal $210,000 $100,000 $100,000 $100,000 $100,000 23 Inflow/Infiltration Reduction $200,000 $250,000 $250,000 $250,000 $0 24 Downtown Public Art Installations $200,000 $0 $0 $0 $0 25 Fleet Replacement: Fire $200,000 $465,000 $200,000 $0 $0 26 Trench Repairs‐ Water $200,000 $200,000 $200,000 $200,000 $200,000 27 Parking Lot Maintenance $175,000 $255,000 $1,484,693 $250,000 $270,000 28 SGMA GSP $150,000 $150,000 $150,000 $150,000 $150,000 29 Annual Public Art Maintenance and  Projects $142,500 $142,500 $40,000 $40,000 $40,000 30 Fleet Replacement: Parks and Recreation $139,000 $103,000 $0 $0 $125,000 31 Playground Equipment Replacement $110,000 $100,000 $700,000 $800,000 $1,175,000 32 919 Palm Street Structure Maintenance $100,000 $100,000 $100,000 $50,000 $50,000 33 Pismo/Johnson/SL Creek Bank Stabilization $92,272 $0 $300,000 $0 $0 34 Sewer Maintenance Hole Cover  Adjustments $85,000 $25,000 $25,000 $25,000 $25,000 35 Open Space Maintenance $85,000 $105,000 $80,000 $80,000 $80,000 36 Street Lights ‐ Annual Asset Maintenance $75,000 $75,000 $75,000 $75,000 $75,000 94 Section F : Capital Improvement Plan          ID Row Labels Sum of  2021‐22 Sum of  2022‐23 Sum of  2023‐24 Sum of  2024‐25 Sum of  2025‐26 37 Neighborhood Traffic Improvements $75,000 $75,000 $75,000 $75,000 $75,000 38 WRRF Major Maintenance $65,000 $520,000 $400,000 $125,000 $125,000 39 Whale Rock Pipeline Reliability  Assessment $60,000 $510,000 $0 $0 $0 40 Water System Hydraulic Model Update $50,000 $0 $0 $0 $0 41 Reservoir Maintenance $50,000 $1,355,000 $1,000,000 $0 $0 42 Transportation Safety & Operations  $50,000 $50,000 $50,000 $50,000 $50,000 43 Water Treatment Plant Major Facility  Maintenance $50,000 $155,000 $0 $0 $25,000 44 Water Valve Cover Adjustments $50,000 $30,000 $30,000 $30,000 $30,000 45 Point Repairs ‐ Wastewater Collections  System $50,000 $50,000 $0 $0 $0 46 Fire Hydrants $40,000 $40,000 $40,000 $40,000 $40,000 47 Trench Repairs‐ Sewer $25,000 $25,000 $25,000 $25,000 $25,000 48 Traffic Signs & Striping Maintenance $25,000 $25,000 $25,000 $25,000 $25,000 49 Laguna Lake Golf Course Maintenance $20,000 $20,000 $20,000 $20,000 $20,000 50 Parking Lot Maintenance ‐ Bus Yard  $5,000 $500,000 $0 $0 $0 51 Corporation Yard Perimeter Fence  Replacement $0 $0 $450,000 $0 $0 52 Buchon‐Santa Rosa Intersection  Improvements $0 $400,000 $0 $0 $0 53 Bridge Maintenance  $0 $100,000 $100,000 $100,000 $150,000 54 Reservoir 2 Replacement $0 $0 $0 $780,000 $0 55 Fredericks Paving $0 $0 $0 $0 $300,000 56 Whale Rock Pump Station Rehab (A and B)$0 $0 $0 $1,800,000 $0 57 Recycled Water Annual UV Bulb  Replacement $0 $0 $10,000 $10,000 $10,000 58 Fleet Replacement: Admin $0 $0 $0 $250,000 $0 59 Fleet Replacement: CDD $0 $37,000 $0 $0 $0 60 SLO Creek Improvements Behind Cheng  Park $0 $0 $100,000 $0 $400,000 61 Infrastructure Renewal Strategy Report  Update $0 $330,000 $100,000 $0 $0 62 Whale Rock Reroof of Shop and Residence $0 $35,000 $0 $0 $0 63 SLO Creek Walk Maintenance ‐ Lighting,  Signage, Irrigation, Plants $0 $0 $200,000 $0 $0 64 Old Garden Creek Retaining Wall $50,000 $300,000 $0 65 Asset Replacement $27,634,664 $22,686,846 $11,255,001 $2,920,001 $63,182,001 66 WRRF Upgrade $15,920,563 $426,625 $0 $0 $0 67 Prado Road Bridge & Road Widening  $7,070,100 $14,972,220 $0 $0 $0 68 Bus Replacements with EV $1,854,000 $1,910,000 $1,965,000 $2,025,000 $2,085,000 69 Transit Facility EV Charging Infrastructure $615,000 $0 $0 $0 $0 95 Section F : Capital Improvement Plan    F‐12: CIP Expenditure by Project Type  ID Row Labels Sum of  2021‐22 Sum of  2022‐23 Sum of  2023‐24 Sum of  2024‐25 Sum of  2025‐26 70 Higuera St. Widening ‐ Bridge to Elks &  Fontana to Chumash  $510,000 $0 $0 $0 $0 71 Downtown Safety Enhancements $400,000 $0 $0 $0 $0 72 California & Taft Roundabout  $300,000 $2,798,000 $0 $0 $0 73 Water Treatment Plant Major Facility  Maintenance $225,000 $25,000 $50,000 $0 $0 74 Major Facility Replacements $200,000 $300,000 $1,400,000 $400,000 $55,007,000 75 WRRF And Wastewater Collection Shop $150,000 $350,000 $5,500,000 $0 $0 76 Bus Shelter Replacements $105,000 $0 $90,000 $0 $90,000 77 Mid‐Higuera Bypass $100,000 $100,000 $0 $0 $0 78 Bus Wash Replacement $75,000 $450,000 $0 $0 $0 79 Transit Supervisor ADA EV Van $70,000 $0 $0 $0 $0 80 Fire Station 3&4 Remodel Space Study and  Design $25,000 $75,000 $0 $0 $0 81 Lighting Energy Efficiency Retrofits $15,001 $1 $1 $1 $1 82 Fire Station 4 Metal Building Gym Space $0 $0 $90,000 $0 $0 83 Vault Room Addition Design Study $0 $15,000 $0 $0 $0 84 Council Hearing Room TI $0 $130,000 $0 $0 $0 85 Fire Station 1 Gym Space Covering $0 $0 $25,000 $0 $0 86 Downtown Renewal $0 $0 $1,100,000 $0 $0 87 WRRF ‐ Digester Flare Upgrade $0 $100,000 $385,000 $0 $0 88 Mission Plaza Concept Plan  Implementation $0 $1,035,000 $600,000 $0 $6,000,000 89 WRRF ‐ Demolish Old Effluent Structure $0 $0 $50,000 $495,000 $0 90 New Asset $13,019,500 $20,243,597 $46,902,000 $67,555,000 $6,265,000 91 Emerson Park Amenity Upgrades and  Beautification $2,810,000 $0 $0 $0 $0 92 Anholm Neighborhood Greenway Plan  Implementation $2,450,000 $0 $0 $0 $0 93 Development Related Park Improvements $1,520,000 $4,210,026 $5,050,000 $0 $0 94 Palm ‐ Nipomo Parking Structure $850,000 $5,582,000 $39,042,000 $0$0 95 Laguna Lake Dredging and Sediment  Management Project Implementation $840,000 $0 $675,000 $0 $675,000 96 Active Transportation Plan Implementation $550,000 $550,000 $1,600,000 $2,600,000 $2,250,000 97 Prado Road Interchange  $500,000 $5,849,571 $0 $63,735,000 $2,235,000 98 PSPS Emergency Power $465,000 $0 $0 $0 $0 99 Wastewater Lift Station Rehabilitation $396,000 $0 $0 $0 $0 100 Open Space Acquisition $250,000 $250,000 $250,000 $250,000 $250,000 101 Downtown Zig‐Zag Lighting $250,000 $0 $0 $0 $0 96 Section F : Capital Improvement Plan    ID Row Labels Sum of  2021‐22 Sum of  2022‐23 Sum of  2023‐24 Sum of  2024‐25 Sum of  2025‐26 102 South Street Median Landscaping $240,000 $0 $0 $0 $0 103 Open SLO $200,000 $0 $0 $0 $0 104 Parks and Rec General Plan  Implementation $200,000 $200,000 $0 $0 $0 105 Electric Vehicle Charging Station at Various  Facilities $175,000 $100,000 $100,000 $100,000 $100,000 106 North Broad Street Neighborhood Park $175,000 $0 $0 $0 $0 107 Recycled Water Tank ‐ SH Line and Pump &  Bioassay Test $150,000 $50,000 $0 $0 $0 108 WRRF Major Maintenance $142,500 $0 $0 $0 $0 109 Development Agreement ‐ City Share ‐  $120,000 $0 $0 $0 $0 110 Transit Facility EV Charging Infrastructure $100,000 $0 $0 $0 $0 111 Banner Arms, Bench Arm Rests, Signs $100,000 $25,000 $25,000 $25,000 $25,000 112 Bob Jones Trail and RRST Solar Lighting $100,000 $1,350,000 $0 $0$0 113 City Facility Energy Infrastructure Plan $100,000 $0 $0 $0 $0 114 Fleet Replacement: Fire $75,000 $0 $0 $780,000 $0 115 Fleet Replacement: Public Works $66,000 $0 $0 $0 $0 116 Recycled Water Broad Street ‐ Tank Farm to  Aerovista $45,000 $1,040,000 $0 $0 $0 117 Parking Enforcement Equipment at Gate  Entry $40,000 $90,000 $0 $0 $0 118 Transportation Monitoring & Modeling  Update $40,000 $115,000 $40,000 $40,000 $40,000 119 Microgrid Pilot $40,000 $0 $0 $0 $0 120 Water Treatment Plant ‐ Tesla Battery Grant $30,000 $0 $0 $0 $0 121 City Hall Lighting $0 $15,000 $120,000 $0 $0 122 Fleet Replacement: CDD $0 $37,000 $0 $0 $0 123 Recycled Water Orcutt Street ‐ Fernwood to  Laurel $0 $0 $0 $25,000 $675,000 124 Development Reimbursement ‐ City Share ‐ $0 $715,000 $0 $0 $0 125 Aquatics New Exercise Equipment $0 $0 $0 $0 $15,000 126 Fleet Replacement: Police $0 $65,000 $0 $0 $0 127 CIP Project Delivery Augmentation $500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 128 CIP Project Delivery Augmentation $500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 129 Grand Total $60,892,654 $66,964,319 $77,849,316 $90,578,831 $88,254,502 97 Section F : Capital Improvement Plan    F‐13: Calendar Year 2021 Anticipated Projects to Start Construction  ID Calendar Year 2021 CIPs Approximate  Total Budget  1 Sinsheimer Hardscape Replacement $135,000 2 Mission Plaza Railing Replacement $80,000 3 Meadow Park Pathway Maintenance $250,000 4 Sinsheimer Irrigation and Drainage $650,000 5 Broad & Leff Culvert Repair $500,000 6 Downtown Paving Repairs 2021 $3,434,000 7 Laguna Lake Dredging 2021 $840,000 8 Parks and Recreation Interior Office Rehabilit $500,000 9 North Broad Street Neighborhood Park $845,000 10 Swim Center Boiler Replacement $85,000 11 City Hall Landing Repair $60,000 12 French Park Parking Lot Maintenance $110,000 13 Curb Ramps at Galleon and Newport $40,000 14 Tank Farm / Orcutt Roundabout Construction $3,600,000 15 Total $11,129,000 98 Section G‐1: Water Fund  Section G:   Enterprise Funds  99 Section G‐1: Water Fund  Water Fund Long‐term Forecast  100 Section G‐1: Water Fund    Section G‐1: Water Fund    The City’s water operations rely on service rate revenue to cover almost all costs for operations and  maintenance, infrastructure replacement, debt service, and payment for general City services provided to  the fund (cost allocation). Taxes, including the Utility User Tax, do not support these services.    Despite the uncertainty created by the Covid‐19 pandemic, the Water Fund’s financial position is currently  stable. At the onset of the Covid‐19 pandemic, and associated stay‐at‐home order and business closures,  the potential impact to the Water Fund was uncertain. The Utilities Department has closely monitored  revenue since March 2020 and, while there has been some shift in usage patterns in residential and  commercial sectors, overall, there has been no significant net impact to Water Fund revenue. 2019‐20  water sales revenue ended the year very near to the original 2019‐20 budget and 2020‐21 is on track to  exceed the original budget, attributed to a slight increase in residential use.     Although the region has experienced  lower than average amounts of rainfall this year, the City’s reservoirs  currently store enough water to provide the City with water for over ten years. These secure water  supplies ensure that short‐term droughts do not adversely impact the Water Fund. The health of the  Water Fund will also benefit from improved impact fee and investment revenue budget  projection  methodologies, and a new revenue source from Cal Poly.     Revenue    Water Rate Increase  The Water Fund will be requesting a rate increase of 3.5% effective July 1, 2021 and 3.5% effective July 1,  2022. The most recent rate study, conducted in 2018, projected the water rate increase would be 5.5% in  2021 and 5.5% in 2022. The City’s rate consultant recently completed a rate confirmation study to confirm  or modify these rate increase estimates. As a result of additional revenue expected from Cal Poly and  refined investment and impact fee revenue projections, the rate consultant has recommended lower than  previously recommended rate increases.    The recommended rate increases will be subject to a public notification and protest process; and public  hearing scheduled for June 15, 2021. The proposed rates, if adopted, will add increased long‐range  stability and predictability to revenues and rates and are necessary to meet future infrastructure funding  needs.     Water Rate Increases  2021‐22 Proposed 2022‐23 Proposed 2023‐24 Projected  3.5% 3.5% 3.5%    Rate Assistance Program  The Water Fund will be returning to the City Council in June with a more robust rate assistance program.  Proposition 218 does not allow for any water rate charges billed to a customer to be used for anything  but the cost to deliver these services.  For this reason, the current rate assistance program, is subsidized  by the City’s General Fund and is very restrictive, allowing very few customers to qualify for the discount.   The new program will be compliant with Proposition 218 because it will be funded by late charges paid by  utilities customers who do not make their payments on time. Late charges are not rates for service so they  101 Section G‐1: Water Fund    are not restricted by Proposition 218. Late charges available to subsidize the rate assistance program  exceed the general fund subsidy so the rate assistance program will be revised to include a larger range  of community members.    Development Impact Fees – Improved Budget Projections  The  collection  of  impact  fees  is  fully  dependent  on  development  activity  and  therefore  can  vary  significantly from year‐to‐year.  Historically, impact fees were budgeted based on the historic lowest  amount collected and adjusted at mid‐year if fee revenues were higher than anticipated. With the  implementation of the Infrastructure Analyst position in the Finance Department, the City has been able  to better project actual impact fee collection based upon upcoming development activity. With this  improved information, the Water Fund has changed its impact fee budgeting methodology to 75% of the  average of the next three years of impact fee projections. This equals an additional $748,200 in budgeted  impact  fee  revenue  in  2020‐21  and  an  additional  $570,400  in  2021‐22.  This  improved  budgeting  methodology for estimating impact fee revenue in advance of collection could serve to mitigate future  rate increases.      Development Impact Fee Methodology   2021‐22 Budget  2022‐23 Budget  Historical Methodology $800,000  $800,000  New Methodology $1,548,200  $1,370,400  Difference $748,200  $570,400    Investment Revenue – Improved Budget Projections  Like impact fees, investment revenue has historically been budgeted very conservatively at $50,000 per  year. Beginning in 2021‐22, the City is revising these projections to align with historical investment  earnings of 2% per year. Using this assumption, the Water Fund is budgeting investment revenue at 2%  of its previous year ending working capital balance. This equals a $354,300 investment revenue budget  increase in 2021‐22 and an increase of $322,300 in 2022‐23. This improved budgeting methodology for  estimating investment revenue in advance of collection could serve to mitigate future rate increases.    Investment Revenue Fee Methodology   2021‐22 Budget  2022‐23 Budget  Historical Methodology $50,000  $50,000  New Methodology $404,300  $372,300  Difference $354,300  $322,300      Cal Poly Resilience & Capacity Payment  The Utilities Department has been working with Cal Poly for nearly two years to renegotiate rate and  capacity agreements with the City. Part of this effort included Operational Resiliency, which compensates  the City for providing the University with source water from a City water supply source for short periods  if the University’s Whale Rock water supply is unavailable. Also part of the rate agreement update, the  Treatment Capacity payment is Cal Poly’s contribution to the Water Treatment Plant upgrade to maintain  the University’s capacity interest in the plant. These agreements are currently being finalized and are  102 Section G‐1: Water Fund    expected to generate an additional $484,4471 of Water Fund revenue in 2021‐22 and an additional  $223,267 each year for the term of the loan.     All Water Fund Revenue    Revenue Category 2021‐22 Budget 2022‐23 Budget  Water Sales $21,399,7812  $22,576,769  Cal Poly – Resilience & Capacity  $484,447  $223,267 3  Recycled Water $980,403  $1,034,325  Development Impact Fees $1,548,204  $1,370,485  Other Revenue $301,530  $302,061  Investments $404,300  $372,300  Grants $256,395    Total $25,475,060  $25,979,207    Operating Expenditures  Water Fund operating expenditure budgets are comprised of salaries, employee benefits, and other  operating expenditures such as contract services, chemicals, and electricity. The Water Fund operating  program budgets are summarized below. The summary reflects the operating program base budget  amounts for fiscal years 2021‐22 and 2022‐23.        Significant Operating Budget Changes (SOBCs)  Overall, operating expenditure budgets are changing very little in 2021‐22 and 2022‐23. The Water Fund  is requesting the following budget changes. Detailed SOBC information can be found on the next page.           1 $137,000 annual Operational Resilience payment, $261,180 one-time WTP upgrade design, and $86,267 annual contribution to WTP upgrade construction debt. 2 Includes base fees, volumetric fees, and Cal Poly sales. 3 $137,000 annual Operational Resilience payment, and $86,267 annual contribution to WTP upgrade construction debt. Cost Center/ Program*FY 21‐22 Budget FY 22‐23 Budget 6001 ‐ Water Admin and Eng 1,044,662$                   1,073,767$                    6002 ‐ Water Source of Supply 10,390,600$                 10,233,233$                  6003 ‐ Water Treatment 3,112,353$                   3,175,196$                    6004 ‐ Water Distribution 1,857,650$                   1,910,717$                    6005 ‐ Water Resources 448,434$                      465,257$                       Total 16,853,699$                16,858,170$                 * Does not include transfers, capital, or debt SOBC Type 21‐22 22‐23 Total  One‐time 80,000$            80,000$         Ongoing 147,321$         135,232$         282,553$       Total 227,321$         135,232$         362,553$       103 Section G‐1: Water Fund    SOBC Description One‐time/  Ongoing MCG or Core  Services  FY 21‐22   FY 22‐23  Utilities ‐ Water 1 Deputy Director ‐ Planning &  Engineering This position will support the specialized long term needs of the Utilities  department and water and wastewater infrastructure. The work is not new  but the Utilities department sees an increasing need for continual  infrastructure maintenance and replacement, implementation of emerging  technology, and adherence to new and more stringent State and Federal   regulations into the foreseeable future. There has also been an increased  role coordinating with Public Works and Community Development work  efforts, which could include such things as policy, workflow, and practices.   Ongoing Core Services 60,292$         62,583$         2 Expanded Recruitment Services  Expenses to Augment HR Expand recruitement beyond Utilities professional agencies including direct  recruitment to persons with applicable certifications. Utilities will also like  to diversify recruitment activities to further Diversity,k Equity, and Inclusion  efforts. Ongoing DEI 10,000$         10,000$         3 Utility Billing ‐ Split Cost Center Administrative change to split the Utility Billing program between the water  and sewer funds to better reflect the programs benefit to both funds.Ongoing Core Services ‐$              ‐$              4 Moving Various Budget Items  from the Water Resources to the  Water Administration Cost  Center Moving public outreach responsibility and budget from Water Resources to  Water Administration.Ongoing Core Services 44,000$         44,500$         5 Qualtrax Quality Management  System ‐ Implementation and  ongoing  The Water Quality Lab is required by State mandate to comply with new  The Nelac Institute (TNI) regulations by January 2023. Qualtrax software will  meet TNI policy, operating procedure, audit, document control, corrective  actions, Quaility Assurance/Quality Control, and staff demontration of  competency requirements. Ongoing Core Services 4,250$           2,250$           6 Velosimo ‐ Springbrook/Cityworks  Integration Replace the software integration between Springbrook (water and sewer  billing software) and Cityworks (Utilities asset management software).Ongoing Core Services 8,000$           5,000$           7 Utilities Locator Position Salary‐ Split Cost Centers Administrative change to change the funding for the Utilities Locator from  the Water Fund to the Water, Sewer, and General Funds to better reflect  the position's benefit to each of the funds. The Utilities Locator is an  existing position responsible for all physical mark‐outs of underground City  utilities: water, sewer, storm sdrains, street light conduits, and fiber optic  conduits.  Ongoing Core Services (43,101)$      (43,101)$       8 Cost of Liquid Oxygen The most recent bid for liquid oxygen was much higher than in the past  partially due to an oxygen shortage as a result of the Covid‐19 pandemic. Ongoing Core Services 54,000$         54,000$         9 Recycled Water Chemicals Additional funding for chemicals required for the production of recycled  water are based off of increased chemical costs and use of the material.  These chemicals will likely be significantly reduced or eliminated after the  new facility comes on line and the City receives State approval of the new  Ultraviolet (UV) disinfection process.    Ongoing Core Services 9,880$           ‐$              10 Maximization of Recycled Water  Resources Fund work related to determining the feasibility and costs of delivering  recycled water to new customers with the intent of maximizing use of this  resource for the beneift of the community. With the WRRF upgrades and  the expansion of the recycled water infrastructure within the City’s Water  Reuse Master Plan Area, the City has an opportunity to deliver surplus  recycled water to additional customers.  Ultimately, this work will refine  and document the Utilities Department’s policies on delivery of recycled  water, so that future project plans can be developed with the best  available data. One‐time Core Services 50,000$         ‐$              11 Filter Media Assessment The WTP uses anthracite, sand, gravel media to filter water suitable for  drinking. This is a one‐time purchase to have the Water Treatment Plant’s  (WTP) filter media analyzed and the WTP’s current filter media monitoring  program evaluated in FY 21/22.   Filter media are porous materials used to  screen out larger particulates from  liquids.   One‐time Core Services 20,000$         ‐$              12 Replacement of Controllers on  Filter Effluent Turbidy Meters The Water Treatment Plant is required by regulatory agencies to have filter  effluent turbidity meters on each filter (4 total).  Turbidity is the cloudiness  or haziness of water caused by large numbers of individual particles that  are generally invisible to the naked eye.  The measurement of turbidity is a  key test of water quality and water treatment performance.  The current  controllers are outdated and no longer supported with parts and service by  the manufacturer.  T One‐time Core Services 10,000$        ‐$              TOTAL 227,321$      135,232$      KeyWater Fund SOBC Detail:         104 Section G‐1: Water Fund      Capital Projects  Infrastructure maintenance and replacement continues to be a top Water Fund priority. Both the City’s  source water and treated drinking water infrastructure are aging and need to be continually maintained.  The amount of work needed to ensure continued service is high with source water supplied to the City  from reservoirs as far as 50 miles away and over 190 miles of publicly owned drinking water pipelines  inside the community, the majority of which have not been replaced since their original construction. The  Water Fund’s capital improvement program funding requirement is $2,998 in 2021‐22 and $5,215,253 in  2022‐23, as presented in the 2021‐23 Financial Plan.      Continued on next page… KeyRow Labels Sum of 2021‐22 Sum of 2022‐23 Sum of 2023‐24 Sum of 2024‐25 Sum of 2025‐26 1 Water Fund $2,863,998 $5,215,253 $1,881,000 $3,212,917 $5,160,322 2 Waterline Replacements $730,000 $1,650,000 $100,000 $1,230,000 $3,240,000 3 Point Repair $590,000$0$0$0$0 4 Craig, Christina, Jaycee ‐ Phase 2 $0 $0 $0 $0 $880,000 5 Stenner Canyon Waterline Replacement $0 $0 $0 $0 $80,000 6 Highland ‐ Oakridge to Cuesta $0 $0 $0 $130,000 $1,430,000 7 California Ave ‐ Stafford to Mill $140,000 $1,650,000 $0 $0 $0 8 Highland at UPRR and Cal Poly $0 $0 $0 $0 $850,000 9 Chorro ‐ Highland to Meinecke $0 $0 $100,000 $1,100,000 $0 10 Recycled Water Orcutt Street ‐ Fernwood to Laurel $0 $0 $0 $25,000 $675,000 11 (blank)$0 $0 $0 $25,000 $675,000 12 Fredericks Paving $0 $0 $0 $0 $300,000 13 (blank)$0$0$0$0$300,000 14 Trench Repairs‐ Water $200,000 $200,000 $200,000 $200,000 $200,000 15 (blank) $200,000 $200,000 $200,000 $200,000 $200,000 16 Water Meters and Boxes $143,000 $165,000 $167,500 $171,500 $175,000 17 (blank) $143,000 $165,000 $167,500 $171,500 $175,000 18 Fleet Replacement: Utilities $195,000 $15,000 $0 $207,500 $175,000 19 Waste Water Collections Dump Truck (0840)$0 $0 $0 $57,500 20 Water Distribution F550 Truck‐Utility Bed / Crane (08 $180,000$0$0$0$0 21 Water Distribution Signboard (0613)$15,000 $0 $0 $0 $0 22 Water Distribution Compact Pickups (1011,1012 Dako $0 $0 $0 $0 $100,000 23 Water Distribution Valve turning trailer (1005)$0 $0 $0 $150,000 $0 24 WTP 1/2 ton Crew Cab 4X4 Pickup (1004‐F150)$0 $0 $0 $0 $75,000 25 Water Distribution Trailer (0235)$0 $15,000 $0 $0 $0 26 SGMA GSP $150,000 $150,000 $150,000 $150,000 $150,000 27 (blank) $150,000 $150,000 $150,000 $150,000 $150,000 28 Treatment Major Facilities Maintenance $274,000 $109,000 $109,000 $180,000 $150,000 29 Air Compressor and Dryer Maintenance $36,000 $36,000 $36,000 $0 $0 30 Chemical System Maintenance $33,000 $33,000 $33,000 $0 $0 31 Ozone System Maintenance  $125,000 $40,000 $40,000 $0 $0 32 WTP Major Maintenance $0 $0 $0 $180,000 $150,000 33 WTP Roof Repair $80,000 $0 $0 $0 $0 34 IT Replacement $24,498 $13,753 $14,500 $228,917 $30,322 35 City SAN $0$8,146$0$0$0 36 Firewall Replacement $0 $0 $0 $12,713 $0 37 Network Security Upgrade $0 $0 $0 $8,953 $0 38 Network Switching Infrastructure Equipment $0 $0 $0 $29,977 $0 39 Uninterruptible Power Supplies (UPS’s Servers and St $2,503 $0 $0 $1,963 $0 40 Utility Billing System $0 $0 $0 $75,000 $0 41 Virtual Private Network Replace $0$0$0$2,341$0 42 VMware Infrastructure Upgrade $7,875 $0 $0 $0 $15,822 43 VoIP Telephone System $0 $0 $0 $16,510 $0 44 Wireless System Citywide $0 $5,607 $0 $0 $0 45 Motion ERP $0 $0 $14,500 $14,500 $14,500 46 Radios, Mobiles and stations not replaced ‐ EF & PW $0 $0 $0 $55,000 $0 47 Asset Management (Cityworks ‐ Utilities Integration) $14,120 $0 $0 $11,960 $0 48 Water Valve Cover Adjustments $50,000 $30,000 $30,000 $30,000 $30,000 105 Section G‐1: Water Fund         Below is a highlight of the 2021‐23 Water Fund capital projects:    1. Reservoir 2 Cover Replacement. This project will replace the floating cover on the City’s largest  treated water storage tank.  This cover has reached its expected useful life and is in need of  replacement. This project will cost $10,000 in 2021‐22 and $950,000 in 2022‐23.  2. California – Stafford to Mill Waterline Project. This project replaces segments of a 16” water  main that supplies water to roughly half of the City. This segment of pipeline runs through the  bridge deck over Highway 101 and has a high consequence of failure. This project will cost  $140,000 in 2021‐22 and $1,650,000 in 2022‐23.  3. Broad Street – Tank Farm to Aerovista Recycled Water Expansion Project. This project will  extend recycled water lines from the intersection of Tank Farm and Broad Streets to Aerovista  where this water can be utilized within the Airport area. This project will cost $45,000 in 2020‐ 21 and $1,040,000 in 2021‐11.  4. Water Treatment Plant Infrastructure Renewal Strategy. The renewal strategy will allow plant  staff to prioritize Water Treatment Plant related capital improvement projects for the next  decade. This project will cost $150,000 in 2020‐21.     KeyRow Labels Sum of 2021‐22 Sum of 2022‐23 Sum of 2023‐24 Sum of 2024‐25 Sum of 2025‐26 50 Water Treatment Plant Major Facility Maintenance $270,000 $180,000 $50,000 $0 $25,000 51 Package Thickener $0 $25,000 $50,000 $0 $0 52 Facility Master Plan $150,000 $0 $0 $0 $0 53 Aluminum Bulk Tank #1 Replacement $50,000 $0 $0 $0 $0 54 Lab TOC Analyzer Replacement $0 $30,000 $0 $0 $0 55 Actiflo Train #2 Mixer Bearing/Gear $0 $35,000 $0 $0 $0 56 Actiflo Poly Blend Units $0 $0 $0 $0 $25,000 57 Transfer Pump CLA‐VAL Re‐build $25,000 $0 $0 $0 $0 58 Cityworks Integration (water)$45,000 $90,000 $0 $0 $0 59 Reycled Water Annual UV Bulb Replacement $0 $0 $10,000 $10,000 $10,000 60 (blank)$0 $0 $10,000 $10,000 $10,000 61 Water Treatment Plant Emergency Power ‐ PSPS $465,000 $0 $0 $0 $0 62 (blank)$465,000 $0 $0 $0 $0 63 Electric Vehicle Charging Station at Various Facilities $37,500 $0 $0 $0 $0 64 Utilities ‐ 879 Morro $37,500 $0 $0 $0 $0 65 Water Treatment Plant ‐ Power Storage Units Tesla Batt $30,000 $0 $0 $0 $0 66 (blank)$30,000 $0 $0 $0 $0 67 Buchon‐Santa Rosa Intersection Improvements $0 $150,000 $0 $0 $0 68 (blank)$0 $150,000 $0 $0 $0 69 Mid‐Higuera Bypass $0 $100,000 $0 $0 $0 70 (blank)$0 $100,000 $0 $0 $0 71 Reservoir Maintenance $50,000 $1,355,000 $1,000,000 $0 $0 72 Wash water tank #1 $40,000 $325,000 $0 $0 $0 73 Edna Tank Recoating $0 $80,000 $1,000,000 $0 $0 74 Reservoir 2 Cover Replacement $10,000 $950,000 $0 $0 $0 75 Recycled Water Tank ‐ SH Line and Pump & Bioassay Te $150,000 $50,000 $0 $0 $0 76 (blank)$150,000 $50,000 $0 $0 $0 77 Water Distribution System Hydraulic Model Update $50,000 $0 $0 $0 $0 78 (blank)$50,000 $0 $0 $0 $0 79 Major Facility Maintenance $0 $7,500 $50,000 $0 $0 80 879 Morro ‐ Roof $0 $7,500 $50,000 $0 $0 81 Recycled Water Broad Street ‐ Tank Farm to Aerovista $45,000 $1,040,000 $0 $0 $0 82 (blank)$45,000 $1,040,000 $0 $0 $0 83 Reservoir 2 Replacement $0 $0 $0 $780,000 $0 84 (blank)$0$0$0$780,000$0 85 Grand Total $2,863,998 $5,215,253 $1,881,000 $3,212,917 $5,160,322 106 Section G‐2: Sewer Fund    Sewer Fund Long‐term Forecast   107 Section G‐2: Sewer Fund      Section G‐2: Sewer Fund    The City’s sewer operations rely on service rate revenue to cover almost all costs for operations and  maintenance, infrastructure replacement, debt service, and payment for general City services provided to  the fund (cost allocation). Taxes, including the Utility User Tax, do not support these services.    Despite the uncertainty created by the Covid‐19 pandemic, the Sewer Fund’s financial position is currently  stable. At the onset of the Covid‐19 pandemic, and associated stay‐at‐home order and business closures,  the potential impact to the Sewer Fund was uncertain. The Utilities department has closely monitored  revenue since March 2020 and, while there has been some shift in usage patterns in residential and  commercial sectors, overall, there has been no net impact to Sewer Fund revenue. The largest impact was  on the Cal Poly campus, where sewer flows were down up to 80% from previous years. 2019‐20 water  sales revenue ended the year very near to the original 2019‐20 budget and 2020‐21 is on track to exceed  the original budget.     The  Sewer  Fund  will  benefit  from  improved  impact  fee  and  investment  revenue  budget  projection  methodologies and a new revenue source from Cal Poly.     Revenue  Sewer Rates  The Sewer Fund will be requesting a rate increase of 3.5% effective July 1, 2021 and 3.5% effective July 1,  2022. The most recent rate study, conducted in 2018, projected the sewer rate increase would be 6.5% in  2021 and 6.5% in 2022. The City’s rate consultant recently completed a rate confirmation study to confirm  or modify these rate increase estimates. As a result of additional revenue expected from Cal Poly and  refined investment and impact fee revenue projections, the rate consultant has recommended lower than  previously recommended rate increases.    The recommended rate increases will be subject to a public notification and protest process; and public  hearing scheduled for June 15, 2021. The proposed rates, if adopted, will add increased long‐range  stability and predictability to revenues and rates and are necessary to meet future infrastructure funding  needs.     Sewer Rate Increases  2021‐22 Proposed 2022‐23 Proposed 2023‐24 Projected  3.5% 3.5% 3.5%  Rate Assistance Program  The Sewer Fund will be returning to the City Council in June with a more robust rate assistance program.  Proposition 218 does not allow for any water rate charges billed to a customer to be used for anything  but the cost to deliver these services.  For this reason, the current rate assistance program, is subsidized  by the City’s General Fund and is very restrictive, allowing very few customers to qualify for the discount.   The new program will be compliant with Proposition 218 because it will be funded by late charges paid by  utilities customers who do not make their payments on time. Late charges are not “rates” for service so  they are not restricted by Proposition 218. Late charges available to subsidize the rate assistance program  exceed the general fund subsidy so the rate assistance program will be revised to include a larger range  of community members and more details will be provided in June.  108 Section G‐2: Sewer Fund      Development Impact Fees – Improved Budget Projections  The  collection  of  impact  fees  is  wholly  dependent  on  development  activity  and  therefore  can  vary  significantly from year‐to‐year.  Historically, impact fees were budgeted based on historic lowest amount  collected and adjusted at mid‐year if fee revenues were higher than anticipated. With the implementation  of the Infrastructure Analyst position in the Finance department, the City has been able to better project  actual impact fee collection based upon upcoming development activity. With this improved information,  the Sewer Fund has changed its impact fee budgeting methodology to 75% of the average of the next  three years impact fee projections. This equals an additional $783,900 budgeted impact fee revenue in  2020‐21 and an additional $590,200 in 2021‐22. This improved budgeting methodology for estimating  impact fee revenue in advance of collection could serve to mitigate future rate increases.    Development Impact Fee Methodology   2021‐22 Budget  2022‐23 Budget  Historical Methodology $600,000  $600,000  New Methodology $1,383,900  $1,190,200  Difference $783,900  $590,200    Investment Revenue – Improved Budget Projections  Like impact fees, investment revenue has historically been budgeted very conservatively at $50,000 per  year. Beginning in 2021‐22, the City is revising these projections to align with historical investment  earnings of 2% per year. Using this assumption, the Sewer Fund is budgeting investment revenue at 2%  of its previous year ending working capital balance. This equals a $331,100 investment revenue budget  increase in 2021‐22 and an increase of $527,900 in 2022‐23. This improved budgeting methodology for  estimating investment revenue in advance of collection could serve to mitigate future rate increases.    Investment Revenue Fee Methodology   2021‐22 Budget  2022‐23 Budget  Historical Methodology $50,000  $50,000  New Methodology $381,100  $577,900  Difference $331,100  $527,900      Cal Poly Capacity Payment  The Utilities Department has been working with Cal Poly for nearly two‐years to renegotiate its rate and  capacity agreements with the City. The capacity payment is Cal Poly’s contribution to the Water Resource  Recovery Facility upgrade to maintain the University’s capacity interest in the plant. These agreements  are currently being finalized and are expected to generate an additional $243,568 Sewer Fund revenue in  each year going forward.               All Sewer Fund Revenue    109 Section G‐2: Sewer Fund    Revenue Category 2021‐22 Budget 2022‐23 Budget  Sewer Sales $17,539,578  $18,679,651  Cal Poly –Capacity $243,5681  $243,568  Development Impact Fees $1,383,899  $1,190,246  Other Revenue $383,000  $459,350  Investments $381,100  $577,900  Grants $3,469,758    Total $23,500,903  $21,250,715    Operating Expenditures  Sewer Fund operating expenditure budgets are comprised of salaries, employee benefits, and other  operating expenditures such as contract services, chemicals, and electricity. The Sewer Fund operating  program budgets are summarized below. The summary reflects the operating program base budget  amounts for fiscal years 2021‐22 and 2022‐23.       Significant Operating Budget Changes (SOBC)  Overall, operating expenditure budgets are changing very little in 2021‐22 and 2022‐23. The Sewer Fund  is requesting $309,898 in SOBCs in 2021‐22 and $424,952 in 2022‐23. These requests include;  1. Data processing services for asset management and control systems.   2. Contract services for laboratory analysis and biosolids handling   3. Additional budget for electricity at the WRRF beginning in 2022        Detailed SOBC information can be found on the next page.       1 Cal Poly WRRF design cost divided by three years. This will increase to $472,533 in 2023‐24 when Cal Poly begins  paying its contribution to the construction loan.   Cost Center/ Program*FY 21‐22 Budget FY 22‐23 Budget 6101 ‐ Wastewater Admin and Eng 1,240,769$                   1,275,995$                    6102 ‐ Wastewater Collection 1,185,053$                   1,227,154$                    6103 ‐ Environmental Programs 247,695$                      257,771$                       6104 ‐ Water Resource Recovery 3,983,953$                   3,868,407$                    6105 ‐ Utilities Revenue 531,870$                      550,964$                       6106 ‐ Water Quality Lab 731,253$                      741,791$                       Total 7,920,593$                  7,922,083$                   * Does not include transfers, capital, or debt SOBC Type 21‐22 22‐23 Total  One‐time 57,517$            11,865$            69,382$         Ongoing 252,381$          413,087$          665,468$       Total 309,898$          424,952$          734,850$       110 Section G‐2: Sewer Fund       SOBC Description One‐time/  Ongoing MCG or Core  Services  FY 21‐22   FY 22‐23  Utilities ‐ Sewer 1 Deputy Director ‐ Planning &  Engineering This position will support the specialized long term needs of the Utilities  department and water and wastewater infrastructure. The work is not new  but the Utilities department sees an increasing need for continual  infrastructure maintenance and replacement, implementation of emerging  technology, and adherence to new and more stringent State and Federal   regulations into the foreseeable future. There has also been an increased  role coordinating with Public Works and Community Development work  efforts, which could include such things as policy, workflow, and practices.   Ongoing Core Services  $       75,365   $       78,229  2 Expanded Recruitment Services  Expenses to Augment HR Expand recruitement beyond Utilities professional agencies including direct  recruitment to persons with applicable certifications. Utilities will also like  to diversify recruitment activities to further Diversity,k Equity, and Inclusion  efforts. Ongoing DEI  $       10,000   $       10,000  3 Utility Billing ‐ Split Cost Center Administrative change to split the Utility Billing program between the water  and sewer funds to better reflect the programs benefit to both funds.Ongoing Core Services 4 Pretreatment Program Software ‐  LINKO ‐ Implementation and  ongoing lincense and fees  Software will allow Environmental Programs to transition from paper to  electronic records.Ongoing Core Services  $       21,000   $         7,000  5 Qualtrax Quality Management  System ‐ Implementation and  ongoing  The Water Quality Lab is required by State mandate to comply with new  The Nelac Institute (TNI) regulations by January 2023. Qualtrax software will  meet TNI policy, operating procedure, audit, document control, corrective  actions, Quaility Assurance/Quality Control, and staff demontration of  competency requirements. Ongoing Core Services  $       12,750   $         6,750  6 Verizon Monthly Data Services Administrative change to move cell phone data charges from the cost  allocation to operational budgets.Ongoing Core Services  $       19,200   $       19,200  8 Velosimo ‐ Springbrook/Cityworks  Integration Replace the software integration between Springbrook (water and sewer  billing software) and Cityworks (Utilities asset management software).Ongoing Core Services  $         8,000   $         5,000  9 Compliance and Surveillance  Sampling Increase Environmental Programs surveillance monitoring for the five  significant industrial users. Ongoing Core Services  $       10,000   $       10,000  10 Maintenance of Dual Software  Systems during WRRF Upgrade New process control system software at the WRRF will require additioanl  funding during construction. One‐time Core Services  $         8,065   $       11,865  11 WRRF Contract Services ‐  Biosolids The new biosolids handling process, designed to reduce odors at the Water  Resource Recovery Facility (WRRF) will require additional hauling costs from  the City’s biosolids contractor beginning in 2022‐23.  Ongoing Core Services  $       22,586  12 National Pollutant Discharge  Elimination System (NPDES)  Permit Analysis Contracted laboratory testing prices have remained constant since January   2017.  The existing lab contract will expire January 2022 and discussions  with vendors have suggested increases in the cost of analyisis contract  services in the range of 15%. Award of this contract will be through a  competetive bid process.  Ongoing Core Services  $       34,270   $       34,270  13 NPDES Studies and Whole  Effluent Toxicity New water quality regulations require Species Sensitivity Screening to  establish a representative aquatic species for the discharge requirements in  the WRRF's NPDES permit.  The City is required to conduct the analysis and  present the results to the Central Coast Water Board (CCWB). The results  will become the requirements for the new discharge limitations. This  request is for testing and increased sample frequency for establishing the  Toxicity Requirements and ongoing required effluent toxicity sampling.  Sampling frequency may increase from annually to monthly. The City will  work with the CCWB for the most reasonable requirements.   Ongoing Core Services  $       36,654   $       44,910  14 Utilities Locator Position Salary‐ Split Cost Centers Administrative change to change the funding for the Utilities Locator from  the Water Fund to the Water, Sewer, and General Funds to better reflect  the position's benefit to each of the funds. The Utilities Locator is an  existing position responsible for all physical mark‐outs of underground City  utilities: water, sewer, storm sdrains, street light conduits, and fiber optic  conduits.  Ongoing Core Services  $       25,142   $       25,142  15 WRRF Electrical Electrical costs at the WRRF are expected to increase due to new processes  coming online in 2022‐23. Some savings may be realized when the new  processes are optimized, and operations become normalized after  construction. Ongoing Core Services  $     150,000  16 COVID‐19 Wastewater Analysis Wastewater surveillance for COVID‐19 is used as a complementary dataset  to be combined with clinical testing results and is an ongoing work effort.  Sampling is focused at Cal Poly, the immediate surrounding area, and the  WRRF influent. The data is shared with Cal Poly and the County.  Wastewater measurements have been documented by the CDC and EPA  studies to trend 4 to 10 days ahead of clinical results.   This surveillance  allows the City to concentrate on select neighborhoods and Cal Poly  campus to partner on communication and corrective actions to limit the  spread of COVID‐19.  One‐time Core Services  $       49,452  TOTAL  $     309,898   $     424,952 Key111 Section G‐2: Sewer Fund  Capital Projects  Infrastructure maintenance and replacement continues to be a top Sewer Fund priority. Based upon aging  wastewater infrastructure, the Sewer Fund needs to continue replacement of sewer mainlines to reduce  inflow and infiltration into the collection system, reduce scheduled maintenance, increase capacity to  allow for development, and reduce wastewater overflows. The Sewer Fund continues work on the Water  Resource Recovery Facility (WRRF) upgrade and is also preparing for the costs of near‐term projects  including the potential relocation of the Wastewater Collection shop as it is projected to be impacted by  the  City’s  Prado  Road  Overpass  project.  The  Sewer  Fund’s  capital  improvement  program  funding  requirement is $21,013,401 in 2021‐22 and $8,188,483 in 2022‐23, as presented in the 2021‐23 Financial  Plan. KeyRow Labels Sum of 2021‐22 Sum of 2022‐23 Sum of 2023‐24 Sum of 2024‐25 Sum of 2025‐26 1 Sewer Fund $21,013,401 $8,188,483 $9,602,482 $2,858,015 $2,070,745 2 Wastewater Collections System Improvements $1,571,000 $5,345,000 $2,475,000 $1,410,000 $1,685,000 3 Foothill Sewer Siphon $0 $0 $0 $0 $200,000 4 Johnson, Buchon, etc trench & pipe bursting $135,000 $1,485,000 $0 $0 $0 5 Serrano, Bressi, etc trench & pipe bursting $0 $0 $25,000 $1,275,000$0 6 Verde, Luneta, etc trench/pipe bursting $1,276,000 $0 $0 $0 $0 7 Murray, Chorro, Meineke  $0 $500,000 $0 $0 $0 8 Islay, Henry, Sierra Way $25,000 $1,825,000 $0 $0 $0 9 Taft, Hathaway, Phillips, Buena Vista, Loomis $0 $25,000 $1,225,000$0$0 10 San Jose, Ramona, Monte Vista, Califronia $0 $25,000 $1,225,000 $0 $0 11 Broad, Murray, Chorro $0 $0 $0 $135,000 $1,485,000 12 Morro, Mill, Santa Rosa $135,000 $1,485,000 $0 $0 $0 13 Water Meters and Boxes $143,000 $165,000 $167,500 $171,500 $175,000 14 (blank)$143,000 $165,000 $167,500 $171,500 $175,000 15 WRRF Major Maintenance $207,500 $520,000 $400,000 $125,000 $125,000 16 Coating Maintenance $15,000 $0 $0 $0 $0 17 Headworks Grit Pump $0 $175,000 $0 $0 $0 18 Rebuild Influent Storm Pumps $0 $0 $0 $75,000 $75,000 19 Screenings Washer Auger $0 $0 $350,000 $0 $0 20 UV Bulb Replacement (annual replacement)$0 $0 $50,000 $50,000 $50,000 21 Headworks Grit Piping and Blowers $0 $95,000 $0 $0 $0 22 Lab Improvements $0 $150,000 $0 $0 $0 23 Chain Link Fence Extension $47,500 $0 $0 $0 $0 24 Security Lighting $95,000 $0 $0 $0 $0 25 Cityworks Integration $50,000 $100,000 $0 $0 $0 26 IT Replacement $87,838 $19,358 $14,982 $254,015 $35,745 27 City SAN $0 $8,146 $0 $0 $0 28 Firewall Replacement $0 $0 $0 $13,357 $0 29 Network Security Upgrade $0 $0 $0 $8,521 $0 30 Network Switching Infrastructure Equipment $0 $0 $0 $50,379 $0 31 Uninterruptible Power Supplies (UPS’s Servers an $3,324 $0 $0 $2,942 $0 32 Utility Billing System $0 $0 $0 $75,000 $0 33 Virtual Private Network Replace $0 $0 $0 $13,378 $0 34 VMware Infrastructure Upgrade $8,114 $0 $0 $0 $20,630 35 VoIP Telephone System $0 $0 $0 $13,396 $0 36 Wireless System Citywide $0 $11,212 $0 $0 $0 37 Motion ERP $0 $0 $14,500 $14,500 $14,500 38 Radios, Mobiles and stations not replaced ‐ EF &$0 $0 $0 $55,000 $0 39 IT Pipes Inspection Software and Licenses $58,750 $0 $0 $0 $0 40 Asset Management (Cityworks ‐ Utilities Integrat $17,650 $0 $0 $7,060 $0 41 Public Surveillance Cameras ‐citywide 5 year repl $0 $0 $482 $0 $615 42 Public Surveillance Citywide Cameras Storage ad $0 $0 $0 $482 $0 43 Sewer Maintenance Hole Cover Adjustments $85,000 $25,000 $25,000 $25,000 $25,000 Continued on next page... 112 Section G‐2: Sewer Fund  Below is a highlight of the 2021‐23 Sewer Fund capital projects and their proposed expenditures:  1.WRRF Project. The WRRF will continue construction through the 2021‐23 Financial Plan with project completion estimated in late 2023, early 2024. This is an ongoing project with a total construction budget of $140,000,000. 2.Calle Joaquin Lift Station Replacement. This project will replace the aging lift station and sewer line crossings at San Luis Obispo Creek and Highway 101. The new station will meet the demands of the Froom annexation and new development in the Laguna area. Recent bids received for this project exceeded the budget and staff will return to Council with a request to rebid with modified scope and additional funding in Fall of 2021. 3.Airport Gravity Mainline. This project will replace the existing airport lift station with a gravity sewer.  The  new  mainline  will  serve  existing  customers,  recent  annexations,  and  future development in the airport area. This project will cost $2,020,000 in 2021‐22.KeyRow Labels Sum of 2021‐22 Sum of 2022‐23 Sum of 2023‐24 Sum of 2024‐25 Sum of 2025‐26 45 Trench Repairs‐ Sewer $25,000 $25,000 $25,000 $25,000 $25,000 46 (blank) $25,000 $25,000 $25,000 $25,000 $25,000 47 Point Repairs ‐ Wastewater Collections System $50,000 $50,000 $0 $0 $0 48 (blank)$50,000 $50,000 $0 $0 $0 49 WRRF ‐ Digester Flare Upgrade $0 $100,000 $385,000 $0 $0 50 (blank)$0 $100,000 $385,000 $0 $0 51 Fleet Replacement: Utilities $120,000 $505,000 $60,000 $102,500 $0 52 Sewer Hydrocleaner (0718)$0 $475,000 $0 $0 $0 53 Sewer WWCL Tilt‐Trailer (0616)$0 $30,000 $0 $0 $0 54 Sewer WRRF Compact Pickup (0851)$0 $0 $0 $45,000 $0 55 WRRF F550 Flatbed with crane (0611‐F550 Diesel $80,000 $0 $0 $0 $0 56 Waste Water Collections Dump Truck (0840)$0 $0 $0 $57,500 $0 57 Sewer WWCL Portable Pump (0826)$0 $0 $60,000 $0 $0 58 WRRF Forklift (0622)$40,000 $0 $0 $0 $0 59 Wastewater Lift Station Rehabilitation $2,416,000 $70,000 $100,000 $0 $0 60 Airport Lift Station $2,020,000 $0 $0 $0 $0 61 New Buckley Lift Station $396,000 $0 $0 $0 $0 62 Silver City Lift Station $0 $70,000 $100,000 $0 $0 63 WRRF ‐ Demolish Old Effluent Structure $0 $0 $50,000 $495,000 $0 64 (blank)$0 $0 $50,000 $495,000 $0 65 Inflow/Infiltration Reduction $200,000 $250,000 $250,000 $250,000 $0 66 (blank)$200,000 $250,000 $250,000 $250,000 $0 67 Electric Vehicle Charging Station at Various Facilities $37,500 $0 $0 $0 $0 68 Utilities ‐ 879 Morro $37,500 $0 $0 $0 $0 69 Major Facility Maintenance $0 $7,500 $50,000 $0 $0 70 879 Morro ‐ Roof $0 $7,500 $50,000 $0 $0 71 Infrastructure Renewal Strategy Report Update $0 $330,000 $100,000 $0 $0 72 Flow Study $0 $330,000 $100,000 $0 $0 73 WRRF And Wastewater Collection Shop $150,000 $350,000 $5,500,000 $0 $0 74 (blank)$150,000 $350,000 $5,500,000 $0 $0 75 WRRF Upgrade $15,920,563 $426,625 $0 $0 $0 76 Construction $11,069,088 $22,335 $0 $0 $0 77 Construction Management $3,088,281 $257,357 $0 $0 $0 78 Office Engineering $1,235,313 $102,943 $0 $0 $0 79 Program Management $527,881 $43,990 $0 $0 $0 80 Grand Total $21,013,401 $8,188,483 $9,602,482 $2,858,015 $2,070,745 113 Section G‐2: Sewer Fund    4. Mainline  Replacements.  Replacements  on  Morro  St,  Mill  St  and  Santa  Rosa  St  along  with  replacement of mainlines in the capacity constrained areas of Sierra Way, Henry and Islay St.  These projects will cost $1,571,000 in 2021‐22 and $5,345,000 in 2022‐23.     5.  Inflow and Infiltration. Ongoing funding for voluntary sewer lateral replacements and mainline    repairs to reduce the Inflow and Infiltration (I/I) of stormwater into the wastewater collection    system.    This project will cost $200,000 in 2021‐22 and $250,000 in 2022‐23.                       114 Section G‐3: Parking Fund    Section G-3: Parking Fund Parking Fund Summary and Outlook Fiscal Impacts of COVID to the Parking Fund The Parking Fund has been heavily relied upon to support economic recovery efforts during both FY 2019-20 and FY 2020-21. Parking initiatives in support of economic recovery have included the deferral of previously approved parking rate increases, the waving of fees for meters and structures (through the 3rd Quarter of FY 2020-21), development of free holiday offerings to incentivize the customer base in the downtown, loss of revenue generating on-street parking to parklets and courtesy pick-up zones, and the development of a tiered based response to the State guidelines. The fiscal outlook for the next two years shows the Parking Fund’s working capital balance having significant reductions because of lower-than-expected revenues, planned expenditures associated with the Palm-Nipomo Parking Structure project, the continued loss of high rate of return meter spaces for parklets (approximately $350,000 a year), and a series of needed parking structure annual maintenance projects. Demand for long term parking spaces has reduced significantly due to impacts from the pandemic and continue to trend in a lower occupancy caused by new health guidelines. Staff are proposing a multi-part strategy, including changes in staffing and operating, to save money (reduce expenditures) alongside increases to revenues to cover the required debt service ratio for planned structure expansion. The continued pandemic impacts and project development/timeline of the Palm-Nipomo Parking Structure necessitate several significant program changes and Council’s feedback. Anticipated FY 2020-21 Year End Need for General Fund One Time Support to Meet Debt Ratio Requirements The prolonged impacts from the pandemic and the support efforts provided to the Downtown have strained the Parking Fund. End of year unreserved working capital is projected to be $12.6 million, well short of the Budget Supplement projections and below the ratio requirements for debt service. This debt service ratio coverage is a critical component for future funding and could jeopardize the Fund’s ability to receive an I-Bank loan. As such, based on current revenue and expenditure projections, the Parking Fund as of the writing of this report is anticipating the year end need for $1.23 million to support the Fund’s ability to meet debt service requirements for the FY 2020-21. Strategic Initiatives to Address the Parking Fund Health Addressing the Parking Fund’s long-term health requires action with the 2021-23 Financial Plan adoption. Proposed strategies focus on expenditure changes (shown as SOBCs below) to generate revenues via increased enforcement as well as the reduction of contract expenditures as staff are utilized for multiple functions in the structures. 115 Section G‐3: Parking Fund    Revenue The revenues needed to support future operations and projects of the Parking Fund has been evaluated based on current rates and fee structures, analysis of current parking asset uses, and effects on future revenue potential to provide rate adjustment recommendations. Consistent with previously adopted policies and considering impacts associated with the pandemic, the Parking Fund’s proposed revenue changes assume a conservative annual growth rate over the entire projection period. The Fund is recommending multi-year rate increases over the next five years in accordance with the Fund’s periodic rate adjustment plan. The proposed systemwide rate increases in FY 2021-22 will help offset impacts from the pandemic and recovery efforts as well as begin to cover debt services associated with the Palm-Nipomo project. The Program is recommending a combination of long-term revenue enhancement strategies focused on three areas: the parking garages, on-street and lot parking, and enforcement. Parking Garages 1. Eliminate 1st Hour of Free Parking in Parking Garages 2. Implement Deferred Rate Increase in Parking Garages (Approved for July 2020) 3. Reduce Parking Garage Max Daily Rate On-Street & Lot Parking 4. Implement Paid Parking in Upper Monterey Area 5. Implement Paid Parking in Railroad Square 6. Implement Deferred Rate Increase for On-Street and Lot Parking (Approved for July 2020) 7. Expand Enforcement Hours from 6pm to 9pm for On-Street and Lot Parking 8. Transition to Tier-Based Pricing for On-Street and Lot Parking Enforcement 9. Expand Enforcement Hours from 6pm to 9pm 10. Increase Penalty Schedule for Safety Violation Fine Amounts 11. Implement and Establish Residential Parking Permit District in Old Town and Upper Monterey Area Districts 12. Enforcement of the Old Town Parking District 116 Section G‐3: Parking Fund    Proposed Potential Revenue Strategies   These changes to parking operations are estimated to be sufficient in meeting existing debt service ratios and in preparing to cover the projected debt service costs for the Palm-Nipomo parking structure that are projected to begin in FY 2025. Staff have been proactive, meeting with the Downtown SLO – Parking and Access Committee to outline current and future needs of the Fund and gain community feedback regarding the proposed revenue enhancements. The Parking Fund long-term forecast also includes rate increases for parking meters and parking structures in FY 2023-24 and again in FY 2025-26. Historically, rate increases have occurred every second to third fiscal year in order to keep revenues above expenses and ensure there is sufficient reserves for future capital funding. Long Term Forecast The Baseline Long-term Forecast below includes funding the construction of the Palm-Nipomo Structure with anticipated construction starting in FY 2023-24. Even without this major project, the annual working capital balance would continue to show a reduction due to expenditures exceeding annual revenue; primarily due to major reinvestments in rehabilitating the structures and extending their useful lives. The proposed revenue enhancement strategies and Significant Operating Budget Changes (SOBCs), pending City Council approval, are included in the second 117 Section G‐3: Parking Fund    long-term forecast table below. The inclusion of the proposed revenue enhancements forecast a healthier and more stable fund in the out years after construction of Palm-Nipomo begins.  Baseline Long-Term Forecast Without Proposed Changes        1 PARKING FUND LONG‐TERM FORECAST 2 Out‐Year Fund Projections 3 ACTUAL Mid‐Yr Revised Projected Projected Projected Projected Projected Projected 4 2019‐20 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 5 Revenues 6 Service Charges 7 Parking Meter Collections: 8 Lots 83,961           76,700              122,400          107,600      134,500      128,600      159,000      163,100       9 Streets 1,047,023      821,300            1,437,100       1,454,500   1,800,100   1,754,700   2,150,600   2,202,900    10 Parking Structure Collections 837,513         200,000            1,228,000       1,258,000   1,614,600   1,589,800   2,349,800   2,407,800    11 Long‐Term Parking Revenues 688,941         431,300            772,100          792,600      828,900      805,500      824,500      843,300       12 Lease Revenues 485,737         363,200            459,200          460,900      471,200      466,100      470,700      476,400       13 Parking In‐Lieu Fees*15,405           20,600              20,600            20,600        20,600        20,600        20,600        20,600         14 Credit Card Merchant Fees (117,851)       (47,700)             (106,700)         (107,500)     (113,400)     (110,300)     (112,600)     (115,500)      15 Total Service Charges 3,040,729       1,865,400          3,932,700        3,986,700    4,756,500   4,655,000   5,862,600   5,998,600    16 Investment and Property Revenues 546,118         78,500              75,000            66,200        58,900        27,000        27,500        18,400         17 Fines and Forfeitures 703,686         297,300            520,400          543,900      565,700      548,700      563,800      576,200       18 Other Revenues 21,706           7,400                30,000            30,700        34,400        31,800        32,600        33,400         19 Total Revenues 4,312,239      2,248,600         4,558,100       4,627,500   5,415,500   5,262,500   6,486,500   6,626,600    20 Expenditures 21 Operating Programs 22 Operating Expenses 1,917,466      2,255,100         2,315,400       2,368,900   2,409,700   2,621,900   2,789,100   2,837,300    23 General Government (CAP)537,277         710,200            869,900          869,900      869,900      869,900      869,900      869,900       24 Total Operating Programs 2,454,743       2,965,300          3,185,300        3,238,800    3,279,600   3,491,800   3,659,000   3,707,200    25 Capital Improvement Plan Projects 1,176,812      1,161,500         904,200           1,034,300   38,003,700 376,100      318,200      306,500       26 Palm‐Nipomo Phase 1 ‐                 ‐                    850,000           5,642,000   ‐              ‐              ‐              ‐               27 Palm‐Nipomo Phase 2 (Debt Service)‐                ‐                    ‐                  ‐              ‐              2,130,500   2,099,600   2,068,700    28 Debt Service 856,793         855,500            855,300          851,600      852,100      850,600      848,800      745,600       29 Total Expenditures 4,488,348      4,982,300         5,794,800       10,766,700 42,135,400 6,849,000   6,925,600   6,828,000    30 Other Sources (Uses) 31 Operating Transfers In ‐                1,230,000        ‐                  ‐              ‐              ‐              ‐              ‐               32 Operating Transfers Out (227,770)       (256,400)           (235,200)         (235,200)     (235,200)     (235,200)     (235,200)     (235,200)      33 Proceeds from Debt Financing ‐                ‐                    ‐                  ‐              37,052,000 ‐              ‐              ‐               34 35 Total Other Sources (Uses)(227,770)        973,600             (235,200)          (235,200)      36,816,800  (235,200)     (235,200)     (235,200)      36 37 Revenues Over/(Under) Expenses (403,879) (1,760,100) (1,471,900) (6,374,400)96,900 (1,821,700) (674,300) (436,600) 38 39 Working Capital, Beginning of Year 16,491,539    15,002,605       13,242,505 11,770,605 5,396,205 5,493,105 3,671,405 2,997,105 40 Adjustment for LT Accruals (1,085,056)     41 Working Capital, End of Year 15,002,605    13,242,505       11,770,605 5,396,205 5,493,105 3,671,405 2,997,105 2,560,505 42 Reserve 490,949          593,060             637,060           647,760      655,920      698,360      731,800      741,440       43 Retirement Contribution 321,596         68,400              72,700            75,000        72,700        72,900        73,000        73,200         44 Unfunded Liabilities 132,187          170,500             170,500           170,500      170,500      170,500      170,500      170,500       47 Unreserved Working Capital 14,511,656     12,649,445        11,133,545      4,748,445 4,837,185 2,973,045 2,265,305 1,819,065 48 Debt Service Coverage Ratio (130%)290% 130% 233% 235% 323% 152% 188% 195% 49 *Parking In‐Lieu Fees used for parking structure debt service 2021‐23 Financial Plan 118 Section G‐3: Parking Fund    Long-Term Forecast with Proposed Revenue Enhancement Strategies and SOBCs  Proposed Parking Fund Rate Structure The Parking Fund was previously approved by Council to implement a rate increase for parking meter rates, parking structures rates, and related permit costs effective July 1, 2020; however, the Fund elected to defer the rate increase due to the COVID-19 pandemic. The forecast proposes that the deferred hourly rate increases take effect July 1, 2021. The increase will be coupled with a reduction to the daily max rate in the structures and a hold on present rates for long term permit programs. The reduction and hold on rates are being proposed because the Fund wants to promote the participation, particularly by downtown employees, in the long-term parking programs and appropriate parking behavior. The Fund forecast also includes out-year rate increases that are shown in the table below but are not part of Council action for this Financial Plan. The Fund will 1 PARKING FUND LONG‐TERM FORECAST 2 Out‐Year Fund Projections 3 ACTUAL Mid‐Yr Revised Projected Projected Projected Projected Projected Projected 4 2019‐20 2020‐21 2021‐22 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 5 Revenues 6 Service Charges 7 Parking Meter Collections: 8 Lots 83,961           76,700              122,400          107,600      134,500      128,600      159,000      163,100       9 Streets 1,047,023      821,300            2,009,700       2,196,600   2,675,800   2,630,300   3,201,400   3,253,700    10 Parking Structure Collections 837,513         200,000            1,977,400       2,007,400   2,551,400   2,526,500   3,473,900   3,531,900    11 Long‐Term Parking Revenues 688,941         431,300            898,900          919,400      955,700      932,300      951,300      970,100       12 Lease Revenues 485,737         363,200            459,200          460,900      471,200      466,100      470,700      476,400       13 Parking In‐Lieu Fees*15,405           20,600              20,600            20,600        20,600        20,600        20,600        20,600         14 Credit Card Merchant Fees (117,851)       (47,700)             (106,700)         (107,500)     (113,400)     (110,300)     (112,600)     (115,500)      15 Total Service Charges 3,040,729       1,865,400          5,381,500        5,605,000    6,695,800   6,594,100   8,164,300   8,300,300    16 Investment and Property Revenues 546,118         78,500              75,000            66,200        66,600        43,300        54,300        55,800         17 Fines and Forfeitures 703,686         297,300            702,800          726,300      748,100      731,100      746,200      758,600       18 Other Revenues 21,706           7,400                30,000            30,700        34,400        31,800        32,600        33,400         19 Total Revenues 4,312,239      2,248,600         6,189,300       6,428,200   7,544,900   7,400,300   8,997,400   9,148,100    20 Expenditures 21 Operating Programs 22 Operating Expenses 1,917,466      2,255,100         2,315,400       2,368,900   2,409,700   2,621,900   2,789,100   2,837,300    23 General Government (CAP)537,277         710,200            869,900          869,900      869,900      869,900      869,900      869,900       24 Total Operating Programs 2,454,743       2,965,300          3,185,300        3,238,800    3,279,600   3,491,800   3,659,000   3,707,200    25 Capital Improvement Plan Projects 1,176,812      1,161,500         949,200           1,149,300   38,003,700 376,100      318,200      306,500       26 Palm‐Nipomo Phase 1 ‐                 ‐                    850,000           5,582,000   ‐               ‐              ‐              ‐               27 Palm‐Nipomo Phase 2 (Debt Service)‐                 ‐                     ‐                  ‐              ‐              2,130,500   2,099,600   2,068,700    28 Debt Service 856,793         855,500            855,300          851,600      852,100      850,600      848,800      745,600       29 Total Expenditures 4,488,348      4,982,300         5,839,800       10,821,700 42,135,400 6,849,000   6,925,600   6,828,000    30 Other Sources (Uses) 31 Operating Transfers In ‐                1,230,000        ‐                  ‐              ‐              ‐              ‐              ‐               32 Operating Transfers Out (227,770)       (256,400)           (235,200)         (235,200)     (235,200)     (235,200)     (235,200)     (235,200)      33 Proceeds from Debt Financing ‐                ‐                    ‐                  ‐              37,052,000 ‐              ‐              ‐               34 Other: 35 SOBC ‐ Additional Enforcement Staff ‐                 ‐                    (203,500)         (210,900)     (212,500)     (213,600)    (214,600)    (214,600)     36 SOBC ‐ New Maintenance Staff ‐                 ‐                    (69,600)           (144,900)     (146,300)     (147,800)    (149,300)    (149,300)     37 SOBC ‐ Elimination of Service Contracts ‐                 ‐                    240,500           327,000       335,200      343,600      352,200      361,000       38 Total Other Sources (Uses)(227,770)        973,600             (267,800)          (264,000)      36,793,200 (253,000)     (246,900)     (238,100)      39 40 Revenues Over/(Under) Expenses (403,879) (1,760,100)81,700 (4,657,500)2,202,700 298,300 1,824,900 2,082,000 41 42 Working Capital, Beginning of Year 16,491,539    15,002,605       13,242,505 13,324,205 8,666,705 10,869,405 11,167,705 12,992,605 43 Adjustment for LT Accruals (1,085,056)     44 Working Capital, End of Year 15,002,605    13,242,505       13,324,205 8,666,705 10,869,405 11,167,705 12,992,605 15,074,605 45 Reserve 490,949          593,060             637,060           647,760       655,920      698,360      731,800      741,440       46 Retirement Contribution 321,596          68,400               72,700             75,000        72,700        72,900        73,000        73,200         47 Unfunded Liabilities 132,187          170,500             170,500           170,500       170,500      170,500      170,500      170,500       50 Unreserved Working Capital 14,511,656     12,649,445        12,687,145      8,018,945 10,213,485 10,469,345 12,260,805 14,333,165 51 Debt Service Coverage Ratio (130%)290% 130% 424% 447% 573% 223% 273% 285% 52 *Parking In‐Lieu Fees used for parking structure debt service 2021‐23 Financial Plan 119 Section G‐3: Parking Fund    recommend these increases as part of future financial plans but are showing them now to provide advanced notice of intent to pursue additional rate increases. Parking Rate Changes Current  Parking Rates  Proposed*  Effective  July 1, 2021  Proposed**  Effective  July 1, 2023  Proposed**  Effective  July 1, 2025  Parking Meters (Hourly)      Tier 1 (Super Core) $1.75  $2.00  $2.50  $3.00  Tier 2 (Core) $1.50  $1.75  $2.50  $3.00  Tier 3 (Outlying Areas)  $1.00  $1.25  $1.50  $2.00  Parking Structures      Hourly/Daily Max  $1.25/$12.50  $1.50/$6.00  $1.75/$7.00  $2.00/$8.00  Monthly/Quarterly $85/$255  $85/$255  TBD TBD  DROP (Overnight parking  for DT residents) $125/$375  $125/$375  TBD  TBD  Permits      Residential Parking Permit  $20 $20 $25 $25  DT Residential Parking  Permit $20 $20 $25 $25  10‐Hour Meter Permit  $60 $60 TBD TBD  Other      Parking Structure  Validations $75 for 100  $90 for 100  $100 for 100  $100 for 100  *Previously approved by Council to take effect July 1, 2020 but was deferred due to COVID  pandemic.  **Not part of the action items for Council but are included in the Long‐Term Forecast and will be  addressed in future budget discussions.    The Fund is also proposing expansions to certain parking programs to help fund the one-time and on-going costs for the Palm-Nipomo parking structure that is scheduled to begin construction in FY 2023-24. Operating Expenditures Parking Fund operating expenditure budgets are comprised of salaries, employee benefits, and other operating expenditures such as contract services and utilities. The Parking Fund operating program budgets are summarized below. The summary reflects the operating program base budget amounts for fiscal years 2021-22 and 2022-23. 120 Section G‐3: Parking Fund      Significant Operating Budget Changes Summary The proposed budget includes a series of Significant Operating Budget Changes necessary to address daily needs of the Parking operations for the City. These enhancements are necessary to ensure that the Parking Fund can effectively expand operations to cover the Fund’s debt service even during times of economic uncertainty.  Parking Enforcement Staff (3 FTE) –The additional enforcement staff will be responsible for evening enforcement in the downtown area, patrolling the parking structures, and nighttime parking district enforcement. The costs of the new positions will be offset by the additional revenue generated from enforcement and by the elimination of the parking structure security contract.  Parking Maintenance Staff (2 FTE) –These new positions would be responsible for landscaping, cleaning / janitorial services, and minor maintenance and repairs throughout the City’s parking facilities. The cost of these positions will be offset by the elimination of the landscaping contract and the structures and parking lots cleaning contracts.  Reduction of Contracted Services – Elimination of service contracts including landscaping, cleaning, and security as these responsibilities will be taken on in-house by the new positions being added to the Parking Division. Power washing services currently provided by contracted service providers will continue to be contracted out due to the specialty equipment required to perform the work. This will result in an annual savings.       Parking Fund Capital Improvement Plan Program The 5-Year Forecast continues reinvestments in the City’s parking assets with annual funding for the rehabilitation of the three parking structures to extend their useful lives. Project budget Cost Center/Program* 21‐22 Budget 22‐23 Budget 5101 ‐ Parking Admin 2,230,518$             2,267,863$                    5102 ‐ Parking Enforcement 288,131$                  297,443$                        5103 ‐ Parking Structures 368,806$                  380,647$                        5104 ‐ Parking Lots and Streets 91,094$                    96,291$                          Total 2,978,549$              3,042,245$                    * Does not include capital, transfers, or debt. Parking Fund SOBCs  21‐22 22‐23 Total  Ongoing Parking Enforcement (3 FTE Additions)220,927$               230,947$               451,874$           Parking Maintenance (2 FTE Additions)138,187$               144,392$               282,578$           Revenue and Contract Services Reductions Offset (558,123)$             (645,114)$             (1,203,237)$       Total (199,008)$             (269,775)$             (468,784)$          121 Section G‐3: Parking Fund    estimates in the capital plan forecast include inflationary adjustments assuming a moderate increase in material costs over time. Multi-Space Pay Stations In FY 2020-21, the Parking Fund began replacement of the single-space on-street parking meters with multi-space pay stations. The replacement is a shift from the original plan to do a one-for-one replacement of the single-space meters. The multi-space stations reduce the amount sidewalk clutter in the downtown area while offering a better user experience. The Fund is pursuing mobile payment as a complementary payment option to the multi-space stations. Condition Assessment and Management Plan (CAMP) The City completed a CAMP report of all parking structures in 2 018. That CAMP report estimated that approximately $10 million would need to be allocated over the 10 years to maintain and enhance the structures at adequate levels. The Parking Fund has already allocated $900,000 in FY 2019-20 and FY 2020-21 to implement the recommendations in the CAMP report. The proposed CIP budget, as part of the 2021-23 Financial Plan, has continued funding for the CAMP report implementation by earmarking $900,000 in FY 2021-22, FY 2022-23, and FY 2023-24 for structural repairs, waterproofing and deck sealing maintenances. This work is imperative to guaranteeing the Fund is properly maintaining its resources which will help secure a lower interest rate on future loans. The Parking Fund was also approved to perform a door package upgrade on one of the elevators at the Marsh Street parking structure. The upgrade is needed to address the significant increase in issues with the elevator including the entrapment of customers within the elevator cart. Palm-Nipomo Parking Structure The Palm-Nipomo parking structure construction cost is currently estimated at $43.5 million with initial work beginning in FY 2021-22. A $6.5 million contribution from working capital for phase 1 that will occur in FY 2021-22 and FY 2022-23 and $37 million from bond issuance for phase 2 of construction that will begin in FY 2023-24. The phase 2 of construction is estimated to take 18- 24 months with the structure opening for operation at the beginning of FY 2025-26. These amounts are subject to change based upon revised project estimates and final ratio of capital outlay versus debt financing amounts. The following additional projects are proposed in the Plan: 1. Gateless Parking Structure Upgrades – Includes $40,000 in FY 2021-2022 and $90,000 in FY 2022-2023 to invest in new technology to improve accessibility and operations of the existing parking structures. Upgrades will provide a more customer service focused experience when utilizing parking. Upgrades are intended to change the ongoing perception that parking in the downtown structures is difficult and parking is limited. 2. Fleet Replacement – In FY 2022-23, $75,000 will be used to purchase a new license plate recognition equipped hybrid enforcement vehicle to replace two existing internal combustion vehicles that have aged out and are becoming problematic. This project assists 122 Section G‐3: Parking Fund    the department with meeting the Electrification Masterplan goals set forth. $55,000 in FY 2022-23 will be used to replace an existing maintenance truck with similar truck or van. Hybrid and electric truck or van options are being pursued as a viable alternative. 3. HVAC Air Handler Replacement – In FY 2021-22, $5,000 and in FY 2022-23, $25,000 will be used to replace the existing air handler for the Parking Services office located on the first floor of the Marsh Street parking structure. 4. Misc. Information Technology – Capital projects that have associated Parking Fund costs will occur in both financial plan years.       Row Labels Sum of  2021‐22 Sum of  2022‐23 Sum of  2023‐24 Sum of 2024‐25 Sum of  2025‐26 Sum of 5  Year Total Parking Fund $1,799,160 $6,731,279 $38,003,693 $376,091 $318,227 $47,228,450 Palm ‐ Nipomo Parking Structure $850,000 $5,582,000 $37,052,000 $0 $0 $43,484,000 Adobe Removal $150,000 $0 $0 $0 $0 $150,000 CM Services $0 $150,000 $2,550,000 $0 $0 $2,700,000 Garage Construction $0 $0 $34,502,000 $0 $0 $34,502,000 PG&E Relocation $700,000 $0 $0 $0 $0 $700,000 Site Clearing and Preparation $0 $5,432,000 $0 $0 $0 $5,432,000 871 Marsh Street Structure Maintenance $400,000 $400,000 $400,000 $125,000 $125,000 $1,450,000 842 Palm Parking Structure Maintenance $400,000 $400,000 $400,000 $125,000 $125,000 $1,450,000 919 Palm Street Structure Maintenance $100,000 $100,000 $100,000 $50,000 $50,000 $400,000 Parking Enforcement Equipment at Gate Entry $40,000 $90,000 $0 $0 $0 $130,000 (blank)$40,000 $90,000 $0 $0 $0 $130,000 Major Facility Maintenance $5,000 $25,000 $0 $0 $0 $30,000 HVAC Air Handler at Parking Services $5,000 $25,000 $0 $0 $0 $30,000 IT Replacement $4,160 $4,279 $14,693 $76,091 $18,227 $117,450 City SAN $0 $2,036 $0 $0 $0 $2,036 Fire Radio Receive Site at Fire Station #4 $0 $0 $0 $0 $0 $0 Firewall Replacement $0 $0 $0 $5,380 $0 $5,380 Motion ERP $0 $0 $6,500 $6,500 $6,500 $19,500 Network Security Upgrade $0 $0 $0 $3,605 $0 $3,605 Network Switching Infrastructure Equipment $0 $0 $0 $10,825 $0 $10,825 Public Surveillance Cameras ‐citywide 5 year replace, 1/3 of cameras $0 $0 $8,193 $0 $10,446 $18,639 Public Surveillance Citywide Cameras Storage add redundancy $0 $0 $0 $8,193 $0 $8,193 Radios, Mobiles and stations not replaced ‐ EF & PW Only $0 $0 $0 $20,000 $0 $20,000 Uninterruptible Power Supplies (UPS’s Servers and Storage)  $820 $0 $0 $981 $0 $1,801 Virtual Private Network Replace $0 $0 $0 $669 $0 $669 VMware Infrastructure Upgrade $3,340 $0 $0 $0 $1,281 $4,621 VoIP Telephone System $0 $0 $0 $19,938 $0 $19,938 Wireless System Citywide $0 $2,243 $0 $0 $0 $2,243 Fleet Replacement: Public Works $0 $130,000 $37,000 $0 $0 $167,000 919 Generator (Gen‐919)$0 $0 $0 $0 $0 $0 Parking 1/2 ton Pickup (0813)$0 $55,000 $0 $0 $0 $55,000 Parking Compact Pickup (0854)$0 $0 $37,000 $0 $0 $37,000 Parking Scooters (1403,1404 Go‐4's) replc with 1 LPR equiped vehiclectup $0 $75,000 $0 $0 $0 $75,000 Grand Total $1,799,160 $6,731,279 $38,003,693 $376,091 $318,227 $47,228,450 123 Section G‐4: Transit Fund    Transit Fund Long‐term Forecast   FY2020‐21 FY2021‐22 FY2022‐23 FY2023‐24 FY2024‐25 FY2025‐26 Beginning Fund Balance $2,157,999  $3,264,339  $2,780,629  $1,743,483  $1,606,672  $1,289,978  Federal ‐ 5307 Operating 3,357,757$       1,594,103$       1,462,600$       1,566,500$       1,613,495$       1,637,697$       Federal ‐ 5307 Capital 1,384,000$       1,384,000$       ‐$                 ‐$                 ‐$                 ‐$                  State TDA (Transportation Development Act)1,806,688$      1,973,103$      1,995,274$      2,015,227$      2,038,250$      2,058,633$       State ‐ APCD (Air Pollution Control District)‐$                  606,000$         ‐$                 ‐$                 ‐$                 ‐$                  State ‐ SB1 105,000$         ‐$                 90,000$           ‐$                 ‐$                 ‐$                  State ‐ LCTOP (Low Carbon Transit Operations Program)255,000$         ‐$                 450,000$         200,000$         ‐$                 ‐$                  State ‐ Other ‐$                  140,000$         ‐$                 ‐$                 ‐$                 ‐$                  PG&E Grant 109,000$          Farebox Revenue 61,410$           150,000$         200,000$         240,000$         250,000$         260,000$          Cal Poly Agreement 150,000$         ‐$                 ‐$                 ‐$                 ‐$                 ‐$                  State ‐ SB1 ‐$                 ‐$                 ‐$                 125,000$         90,000$           150,000$          State ‐ LCTOP ‐$                 ‐$                 ‐$                 225,000$         250,000$         250,000$          State ‐ Other ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                  Cal Poly Agreement ‐$                  650,000$         1,981,000$      1,981,000$      1,981,000$      1,981,000$       TOTAL $7,119,855  $6,606,206  $6,178,874  $6,352,727  $6,222,745  $6,337,330  Operating Expenditures ‐ Purchased Transportation $2,794,565 $2,837,720 $2,895,950 $2,979,964 $3,039,228 $3,100,012 Operating Expenditures ‐ Fuel & Maintenance $602,500 $602,500 $610,000 $610,000 $621,000 $621,000 Operating Expenditures ‐ Overhead/Admin $590,267 $594,989 $599,749 $604,547 $609,383 $614,258 Operating Expenditures ‐ Cost Allocation $226,183 $230,707 $235,321 $240,027 $244,828 $249,724 TOTAL $4,213,515 $4,265,916 $4,341,020 $4,434,538 $4,514,439 $4,584,995 Capital Annual ‐ Recurring Bus Shelter Replacement (Locations Below)1 ‐$                  ‐$                 ‐$                 ‐$                 ‐$                 ‐$                  Madonna Rd @ Madonna Plaza 15,000$            South Street @ Parker Street ‐$                 15,000$           ‐$                 ‐$                 ‐$                 ‐$                  S Higuera @ Prado Rd ‐$                 15,000$           ‐$                 ‐$                 ‐$                 ‐$                  Foothill Blvd @ Narrow Ct, A Side ‐$                 15,000$           ‐$                 ‐$                 ‐$                 ‐$                  Foothill Blvd @ Narrow Ct, B side ‐$                 15,000$           ‐$                 ‐$                 ‐$                 ‐$                  LOVR @ Valle Vista, B Side ‐$                 15,000$           ‐$                 ‐$                 ‐$                 ‐$                  LOVR @ Valle Vista, A Side ‐$                 15,000$           ‐$                 ‐$                 ‐$                 ‐$                  Bus Shelter Replacement (Location TBD)2 ‐$                  ‐$                 ‐$                 90,000$           ‐$                 90,000$            TOTAL ‐$                  105,000$         ‐$                 90,000$           ‐$                 90,000$            Capital One‐Time Bus Replacement with Electric Vehicles ‐$                 ‐$                 ‐$                 ‐$                 ‐$                 ‐$                  Replace Bus 754 and 7551 1,800,000$      ‐$                 ‐$                 ‐$                 ‐$                 ‐$                  Replace Bus 857 and 8581 ‐$                  1,854,000$       ‐$                 ‐$                 ‐$                 ‐$                  Replace Bus 859 and 8602 ‐$                 ‐$                  1,910,000$      ‐$                 ‐$                 ‐$                  Replace Bus 861 and 8622 ‐$                 ‐$                 ‐$                  1,965,000$      ‐$                 ‐$                  Replace Bus 1264 and 13652 ‐$                  ‐$                 ‐$                 ‐$                  2,025,000$      ‐$                  Replace Bus 963 and 11672 ‐$                  ‐$                 ‐$                 ‐$                 ‐$                  2,085,000$       Bus Yard Parking Lot Maintenance2 ‐$                  5,000$             500,000$          ‐$                 ‐$                 ‐$                  EV Bus Infrastructure1 ‐$                  715,000$          ‐$                 ‐$                 ‐$                 ‐$                  Bus Wash Replacement2 ‐$                  75,000$           450,000$          ‐$                 ‐$                 ‐$                  Vault Room Addition Study 2 ‐$                 ‐$                 15,000$            ‐$                ‐$                ‐$                 Replace Supervisor ADA Van with EV2 ‐$                  70,000$            ‐$                 ‐$                 ‐$                 ‐$                  TOTAL 1,800,000$      2,719,000$      2,875,000$      1,965,000$      2,025,000$      2,085,000$       TOTAL Expenditures & Obligations:  $      6,013,515   $      7,089,916   $      7,216,020   $      6,489,538   $      6,539,439   $      6,759,995  Total Revenue  over Expenditures $1,106,340 ($483,710) ($1,037,146) ($136,811) ($316,694) ($422,665) Ending Balance $3,264,339 $2,780,629 $1,743,483 $1,606,672 $1,289,978 $867,313 1      Funding Secured and Project is programmed to move forward 2     Funding Not Secured and Project will not move forward unless funding is received. Fund Review/Analysis Special Revenue Fund Transit (5201) SLO Transit is the local fixed‐route public transit operation for the City of San Luis Obispo. SLO Transit operates 15 vehicles at peak period, along eight routes within the 23 square  miles of the city limits of San Luis Obispo and California Polytechnic State University.  Fund and/or Revenues Expenditures & Obligations Expected Revenues (Typically received or highly likely to obtain) Operating Annual Expenditures Discretionary Grants or Funding Yet to be Secured 124 Section G‐4: Transit Fund  Section G‐4: Transit Fund  The Transit Enterprise fund closes out 2019‐21 Financial Plan with a balanced budget. The budget  is balanced because of two reasons: federal funds continue to be provided to assist transit during  the pandemic and the program relies upon purchased transportation (with its contract operator)  and as a result with reduced services come reduced costs.  At present,  the  Fund  holds  approximately $2.7 Million in Working Capital. Of that amount, $539,498 has been identified as  the operating reserve for the Fund to continue to weather volatility in revenues while pursuing  electrification of its fleet of buses. The fiscal outlook for the next five years and the uncertainty  in future ridership post pandemic (affecting all public transportation services) has resulted in  restrained projections.  At this time, revenues are projected to sufficiently keep pace with escalating costs.  However,  any significant changes, such as the expansion of the transit program, will require additional  funding sources. During the second year of this Financial Plan, the Transit program will issue a  Request for Proposals to obtain a new contract for Transit Operations & Maintenance (also  referred to as purchased transportation).  These costs for fore cast purposes have been projected  to be like the current contract cost.    Revenue  Federal and State Funds  Federal 5307 Transit funds are 40% of the total operating budget of the Transit Fund and are  projected to continue to remain the same or increase during this two‐year Financial Plan. State  Transit  Development  Act  (TDA)  funds  are  also  40%  of  the  total  operating  budget,  and  are  projected to have a modest increase, most of which is attributed to supplemental SB1 funds.  Local  revenue  from  cash  paid  fares,  pass  sales,  and  the  anticipated new Cal Poly Service  Agreement could account for 20% of the total operating budget. Staff are currently negotiating  with Cal Poly on a long‐term successor agreement for continued transit services.  Local revenue  from cash fares will likely be impacted from the effects of the pandemic and potentially continued  lower ridership. The chart below is a summary of revenue allocations and actual dollar amounts  will be included in the June budget.  Transit Operating Revenues Allocation  Federal 5307 Fund  40%  State TDA 40%  Local Revenues 20%  125 Section G‐4: Transit Fund  Proposed Rate Increases  On April 4, 2017, the Council adopted the transit fare and interior bus advertisement rates which  included annual rate increases.  This is critically important to achieve the SLO Transit’s 20% Local  Revenue requirements.    To better support SLO Transit’s customers during the pandemic, in between March 2020 and July  2020 SLO Transit went fare‐free and delayed the planned July 2020 rate increases.  This action  better protected both SLO Transit customers and staff.  In July 2021, delayed rate increases will  go into effect.  Regular Pass cost will increase from $38 to $40 and Senior and Disabled Pass cost  will increase from $18 to $20.  Operating Expenditures  As mentioned, reduced usage of public transit during the pandemic did and has resulted in  lowered expenditures.  It is uncertain how this will return to “normal” after the pandemic; given  the purchased transportation model expenditures for the Operations and Maintenance contract  are anticipated to increase to align with revenues and transit demands.   Staff will be conducting  a Request for Proposal on this contract during year one of the Financial Plan and will update the  impacts of that new agreement with the Budget Supplement in 2022‐23.  As  negotiations  are  continuing  with  Cal  Poly,  to  develop  a  new Transit  Service  Reimburse  Agreement the impacts of that should be identified by the June review of this Fund. While both  agencies desire a long‐term agreement to service Cal Poly’s transit needs many unknowns exists  concerning recovery from the pandemic and how quickly transit riders return to transit.  Part of  that conversation is also focused on the capital investment nee ded to “green the fleet” for Transit  and the costs of that which must be shared amongst all users.   Significant Operating Budget Changes (SOBCs)  The Transit Fund is only requesting one SOBC as outlined below:  Expense Type* 21‐22 Budget 22‐23 Budget Salaries and Benefits 358,181$                 372,314$                        Services and Supplies 3,146,633$             3,201,050$                    Other OpEx 379,000$                 379,000$                        Grand Total 3,883,814$             3,952,364$    * Does not include capital, transfers, or debt. Transit Fund SOBCs  21‐22 22‐23 One‐time Transit Innovation Study 50,000$    ‐$            Prepare a Transit Innovation Study to provide a blueprint to guide  the transition to increased service frequency, electrification and  feasibility of no‐fare service for students, seniors, and others as  called for in CAP Connected Communities tasks 4.2, 4.3, and 4.4. Total 50,000$    ‐$            126 Section G‐4: Transit Fund  Capital Projects  Capital  projects  continue  to  be  a  challenge  for  the  Transit  Fund  which  is  highly  reliant  on  discretionary grants. Proposed projects are limited to those that are essential and that can be  funded from grants.  Of those projects, the replacement of diesel buses with electric vehicles are  the highest priority as well as the installation of necessary charging infrastructure to support  electric vehicles.  And while original discretionary grant awards have been less than previously  anticipated, the 5307 Federal funds, because of the previous infusion of CARES Act funds, can  use these funds to off‐set any shortfalls. Even then, a modest amount of unreserved transit fund  balance will still be required to complete the project.   Capital Improvement Projects  2021‐22 2022‐23  Bus Shelter Replacement $ 105,000   $  ‐  Bus Replacement with Electric Vehicles $ 1,854,000 $ 1,910,000  Bus Yard Parking Lot Maintenance2 $ 5,000 $ 500,000  EV Bus Infrastructure1 $ 715,000  $ ‐     Bus Wash Replacement2 $ 75,000 $ 450,000  Vault Room Addition Study2 $ ‐    $ 15,000  Replace Supervisor ADA Van with EV2 $ 70,000 $ ‐     TOTAL $ 3,214,000  $ 2,375,000  127