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Item 6a. ADVANCE ITEM - 2021-23 Financial Plan
*Advance distribution of Item 6a. The complete agenda packet will be available Tuesday, May 25, 2021. Council Agenda Report Item 6a Department Name: Finance Cost Center: 2002 For Agenda of: 6/1 /2021 Placement: Public Hearing Estimated Time: 180 minutes FROM: Derek Johnson, City Manager Prepared By: Brigitte Elke, Finance Director Natalie Harnett, Principal Budget Analyst SUBJECT: ADOPTION OF THE 2021-23 FINANCIAL PLAN RECOMMENDATION 1. Adopt a Resolution entitled, "A Resolution of the Council of the City of San Luis Obispo, California approving the 2021-23 Financial Plan and Fiscal Year 2021-22 Budget"; and 2. Defer budget adoption of the Water and Sewer Funds until June 15, 2021 contingent on the Prop. 218 protest hearing and adoption of the water and sewer rate increases; and 3. Adopt a Resolution entitled, "A Resolution of the City Council of the City of San Luis Obispo, California, establishing Parking Rates for the City's Parking Structures"; and 4. Adopt a Resolution entitled, "A Resolution of the City Council of the City of San Luis Obispo, California, approving modifications to the Parking Citation Penalty Schedule"; and 5. Introduce an Ordinance entitled, "An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 10 Chapter 52 (Parking Meters) of the San Luis Obispo Municipal Code" to modify parking meter rates and add language referencing the new pay stations; and 6. Introduce an Ordinance entitled, "An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 10 Chapter 04 (Definitions) of the San Luis Obispo Municipal Code" to add a definition of parking payment center; and 7. Adopt a Resolution entitled, "A Resolution of the Council of the City of San Luis Obispo, California, amending the Water and Sewer Rate Assistance Program for Residential Rate Payers." REPORT -IN -BRIEF The City began the development of the two-year financial plan in November 2020 and held numerous public meetings and presentations with the community and Council to "set the stage", receive public input, and lay the budget foundation. Staff presented the draft budget to Council during the April 20, 2021 "Strategic Budget Direction" workshop. Council provided feedback and gave direction that ultimately shaped the preliminary 2021-23 Financial Plan (Attachment A). Item 6a The purpose of this public hearing is to adopt the 2021-23 Financial Plan and appropriate the FY 2021-22 budget, with the exception of the Water and Sewer Funds which are contingent on the Prop. 218 protest hearing and subsequent adoption of the water and sewer rate increases. The Resolution (Attachment B) also adopts the updated appropriation limit to guide the budget appropriations as required under Article XIII B of the California Constitution. This report also brings forward recommendations to establish new parking structure rates and a parking citation penalty schedule. The Parking Fund relies on fees collected through various parking programs to maintain, operate, and construct the City's public parking facilities. The City historically adjusts Parking rates every three years, but the scheduled July 1, 2020 rate increases were deferred due to the COVID-19 pandemic. Parking in the downtown structures is returning to pre -pandemic levels and staff recommends updating the rate structure as outlined in Attachment C. These adjustments will provide the needed revenue for the Parking Fund to construct the Palm-Nipomo parking structure, satisfy its annual debt obligations, and maintain and operate its facilities. Staff recommends adjusting safety -related violation fine amounts which have not been adjusted since 2010. The recommendations in Attachment D will align fine amounts to address the severity of the violations and benefit the public's safety. Staff is also recommending the introduction of two ordinances amending Title 10 of the Municipal Code. Attachment E includes modifications to the current on -street and surface lot parking rates, adds language referencing the use of the new multi -space pay stations, and allows the City to implement a tier -based pricing strategy in place of timed parking limits. Attachment F outlines the definition for parking payment centers which is the California Vehicle Code's term for a payment device that services multiple parking spaces. Lastly, staff recommends amendments to the current water and sewer rate assistance program. The proposed rate adjustment increases may be a financial burden to some customers and current State law makes it difficult to directly support customers who are most impacted by rate increases from water and sewer fees. The new program included in Attachment G will broaden the assistance program to more qualifying customers consistent with Proposition 218. After extensive community participation and several Council budget workshops and hearings beginning in November 2020, the 2021-23 Financial Plan is now ready for adoption. Key elements of the Financial Plan include: 1. Focus on long-term fiscal health, aligned with Fiscal and Budget Policies and Financial Responsibility and Sustainability Philosophy. 2. Align budget resources with Council adopted Major City Goal strategies. 3. Meet the minimum fund balance and working capital policy requirements. Item 6a 4. Invest in the future and fund maintenance of existing infrastructure and invest in the capital improvement program. 5. Address both required and "pre" payments to unfunded liabilities. 6. Implement Local Revenue Measure priorities. The 2021-23 Financial Plan includes city-wide budgetary allocations for the two-year period in the amounts summarized below: Expenditures Actual General Fund $75,824 Budget $76,901 Budget $98,764 Budget $103,621 % Change 5% Business Activities Water Fund $39,693 $35,011 $25,501 $27,632 8% Sewer Fund $34,739 $120,944 $32,855 $24,367 -26% Parking Fund $5,287 $4,748 $6,547 $11,520 76% Transit Fund $4,772 $6,600 $7,669 $4,895 -36% Special Revenue Tourism Assessment $1,383 $1,225 $1,443 $1,551 7% Downtown Assessment Total $272 $253 $161,969 $245,692 $245 $260 60/0 0% $173,024 $173,847 in thousands Changes to the Preliminary Financial Plan In preparing for the adoption of the Financial Plan, the City Council held a Strategic Budget Direction workshop at the April 20, 2021, City Council meeting. During that workshop, the City Council provided direction to include changes in the Preliminary Financial Plan as displayed below. These changes were made possible by the reallocation of funding from the Infrastructure Investment Fund. Community Workforce Agreements using Economic Recovery, Resiliency $50,000 the WRRF as a case study and Fiscal Sustainability Feasibility Study for Multi -Cultural Center Diversity, Equity, Inclusion $40,000 Support Development of "Micro Community Collaborative" initiative with Climate Action, Open Space, $20,000 the SLO Climate Coalition' and Sustainable Transportation Total ' $110,000 Council's recommendation was to "Look into Climate Coalition initiative". Based on further follow-up with the SLO Climate Coalition, staff recommend $20,000 in year one of the financial plan to support this effort. Item 6a In addition to the changes with a fiscal impact, Council directed staff to make the following adjustments which are now reflected in the 2021-23 Preliminary Financial Plan: 1. Crisis Intervention Training — remove from the DEI work program. 2. The police department will implement new federal and state mandates for police reform and update its strategic plan to integrate new requirements and return to Council for a discussion on further integration of the principles of 21 st century policing and other actions as determined by the City Council. 3. Move the implementation of Open Space Winter Hours Use from the Climate Action Major City Goal (MCG), into the operating budget with the understanding that the work will continue to be directed by Natural Resources staff. Additional Changes to the Preliminary Financial Plan In addition to the changes listed above, staff is recommending several new Significant Operating Budget Changes (SOBCs) or changes to SOBCs as outlined below: Increase Community Workforce Agreement Study amount: General Fund: Based on further research into the scope of this recommendation and the $55,000 resources necessary to complete a thorough study, Staff recommends (additional) increasing the budget to $175,000 with contributions from the Water, Sewer, and Parking funds. The additional General Fund portion of $55,000 Water: $26,250 will be re -allocated from the CIP contribution to the Infrastructure Investment Fund and the Enterprise fund portions will come from working Sewer: $26,250 capital. If the actual costs come in less than budgeted, then the remaining funds will be returned proportionally to the respective fund balance/working Parking: $17,500 capital. Transit Fund: Regional Transit Authority Analysis: The RTA is constructing a Regional Transit HUB adjacent to the City's SLO Transit Bus Yard. Much of the infrastructure that supports SLO Transit is Transit: $50,000 aged and nearing the end of its lifespan. All transit providers are required to shift the fleet of transit vehicles to zero emission vehicles. This recommended funding would support the analysis and review of SLO Transit's operations and infrastructure to determine if there may be an advantage to sharing infrastructure, equipment, or centralizing services with RTA. Water and Sewer Fund: Increased Funding for Public Outreach in Water: $122,000 the Utilities Department The Utilities department is implementing a work plan for ongoing outreach Sewer: $50,000 related to the City's water supply and resource availability, and other Utilities services. Focus will be on diversifying the outreach approach by utilizing digital and traditional outreach methods and focusing on often underrepresented stakeholder groups. It is important to note that proposed Department budget appropriations include all Program Enhancements as shown in the "Budget Enhancements" section of the budget document. Item 6a Final Documents After Council adopts the 2021-23 Preliminary Financial Plan, staff will publish a copy of the Adopted 2021-23 Financial Plan and 2021-22 Budget on-line. Additionally, staff will prepare a Budget -in -Brief that highlights the City's budget process, key budget features, Major City Goal investments and basic "budget facts." This budget summary is widely distributed and will be posted on the website and shared through the various communication channels and with community partners. Ongoing Monitoring Adoption of the Financial Plan is the beginning of a continuous financial management process. Ongoing monitoring efforts include: 1. Interim Financial Reports. On-line access to up-to-date financial information will guide financial decisions. concise and comprehensive reports is issued by Staff to the Council and Public on a quarterly basis. These are complemented by special reports such as the quarterly Sales Tax newsletter, quarterly Transient Occupancy Tax newsletter and the Quarterly Investment Report. 2. Goal Status Reports. Staff will provide quarterly Goal Status Reports to the Council that includes progress towards completing Major City Goals and Capital Improvement Plan. These reports present updates and communications about the status of City projects, goals, and performance measures. 3. Transparent Online Budget Portal (OpenBook). City staff are excited to announce the launch of a new online budget platform that presents publicly available budget to actual expenditure and revenue data in addition to Capital Project budget information. The OpenBook application displays the City's budget data in an accessible, easy -to -understand format using charts, tables, and graphs. Enhancements to budget visualizations will be made throughout FY 2021-22. New Parking Rate Structures (Attachment C) The Parking Fund collects rates and through various parking programs to maintain, operate, and construct the City's public parking facilities. Historically, parking rates for the public parking structures, surface parking lots, and paid on -street parking have increased approximately every three years depending on the economic climate. In 2017, the City Council approved multi -year rate increases for the parking structures with the last rate increase taking effect July 1, 2020. The Parking Fund deferred rate increases due to the COVID-19 pandemic in order to support economic recovery and downtown economic vitality. After the onset of the COVID-19 pandemic, activity in the downtown area is returning to pre-COVID levels and patrons are once again filling up the parking structures. Item 6a The Parking Fund is preparing to construct the City's fourth parking structure, the Palm- Nipomo parking structure, with phase 1 beginning in FY2022-23. The Palm-Nipomo parking structure is a significant financial investment and will require a sizable loan to fund all phases of construction. The Parking Fund must demonstrate an ability to cover annual debt obligations as well as maintenance and operations of the new structure before financing can be secured. Staff is recommending that Council approve the deferred parking structure rate increases and eliminate the first 60 minutes free in all structures effective July 1, 2021, as part of the Parking Fund's revenue enhancement strategies. Staff recommends a reduction to the maximum daily limit in the parking structures to encourage utilization of structures for long-term parking by downtown employees. Modified Parking Citation Schedule (Attachment D) The City's parking penalty schedule contains over 90 parking violations and associated penalty amounts. The parking violations can be separated into two categories, 1) safety - related and 2) compliance -related. Safety violations are those that have been established and enforced to ensure the safety of the public -at -large. Compliance violations are those that act as a monetary disincentive for not complying with state or local mandates regarding the use of publicly available parking. The Parking Fund has introduced new payment technology in the form of multi -space pay stations and is pursuing pay -by -phone options for patrons that will likely reduce the number of compliance -related violations written by parking enforcement staff. As these new technologies are implemented, staff plans to focus more on safety -related violations that serve a greater benefit to the community by reducing opportunities for collisions. Many of the safety -related violations on the penalty schedule have not increased since 2010 when the State and County surcharges were added to the fine amounts and, as a result, these fine amounts are no longer in alignment with the severity of the violation. Staff is recommending an increase to 17 safety -related violations enforced throughout the entire City. Amendments to Title 10 of the Municipal Code (Attachment E & F) Like the parking structure rates, the parking meter rates were deferred at the onset of the COVID-19 pandemic. The meter rate increases were also part of a multi -year rate increase strategy approved by City Council in 2017 to catch up with historical parking rate trends. Staff is recommending that Council approve the deferred parking meter rate increases effective July 1, 2021. Staff is also recommending the establishment of a tier -based pricing system which will allow parkers to stay beyond the posted hour limit provided an additional hourly fee is paid. Tier -based pricing has been proven in other cities to provide a better public parking experience for customers by reducing the anxiety that goes along with timed parking limits. Item 6a The Municipal Code amendments also contain added language which references the newly installed multi -space pay stations to ensure that the City can effectively operate and enforce the new payment option. Utilities Rate Assistance Program (Attachment G) Background The water and sewer utilities continually balance affordability, the need to maintain aging water and sewer infrastructure, and compliance with State law when determining the need for rate increases. Rate increases have been mitigated, to some extent, by securing grant funding and through responsible stewardship of operating expenditures. Despite these efforts, water and sewer rate increases are necessary, and justified, to provide reliable and safe water and sewer service. Despite the necessity, staff recognizes that rate increases are a financial burden to some customers and State law makes it difficult to directly support the customers who are most impacted by rate increases. Impact of Proposition 218 In 1992, the City Council implemented a low-income water and sewer rate assistance program which consisted of a 15% rate reduction for residential customers receiving Federal and State aid. At that time, the 15% discount was absorbed by the water and sewer funds. Since implementation of this rate assistance program, legislators amended State law making it more difficult to directly subsidize low-income customers and making it illegal for rate assistance programs to be subsidized by water and sewer rates. In 1996, the State of California passed Proposition 218, now Article XIII C and D of the California Constitution, which restricts local governments' ability to impose assessments and property -related fees by imposing a proportionality requirement: local governments must make sure that no property owner's fee is greater than the proportionate cost to provide the property -related service . Later, the California Supreme Court determined that Article XII C and D apply to water and sewer and this decision restricts local government from reducing water and sewer rates to low-income residents because historically local governments fund lower rates by charging higher rates to other users. As a result of the Supreme Court's decisions, the City subsidizes water and sewer rate from the City's General Fund, rather than the Water and Sewer funds. Lastly, the City restricts the categories of eligible customers to receive the discount to only those enrolled in one of four specific government subsidies2 and those enrolled in another utility (e.g., electric or gas) rate assistance program. 2 (1) Temporary Assistance for Needy Families (TANF/CalWORKS); (2) Cal Fresh (Food Stamps); (3) Supplemental Social Security Income; or (4) Veteran Survivor Pension Benefits Item 6a In 2012, the General Fund experienced a budget shortfall and a continually rising number of customers enrolling in the rate assistance program and the associated cost. After some investigation, the City learned that other utilities, such as Pacific, Gas & Electric and the Gas Company, do not verify a customer's income prior to enrolling the customer in their rate assistance programs. As a result, the City modified its program to disallow enrollment in another rate assistance program as proof for low-income and only allow eligibility for and enrollment in the four government subsidies to qualify for a water and sewer rate discount. I AfA FAA.Q The new rate assistance program will utilize water and sewer late fees, rather than the general fund, to subsidize eligible customers. All water and sewer customers are subject to a $15 or 1.5% late fee, whichever is greater, if they do not pay their bill by the due date. All customers across the City are subject to the same late fees. This includes, but is not limited to, large corporate customers, other businesses, and all residential customers. Late charges are not fees for service and are not restricted by Proposition 218 so long as they are not considered in the rate's proportionality calculation. Late charges available to subsidize the rate assistance program have historically exceed the needed general fund subsidy and thus the rate assistance program can include a larger range of community members. New Rate Assistance Program Simply stated, the revised rate assistance program will extend a 15% discount on a customer's water and sewer bill and, with revised requirements, more customers will qualify. Qualifications The revised rate assistance program is available to all Single -Family Residential (SFR) customers who occupy the residence for which they pay the bill. SFR customers are defined as individually metered, residential properties. If a single dwelling unit, Residences whether it is an apartment, condominium, Single Family or other type of dwelling, has its own meter, it is considered an SFR. For Customer Occupied example, an apartment complex with IF many dwelling units but only one water meter and one water and sewer bill are not IncomeP_Meets ' • IF - eligible. However, an individually metered condominium for which the bill is paid by the resident, is eligible. Item 6a In addition, a customer must demonstrate that they meet household income requirements. Customers receiving government subsidies listed above are eligible. In addition, customers whose household income is less than twice the federal poverty rate3 are also eligible. Customers must complete a short (less than one -page) application and provide documentation that they receive one of the aforementioned subsidies or declare that they earn less than the minimum household income. Outreach Upon adoption of the rate assistance program, the Utilities department will publicize the new program, including requirements and how to apply, via social media, utility bill insert, and on the City's website. Fiscal Impact The current rate assistance program, before these changes, costs the general fund approximately $20,000 per year. The Utilities department collects approximately $250,000 in late fees per year, split evenly between the water and sewer funds. It is expected that the new rate assistance program will cost less than $100,000 per fund per year. The Utilities department will closely monitor the actual cost of the program to ensure that it remains within budget. This additional expense was considered during the recent rate confirmation study and excluded from the rate increases that will be presented to the City Council on June 15, 2021. Previous Council or Advisory Body Action The draft budget was presented to Council during the Strategic Budget Direction meeting on April 20, 2021. Council's direction from that meeting were incorporated into the attached preliminary Financial Plan. Policy Context Although the City adopts a two-year Financial Plan, the budget (also known as appropriations) is adopted annually under this process. Pursuant to Section 804 of the City Charter, the City Council must adopt the 2021-22 Budget by June 30, 2021 in order for the appropriations to be in place when the 2021-22 fiscal year begins on July 1, 2021. This action is accomplished by Resolution and a Budget Resolution is provided as Attachment A to this report. Public Engagement The City's two-year Financial Plan process includes a high degree of public engagement and input ranging from community surveys, outreach to community groups and organization, a Community Forum and several public hearings prior to adoption. 3 https://aspe.hhs.gov/poverty-guidelines Item 6a CONCURRENCE All departments participated in the development of the 2021-23 financial plan and concur with the information and budgets presented in the financial plan. 4►1y/I:TelzI►yi1=11!11IF_10NATAIATA Adoption of a budget is not a project as defined under the California Environmental Quality Act. FISCAL IMPACT Budgeted: Yes Funding Identified: Yes Fiscal Analysis: Budget Year: 2021-23 As outlines in detail in the Financial Plan, the City is appropriating $173 million in the 2021-22 fiscal year and budgeted $174 million in the 2022-23 fiscal year. Revenue and expenditures for all funds are balanced for the duration of the Financial Plan period. ALTERNATIVES Do not adopt the budget and give direction to the City Manager on desired changes and budget reallocations. This guidance will then be incorporated into the Financial Plan and presented on June 15, 2021 for adoption. ATTACHMENTS A — Preliminary 21-23 Financial Plan B — Draft Resolution - Budget C — Draft Resolution - Establishing Parking Structure Rates D — Draft Resolution - Modifying Parking Citation Penalty Schedule E — Draft Ordinance - Amending Title 10 Chapter 52 of the Municipal Code F — Draft Ordinance - Amending Title 10 Chapter 04 of the Municipal Code G — Draft Resolution - Amending Water and Sewer Rate Assistance Program CITY OF SAN LUIS OBISPO; -:-- :J:� -,� ems. N� - = _ 2021-231-Li`---- - x- Ilk ;JF Ak r r rI � 1,•1 �, /// - r f '. 2021-22 Adopted Budget IS Page intentionally left blank. Table of Contents Introduction Reader's Guide Budget Message from City Manager City Profile City Council Community Overview The City at a Glance Highlights of City Services Organizational Chart Organizational Values Financial Plan Framework Framework and Policies Fund Structure Basis of Budgeting & Accounting Strategic Planning Financial Planning Process Strategic Priorities/ Major City Goals Local Revenue Measure Financial Plan Overview Budget at a Glance — General Fund Where the Money Comes From What the Money is Spent On Consolidated Financials Long Term Forecasts Operating Budget — Governmental Activities Revenues Transfers Expenditures Employee Summary Administration City Attorney Community Development Finance Fire Human Resources Parks & Recreation Police Public Works Utilities 5 6 13 14 15 16 17 18 21 24 27 31 36 63 75 77 68 85 91 100 104 106 115 121 143 151 175 187 205 215 233 247 273 Business Activities/Special Revenue Water Fund Budget at a Glance Debt Service Capital Budget Operating Programs Sewer Fund Budget at a Glance Debt Service Capital Budget Operating Programs Parking Fund Budget at a Glance Debt Service Capital Budget Operating Programs Transit Fund Budget at a Glance Capital Budget Operating Programs Special Revenue Downtown Tourism Business Improvement District Boysen Ranch Debt Capital Budget Overview Project Summary List Project Details/Narratives Reference Material Pension Obligation Trends Appropriation Limit Fiscal Policies Budget Glossary Resolution 283 284 292 294 296 307 308 317 319 321 337 338 346 346 347 351 352 356 357 359 361 363 367 373 397 405 532 536 537 570 580 i1 Page intentionally left blank. Financial Plan Reader's Guide Financial Plan Reader's Guide The Financial Plan Reader's Guide is intended to provide a basic understanding of the 2021-23 Financial Plan and describes the contents of each major section of this document. It has been divided into the following sections: Introduction For the 2021-23 Final Financial Plan, this section provides a message from the City Manager giving an overview of the budget highlights as well as accomplishments of the City. The message also provides the financial context for the City's Financial Plan and outlines some key initiatives and assumptions within the plan. City Profile This section introduces the Mayor and the four City Council members and provides the reader with a brief overview of the City of San Luis Obispo, its location, population, interesting community information, as well as highlights of the services available to citizens and businesses. This section also includes the City of San Luis Obispo's organizational structure. Financial Plan Framework This section provides policy and regulatory requirements for the development of the City's budget which contains the planning framework used to develop the Financial Plan. This section also identifies the City's fund structure which is a combination of governmental funds and business activities. It provides a description of each fund and the funding sources and the basis of budgeting and accounting. Strategic Planning Public Input on Financial Planning Process This section explains the City's public and budget development process. It also provides a summary of survey responses and input from the Community Forum that Council considers when developing its goals and strategies for the two-year Financial Plan. Strategic Priorities This section provides the detailed road map for the Major City goals, as well as other driving factors for the 2021-23 Financial Plan and the annual budget appropriation. It also provides information on planned expenditures for the City's Local Revenue Measure strategic investment (one and a half -cent sales tax) for the upcoming two financial plan years. Budget -at -a -Glance This section provides the reader with a quick overview for the General Fund that shows where the money comes from and what the money is spent on. It summarizes the information that is later outlined in more detail and encompasses investments in strategic priorities, as well as capital infrastructure and debt. It is a high-level overview of all the components presented in the following sections in more detail. Consolidated Financial Plan This section provides the consolidated long-term financial outlook that outlines the revenues, expenditures, capital investments, debt obligations, and the City's beginning and ending fund balance for all funds. Operating Budget This section provides a summary of each Department's revenue and expenditure budget compared to the prior year as well as the employee summary. Further details provide a greater understanding about department operations, key highlights, organizational structure and financial line -item summaries for the current and prior year budgets, and variances between actuals and budget. Performance measures are also included in this section. Business Activities / Special Revenue Funds This section provides the budget overview and operating budgets for the City's four enterprise funds as well as the two business improvement district funds. City Debt This section outlines the City's debt capacity and considerations when looking at issuing debt. It outlines the City's creditworthiness and comments from the last rating review. The section provides the information on current debt for all the major funds including outstanding principal, the annual debt payments, and each year the deb t will be retired. Capital Budget This section provides an overview of the five-year Capital Plan including project cost, project summary details outlining the overview of the project, the key deliverables and budget line items as well as operating impacts. Reference Material City Manager's Budget Message City Manager's Budget Message After a year of unprecedented economic and social uncertainties brought on by Covid-19, it is my pleasure to present a two-year Financial Plan filled with renewed energy, ambitious work programs, and a strategic roadmap. This Financial Plan was generated through the Council approved Optimistic, responsive strategic budgeting approach and allocates resources to Major City ambitious Goals to address the community's economic recovery, sustainability through climate change, and community livability through citywide improvements. The lens of Diversity, Equity, and Inclusion will make further progress on making San Luis Obispo a welcoming and inclusive place. Filled with optimism we embark to a new fiscal year and begin the recovery work in support of the community we serve and treasure. The Art of the Longview The transition from emergency operations and demobilization of operations to recovery and ultimately to it will require that we proceed with caution and vigilance as the road will require disciplined focus to confront the lingering challenges from FY 2020 -21. Our organization will need to concentrate its efforts to deliver ambitious projects and programs while maintaining the ongoing services the community has come to rely on in their daily lives. To be successful, the ongoing efforts to provide civic understanding and community engagement will be critical as the City organization balances expectations with available resources. Yet, before we look ahead, we should take a moment and reflect on the many things we were able to provide in 2020 to assist the community with the effects from Covid-19: Open SLO Projects — Parklets, "Light up Downtown" Childcare Program Provision & Policy Amendments SLO Small Business Relief Program COVID-19 Health and Wellness Messaging The Shop Local Incentive program z Homeless Services Support Support of Downtown Vitality Provision of Parks and Open Spaces for Health and Wellness Regional Emergency Support Core Services maintained and provided throughout the pandemic resulting in a healthy and safe community 6 City Manager's Budget Message We also used the period of reduced traffic to rebuild the Marsh Street Bridge and upgrade Higuera Street to accommodate multi -modal transportation. The City embraced innovation and action to tackle a variety of challenges and one of my strongest hopes is that the City remain committed to problem solving, action and strategic thinking and responsive services. Reverting to outmoded ways of problem solving will not get us to the places we need to go given 21'Y century challenges. Into the Future with focus and determination The budget within this Financial Plan provides for investments in the Council adopted strategic initiatives and 74 established service programs while maintaining a balanced budget over the five-year forecast period. This ambitious work program will undoubtedly bring new challenges which in turn will yield new opportunities. With this Financial Plan, the challenges that the City is addressing are some of the most pernicious issues facing society and ones that local government has a role in but the solutions are neither easy nor inexpensive. To make progress and achieve meaningful outcomes with these ambitious goals the organization must maintain focus to ensure ongoing monitoring, reporting, and transparency and to make intentional policy and work program adjustments as needed. Strategic Plan and Major City Goals The proposed strategic plan and four Major City goals largely continue along a trajectory of previous financial plans to maintain the emphasis on long-term systemic changes and understand that a long-term view is essential to sustained change. The Major City Goals add Diversity, Equity, and Inclusion as a further area of strategic emphasis to build a welcoming, open, and inclusive community. At this juncture, it is important to point out that the strategic goals of the City are not standalone plans but rather are designed to develop synergies and commonalities to maximize funding and achieve the community's objectives. It is therefore no coincidence that they all converge around community vitality for everybody to thrive. Economic Recovery, Resiliency, & Fiscal Sustainability: If 2020 has shown us anything, it is how quickly the best laid plans can change. Concentrating on transitioning our City from the pandemic emergency operations will require discipline and resourcefulness as the City has put forth work programs designed to put us on the path to success. The strategic approach will concentrate on economic and social recovery with a focus to build resiliency through business retention, the enrichment of cultural and arts programs, and revitalization of downtown; the heart of our community. Creating a destination through activation programs with interactive designs will inspire and attract community members and visitors year-round. Diversity, Equity, & Inclusion (DE&I): I am excited to incorporate DE&I efforts into the fabric of our organization as well as the community. Our efforts will support healthy organizational change and culture shifts while concentrating on under -represented community groups and sponsoring awareness, education, and forums for the public at large. The feasibility study for a multicultural center is the first step in understanding the need, operating and capital costs, and the potential partners and supporters N City Manager's Budget Message for such a facility. The City's funding of DEI and our financial policies and investments through the lens of Environmental, Social and Governance or known as "ESG" continue to advance practices and policies that welcomes and includes everyone. Housing and Homelessness: This goal continues the City Council and community desire for increased housing production of affordable and workforce units. The goal also wisely incorporates strategies to reduce homelessness in collaboration with the State, County, regional agencies, and local non-profit organizations. Though not traditionally a municipality -driven effort, the work program is intended to bridge the services gap and further activate the County of San Luis Obispo to update the regional approach to homelessness and to implement programs that serve the entire region. Systemic and monumental shifts must come from a coordinated regional effort that is funded by outside and non -City resources. Climate Action, Open Space, & Sustainable Transportation: Though spanning a large spectrum of deliverables, the goal continues many of the efforts begun over the last two financial plans. However, it explicitly draws in the relationship of Open Space to sustainability goals and sustainable transportation to build a resilient and versatile city for a changing population. The goal continues the aim of carbon neutrality by 2035, emphasizes the preservation and enhancement of the City's open space greenbelt and incorporates the importance of climate change on the City's extensive and well -loved urban forest. Community Programs and Services The City's ongoing services have been built over many years with input from the Community resulting in programs that provide the envisioned quality of life in San Luis Obispo. After several years of "tightening the belt", the 2021-23 Financial Plan allocates resources needed to fulfill the Major City Goal programs and provides funding for ongoing service programs to pre -pandemic levels and to support forecasted workload requirements. The investments in support departments are a needed step to ensure that we have a healthy and smart organization that can serve and support both operational and Major City Goal efforts. Capital Improvement Projects The Community supported Measure G-20 which provides new and expanded funding to not only maintain and enhance the City's assets but to build new infrastructure to serve planned growth. Approximately $126 million will be spent on new projects over the next five years and the City is reconfiguring and reinventing its capital delivery system and structure in light of the size, scale, and scope of projects. These projects will not only be transformative, but they will also be disruptive in both positive and challenging ways that may not be immediately embraced by the community. For example, new roundabouts that help improve safety and circulation will need timely and accurate information to help the community embrace different ways to move people. Communication before, during, and after projects will be critical. Long -Term Outlook In many ways, the 2021-23 Financial Plan will mark a transition period for the City organization. It will concentrate on recovering fiscally and operationally from the pandemic and also transform our delivery of service and capital programs. Those efforts will add resources and new work programs to the organization to fulfill the community's long-term vision. s City Manager's Budget Message The long-term fiscal outlook not only concentrates on delivering the services and capital improvement projects and it maintains its pre -pandemic commitment to address the long-term pension liability by making additional investments each year. These efforts will support the long-term fiscal sustainability and financial well-being of the City and continue the expected levels of services to the community. The Path Ahead By proceeding with focus and steadfast pursuit of the shared visionfora bright future for all its community members, the City of San Luis Obispo makes progress towards the kind of resilient, dynamic, and sustainable community we want to live and thrive in. Producing a two-year financial plan during a pandemic was one of the most challenging efforts in recent history. Department Heads, Managers Program leaders, and all staff are proud of the services they continue to provide to the public. It was especially challenging to face such a sea shift in priorities brought on by COVID-19 as we had to drop projects and curtail programs in which many have invested portions of their professional careers and which are also near and dear to substantial public constituencies. They all transitioned with grace and with a public service ethic that helped maintain calm throughout the pandemic. This Financial Plan restores some of the work postponed during the pandemic and in many ways accelerates others. I am proud of the professionalism in which the organization dealt with these difficult decisions, and the strong emphasis on maintaining services and public health during difficult and trying circumstances. I especially want to thank members of the Financial Plan Steering Committee, composed of Department Heads and senior City management, which met almost weekly throughout the last year to develop a comprehensive financial and management strategy that not only advanced Major City Goals, but also preserved and reimagined services. Their advice and input were critical in the development of this financial plan. I also want to thank the Finance Department's budget team, who did the heavy lifting in the preparation of the actual document. They include Finance Director Brigitte Elke, Principal Budget Analyst Natalie Harnett, Accounting Manager/Controller Debbie Malicoat, Business Manager Rebecca Bernstorff, Public Works Director, Matt Horn, HR Director Monica Irons, Deputy City Manager Greg Hermann and Assistant City Manager Shelly Stanwyck. For months, they toiled over numbers, strategies, and changes in forecasts to produce the final budget document. My greatest appreciation goes to the City Council, City workers, community partners and the Community that came together in the last year and for whom I will be forever grateful for their service and partnership. With gratitude, Derek Johnson City Manager 9 Page intentionally left blank. 10 CITY PROFILE ro 1; klq4.. Iry • Page intentionally left blank. 12 CITY PROFILE City Council The City of San Luis Obispo is a charter city and operates under the "Council -Mayor -City Manager" form of municipal government. The five -member City Council consist of the directly -elected Mayor and four City Council Members. The Mayor is elected to a two-year term and Council Members are elected to four-year terms. The City Council is the legislative authority and sets the policies under which the City operates. The City Council has the power to adopt ordinances and resolutions, make appointments to the City's advisory bodies, establish policies and approve programs, appropriate funds, adopt budgets, and approve contracts. The Mayor presides at all meetings of the City Council and is recognized as the official head of the City for all ceremonial purposes. Once a Financial Plan has been adopted, the Council's focus moves to 1) advocacy for its major initiatives at the Federal, State, County and Community Partner level - 2) Leadership for Community Partnerships, Regionalism, Governance - 3) Monitor the impact and outcomes of work programs and direct appropriate adjustments. Heidi Harmon Mayor Erica A. Stewart Vice -Mayor Carlyn Christianson City Council Jan Howell Marx City Council 2021-23 City Council Financial Plan Vision Andy Pease City Council The City of San Luis Obispo is a dynamic community embracing its future while respecting its past with core values of civility, sustainability, diversity, inclusivity, regionalism, partnership, and resiliency. 13 CITY PROFILE Commmunity Overview Located mid -way between San Francisco and Los Angeles, San Luis Obispo is the County seat and a number of federal and state regional offices and facilities are located here, including Cal Poly Sate University, Cuesta Community College, the regional Water Quality Board, and Caltrans District Offices. The City's ideal weather and natural beauty provide numerous opportunities for outdoor recreation at nearby City and State Parks, lakes, beaches, and wilderness areas. r While San Luis Obispo grew relatively slowly during most of the 19th century, the coming of the Southern Pacific Railroad in 1894 opened up the area to the rest of California. The City's distance from major metropolitan areas to the north (San Francisco) and south (Los Angeles) have allowed it to retain its historic and scenic qualities, which contribute to the superb quality of life residents enjoy and that attract visitors from all over the world. In fact, in 2010, the City was dubbed the "Happiest City in North America" by National Geographic author Dan Buettner. Another key feature contributing to the City's great quality of life is its delightful downtown. The heart of which is the Mission Plaza. With its wonderful creek side setting and beautifully restored mission and parish church, Mission Plaza is the community's cultural and social center. This historic plaza is complemented by a bustling downtown offering great shopping, outdoor and indoor dining, night life, and its famous Thursday Night Farmers' Market, where you can buy locally grown fresh produce an enjoy and outdoor BBQ. This unique blend of history, culture, commerce, and entertainment make San Luis Obispo's downtown one of the most attractive, interesting, and economically vibrant downtowns in America. San Luis Obispo is a full -service city that provides police, fire, water, sewer, streets, transit, parking, planning, building, engineering, and parks and recreation service to the community. The City operates under the Council -Mayor -City Manager form of government. The City Council appoints the City Manager and City Attorney. All other department heads are appointed by the City Manager. r 14 CITY PROFILE The City at a Glance $56,071 Q 13.6 Median Household Square Miles Income 38% 62% AA Incorporated in 1856 as Owned vs. Rented a General Law City and became a Charter City in 1876. O g i g 62.6 ffg&7 In the Labor Force 45,920 Population (largest city in SLO County) `�' Public Safety �r 1419h " Sworn Personnel 47 64.5 22,254 Total Housing ; Water Supply Units I l�� Salinas & Whale Rock: 4,910 AF* Oft Nacimiento: 5,482 AF** ' Recycled Water: 219 AF Total safe annual yield: 10,611 AF *AF = acre feet **Dependable Yield Source: City Comprehensive Annual Financial Report — 2019-20 15 CITY PROFILE City Services Highlights MAINTAIN �- ilk 20.000 ATrees in the Urban Forest 28 4 040 City Parks 56 Trail Mileage Acres of Open Space 134 paved street miles 00004 o o F� 715,380 18 Transit Passengers Contacts with ilk Businesses to Locate �■ in San Luis Obispo 00000Vom 338 58 ` Development Permit Applications Newly Constructed 710 Received Deed -Restricted Building Permits Affordable Housing Issued Units Built 2019-20 284 awnwa 7,675 924 Business Licenses City Council Agenda AIssued Enforcement Cases Reported Reports -n 1 �1� 127 5,499 Fire Suppression Calls 32,665 Calls for Fire Service Calls for Police Service 35 55,202 City Council Meetings Held 1 16.. 28 Annual Rounds of Golf Aquatics Attendance MAINTAIN Bi- 134 Miles of Roadway r7, 1-1 191 Miles of Water Lines 146 Miles of Sewer Lines 5,191 Acre Feet of Water Consumed 0 00 75 Mies of Bikeways ' v ' I 1 1 1 1 � 1 ----a Public Parking Spaces 16 CITY PROFILE Organizational Chart 17 0 4 Shared Mission, Vision, & Goals M) Service to the Community 0) Leadership &Support ��) Communication Honesty, Respect, & Trust S-10►**) Team Players 0) Initiative &Accountability Innovation &Flexibility Stewardship &Ethics Employee Development and Recognition FINANCIAL PLAN FRAMEWORK • 19 Page intentionally left blank. 20 Financial Plan Framework Budget Policies FINANCIAL PLAN PURPOSE AND ORGANIZATION A. Financial Plan Objectives. Through its Financial Plan, the City will link resources with results by: 1. Identifying community needs for essential services. 2. Organizing the programs required to provide these essential services. 3. Establishing program policies and goals, which define the nature and level of program services required. 4. Identifying activities performed in delivering program services. 5. Proposing objectives for improving the delivery of program services. 6. Integrate climate risk and climate action considerations throughout all financial decisions.' 7. Integrate Diversity, Equity, and Inclusion (DEI) considerations throughout all financial decisions.' 8. Identifying and appropriating the resources required to perform program activities and accomplish program objectives. 9. Setting standards to measure and evaluate the: a. Output of program activities. b. Accomplishment of program objectives. c. Expenditure of program appropriations. B. Two -Year Budget. Following the City's favorable experience, the City will continue using a two-year financial plan, emphasizing long-range planning and effective program management. The benefits identified when the City's first two-year plan was prepared for 1983-85 continue to be realized: 1. Reinforcing the importance of long-range ("strategic") planning in managing the City's fiscal affairs. 2. Concentrating on developing and budgeting for the accomplishment of significant goals and objectives. 3. Establishing realistic timeframes for achieving goals and objectives. 4. Creating a pro -active budget that provides for stable operations and assures the City's long-term fiscal health. 5. Promoting more orderly spending patterns. 6. Reducing the amount of time and resources allocated to preparing annual budgets. C. Measurable Objectives. The two-year financial plan will establish measurable program and performance objectives and allow reasonable time to accomplish those objectives. D. Second Year Budget. Before the beginning of the second year of the two-year cycle, the Council will review progress during the first year and approve appropriations for the second fiscal year. E. Operating Carryover. Operating program appropriations not spent during the first fiscal year may be carried over for specific purposes into the second fiscal year with the approval of the City Manager. ' New policy for the 2021-23 Financial Plan per Council direction at the January 12, 2021 "Budget Foundation" Council meeting. `I Financial Plan Framework Goal Status Reports. The status of major program objectives will be formally reported to the Council on an ongoing, periodic basis. G. Mid -Year Budget Reviews. The Council will formally review the City's fiscal condition, and amend appropriations if necessary, six months after the beginning of each fiscal year. LONG - TERM FINANCIAL PLANNING A. Balanced Budget. The City will maintain a balanced budget over the two-year period of the Financial Plan. This means that: 1. Operating revenues must fully cover operating expenditures, including debt service. 2. Ending fund balance (or working capital in the enterprise funds) must meet minimum policy levels. For the general and enterprise funds, this level has been established at 20% of operating expenditures. Additionally, it includes the revenue and rate stabilization reserves as set forth in the City's fiscal policies under the Fund Balances and Reserves section. 3. Under this policy, it is allowable for total expenditures to exceed revenues in a given year; however, in this situation, beginning fund balance can only be used to fund capital improvement plan projects, or other "one-time," non -recurring expenditures. B. Long -Term Liabilities and Maintenance of Infrastructure. The City will give priority to applying unassigned fund -balance due to one-time expenditure savings or one-time increase in revenue to pay down long-term unfunded liabilities and invest in infrastructure and equipment. C. Consideration of Climate Risk and Climate Action. The City is aware of the increasingly severe and frequent natural, economic, and social disruptions presented by a rapidly changing climate. The City is also aware of the financial benefits (e.g., reduced operational costs, prudent asset management, access to green bonds, etc.) of managing climate risk and orienting towards a carbon neutral municipal operations and community. The City will include climate risk and climate action considerations in its long-term financial planning. z D. Consideration of Diversity, Equity, and Inclusion (DEI). On June 18th, 2020, the City Council took action to affirm racism as a public health crisis and committed to making San Luis Obispo a welcoming, inclusive, and safe community for everyone (R-11132). The City Council also set a vision of a community with core values of diversity and inclusivity in the adoption of its 2019-21 Major City Goals. The City is committed to supporting diversity, equity, and inclusion in is operations and in the community. The City will include DEI considerations in its long- term financial planning. 2 FINANCIAL REPORTING AND BUDGET ADMINISTRATION A. Annual Reporting. The City will prepare annual financial statements as follows: 1. In accordance with Charter requirements, the City will contract for an annual audit by a qualified independent certified public accountant. The City will strive for an unqualified auditors' opinion. 2. The City will use generally accepted accounting principles in preparing its annual financial statements and will strive to meet the requirements of the GFOA's Award for Excellence in Financial Reporting program. z New policy for the 2021-23 Financial Plan per Council direction at the January 12, 2021 "Budget Foundation" Council meeting. 10011 Financial Plan Framework 3. The City will issue audited financial statements within 180 days after fiscal year-end. B. Interim Reporting. The City will prepare and issue timely interim reports on the City's fiscal status to the Council and staff. This includes on-line access to the City's financial management system by City staff; monthly reports to program managers; more formal quarterly reports to the Council and Department Heads; mid -year budget reviews; and interim annual reports. C. Budget Administration. As set forth in the City Charter, the Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. The City Manager has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances. D. Development Services Revenue. The City Manager may allocate or designate 75% of over -realized Development Services revenues exceeding adopted budget for the current fiscal year for temporary Development Services expenditures for the purpose of timely processing of development permit applications in the current fiscal year or throughout life of applicable projects. Any and all City Manager authorized allocations and funds set aside in a designation for future use, shall be reported to the Council on a semi- annual basis. For a comprehensive list of the City's financial policies, please see the reference section. FISCAL POLICY COMPLIANCE The City of San Luis Obispo has created policies and procedures that guide effective government management. Adopting these as formal policies endures that they outlive staff changes, promoting stability and continuity. The City is currently in compliance with all policies as summarized in the chart below and in the details within the reference section of this report. 1. 2. 3. 4. Fiscal P01iCy (linked policy detail) General Revenue Management User Fee Cost Recovery Enterprise Fund Fees & Rates Revenue Distribution Compliant? I/ *1, I/ J 5. Investments 6. Appropriations Limitation 7. Fund Balances and Reserves 8. Capital Improvement Management *� 9. Capital Financing and Debt Management 10. Human Resource Management *� 11. Contracting for Services 23 Financial Plan Framework Fund Structure The City's financial structure is separated into governmental and business activities. Five major funds are administered and reported on. Each fund balances all revenues and expenditures to ensure that there is no immediate or emerging structural budget deficit. Business activities are distinguished from governmental funds by their similarity to private sector enterprises and are financed solely through user charges. General Fund The General Fund is the chief operating fund for general government operations and is mostly funded through various tax revenues. It also collects service fees to recover the reasonable costs for specific services. Tax & Franchise Revenue Sales Tax Property and Lodging Tax Utility User and Business Tax Cannabis and Franchise Tax Service Fees Planning and Building Parks & Recreation Fees Public Safety Fees Municipal Services Public Safety Parks & Recreation Public Works Community Development General Government • Administration • City Attorney • HR and Finance `1 #0 Water Fund — Public Utilities The City's Water Fund is a business -activity and is therefore funded solely through its own rates to provide service. It treats and delivers water to the public from three surface reservoirs as well as recycled water for landscape irrigation. The water service is provided to all property owners in the City including parks and sport fields. Service Fees Water Service Charges �p Base Fee Revenue �g Cal Poly Sales �; Recycled Water Sales Development Impact Fees Sources of Supply c Water Treatment c Water Distribution c Water Resources Management c Administration and Engineering c Capital Infrastructure c Debt Financing 24 Financial Plan Framework -0 Sewer Fund — Public Utilities The City's Sewer Fund is also a business -activity and fund and operates and maintains the City's sanitary sewer system and the Water Resource Recovery Facility. An efficient sanitary sewer system that collects and treats wastewater provides a foundation for public health and community well-being. User fees are the primary source of revenue for this fund. Service Fees Sewer Service Charges g Base Fee Revenue Cal Poly Sales Development Impact Fees Industrial User Charges Parking Fund — Public Works g Water Resource Recovery Facility g Wastewater Collection • Water Quality Lab • Environmental Compliance • Administration and Engineering Capital Infrastructure Debt Financing The City's Parking Fund implements the Access and Parking Management Plan and directs the operation and maintenance of the City's parking facilities. These facilities include parking lots in Downtown and Railroad Square, on -street parking, residential parking districts, and three parking structures. The operation is paid for by parking user fees. Service Fees g Parking Meters Collection Parking Structure Collection g Parking Leases Long-term Parking Parking in -lieu Fees Transit Fund — Public Works Parking Operation, Security, & Cleaning Public Education & Engagement Administration Capital Infrastructure Debt The City's Transit Fund provides daily fixed -route transit service to the general public within City limits and to Cal Poly University. It also includes the Downtown trolley service connecting downtown with the lodging district on upper Monterey Street. The services are paid for partially by user fares and receives federal and state funding. It is therefore considered a business activity fund. Federal & State Grants Fare Box Revenue Public Transit Operation Administration 25 Financial Plan Framework Fund Structure continued Governmental Funds In addition to the five major funds (general, parking, sewer, transit and water), the City maintains a fund structure to account for special revenue, capital projects, and its debt service. As the General Fund, these funds belong to the governmental activities and are distinguished by their measurement focus on determining financial position and changes in financial position according to the modified accrual method of accounting, rather than upon determining net income. Local Revenue Measure Sub -Fund This sub -fund to the General Fund accounts for the local 1.5-cent sales tax measure. The funding is used in accordance with the community's priorities for services and capital improvement projects. The City's Municipal Code under Section 3.15 — Community Services and Investment Transactions and Use Tax guides the use of the revenue and the fiscal accountability provisions. The Revenue Enhancement Oversight Committee, as directed by Municipal Code Section 2.14, makes recommendations to the City Council regarding the use of the funding on an annual basis. Special Revenue Funds Downtown Business Improvement Public Art (Private Sector Contributions) District Fund g Gas Tax Fund Tourism Business Improvement District Transportation Development Act Fund Fund Law Enforcement Grant Fund Capital Project Funds Capital Outlay Fund Fleet Replacement Fund Parkland Development Fund Los Osos Valley Road sub -Area Fee Fund Transportation Impact Fee Fund Information Technology Replacement Open Space Protection Fund Fund Airport Area Impact Fee Fund Major Facility Replacement Fund Affordable Housing Fund Infrastructure Investment Capital Fund 26 Basis of Budgeting and Accounting Basis of Budgeting Budgetary basis refers to the basis of accounting used to estimate financing sources and uses in the budget. The City prepares its budget for each fund in accordance with its respective basis of accounting. The City prepares a two-year Financial Plan and appropriates a one-year budget. The City Council approves the appropriation for governmental funds and business activities (enterprise funds). Basis of Accounting In accordance with generally accepted accounting principles, the City's financial reporting system is organized on the fund basis consisting of three major fund types - governmental, proprietary, and fiduciary. The City's various funds have been established in order to segregate and identify those financial transactions and resources associated with providing specific activities or programs in conformance with special regulations, restrictions, or limitations. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Expenditures generally are recorded when a liability is incurred; however, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Proprietary (Enterprise) funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The only type of proprietary funds that the City uses are enterprise funds for water, sewer, parking, and transit services. Within this document, they are reported under business activities. Fiduciary funds. The City has established fiduciary funds, which are used to account for funds held by the City as an agent for private individuals, organizations or other government agencies. Unlike other types of funds, fiduciary funds only report assets and liabilities, thus they do not have a measurement focus since they do not report operating activity. However, fiduciary funds do use the accrual basis of accounting to recognize receivables and payables. Internal Service fund. The City created an internal service fund to account for the resources needed to pay for liability, workers compensation, and other benefit -related cost. Internal service funds typically assess a fee or seek reimbursement for the amounts that are expended and are not expected to accumulate fund reserves unless needed for a future payment. 27 Page intentionally left blank. 28 STRATEGIC PLANNING PZ 42 AFQM61i ii 0 -1 • 29 Page intentionally left blank. 30 Financial Planning Process Financial Plan Process For over thirty years, the City has used an extensive process to create its two-year financial plan and corresponding budgets. The benefits of budgeting based on a two-year plan include: 1. Reinforcing the importance of long-range ("strategic") planning in managing the City's fiscal affairs. 2. Concentrating on budgeting to accomplish significant objectives over a multi -year period. 3. Establishing realistic timeframes for achieving objectives 4. Creating a proactive budget that provides for stable operations and assures the City's long-term fiscal health, 5. Reducing the amount of time and resources allocated to preparing annual budgets. Major City Goals represent the most important, highest priority goals for the City to accomplish over the next two years, and as such, resources should be included in the 2021-23 Financial Plan. The fundamental purpose of the City's budget process is to link, through public engagement and strategic deliberation, the interest of the community to the available financial resources to achieve the desired outcome. The process allows the City Council to engage the community in identifying strategic priorities in the form of Major City Goals while also providing information regarding the City's established ongoing services, including the day-to-day work and responsibilities carried out by City employees to support residents' quality of life. Public Engagement Covid Impacts on 2021-23 Strategic Planning There are a variety of opportunities to provide input to the City Council to enable them to plan the City's strategic approach and establish Major City Goals with the community's interest in mind. Some of these opportunities are online surveys, letters from organizations, but others take place during public meetings and the City's community forum. Since in -person meetings were jeopardized by physical distancing restrictions, City staff creatively utilized the virtual environment instead. The most difficult element to re-create virtually was the Community Forum, which historically includes a walk- through environment and interactive booths to converse with City staff and community members. Attendees are given the chance to write down specific priorities or put adhesive dots next to ideas or priorities that they support. With the help of a third -party consultant, the City was able to pull off a virtual community forum that mimicked the interactive nature of a in - person forum and included polling questions and 11 self- selecting breakout rooms staffed with subject matter experts. Photo from the 2019-21 Community Forum 31 Financial Planning Process Virtual Community Forum The first -ever Virtual Community Forum was held on January 14, 2021 via Zoom. It was designed to continue a proactive engagement process while considering COVID-19 public health measures. The City contracted with a third -party consultant to facilitate and guide Council and the community through the forum, polling activities, and the goal -setting workshops. More than 160 community members participated and weighed in on priorities and strategic goals for the City to achieve. After the forum, the City released an online "dot survey' +ham+ rt�a,o +he rllhlir �n �r�rli+inr5�l r�nnnr+Ifni+., +r� a,n+o on priorities that were discussed at the forum. Gimate D iSCUS5 W, WO We come. ,�.,•i 232123 Financial plan: CommunRy Forum f Revised Agenda ':': Cep nr WCleomclOPening Remarks Mayor HaMi Hamr 1'erex ronneon_ Cny Men _ _. I� p m 2021�23 Financial Plon Prornas: Cammunny rorum Bngrrie Ekr. Fnanca Orrecrr =:25 p m_ Walcemo k MneuNona 5anmer Nenrfi, Facrinom 1:35pm Gammanlry Input lPollinb) Fecrlueror 55 p nr. SallSelecting Bmakeut Seaalerrc umry i 11P Part lwS PebMb) b.25 prPuhlic Cnmmeni A S5 p m. Cba1n0 Remarka - Neyor r•eA'B -------------------------------------------� 1 1 Click HERE to view a recording of the 2021 Virtual Community Forum on 1 , YouTu be. ; 1 Audience Polling: Staff used an interactive polling site, Poll Everywhere, to ask %0 the audience about ideas to address top priorities in addition to more open-ended questions about what they love about living and/or working in the City. Attendees were able Pall Everywhere to type in responses on their phone or computer and all responses were stored, analyzed, and used in the goal -setting process. Homelessness ........... Economic Stability ............ 32 Financial Planning Process Local Revenue Measure Annual Citizen Oversight Meeting & Advisory Body Input The Community Forum also meets the requirements regarding the City's one -and -a -half percent local sales tax, by providing an opportunity for the Revenue Enhancement Oversight Committee (REOC) to review and discuss the use of the revenue generated by the Local Revenue Measure with the community. The priorities for 2021-23 contain 1) Protect Financial Stability, 2) Community Safety and Emergency Preparedness, 3) Creek and Flood Protection, 4) Address Homelessness, 5) Safe and Clean Public Spaces, 6) Economic Development and Business Retention, 7) Youth/ Senior Services and Recreation Facilities, 8) Street Maintenance and Transportation, 9) Open Space/ Natural Areas Preservation and Maintenance, 10) Other Services and Projects. Community Surveys Two surveys were released during the public engagement process: one at the onset of goal setting and one after the community forum. Between the two surveys released, a total of 1,919 survey responses were received representing nearly 95 hours of public comment. Responses from both surveys showed overlapping themes. Top Priorities from Survey #1 870 697 620 556 544 536 434 433 343 Homelessnem Economic ❑i mate Action Diver,*, Housing 5tadility, Plan Equity, and R.—ry and Incuusion Ra 1—cy efforts Open Space DDmtmn Infrastructure Fi—I Ru ldc Safety Vitality Mairrtenamx Suctaimtiity and RsponsidRy Top Priorities from Survey #2 ("dot" survey) 116 t"aw = 11own1own Q—te Action Dmer 7nfias4 Pure Homelessness Di—ty, Equity, Open space Housing Economic Vitality Malmenance and Inclusion SW6ility, R—ry (DEII and Resillenncy Goal Setting Workshop The final phase of goal setting process is deciding on the highest priority goals for the City to accomplish over the next two years. For the 2021-23 Financial Plan, the City Council chose four focused Major City Goals: Economic Recovery, Diversity, Equity & Housing & Climate Action, Open Resiliency & Fiscal Inclusion (DEI) Homelessness Space & Sustainable Sustainability Transportation 33 Financial Planning Process Budget Calendar NOVEMBER 2020 Public Engagement ri Community Surveys Advisory Bodies Letters from Community Groups Public Comment ii WE* Community Forum Staff Budget Preparation Revenue & expenditure forecasts O Departments prepare base budgets and propose operating changes. Draft MCG work programs Draft Capital Improvement Plan Prepare Financial Plan Document JUNE 2021 MM Z z r T z z z 0 Post Budget Adoption Changes: As set forth in the City Charter, the Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. The City Manager has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances. 34 Strategic Priorities Strategic initiatives guiding the 2021-23 Financial Plan City Council Vision Statement The City of San Luis Obispo is a dynamic community embracing its future while respecting its past with core values of civility, sustainability, diversity, inclusivity, regionalism, partnership, and resiliency. In the planning process we are committed to: • Being honest and respectful in our discussions. • Participating with active listening and respectful challenging • Believing in the process and the outcome • Allowing for differences • Learning from the past • Making the process and progress visible • Committing to transparency around priorities • Engaging the public With the plan we are committed to: • Creating a clear plan with agreed upon purposes. • Making sure our stated values are clear. • Making defining, concrete statements • Including measurables, budgets, and timelines for all items • Making the plan accessible In implementation we are committed to: • Doing what we say • Remaining open to new information, new ideas, and public input • Scheduling bi-annual updates with Council on progress • Considering emerging issues 35 Strategic Priorities MAJOR CITY GOALS (MCGs) Goal Statements Economic Recovery, Resiliency & Fiscal Sustainability r lip top; r In collaboration with local partners, continue to support economic recovery for all from the A& ' 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 Diversity, Equity, Inclusion (DEI) 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 Housing and Homelessness 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. Climate Action, Open Space, and Sustainable Transportation 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. 36 Strategic Priorities Major City Goal Investment for the two-year Financial Plan 1 z 3 4 s Major City Goal Reader's Guide The following sections include: 1. Goal Overview —The overview section includes: MCG Goal Statements, expectations, responsible departments, strategic approaches, and total investment in each goal. 2. MCG Task Detail —The second section for each goal includes the specific tasks/actions associated with each goal. Major City Goal Funding Investments in the Major City Goal initiatives are interwoven throughout the financial plan document. Major City Goal tasks are funded in three ways: • New Funding — Addition of funding specifically for a MCG task. Generally, new funding for MCGs is allocated on a one-time basis. In some cases, these efforts continue beyond the two-year period of the Financial Plan and are considered "ongoing" and will be incorporated into ongoing services. • Capital — During the Capital budgeting process, projects are categorized to Major City Goals if they have a nexus with the goal. Generally, projects that help advance Major City Goals are prioritized during the ranking process. • Operating Budget— Resources are also provided through the City's existing operating budget. This category is harder to quantify because many departments contribute to the MCG tasks through their work programs. The MCG funding summaries therefore only include operational items that have a direct and measurable correlation to the goal. In addition to direct operating funding, almost all MCG efforts mml� require support service resources: 1. Legal Assistance 2. Financial Assistance 3. Materials and Supplies 4. Administrative Support 5. Human Resources Support 37 Major City Goals — Economic Recovery 1. Economic Recovery, Resiliency & Fiscal Sustainability Goal Statement: ■ In collaboration with local partners, continue to support economic ~ r ; recovery for all from the COVID pandemic and support a thriving local AiLeconomy 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. 38 Major City Goals — Economic Recovery 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. Total Investment in Economic Recovery, Resiliency & Fiscal Sustainability Strategic Approach 1.1 For all members of the Community Existing Operating Budget New Funding .: $ 230,000 Capital Budget Existing Operating .: $ 155,000 1.2 Business Support $ 2,600,000 $ 1,156,948 $ 2,600,000 $ 581,323 1.3 Arts and Culture Support $ 100,000 $ 50,000 $ 300,000 $ 100,000 $ 25,000 $ 300,000 1.4 Downtown vitality $ 662,000 $ 946,043 $ 3,312,500 $ 662,000 $ 773,964 $ 7,789,500 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 1 Investing in critical infrastructure $ 55,000 $ 25,900 • 39 Strategic w? „'h. Responsible Approach # Economic Recovery, Resiliency & Fiscal Sustainability Department Funding Source Completion Date Task/ Action 1.1 1 For all members of the Community 1.1 a. Establish a process for the City to recognize and promote Minority -owned businesses. ADM (ED/DEI) Operating Budget FY22 Q3 b. Implement protocols within the City's Office of Economic Development to reach out to existing 1.1 and new Minority-owned/operated businesses to learn of their experiences operating in SLO, and ADM (ED/DEI) Operating Budget FY22 Q3 to identify ways the City can be of support. 1.1 c. Evaluate and potentially establish a City Leadership/Chamber of Commerce / Minority Business ADM (ED/DEI) Operating Budget FY22 Q4 Owners' roundtable. 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 1.1 to support businesses owned by or serving underserved/underrepresented communities. The City ADM (ED/DEI) New Funding FY23 Q4 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 categorized under DEI goal. 1.1 e. Update and maintain a listing of resources for BIPOC, LGBTQ+ and other underserved ADM (ED) Operating Budget Ongoing communities on the City's Doing Business section of the website. f. Hire a consultant, support legal review, and establish an internal working group and hire a consultant to research methods to support local contractors, local vendors, and labor through 1.1 workforce agreements, local purchasing requirements, alternative project delivery methods and PW/UTIL New Funding FY22 Q4 other options to support local businesses and employees. The Community Services Group will be lleadiniz this effort. 1.1 g. Develop and implement a scorecard to track visitation to key areas of the City, employment, DEI ADM (ED) New Funding FY22 Q2 economic efforts and other relevant economic indicators. 1.1 h. Update the City's Economic Development Strategic plan ADM (ED) New Funding FY23 Q2 1.1 i. Review the Economic Development program structure based on the outcome of the EDSP ADM (ED) Operating Budget FY23 Q4 update. 1.1 j. Ensure adequate temporary and flex resources available to develop and execute required ADM (ED) New Funding Ongoing initiatives. 1.2 usiness Support (a. Creation, Retention, ion, Promotion an rogram , , Policy, Permitting, c. Infrastructure) a-1. Set aside funding for activations, promotions and programs like "Light Up Downtown", "Buy 1.2 Local Bonus", Shop local to aid in the recovery from the impacts of COVID-19 through out the City ADM (ED) New Funding Ongoing and including downtown. a-2. Elevate the promotion and branding of the Economic Development activities of the City 1.2 highlighting the efforts around Sustainability and DE&I through the website, videos and other ADM (ED) New Funding F22 Q4 collateral. ($60k communications support for Administration) a-3. Continue to work with our partners at the Chamber, REACH, Cal Poly, Downtown SLO, SCORE 1.2 and others to support the business community through retention, creation, attraction, education ADM (ED) Operating Budget Ongoing and communication efforts. 1.2 a-4. Work with REACH and other partners to offset the loss of the Diablo Canyon Nuclear Power ADM (ED) Operating Budget Ongoing plant through business attraction, H-o- H job creation and other relevant efforts. 1.2 a-5. Evaluate the continuation and/or modification of the Open SLO program Fitness in the Parks. P&R Operating Budget FY22 Q1 1.2 a-6. Review transitioning the Business Ambassador program from a COVID response action to an ADM (ED) Operating Budget FY22 Q1 ongoing program with an available hotline as well as an online form option. 1.2 a-7. Continue to promote the City to tourists, visitors and locals through the efforts of the TBID ADM (ED) Operating Budget Ongoing and the PCC. 1.2 a-8. Provide childcare programming to the community to enable residents to work and fuel the P&R Operating Budget Ongoing local economy. 1.2 b-1. Continue to implement the TIPP-FAST program to fast track tenant improvement permits and CDD New Funding Ongoing support business recovery. Incorporate subsidies into program when funding is available. b-3. Develop a streamlined and easy to understand process for businesses to allow activities 1.2 encouraged by Outdoor SLO, and other programs implemented in response to Covid-19, to CDD/PW Operating Budget FY22 Q1 continue - especially in relation to outdoor dining. b-4. Improve efficiency and transparency in the permitting process through implementation of 1.2 paperless permitting, performance management reporting, and enhanced customer transparency CDD New Funding FY22 Q4 tools. b-5. Review and establish policies as required to support broadband to the home to take 1.2 advantage of the opportunities to work from home to support the Climate Action Plan and Quality CDD/PW/IT/UTIL Operating Budget Ongoing of life. 1.2 b-6. Staff Resources to improve permitting efficiency and support development services program CDD New Funding Ongoing capacity 40 PROGRAMS/PROJECTS EL 0 Responsible Economic Recovery, Resiliency & Fiscal Sustainability .6i P! Funding Source Completion Date Task/ Action Department c-1. Ensure the business community is updated and aware of major City projects (CIP and others) 1.2 that will impact their operations. Coordinate with business adjusting working hours and PW/UTIL Operating Budget Ongoing construction impacts to reduce impacts. c-2. Set aside funding for the potential to expand the various Open SLO programs (Parklets, Street 1.2 PW Operating Budget Ongoing closures) to other areas of the City to support business recovery. 1.3 Arts and Culture Support = 1.3 a. Support the recovery of Arts and Cultural activities throughout the City. P&R/ADM Operating Budget Ongoing 1.3 b. Support the recovery of Arts , Culture and Community programs through a PCC program similar ADM (ED) New Funding Ongoing to GIA. 1.3 c. Continue to support local community non-profit organizations through the Cultural GIA program ADM (ED) Operating Budget Ongoing facilitated by the PCC. P&R/ADM(Sustainabilit 1.3 d. Roundabout Public Art Installations y/DEI) Capital Ongoing Downtown vitality (a. Promotion and Programs b. Planning, Policy, Permitting c. Arts and Culture 1.4 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 ADM (ED) Operating Budget Ongoing the Downtown. a-2. Support Downtown SLO in expanding the Holiday "Light up Downtown" program and 1.4 incentivize private participation through a matching program.(For example $100K base with $ for ADM (ED) New Funding Ongoing $ match on $50K) 1.4 a-3. Continue the work of the Vacancy and Vibrancy Task force in cooperation with Downtown ADM (ED) Operating Budget Ongoing SLO with a focus on a activating and re -leasing vacant store fronts. 1.4 a-4. Review, evaluate and execute on the outcomes from the Downtown Future Forum ensuring ADM (ED) Operating Budget FY22 Q2 the required public participation and Council approval as needed. 1.4 a-5. Continue to enhance and modify the Open SLO program "Downtown Dining" within Mission P&R New Funding Ongoing Plaza as needed to contribute to downtown vitality. 1.4 a-6. Support the restart of the various Downtown SLO activations like Farmers, Concerts in the ADM (ED)/PW Operating Budget Ongoing Plaza and the Holiday Parade. 1.4 a-7. Continue to promote the Downtown to tourists, visitors and locals through the efforts of the ADM (ED) Operating Budget Ongoing TBID and the PCC. b-1. Part 1: Update the Zoning Regulations to allow for more flexible administration of allowed 1.4 uses, especially downtown, to support desired pop-up, shared -resource and new business model CDD New Funding FY23 Q2 approaches to facilitate business opportunities in the community. b-2. Part 2: Update the Zoning Regulations to allow for more flexible administration of allowed 1.4 uses, especially downtown, to support desired pop-up, shared -resource and new business model CDD New Funding FY23 Q2 approaches to facilitate business opportunities in the community. c-1. Support Arts and Culture in the downtown while ensuring appropriate efforts are made to P&R/ADM(Sustainabilit 1.4 support DEI through available programs. y/DEI) Capital Ongoing c-2. Support the recovery of Arts and Cultural activities by working with new and existing P&R/ADM(Sustainabilit 1.4 community partners. y/DEI) Capital Ongoing c-3. Activation of public spaces in downtown through events and programming such as pop up P&R/ADM(Sustainabilit 1.4 activities and temporary public art that celebrates the proliferation of public art. y/DEI) Operating Budget Ongoing 1.4 c-4. Explore options of creative placemaking and temporary public art in the downtown i.e. P&R/ADM(Sustainabilit Operating Budget Ongoing adjacent to Bubblegum Alley and Rose Alley. y/DEI) 1.4 c-5. Support creation and partnership of a Downtown Mural Program with Downtown SLO and P&R/ADM(Sustainabilit Operating Budget Ongoing SLOMA. y/DEI) 1.4 d-1. Develop and present a long term plan for the initiatives started under the Open SLO like PW/CDD Operating Budget Ongoing parklets and street closures in the downtown. 1.4 d-2. Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza Concept Plan PW Capital Ongoing and Council Direction. 1.4 d-3. Construct the new Palm/Nipomo structure in coordination with SLO REP theatre. PW Capital FY 2023/24 1.4 d-4. Continue with the City banner program. ADM (ED)/PW Capital Ongoing 1.4 d-5. Establish and implement a plan to make the Zig Zag lights permanent in the current locations PW Capital Ongoing as well as other locations in the downtown. d-6. Ensure the downtown business community is updated and aware of major City projects (CIP 1.4 and others) that will impact their operations and set aside funding to minimize the impacts where PW/UTIL/CDD Operating Budget Ongoing possible. 1.4 d-7. Investigate opportunities to develop a Downtown Wi-Fi Mesh. IT Operating Budget Ongoing 1.4 d-8. Expansion to gateless parking structure to improve the customer access and experience when PW(Parking) Capital FY2022/23 visiting downtown. Ell PROGRAMS/PROJECTS • 0 Economic Recovery, Resiliency & Fiscal Sustainability '6' P! Responsible Department Funding Source Completion Date Task/ Action 1.4 d-9. Assist with the continuation of Open SLO parklets and courtesy curbside pick up locations PW(Parking) Operating & Capital Ongoing 1.4 d-10. Expansion of enforcement to ensure on -street, off-street, and residential compliance and PW(Parking) New Funding Ongoing safety and to improve overnight safety in the parking structures 14 d-11. Expansion of maintenance to ensure parking structures and adjoining areas remain safe, PW(Parking) New Funding Ongoing clean and orderly (see above for fiscal impact) 1.4 d-12. Parking structure maintenance at 842 Palm, 871 Palm, and 919 Palm. PW(Parking) Capital Ongoing 1.4 d-13. City Hall lighting PW Capital FY 2023/24 1.4 e-1. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors and ADM (ED) Operating Budget Ongoing homelessness support. 1.4 a-2. Continue to enhance downtown cleanliness through daily sidewalk scrubbing, street PW New Funding Ongoing sweeping and trash cleanup and the improvement of the existing creek walk. 1.4 a-3. Continue to provide public safety presence in the downtown. Includes costs of Downtown PD New Funding Ongoing Bike Patrol, Sergeant, and Officers) e-4. The Police department will develop an educational program, which will include in -person 1.4 presentations for business owners (including visitor serving) to know how to deal with situations PD Operating Budget Ongoing requiring public safety support. Costs are associated with materials. e-5. Develop a CAT staffing plan with a second social worker, to ensure public safety and social 1.4 service resources in both the downtown and creek area. FUNDING LISTED IN HOMELESSNESS PD Operating Budget Ongoing MCG 1.4 e-6. Evaluate a plan to reestablish a downtown sub station for public safety. (Potential of adding PD New Funding Ongoing to Mission Plaza Project) 1.4 e-7. Track hours worked (regular and overtime hours) by the downtown sergeant and downtown PD Operating Budget Ongoing officers and tracking crime statistics. 1.4 a-8. Downtown safety enhancements - bollards PW Capital FY22 Q4 1.4 a-9. Mission Plaza Railing Replacement PW Capital FY22 Q4 1.5 Practicing fiscal responsibility a. Practicing fiscal responsibility: The City will continue to focus fiscal sustainability through all 1.5 work efforts, programs, and the required budget appropriations. It will review its revenue sources FIN Operating Budget Ongoing ongoingly and maximize collection and return on its investments. b. Staff Resources: Continued enhancements to the Oracle Cloud system through the MOTION 1.5 program to increase efficiencies and overall effectiveness of the system. Additionally help IT / HR / FIN New Funding Ongoing maintain the City's accounting and financial information. 1.5 c. Negotiate successor agreements with employee groups in alignment with Council adopted HR Operating Budget Ongoing Labor Relations Objectives. 1.5 c. Negotiate successor agreements with employee groups in alignment with Council adopted HR Operating Budget Ongoing L Labor Relations Objectives. 1.5 d. Complete benchmark compensation survey for SLOCEA, Management, and Confidential groups. HR New Funding FY22 Q4 1.5 d. Complete benchmark compensation survey for SLOCEA, Management, and Confidential groups. HR Operating Budget FY22 Q4 1.5 e. Continue to monitor and reduce liability and workers' compensation claims through actions HR Operating Budget Ongoing aimed at reducing liability and workers' compensation costs. 1.5 f. Injury Reduction Programs, Compliance Software, Onboarding Software, and transitioning to Fire/HR New Funding Ongoing electronic files 1.6 Paying down unfunded pension liabilities 1.6 a. Paying down unfunded pension liabilities (includes all funds): The City will work to pay down the FIN Operating Budget Ongoing unfunded liabilities and allocate additional annual payment in pursuit of a 20-year paydown. 1.7 Investing in critical infrastructure 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 1.7 portion of the cost covered by private development, 5) address existing core infrastructure PW Operating Budget Ongoing 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. Specific CIP projects/Investments are included in the relevant task and the overall CIP plan. 42 PROGRAMS/PROJECTS Strategic Approach q w' Economic Recovery, Resiliency & Fiscal Sustainability �a Responsible Department Funding Source Completion Date Task/ Action b. Regional Transit Authority Analysis: The RTA is currently building a Regional Transit HUB 800 feet from the City's SLO Transit Bus Yard. Much of the infrastructure that supports SLO Transit is aged and nearing the end of its lifespan. All transit providers are required to shift the fleet of transit vehicles to zero emission vehicles. 1.7 This funding would support the analysis and review of SLO Transit's operations and infrastructure PW - Transit New Funding FY22 Q4 to determine if there may be benefit to sharing infrastructure, equipment or centralizing services to provide increased community services at the same or reduced purchasing requirements, alternative project delivery methods and other options to support local businesses and employees. The Community Services Group will be leading this effort. 1.7 Ic. Administrative Costs to Support Investment in CIP (Office modifications, Interns) PW/CDD New Funding Ongoing 43 Major City Goals - DEI 2. Diversity, Equity, Inclusion 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, 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. 44 Major City Goals - ut, 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 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. 45 Major City Goals - DEI Total Investment in Diversity, Existing Equity & Inclusion Existing 2.1 Strategic Approach Establish Office of DEI Operating Budget New Funding •: $ 220,039 Capital Budget Operating •: $ 239,340 Capital 2.2 Develop & Implement DEI Strategic Plan $ 40,000 $ 15,000 2.3 Workforce Recruitment & Retention $ 64,691 $ 50,000 $ 36,257 $ 20,000 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 $ 15,400 2.6 Cal Poly & Cuesta Partnerships Access, Inclusion, Support for Underrepresented Communities $ 151,000 $ 224,000 $ 320,000 $ 158,500 $ 172,500 $ 20,000 N2.7 2.8 Community Education & Programming $ 5,000 $ 10,000 2.9 Support & Attract Minority -Owned Businesses S 150,000 TOTAL0• •00 $ 199,257 $ 626,840 $ 95,000 ., PROGRAMS/PROJECTS Strategic Diversity, Equity, Inclusion Responsible Completion Approach # Task/Action ue Department Funding source Date 2.1 Establish Office of DEI 2.1 a. Design DEI Administration, Function, and Operations of the Office Admin-DEI New Funding FY22 Q1 2.1 b. Develop DEI Base Operating Budget Admin-DEI New Funding FY22 Q1 2.1 c. Identify and secure office space (2000/mo. @ 7 mos. Y1, 12 mos. Y2) Admin-DEI New Funding FY22 Q2 2.1 d. Develop positions; Hire Staff Admin-DEI New Funding FY22 Q1 2.1 e. Hire Diversity position - 1.0 FTE Admin-DEI New Funding FY22 Q2 2.1 f. Hire -DEI Administrative Support - .5 FTE Admin-DEI New Funding FY22 Q1 2.1 g. Hire CivicSpark Fellow - Y2 - .75 FTE Admin-DEI New Funding FY22 Q4 h. Hire Interns - Cal Poly, Cuesta, community candidates -.25 FTE - 2 positions Y1 @ 2.1 Admin-DEI New Funding FY22 Q3 midyear. 2 positions Y2, full year 2.1 L Consultant - DEI SME - 360 total hours Admin-DEI New Funding FY23 Q4 j. Create and establish formal and informal activities, outreach, programs, policies, structures to advance equity and inclusion, cultural and systemic anti -racism, and cultural 2.1 Admin-DEI New Funding Ongoing competence in the organization and community, and support underrepresented communities 2.1 k. Implementation of prioritized activities- internal and community -based Admin-DEI New Funding Ongoing 2.1 I. Support DEI efforts throughout each department Admin-DEI New Funding Ongoing 2.1 m. Coordinate activities of the DEI Employee Committee Admin-DEI New Funding Ongoing 2.1 n. Community -based outreach, education, programming Admin-DEI New Funding Ongoing 2.1 o. DEI High Impact and GIA grant administration and management Admin-DEI New Funding Ongoing 2.1 p. Cal Poly & Cuesta collaborations Admin-DEI New Funding Ongoing 2.1 q. Support the HRC CDD / Admin-DEI New Funding Ongoing 2.2 Develop & Implement DEI Strategic Plan a. Conduct needs, priority, and resource assessments. Create comprehensive DEI 2.2 Admin-DEI New Funding FY22 Q4 initiatives and programming for the organization and community. b. Utilize DEI Task Force Recommendations, Internal ME Audit as foundation; Cal Poly 2.2 Admin-DEI New Funding FY22 Q4 Experience report and other documents as reference and for benchmarking 2.2 c. Present comprehensive plan to City Council for Adoption Admin-DEI New Funding FY22 Q2 d. Create project designs and implementation plans. Identify applicable qualitative and 2.2 Admin-DEI New Funding FY22 Q2 quantitative metrics to measure impact of DEI projects and overall DEI program e. Begin implementation of prioritized programs and projects; scoped as resources allow. 2.2 Admin-DEI New Funding Ongoing To be determined through Strategic Planning process. 2.3 Workforce Recruitment & Retention 2.3 a. Improve DEI-Focused Recruitment, Screening, Hiring Practices HR Operating Budget Ongoing b. Improve DEI-focused language in job descriptions, announcements and other 2.3 recruitment materials. Identify gaps and opportunities to increase inclusivity in materials. HR Operating Budget Ongoing supported by consultant, 2.1.i. 2.3 c. Provide DEI-focused screening and interviewing training to personnel and panels - HR Operating Budget Ongoing supported by consultant, 2.1.i. d. Implement applicable recommendations from Internal Audit, as well as other industry 2.3 best practices. Continue to ensure final selection guidelines are consistent with DEI best HR Operating Budget Ongoing practices 2.3 e. Conduct Pay Equity Audit HR New Funding FY22 Q4 2.3 f. Examine policies and programs to support primary caretakers HR Operating Budget Ongoing g. Review, evaluate and implement findings of SLO County Child Care Study (First 5's 2.3 analysis) of childcare for working families, as applicable; 22-23 Supplemental Plan as P&R Operating Budget FY22 Q4 resources permit. 2.3 h. Continue communicating childcare options and resources for City employees; HR Operating Budget Ongoing additional to First 5 findings. Explore flex schedules, job share, remote options, etc. 2.3 i. Expanded Recruitment Services Expenses to Augment HR Utilities New Funding Ongoing 2.3 j. Fire: Recruit Academy Support and Intern Program - enhance DEI recruitment efforts Fire Operating Budget Ongoing 2.4 Inclusive & Equitable Workplace 2.4 a. Develop and Adopt Diversity Statement for the Organization Admin-DEI Operating Budget FY22 Q3 2.4 b. Assist Departments in infusing DEI into their programs, policies, and practices in Admin-DEI New Funding Ongoing relevant and practical ways c.. Further develop purpose, role, activities and enhance impact of DEI Employee 2.4 Committee - (e.g. ERGS, cultural celebrations, activity budget, speakers, self -study Admin-DEI New Funding Ongoing materials, public web pages) 2.4 d. Grant equal standing and priority to the tasks and responsibilities periodically assigned Admin (all Depts) Operating Budget Ongoing to DEI committee members as is given to their other duties 2.4 e. DEI-related Staff Development/Training Admin-DEI I New Funding I Ongoing 2.4 f. Implement a DEI module in new hire onboarding HR / Admin-DEI Operating Budget FY22 Q3 2.4 g. Provide training and other learning opportunities for all levels. E.g. inclusive leadership, Admin-DEI / HR Operating Budget Ongoing cultural competency, assessments, speakers, self -study, etc. 47 PROGRAMS/PROJECTS Strategic Diversity, Equity, Inclusion Responsible Completion Approach # Task/Action Department Funding source Date 2.4 h. Continue Clarity Collective training as foundation training - ASSIGNED/ RESOURCED TO HR Operating Budget Ongoing HR 2.4 i. DEI-related training for Council, Commission, Advisory Board -tailored for roles, Brown Admin-DEI Operating Budget Ongoing Act, etc. 2.4 j. Complete a planning study for gender -inclusive restroom and sleeping facilities for Fire Public Works / Fire Capital FY23 Q4 Stations 3 and 4. Proceed with design work pending results of study. 2.5 Community -based Policing and Restorative Practice 2.5 a. Implement After Action Report recommendations PD Operating Budget Ongoing 2.5 b. Review and implement Governor's recommendations regarding protests when issued PD Operating Budget Ongoing c. Implement federal government changes in law enforcement. Implement RIPA Spillman 2.5 Module: the Racial and Identity Profiling Act (RIPA) was formed as part of AB953. PD New Funding Ongoing California law enforcement agencies will be required to collect data for stops made by law enforcement personnel. Annual reporting to DOJ is a requirement. 2.5 d. Review new Police Station building program and budget for opportunities to reduce Admin / PD / Operating Budget FY22 Q2 costs to preserve resources for community service investments Public Works 2.6 ICal Poly & Cuesta Partnerships 2.6 a. Solidify relationships and collaborations Admin-DEI Operating Budget Ongoing b. CP Office of University Diversity and Inclusion (OUDI) and City DEI Office/City Manager 2.6 Admin-DEI Operating Budget Ongoing Leadership quarterly planning meetings c. Host City / Cal Poly Office of Student Diversity & Belonging quarterly roundtable (City & 2.6 CP leadership, DEI committee, HRC, Cal Poly students, DEI leaders, etc.) regarding Admin-DEI Operating Budget Ongoing community / student experience, relationship -building d. Utilize Faculty Fellow assigned to Office of DEI in partnership with CP OUDI to research 2.6 best practices, grants for internships, programs, outreach, innovative practices, etc. Admin-DEI Operating Budget Ongoing Seeking sponsorship from Cal Poly to fund position. 2.6 e. Explore opportunities and build collaborations with Cuesta College Admin-DEI Operating Budget Ongoing 2.6 f. Provide City facilities as available to campus DEI programs delivered to and in the Admin-DEI Operating Budget Ongoing community 2.6 g. Utilize interns from Cal Poly and Cuesta within the Office of DEI Admin-DEI Operating Budget Ongoing 2.7 Access, Inclusion, Support for Underrepresented Communities 2.7 a. High Impact DEI Grants Admin-DEI New Funding Ongoing 2.7 b. GIA Grants Admin-DEI Operating Budget Ongoing 2.7 c. HRC Operating Budget for enhanced presence, advocacy, community building, etc. (such Admin-DEI New Funding Ongoing as awareness campaigns, access/fairness efforts, citizen award, etc.). Activities TBD 2.7 e. Support feasibility study for Multicultural Center; provide City liaison/staff support Admin-DEI Operating Budget FY23 Q4 2.7 f. Contribute to planning / feasibility study Admin-DEI New Funding FY23 Q4 g. Update City's formal Public Engagement & Noticing (PEN) procedures as well as other 2.7 public outreach, input efforts to increase diverse participation. Develop tactics and cost to Admin-DEI New Funding FY23 Q4 implement h. City 101/Community Academy to increase understanding / access / participation in City 2.7 Admin-DEI New Funding Ongoing government i. City 101-first stage, short program, easy access/commitment. Overview of City, how to 2.7 access, ways to be involved. Extensive outreach to Underrepresented minorities. Admin-DEI Operating Budget FY22 Q4 Community -based sessions. Design, pilot Y1 2.7 j. Community Academy- second stage, longer program. Partner with Chamber, others. Admin-DEI Operating Budget FY23 Q4 Test demand, develop. Pilot Y2 2.7 k. Develop "Undocu-Friendly" logo for City documents, as allowable by law (cost of Admin-DEI Operating Budget FY22 Q4 internal resources) 2.7 I. BIPOC youth artists' public art project. Feature work that provides a fuller representation P&R Operating Budget FY23 Q4 of all communities. Artists are stipend. Pilot in Y2 - ASSIGNED & RESOURCED TO P&R m. Parks Major Maintenance and Repairs - specific to Cheng Park improvements and 2.7 Mission Plaza railing improvements. PW Capital FY22 Q4 2.7 n. Parks Major Maintenance - ADA Transition Plan Implementation PW Capital Ongoing 2.8 Community Awareness & Education a. Trainings, workshops, speakers, forums, townhalls, listening sessions, outreach, etc. for 2.8 youth, marginalized communities and community -at -large [in addition to CP's I Admin-DEI I New Funding I Ongoing 2.8 b. Utilize proven providers rather than City develop program. City serves as coordinator, Admin-DEI Operating Budget Ongoing sponsor, convener, etc. c. Determined by interest, guidance by BIPOC, other URMs, DEI committee, HRC+ public 2.8 Admin-DEI Operating Budget Ongoing input, etc. 48 PROGRAMS/PROJECTS Strategic Diversity, Equity, Inclusion 1*4 Responsible Completion Approach # Task/Action of*= Department Funding source Date Support & Attract Minority -Owned Businesses —ASSIGNED & RESOURCED BY MCG ERRS - 2.9 Swomowman 2.9 a. Establish a process for the City to recognize and promote Minority -owned businesses Admin-Econ Dev Operating Budget FY22 Q4 b. Implement protocols within the City's Office of Economic Development to reach out to 2.9 all existing and new Minority-owned/operated businesses to learn of their experiences Admin-Econ Dev Operating Budget FY22 Q4 operating in SLO, and to identify ways the City can be of support. c. Establish a City Leadership/Chamber of Commerce / Minority Business Owners' 2.9 Admin-Econ Dev Operating Budget FY22 Q4 roundtable. 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 2.9 Admin-Econ Dev New Funding FY23 Q4 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. e. Update and maintain a listing of resources for BIPOC, LGBTQ+ and other underserved 2.9 Admin-Econ Dev Operating Budget FY22 Q4 communities on the City's "Doing Business" section of the website. 2.9 If. Establish a process for the City to recognize and promote Minority -owned businesses Admin-Econ Dev Operating Budget FY22 Q4 49 Major City Goals — Housing & Homelessness 3. Housing and 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. 50 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 11. Owners and renters of affordable housing in the 2. Homeless individuals and families City 3. Homeless advocates 12. Homeless Services Oversight Council (HSOC) 4. Business/Property Owners 13. County of San Luis Obispo Administration, 5. Chamber of Commerce Behavioral Health, and other key regional 6. Economic Vitality Corporation (EVC) partners 7. Social service agencies 14. Mid and Large -Scale Employers 8. San Luis Obispo County Housing Trust Fund (HTF) 9. Affordable housing and market rate developers 10. Non-profit organizations 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 51 Major City Goals — Housing & Homelessness and Objective Design Standards; and 4) Sustainable Communities grant in the amount of $435,000 to fund the Safety Element Update. 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. 52 Major City Goals — Housing & Homelessness 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 CDBG and other federal, state and local grants in support of services and facilities that benefit unhoused community members. 3.1 Total Investment Strategic Approach Implement Housing Element in Existing Operating Budget Housing and Homelessness New Funding (SOBCs) $ 140,000 Capital Budget $ 9,090,100 Existing Operating Budget (SOBCs) $ 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 TOTALSUB TOTAL0. • i i0 53 PROGRAMS/PROJECTS Housing & Homelessness Responsible Funding Source Completion Date Task/Action Department t Housing Element 3.1 a. Inclusionary Housing Ordinance (HE programs 2.13 & 4.6) CDD; Attorney New Funding FY22 Q3 3.1 b. Flexible Density Program (HE Program 2.15) CDD Operating Budget FY22 Q3 3.1 c. Develop Objective Design Standards & Update Development Review Process (HE 6.22 & 6.23) CDD; Attorney Operating Budget FY21 Q1 3.1 d. Zoning Regulations Update - Housing (HE 5.5, 8.18, 8.23, 2.17 and AB 2345) CDD; Attorney Operating Budget FY21 Q1 3.1 e. Subdivision Regulations Update (HE 6.20) CDD; Attorney New Funding FY22 Q1 3.1 f. Missing Middle Housing (HE 5.4) CDD; Attorney New Funding FY23 Q2 3.1 g. Additional Housing Element Program Implementation (HE 2.16, 2.18, 3.10, 4.7 & 4.8) CDD Operating Budget FY23 Q2 3.1 h. Regional Coordination (HE Chapter 4) CDD Operating Budget ongoing 3.1 i. Housing Element Program Implementation (Chapter 3) CDD Operating Budget ongoing j. Begin construction of Prado Road Creek Bridge Replacement & S. Higuera/Prado Road intersection 3.1 reconstruction, adding protected bicycle lanes, sidewalks and a bicycle protected intersection, as PW Capital FY24 Q1 recommended in the Active Transportation Plan. k. Begin construction of the Prado Road Interchange project, providing more efficient connectivity for 3.1 motor vehicles and transit service (reducing VMT), and providing physically -separated facilities for PW Capital FY25 Q1 bicycles and pedestrians, as recommended in the Active Transportation Plan. 3.1 I. Begin construction of Development related park improvements specific to Laguna Lake and Orcutt Area. PW Capital FY23 Q4 3.1 m. CDD Fleet Replacement PW Capital Ongoing 3.2 Implement Inclusionary Housing Ordinance 3.2 a. Development review project referrals CDD Operating Budget ongoing 3.3 Below Market Rate Portfolio Management 3.3 a. Inventory Management; Monitoring; Escrow services; Homebuyer & rental services; BEGIN/FTHB CDD New Funding ongoing 3.3 b. Attorney advice and support of legal documents Attorney Operating Budget ongoing 3.4 Financial Management 3.4 a. CDBG Program Administration CDD Operating Budget ongoing 3.4 b. GIA Program Administration CDD Operating Budget ongoing 3.4 c. Affordable Housing Fund Administration CDD Operating Budget ongoing 3.4 d. Grant research; applications; coordination CDD Operating Budget ongoing 3.5 Advisory Body & Council meetings & support 3.5 a. Reports, Community meetings, presentations (does not include time associated with tasks identified CDD Operating Budget ongoing herein) 3.5 b. HRC liaison CDD/ADMIN Operating Budget ongoing 3.6 City Homelessn am Coordin a. Coordination of staff from various City departments (Public Works, Parks and Recreation, Police, Fire, 3.6 Administration) focused on addressing issues associated with homelessness. CDD Operating Budget FY23 Q3 b. Develop a Strategic Plan to guide a sustained effort of engagement by regional partners, non-profit 3.6 partners, and community members to identify and implement coordinated solutions to chronic CDD New Funding FY22 Q3 homelessness. C. Maintain and update informational resources, such as the City's Homelessness Solutions web page, 3.6 about City actions to help the unhoused population, and the scope of services provided to address the CDD/Admin Operating Budget ongoing challenges of homelessness by the County, State, City, and regional partners. d. Work to prevent homelessness through a Safe Housing Outreach and Education Program that will 3.6 provide, among other duties, information about rental assistance programs, eviction protection CDD New Funding ongoing programs, and new housing opportunities. 3.6 e. Pursue a coordinated lobbying strategy to motivate action at the State and regional level, and research CDD/Admin/Attorney Operating Budget ongoing and secure additional sources of funding to address local challenges. 3.6 f. Housing and Homelessness City Staff CDD New Funding ongoing 3.7 Environmental Protection and Water Qual' 3.7 a. Environmental clean-ups in creek and open space areas associated with abandoned personal property P&R New Funding Ongoing and trash (Parks &Rec) 3.7 b. Environmental clean-ups in creek and open space areas associated with abandoned personal property P&R Operating Budget Ongoing and trash (Parks & Red) 3.7 c. Environmental clean-ups in City Parks and public spaces associated with abandoned personal property PW New Funding Ongoing and trash (Public Works) 3.7 d. Environmental clean-ups in City Parks and public spaces associated with abandoned personal property PW Operating Budget Ongoing and trash (Public Works) 3.8 Regional Engagement and Grant Managem 3.8 a. Active participation and representation of the City in the County's regional strategic planning efforts to CDD Operating Budget ongoing develop regional solutions to chronic homelessness. 3.8 b. Attend HSOC & PACT meetings, support City seat on the Commission, and report status of agenda CDD Operating Budget ongoing items back to staff 3.8 c. Support the Housing Policy and Program section and the Office of Diversity, Equity and Inclusion on CDD Operating Budget ongoing homelessness related funding opportunities, such as CDBG, GIA, DEI, and other sources. 3.9 Community Action Team (CAT) Resources 3.9 a. Expand the current Community Action Team by adding an additional social worker position. PD New Funding ongoing b. Continue to provide public safety services by utilizing the Community Action Team; includes two 3.9 officers and a social worker. (Costs include existing social worker position, but funding for the position is PD Operating Budget ongoing provided by the County). 3.9 c. Continue to provide public safety services by utilizing the downtown bike team. PD Operating Budget ongoing 54 PROGRAMS/PROJECTS Strategic Housing & Homelessness �` Responsible Funding Source Completion Date Approach p Task/ Action Department 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 FD/CDD New Funding one time and care to unhoused community members. b. Implement the program with the goals of reducing emergency dispatch of paramedics and law 3.10 enforcement to community members who need non -emergency support. FD/CDD New Funding ongoing 3.10 c. Engage with the County of San Luis Obispo in the implementation of the pilot program so that if it is FD/CDD New Funding ongoing successful it can be scaled up and replicated across the region. Non -Profit Partner Funding Support 3.11 a. Support non-profit partners in pursuing funding resources, such as CARES Act and Project Home key CDD/Admin Operating Budget ongoing grants. 3.11 b. Support a 25% expansion of the number of beds at the 40 Prado Homeless Services Center. CDD New Funding FY21 Q1 3.11 c. Continue to expand Safe Parking opportunities and support coordinated regional efforts for Safe CDD/PW/PD New Funding ongoing Parking, transitional housing, and other shelter resources. 3.11 d. Ongoing General Fund support to CAPSLO for 40 Prado (includes safe parking, warming center, CDD Operating Budget ongoing operational support) 3.11 e. Bus Token in -kind program to CAPSLO CDD/PW Operating Budget ongoing 3.11 f. General Fund low income utility subsidies CDD/UT Operating Budget ongoing 3.11 g. Federal CDBG Grant for social services (Provided to CAPSLO to help fund Homeless Services Center CDD/Admin Operating Budget ongoing operations) 55 Major City Goals — Climate Action, Open Space & Sustainable Transportation 4. 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. 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 community carbon neutrality by 2035 and municipal operations carbon neutrality by 2030; 2. Continued proactive efforts in furtherance of achieving the vision to expand 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. 56 Major City Goals — Climate Action, Open Space & Sustainable Transportation Strategic Approach Strategy 4.1— Provide capacity to achieve Council's adopted goals To implement Council's goals, the City will need 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 Ranger Service. Contract resources are needed for tasks including grant writing, 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 policies 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 community carbon neutrality by 2035 and municipal operations carbon neutrality by 2030. 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. 57 Major City Goals — Climate Action, Open Space & Sustainable Transportation 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. 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. Total Investment in Climate Action, Open Space and Sustainable Existing Transportation Existing 4.1 Strategic Approach Provide Sustainability Resources to achieve Operating $ Budget 10,000 New Funding (SOBCs) $ 319,536 Capital Budget $ - Operating $ Budget 10,000 (SOBCs) $ 292,892 $ - Continue to update and implement the 4.2 Climate Action Plan ("CAP") for carbon $ - $ - $ 1,005,000 $ 25,000 $ 100,000 Continue preservation, maintenance, and 4.3 enhancement of the City's open space and $ 170,000 $ 20,000 $ 650,000 $ 170,000 $ 20,000 $ 530,000 4.4 lAlternative and sustainable transportation $ 23,500 1 $ 105,350 1 $ 10,337,660 1 $ 23,500 1 $ 31,071 1 $ 12,737,731 4.5 1 Planning and implementation for resilience $ $ 187,490 1 $ 2,560,000 1 $ $ 110,739 1 $ 1,030,000 TOTALSUB •0 Oi TOTAL0:• 58 Major City Goals — Climate Action, Open Space & Sustainable Transportation PROGRAMS/PROJECTS Strategic Responsible Approach # Climate Action, Open Space and Sustainable Transportation Department Funding Source Completion Date Task/ Action 4.1 Provide Sustainability, Resources to achieve Council's Adopted Goals a. 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 4.1 Open Space acquisitions. The City's level of service standard for Open Space is 1 Ranger per 1,000 acres. P&R New Funding FY 22 Q1 4.1 b. To address Ranger Services staffing, recruitment, and retention, convert 5 Ranger Specialist P&R New Funding FY 22 Q1 positions (currently limited benefit temporary) to full-time regular permanent positions. c. Create a limited term Sustainability & Natural Resources Analyst position to support open 4.1 space conservation planning, implement Climate Action Plan actions that were established for Admin New Funding Ongoing 2021-23 on time, and support the completion of the Resilient SLO climate adaptation work effort. d. Restore the Sustainability & Natural Resources Intern position to support open space administration and planning efforts and climate action plan implementation efforts, including 4.1 completion of the Community Forest Master Plan. Costs include $10,000 in Yr. 1 for minor office Admin New Funding Ongoing retrofits to support the office of sustainability e. Hire a CivicSpark Fellow for one year to initiate, complete, and begin implementing a municipal 4.1 solid waste reduction initiative. Utilities New Funding Ongoing f. Continue grant writing consulting support to ensure focused and competitive proposals for 4.1 state, federal, and private grants. Admin New Funding Ongoing h. Orient the Green Team to support "Lead by Example" implementation, "Resilient SLO" 4.1 implementation, and all -staff educational efforts. Admin Operating Budget Ongoing i. Continue SLO Climate Coalition support to provide a resource for community members to 4.1 participate in climate action initiatives and build overall community capacity. Admin Operating Budget Ongoing 4.1 j. Convene an inter -departmental staff team to assess and provide recommendations for the CDD/PW/P&R/Admin Operating Budget Ongoing Urban Forest Program's future role in advancing sustainability goals and objectives. k. Continue to monitor the status of the Integrated Waste Management Authority (IWMA) 4.1 Polystyrene Ordinance and respond as needed and appropriate. Utilities -Solid Waste Operating Budget Ongoing 4.2 Continue to update and implement the Climate Action Plan ("CAP") for carbon neutrality JM 4.2 a. Complete the Biennial Climate Action Plan Update, as called for by CAP Administrative Action 3. Admin Operating Budget FY23 Q2 b. 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 identify and prioritize projects for City facilities. - iii. Complete installation of lighting retrofits at City Hall and Fire Station 1 using available on -bill 4.2 financing. Admin/PW/Utilities Capital Ongoing - iv. Complete installation of solar panels at the City's Bus Yard, Fire Station 1, and Sinsheimer Pool. v. Install Transit Facility EV Charging Infrastructure vi. Review options to further integrate climate action into the 2023-25 Financial Plan. vii. Explore, and launch if feasible, a payroll loan program to help employees purchase bicycles and e-bikes. c. Provide for ongoing support for Central Coast Community Energy Policy and Operations Board 4.2 Members, and engage in staff level policy and program development, as called for by CAP Clean Admin Operating Budget Ongoing Energy task 1.1. d. Update the Clean Energy Choice Program for New Buildings for consistency with the 2022 4.2 California Building Code update, as called for by CAP Green Buildings task 1.1. CDD/Admin Operating Budget FY23 Q2 f. Initiate a new grant program to catalyze energy efficiency and decarbonization retrofit projects 4.2 in existing buildings that will also serve as demonstration and showcase projects, in support of Admin/CDD Operating Budget FY23 Q4 CAP Green Buildings task 2.1. 4.2 g. Provide support for community electric mobility work being led by the SLO Climate Coalition, in Admin Operating Budget FY22 Q2 support of CAP Connected Communities task 3.1. g. Implement organic waste reduction measures required by California Senate Bill 1383, which 4.2 are also called for by CAP Circular Economy tasks 1.1, 1.2, 1.3, and 2.1. Utilities Operating Budget Ongoing 4.3 Continue preservation, maintenance, and enhancement of the City's open space and urban forest a. Working with the Coastal San Luis Resource Conservation District, complete existing planning 4.3 efforts and pilot program implementation at Johnson Ranch Open Space and City Farm intended Admin Operating Budget FY22 Q4 to improve soil health and remove and store carbon, as called for at CAP Natural Solutions task 1.1. b. Complete an Urban Forest Master Plan including a comprehensive update of tree inventory 4.3 update, assessment of tree canopy coverage, and implementation of an ongoing tracking system, Admin Capital FY22 Q2 as called for by CAP Natural Solutions task 2.1. c. 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 4.3 for a prioritized replacement schedule for downtown focus trees, and begin implementation in PW Capital Ongoing order to ensure the long-term preservation of the Downtown street tree canopy. 59 Major City Goals — Climate Action, Open Space & Sustainable Transportation PROGRAMS/PROJECTS Strategic Responsible Approach tf Climate Action, Open Space and Sustainable Transportation Department Funding Source Completion Date Task/ Action d. Partner with ECOSLO to support the 10,000 Trees by 2035 goal through a tree planting and 4.3 maintenance program, as well as continue with the SLO Stewards Docent Program, annual creek Admin New Funding Ongoing clean up efforts, and administration of the SLO Green Business Program. 4.3 e. Actively pursue opportunities to purchase open space lands and permanent land conservation Admin Capital Ongoing agreements in furtherance of the City's Greenbelt Protection Program. f. Update the existing Cerro San Luis Natural Reserve Conservation Plan (2005), including a 4.3 contemporary natural resources inventory, mapping, policy review, and identification of land Admin Operating Budget FY22 Q2 stewardship needs and priorities. g. Implement priority projects and actions at Cerro San Luis Natural Reserve consistent with the 4.3 updated Conservation Plan. P&R Operating Budget ongoing h. Update the existing South Hills Natural Reserve Conservation Plan (2007), including a 4.3 contemporary natural resources inventory, mapping, policy review, and identification of land Operating Budget FY23 Q4 stewardship needs and priorities. Admin i. Implement priority projects at South Hills Natural Reserve consistent with the updated 4.3 Conservation Plan. P&R Operating Budget ongoing j. Create the Righetti Hill Open Space Conservation Plan in order to guide the long-term 4.3 protection and appropriate public use of this new City Open Space property. Admin Operating Budget FY23 Q4 4.3 k. Implement priority projects at Righetti Hill Open Space consistent with the Conservation Plan. P&R Operating Budget FY23 Q4 I. Complete installation of adopted trail systems and establish regular Ranger Service patrol at 4.3 Miossi Open Space. P&R Operating Budget FY23 Q4 m. Complete installation of adopted trail systems at the Waddell Ranch addition to the Irish Hills 4.3 Natural Reserve. P&R Operating Budget FY23 Q4 n. Continue Open Space education activities including the "hikes with experts" series, Junior 4.3 Ranger Camp, supporting the SLO Stewards Docents, and ongoing public information and Operating Budget Ongoing programming. P&R o. Continued implementation by Ranger Service staff of all Open Space maintenance activities 4.3 including establishing a replacement schedule for Open Space trailhead improvements, as well as P&R Operating & Capital Ongoing replacement or repair of Open Space fencing currently in disrepair, all as set forth in the adopted Open Space Maintenance Plan p. Continued, ongoing Ranger Service patrol of Open Space areas ensuring compliance with the 4.3 City Open Space regulations, the safety of users, and protection of natural resources values and P&R Operating Budget Ongoing functions. q. Implement Laguna Lake Dredging and Sediment Management and Shoreline Stabilizations 4.3 Projects in order to begin restoration of the lake for recreation and habitat improvement PW/Admin Operating Budget Ongoing purposes 4.4 Alternative and Sustainable Transportation a. Establish consistent mode split tracking and reporting method, consistent with performance 4.4 monitoring recommendations as called for in the Active Transportation Plan and CAP Connected PW Operating Budget FY22 Q3 Communities task 1.1. b. Prepare a Mobility as a Service Study to guide potential implementation of programs and 4.4 software tools to create an integrated platform linking access to transit, future bikeshare and PW New Funding FY22 Q4 ridesharing services, as called for in CAP Connected Communities task 1.2. c. Prepare a Transit Innovation Study to provide a blueprint to guide the transition to increased 4.4 service frequency, electrification and feasibility of no -fare service for students, seniors, and PW New Funding FY23 Q1 others as called for in CAP Connected Communities tasks 4.2, 4.3, and 4.4. d. 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 4.4 ii. Construct Minor Bicycle and Pedestrian Access & Safety Improvements PW Capital Ongoing - 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 Micro mobility industry and feasibility of future SLO Bikeshare Program. vi. Complete construction of the Broad/Woodbridge Pedestrian Hybrid Beacon crossing e. Perform additional sweeping to remove debris and obstructions along sidewalks, shared -use 4.4 paths, and bike lanes, including use of narrow street sweeping machinery and manual sweeping PW Operating Budget Ongoing to clear protected bike lanes, parklets and painted bulb outs. FUNDING IN ECONOMIC RECOVERY 1.4 a-2. 4.4 f. Construct sidewalk repairs and new ADA curb ramps to improve access and safety for PW Capital Ongoing pedestrians, particularly those with mobility challenges. g. Achieve meaningful progress towards the "Vision Zero" goal by implementing 4.4 recommendations from the City's Annual Traffic Safety & Operations Program, with particular PW & PD Operating &Capital Ongoing focus on eliminating injury collisions involving vulnerable road users such as bicyclists, pedestrians, seniors and children. 60 Major City Goals — Climate Action, Open Space & Sustainable Transportation PROGRAMS/PROJECTS Strategic Responsible Approach a Climate Action, Open Space and Sustainable Transportation Department Funding Source Completion Date Task/ Action h. Construct the Anholm Neighborhood Greenway Phases 113 and 2, completing the priority 4.4 bicycle and pedestrian route between Foothill Boulevard and Downtown SLO, including safety PW & P&R Capital FY22 Q4 lighting and public artwork at the US 101/Chorro Undercrossing i. Complete construction of the Orcutt Road/Tank Farm Road Roundabout, reducing congestion 4.4 and auto emissions and improving access and safety for bicycles, pedestrians and drivers. PW Capital FY22 Q3 j. Complete construction of the California/Taft Roundabout, reducing congestion and auto 4.4 emissions and improving access and safety for bicycles, pedestrians and drivers. PW Capital FY23 Q4 3.4 k. Install new streetlights throughout the city PW Capital Ongoing 4.4 I. Install new solar path lights along the Bob Jones and Railroad Safety Trails, utilizing solar options PW Capital FY23 Q4 where feasible, to improve safety for active transportation users. m. Widen Higuera Street from Bridge to Elks to address collision trends by providing a center left- 4.4 turn lane and improve bicycle facilities. PW Capital FY23 Q2 4.4 n. Continue Active Transportation Education and Outreach to encourage safe behaviors for all PW, PD Operating Budget Ongoing road users and to encourage interest and use of active transportation modes. o. Prepare Feasibility Study for Potential City VMT Mitigation Program, providing a programmatic 4.4 mechanism to reduce VMT and GHG production of new development projects within the city. PW, CDD, Finance, Operating Budget FY22 Q2 SLOCOG 4.4 p. Continue advancing the electrification of the SLO Transit vehicle fleet, including electrification Transit/PW Capital Ongoing of buses and bus charging infrastructure. 4.4 q. Replace SLO Transit bus shelters to maintain a quality environment for new and future transit users. Transit/PW Capital FY22 Q4 4.4 r. Fund two Transportation Interns to assistance with implementation of sustainable PW New Funding Ongoing transportation projects and programs. s. Implement Neighborhood Traffic Management Program to address traffic speeding concerns 4.4 through local residential streets and collector/arterial streets with fronting residential uses. PW Capital Ongoing 4.4 t. Preserve and repair pavement surface within SLO Transit Bus Yard PW Capital FY22 Q4 u. Pedestrian & Bicycle Pathway Maintenance: Preserve and repair pavement service along off- 4.4 street pedestrian/bicycle pathways (RRST from Cal Poly to Taft; Madonna Inn Path; Meadow Park PW Capital Ongoing Paths) v. Street Reconstruction and Resurfacing: Implement the City's Pavement Management Program, 4.4 repairing pavement surfaces along roadways throughout the city while leveraging opportunities PW Capital Ongoing for safety and multimodal street improvements. 4.4 w. Traffic Sign & Striping: Repair and replace traffic signs and roadway pavement markings to PW Capital Ongoing maintain traffic control measures for all road users in a state of good repair. x. Development Agreements: Fund the City's share of costs associated with public infrastructure to be constructed by private development projects per reimbursement agreements for the 4.4 following projects: PW Capital FY23 Q4 Avila Ranch -- City share of Buckley Road Extension Class I Path - 600 Tank Farm -- City share of Tank Farm/Santa Fe Roundabout, Santa Fe Road Extension, and Design & Right -of -Way for Tank Farm Class I Path 4.5 Planning and implementation for resilience a. Complete the "Resilient SLO" planning project (Safety Element Update and associated CEQA) to 4.5 assess community vulnerability to the impacts of climate change and adopt a resilience policy CDD/Admin New Funding FY22 44 framework in the City's General Plan, as required by California Senate Bill 379. b. Following successful piloting at Terrace Hill Open Space, implement and expand vegetation 4.5 management for fire fuel reduction, as well as to promote soil health and recruitment of native Admin/P&R New Funding Ongoing perennial bunchgrasses, using goats and sheep with a professional contractor in order to ensure a safe and effective operation. c. Proactively conduct pre -season inspections of the creek system and implement the removal of 4.5 woody debris, hazardous trees, and other obstacles that could lead to an increased potential for Admin/P&R Operating Budget Ongoing local flooding in accordance with the City's Routine Maintenance Agreement permit issued by the California Department of Fish and Wildlife. d. Replace or repair Open Space fencing that is currently in disrepair at Cerro San Luis Natural 4.5 Reserve, Irish Hills Natural Reserve, Bowden Ranch Open Space, and the Bob Jones Trail. (Includes Admin/P&R Operating Budget FY23 Q4 existing Creek and Flood Protection Staffing resources) 4.5 e. Respond quickly to instances when hazardous trees are identified on City Open Space lands or Admin/P&R New Funding Ongoing creek areas where the City has a property interested. f. Conduct a microgrid feasibility assessment to identify City properties that could add solar, 4.5 battery storage, and controls to allow operation during times of electrical grid outages as an Admin/PW New Funding FY23 Q4 uninterruptable power supply. g. Support development of the "Micro Community Collaborative" (MCC) initiative with SLO 4.5 Climate Coalition, which includes a 1) web platform for community members to learn how they Admin New Funding FY23 Q4 can complete their own sustainability initiatives, and 2) coordinating support to advertise the web platform and support communities of practice throughout the city. h. Establish an Open Space Fire Fuel Reduction Crew (part-time staff, 4,000 hours), including 4.5 procurement of necessary machinery and equipment, in order to ensure that the City's has a P&R/Admin New Funding Ongoing reliable means of conducting fuel reduction activities. 61 Major City Goals — Climate Action, Open Space & Sustainable Transportation PROGRAMS/PROJECTS Strategic Responsible Approach ff Climate Action, Open Space and Sustainable Transportation Department Funding Source Completion Date Task/ Action i. Expand Technical Rescue Team roster from 3 to 6 firefighters to improve the City's open space 4.5 rescue capabilities and improve self-sufficiency following the first 72 hours of a regional disaster Fire New Funding FY22 Q4 such as earthquake or flood where resources are often limited. j. Project: Storm Drainage Infrastructure Replacement - capital maintenance and replacement of 4.5 pipe, culvert and constructed drainage channels to provide increased flood protection and PW Capital Ongoing reduced likelihood of loss of property k. Project: Inlet Trash Capture Devices (Water and Wastewater Management Element: The City will manage the collection system to ensure that the proper level of maintenance is provided and 4.5 that the flow in sanitary sewers does not exceed design capacity.) This annual asset maintenance PW Capital Ongoing project addresses capital maintenance and replacement of pipe, culvert and constructed drainage channels to provide increased flood protection and reduced likelihood of loss of property. I. Project: Pismo/Johnson/San Luis Creek Bank Stabilization - San Luis Creek passes under Johnson 4.5 Avenue near Pismo Street. The creek bank is starting to erode and this project will stabilize the PW Capital Ongoing creek bank and protect Pismo Street. 4.5 m. Project: Hydration Stations at Various Parks -funding annually for parks surfacing PW Capital Ongoing maintenance and water supply infrastructure including the installation of hydration stations. n. Project: Laguna Lake Dredging - rerouting of Prefumo Creek has increased sediment deposits 4.5 into the lake. This is a pilot project to ascertain if dredging is a viable solution for Laguna Lake and Admin Capital FY22 Q2 could become a routine maintenance activity. o. Project: Ludwick Community Center - Roof and Solar Replacement (This funding provides for capital maintenance of facilities that will reduce unplanned repair costs and optimize energy use 4.5 by providing planned equipment replacements and building shell sealing. Benefits of proper PW Capital FY24 Q2 infrastructure maintenance reduces the cost of major repairs, increases energy efficiency, and ensures the facilities remain in functional condition.) p. Water Treatment Plant Emergency Power - PSPS - additional temporary or permanent 4.5 emergency generators, requiring engineering design and inspection services, and construction at Utilities Capital Ongoing the Water Treatment Plant, Whale Rock Reservoir, and other water pump stations. q. Water Treatment Plant - Power Storage Units Tesla Battery Grant - when emergency power is not required for plant operations, the power storage units will allow plant staff to shift power 4.5 needs during electrical time of use periods having lower electrical rates, and lower carbon Utilities Capital Ongoing emissions associated with the transmission of electrical power. The control module operating the power storage units will also monitor and track energy efficiencies of existing pumps and the plant's treatment units. r. Sustainable Groundwater Management Act (SGMA) Groundwater Sustainability Plan (GSP) - collaborate with Groundwater Sustainability Agency (GSA) stakeholders to effectively manage the 4.5 groundwater basin in the City, which may include preparation of research studies, field Utilities Capital Ongoing investigations, legal documents, grant applications, and regional participation in the development of a GSP. Mid-Higuera Bypass - this funding provides final engineering design work for this long -planned 4.5 �s. flood control project between Marsh Street and Madonna Road along San Luis Obispo Creek, 7PW Capital Ongoing 62 Local Revenue Measure Local Revenue Measure (1.5 Cent Local Sales Tax) Introduction In November 2020, the City's voters approved a local sales tax measure (Local Revenue Measure) that will provide an additional $16 million for community services and infrastructure improvements. The community set the spending priorities for the measure funding as: �g Protection of Financial Stability �g Creek & Flood Protection Safe & Clean Public Spaces 4�1 Youth/Senior Services & Recreation Facilities Open Space/Natural Areas preservation & Maintenance Community Safety & Emergency Preparedness Address Homelessness Economic Development & Business Retention '9 Street Maintenance and Transportation �g Other Services & Projects The proposed uses of the revenue is recommended by the advisory body to the City Council, the Revenue Enhancement Oversight Commission (REOC), based on input from the community, the Major City Goals established by the City Council in alignment with updated revenue projections. Revenue and Expenditure Forecast Highlights • Revenue projections reflect bounce back to pre -pandemic levels that is aligned with trends in other revenue sources for the City and statewide. This forecast of revenues may change over time and updates will be provided to the REOC and Council. • The "tripling" of revenues from the previously approved local sales tax measure means that the Local Revenue Measure becomes the City's largest revenue stream. It also means that the capital improvement projects which can now be funded may be larger in scale, budget, and community benefit. • There is an increase in allocation to operating expenditures during the Financial Plan period to help advance one-time Major City Goal efforts and prepare staff resources to deliver on an extensive capital improvement plan that will dramatically ramp up over the next five years. • Staffing and operating expenditure trends will be monitored and re-evaluated each year to maintain consistent focus on Capital Improvement Program spending. Balance between Capital Investment and Operating Budget Support Previous input from the community and REOC asked to prioritize Local Revenue Measure funds for infrastructure investments. However, operating program costs frequently follow the implementation of capital projects as the assets require maintenance and upkeep; for instance, 63 Local Revenue Measure 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 capital projects without related operating program support to implement the projects and maintain the assets nor would this approach address some of the expectations from the community for service delivery. In the 2021-23 Financial Plan, expenditures are proposed to be budgeted at 75% capital and 25% operating costs, with an expectation of an 85% capital and 15% operating costs split in subsequent years. The reason for the increased operating allocation during the 2021-23 Financial Plan is two -fold: 1) one-time funding will help provide immediate resources needed to help the community and local economy recover from the COVID-19 pandemic. 2) it allows the City time to ramp -up the operating resources necessary to deliver on the ambitious Capital Improvement Plan. The split between capital project investments and operating costs for the 2021-23 Financial Plan are listed below resulting in a small balance being retained for emerging funding needs: Local Revenue Measure Uses Expenditures are broken into the following 10 categories developed from the Measure G20 (Local Revenue Measure) ballot language: 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 A detailed list of the projects and services funded through the Local Revenue Measure in FY 2021-2023 is included, 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 Unitto 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 64 Local Revenue Measure funding for business support programs and other economic development activities, an additional Ranger Maintenance Worker, funding for open space fuel reduction and open space acquisition, replacement of the 911 emergency system, permanent Downtown ambiance lighting and public art installations, playground equipment replacement at several parks, Railroad Safety Trail fencing, Laguna Lake dredging, pedestrian and bicycle pathway maintenance, implementation of Phase II of the Anholm Neighborhood Greenway Plan and Downtown street reconstruction and resurfacing including bicycle and pedestrian improvements. Table 1 provides a breakdown of the allocation of Local Revenue Measure Funding in the 10 categories for the Financial Plan. 'Table•. 1. Protect Financial Stability 328,811 340,809 Total 669,620 2. Community Safety and Emergency Preparedness 3,368,782 3,076,016 6,444,798 3. Creek and Flood Protection 1,592,567 1,384,031 2,976,598 4. Address Homelessness 706,014 667,014 1,373,028 5. Safe and Clean Public Areas 1,063,271 2,982,650 4,045,921 6. Economic Development and Business Retention 1,841,188 874,875 2,716,063 7. Youth/Senior Services and Recreation Facilities 3,422,159 2,193,470 5,615,629 8. Street Maintenance and Transportation (includes bicycle and pedestrian improvements) 8,469,882 10,270,918 18,740,800 9. Open Space/Natural Areas Preservation and Maintenance 1,9821407 1,033,677 3,016,085 10. Other Services and Projects 1,376,711 2,212,640 3,589,351 65 Local Revenue Measure 2021-23 LRM Uses ($ 49.2 M) 7% 1% r-o/- 13% .IA ■ 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 66 2021-23 Local Revenue Measure Expenditures The 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. Operating# Project Title Protect Financial Stability 1 Fire Policy Research Software (Lexipol) 11,169 9,369 E 2 Fire Injury Reduction Program 18,000 18,000 E 3 Application Systems Specialist (1 FTE) 105,312 110,384 E 4 Financial Specialist - Accounting (1 FTE) 73,882 77,281 E 5 Accounting Assistant (1 FTE) 68,004 71,106 E 6 Half -Time Technology Project Manager (.5 FTE) 52,444 54,669 E Subtotal 328,811 340,809 Community Safety and Emergency Preparedness 7 General Plan - Safety Element Environmental Review 25,000 - C 8 Police Records Reporting Software 15,400 - D 9 Emergency Response Live - Fire Training Improvements 20,045 17,570 10 Fire Intern Program 22,691 23,257 D 11 Fire Recruitment Academy Support and Supplies 29,000 - D 12 Fire Emergency Operations Center Training (Emergency Management Services) 30,000 30,000 13 Police - Public Safety Equipment Replacement and Supplies 12,600 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 Expansion 17,850 9,150 C 17 Open Space and Creeks Hazardous Tree Removals 20,000 20,000 C 18 Fire Training/Safety Captain (1 FTE) 191,276 191,276 19 Community Safety and Emergency Preparedness (Firefighters, 2; Downtown Police Patrol Officers, 3, Downtown Sergeant, 1): FTE 6 936,747 1,003,483 E 20 Initial Design Study - Police Station Replacement 100,000 300,000 21 Police - 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 Replacement 5,000 47,200 23 Fire Station #1 Administration Bldg. Roof Replacement 270,000 - 24 Fire Station #1 Roof Access Ladders 50,000 25 Fire Station # 2 Parking Lot Maintenance 45,000 - 26 Fire Station #3 & #4 Remodel Space Study and Design 25,000 75,000 D 27 Fire Station #4 Exterior Paint - 27,500 28 Fire Hydrant Replacement 40,000 40,000 29 Facility Roll Up Door Replacements - Various Locations 17,000 15,000 30 Police - Fleet Replacement (Patrol Hybrid SUV, 2/YR; Motorcycles; SNAP SUV, 1; Investigations SUV, 1) 220,000 235,000 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. 67 # 31 Project Title Fire - 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) Operating 275,000 465,000 32 Radio Handhelds & Mobiles (Police and Fire) 116,758 - 33 Uninterruptible Power Supplies 42,465 34 VMware Infrastructure Upgrade 110,250 35 Pipe Inspection Software & Licenses 23,500 36 911 Phone System Replacement 250,000 - Subtotal 1,332,809 1,555,316 2,035,973 1,520,700 Creek and Flood Protection 371 Creek and Flood Protection ( Wastewater Collection Operators and Supervisor, Environmental Compliance Inspectors, Stormwater Management, Environmental Programs Manager): FTE 6 632,567 659,031 C 38 Storm Drainage Infrastructure Replacement (multiple locations) 850,000 500,000 C 39 Woodbridge Groundwater Runoff Diversion 10,000 175,000 C 40 Creek Trash Capture 50,000 50,000 C 41 Pismo/Johnson/San Luis Creek Bank Stabilization 50,000 - C Subtotal 632,567 659,031 960,000 725,000 Address Homelessness 42 Homelessness Strategic Plan 35,000 - H 43 Expansion of 40 Prado Homeless Services Center Bed Capacity 63,826 63,826 H 44 Housing and Homelessness Contract Services Support 117,000 117,000 H 45 Mobile Crisis Unit (Paramedic and Social Worker Pilot Program) 300,000 300,000 H 461 CAT Team Social Worker 125,188 116,188 H 47 Parks and Open Space Environmental Clean -Up Resources 65,000 70,000 H Subtotal 706,014 667,014 Safe and Clean Public Areas 48 Increased Trash and Recycling Services in Public Spaces 125,000 125,000 E 49 Additional Landscape Maintenance Contract Services 55,000 65,000 E 50 Safe and Clean Public Areas (Parks Maint. Specialist): FTE 1 78,271 82,650 E 51 Bob Jones Trail and Railroad Safety Trail Solar Lighting 100,000 1,350,000 C 52 Mission Plaza Concept Plan Implementation (Phase 1- Restroom Replacement and Kiosk Caf - 1,035,000 E 53 Mission Plaza Railing replacement 80,000 - E 54 Downtown Safety Enhancement (street bollards) 400,000 - E 55 Curb Ramps and Sidewalks Replacement (various locations) 50,000 150,000 C 56 Sidewalk Replacement and Installation (includes street trees) 100,000 100,000 C 57 Street and Pathway Lighting (various locations) 75,000 75,000 C Subtotal 258,271 272,650 805,000 2,710,000 Economic Development and Business Retention 58 Arts, Culture and Community Partner Support 50,000 25,000 E 59 Business Promotions and Communication Support 80,000 E 60 Open SLO - Downtown Dining Temporary Staffing 13,688 27,375 E 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 fWded. # 61 Project Title Economic Development Program Support Operating 50,000 25,000 E 62 Economic Development Data Tracking and Reporting 30,000 30,000 E 63 New Economic Development Strategic Plan - 100,000 E 64 Support for Underserved/Underrepresented Community Businesses - 150,000 D 65 TBD Business Retention/Recovery Programs 500,000 250,000 E 661 Zoning Regulations Update for Downtown Uses and Flexible Outdoor Spaces Citywide 125,000 - E 67 Holiday Activation Support in Downtown for Lighting and Other Features 150,000 150,000 E 68 Downtown Zig-Zag Lighting 250,000 E 69 Downtown Public Art Installations 200,000 E 70 Additional Banner Arms, Bench Arm Rests, Signs 100,000 25,000 E 71 Downtown Renewal (Open SLO: Supplemental funding for Curbside Parklets) 200,000 - E 72 Annual Public Art Maintenance and Projects (Utility Box Beautification, Small Public Art Projects, Maintenance) 92,500 92,500 E Subtotal 998,688 757,375 842,500 117,500 Youth/Senior Services and Recreation Facilities 73 One -Time Aquatics Supplemental Staff due to COVID-19 Protocols 62,000 - 74 SLO 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 Implementation 200,000 200,000 79 DeVaul Ranch Playground Equipment Replacement 60,000 - 80 Vista Lago Mini Park Playground Equipment Replacement 50,000 - 81 Mitchell Park Playground Equipment Replacement - 100,000 82 Cheng Park Revitalization 300,000 - D 83 Meadow Park Pathways Refurbishment 250,000 - 84 Orcutt Area - Linear Park Planning and Construction - 815,000 H 85 North Broad Street Neighborhood Park Construction 175,000 - 86 Mission Plaza Arbor Refurbishment 15,000 70,000 87 Jack House Arbor refurbishment - 7,500 88 Meadow Park Exercise/Par Course Equipment Replacement - 20,000 89 Parks Play Area Surfacing 30,000 30,000 90 Santa Rosa Park Barbecue Replacements - 7,500 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. 69 # 91 Project Title Poinsettia Creek Walk Pathway Refurbishment Operating 200,000 - 92 Laguna Lake Golf Course Maintenance 20,000 20,000 93 Sinsheimer Park Hardscape Replacement 135,000 - 94 Concrete Bench & Table Replacement Various Locations 15,000 15,000 95 Hydration Stations Various Parks and Facilities 15,000 15,000 C 96 Railroad Safety Trail Fencing 350,000 - 97 Parking 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 C 99 Swim Center Furnaces Replacement 40,000 100 Ludwick and Senior Center - Exterior Paint and Shell Rehabilitation - 30,000 101 Water Stations and Supply Lines 25,000 25,000 102 Sinsheimer Stadium Irrigation and Drainage Replacement 650,000 - 103 Irrigation Mainline Leak Repair 15,000 15,000 104 Parks Major Maintenance - ADA Transition Plan Implementation 20,000 20,000 D 105 Park Maintenance - Fleet Replacement: (Mower, 1; Tractor, 1; Trailers, 4;) 75,000 108,000 106 Parks 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 Blankets 5,000 - 109 Swim Center Bath House Ceiling 5,000 110 Swim Center Therapy Pool Boiler 85,000 111 Swim Center Pool Water Chemical Regulator 50,000 112 Jack House Windows Walk Railing 100,000 - Subtotal 308,159 289,470 3,114,000 1,904,000 Street Maintenance and Transportation (includes bicycle and pedestrian 11 improvements) 113 Accessibility and Process Improvement Support Services 34,000 12,000 114 Mobility as a Service Study 25,000 - C 115 One -Time Streetlight and Signal Electrical Costs 60,000 - 116 Supplemental Street and Parklet Sweeping 250,000 250,000 E 117 Transportation Interns 30,350 31,071 C 118 Additional Street Operator for Maintenance of Streets and Right of Way 1 78,312 11191 Increased Asphalt and Concrete Budget 60,000 1 60,000 MCG Kew E: Economic Recoverv. Resiliencv and Fiscal Sustainabilitv: D: Diversity. Eauitv. and Inclusion (DEI): H: Housine and Homelessness: C: Climate Action. OD en Space and Sustainable Transportation. *Light gray shaded projects are one-time fKded. # 120 Project Title Increased Budget for Signals and Street Light Equipment and Electricity Operating 25,000 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 H 123 California & Taft Roundabout Construction 300,000 2,720,000 C 124 Pavement Management (Downtown areas) 2,404,647 2,425,000 125 Active Transportation Plan Implementation 205,000 305,000 C 126 21-22 Sealing Project Complete Street Components 200,000 200,000 127 Concrete Street - Monterey - CA to Santa Rosa - 800,000 128 Prado Road Bridge & Road Widening 427,780 146,573 H 129 Streets Maintenance - Fleet Replacement (F550 with Hooklift, 1; F550 with Utility Bed and Crane, 1; Axle Kneeling Trailer, 1; Asphalt Zipper,l) 390,000 - 130 Buchon-Santa Rosa Intersection Improvements - 250,000 131 Madonna Inn Frontage Bike Pathway (Madonna to Fernandez) 150,000 132 Neighborhood Traffic Improvements 75,000 75,000 C 133 Bridge Maintenance - 100,000 134 Railroad Safety Trail from Cal Poly to Taft Street - 50,000 135 Engineering Pickup, 2; 3 Yr. Temp 66,000 - 136 Transportation Safety & Operations 30,000 30,000 C 137 Traffic Signs & Striping Maintenance 25,000 25,000 C 138 Pedestrian and Bicycle Pathway Inventory and Pavement Condition Index Study 20,000 - 139 Anholm Neighborhood Greenway Plan Implementation - Phase II 2,450,000 C 140 South Street Median Landscaping 240,000 141 Avila Ranch - Buckley Extension Class I Bike Lane 120,000 C 142 Transportation Monitoring & Modeling Update 70,000 Subtotal 1,016,455 1,014,345 7,453,427 9,256,573 Open Space/Natural Areas Preservation and Maintenance 143 ECOSLO partnership - SLO Stewards, Tree Planting & Maint., Green Business, Creek Clean Up 20,000 20,000 C 144 Fuel Reduction Crew Tools and PPE 4,500 C 145 Sustainability & Natural Resources Analyst 62,753 62,753 C 146 Sustainability & Natural Resources Intern/ Urban Forest Master Plan Intern - 13,613 C 147 Fuel Reduction Crew (4000 Supplemental Staff Hours) 60,140 61,589 C 148 Open Space Vegetation Management and Fuel Reduction 20,000 20,000 C 149 New Ranger Maintenance Worker (1 FTE) 70,854 74,105 C 150 Ranger Services Staffing Resources (Equivalent to 2 FTEs) 84,561 92,421 C 151 Open Space/Natural Areas Preservation and Maintenance (2 FTE Ranger Maintenance Workers) 169,599 159,196 C 152 Laguna Lake Dredging and Sediment Management Project Implementation 840,000 - C 153 Open Space Acquisition 250,000 250,000 C 154 Open Space Maintenance 60,000 80,000 C 155 Open Space Fencing 25,000 25,000 C MCG Key: E: Economic Recovery, Resiliency and Fiscal Sustainability; D: Diversity, Equity, and Inclusion (DEI); H: Housing and Homelessness; C: Climate Action, OI Space and Sustainable Transportation. *Light gray shaded projects are one-time funded. 71 )en # 156 Project Title Urban Forest Maintenance Operating 175,000 175,000 C 157 Urban Forest Master Plan 140,000 - C Subtotal 492,407 503,677 1,490,000 530,000 Other Services and Projects 158 CIP Interns 5,000 5,900 E 159 Contract Heavy Equipment Mechanic 85,220 89,065 160 Fleet Intern 20,991 18,398 161 City Fleet Vehicle Repairs 20,000 20,000 162 Increased Contract Funds for Specialized Mechanic Services 50,000 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 C 165 City Hall Landing Repair 60,000 - 166 Council Hearing Room Modification and Functionality Improvements - 130,000 1671 Information Technology Room Heat Pump Replacements 20,000 - 168 Energy Management Controls Upgrade 75,000 50,000 169 Citywide Wireless System Replacement - 70,641 170 City Storage Area Network (SAN) - 178,136 171 Major Facility Maintenance - ADA Transition Plan Implementation 10,500 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 Staff 500,000 1,000,000 175 Roundabout Public Art Installations 300,000 400,000 E Subtotal 211,211 213,363 1,165,500 1,999,277 71 Total 6,285,392 1 6,273,051 1 17,866,400 1 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. 72 FINANCIAL PLAN OVERVIEW • 73 Page intentionally left blank. 74 Budget at a Glance Budget at a Glance — General Fund The City of San Luis Obispo 2021-23 Financial Plan outlines the detailed approach to address community priorities in a fiscally responsible manner. The Financial Plan is aligned with the City Council's Major City Goals, supports the ongoing services of the City, maintains, and replaces its assets, and pays its debt. The Financial Plan also provides clear direction and authority to spend funds appropriated according to the strategic plan efforts and the services outlined. This Budget at a Glance section concentrates on the General Fund. You can find information pertaining to the Water and Sewer Utilities, Parking, and Transit in the "Business Activities" section of the budget beginning on page 283. Total Revenue $ 99,801 $ 103,748 Total Expenditures $ (98,764) $ (103,621) Revenue Over/(under) Expenses $ 1,036 $ 127 *in thousands The Financial Plan is centered around two strategic planning measures: 1) The 2021-23 strategic priorities (Major City Goals) that were developed through extensive community outreach and input, resulting in four strategic areas that provide for synergies between work programs to achieve the desired outcome — see page 31 for information on the City's community engagement process. 2) Local Revenue Measure (LRM) community direction Economic Recovery, Resiliency & Fiscal Sustainability Housing & Homelessness Diversity, Equity, & Inclusion Climate Action, Open Space, & Sustainable Transportation �g Protect Financial Stability g Community Safety & Emergency Prep. g Creek & Flood Protection g Address Homelessness g Safe & Clen Public Areas g Economic Dev. & Business Ret. • Youth/Senior Services • Street Maintenance & Transp. • Open Space Preservation & Maint. 75 Budget at a Glance Investment in Strategic Plan through Major City Goal Work Programs Two-year total 4 Economic Recovery, Resiliency & Fiscal Sustainability S29 million Diversity, Equity, Housing and f((Sustainable limate Action, Inclusion (DEI) pen Space & Homelessness Transportation S 2 million $38 million S30 million Investment in Strategic Plan for Local Revenue Measure Funding • Protect Financial Stability �g Economic Dev. & Business Ret. • Community Safety & Emergency Prep. �g Youth/Senior Services • Creek & Flood Protection Street Maintenance & Transp. • Address Homelessness Open Space Preservation & Maintenance • Safe & Clean Public Areas Other Services and Projects 2021-22 LRM Uses ($24.1 M) 1% ■ 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 For details on the individual objectives and work programs, please see the Strategic Priorities section. 76 Budget at a Glance Where the Money Comes From Revenue —General Fund Like most municipalities in California, various tax revenues Fees and Other Revenue provide the largest source of revenue for the General Fund, 19% financing most of the general government services. In the first year of the 2021-23 Financial Plan, the City has budgeted the first full year revenue of the voter approved local sales tax measure in addition to increases to the Cannabis tax with more businesses opening their doors. Though taxes make up most of the revenue, user fees for services are another important income for the City; in 2021-23, revenue from this source will make up 19% of the anticipated revenue. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 .0 Sales & Use Tax General $ 18,387 $ 19,086 4% Public Safety (Prop 172) $ 336 $ 339 1% Measure G $ 24,279 $ 25,202 4% Property Tax Property Taxes $ 13,997 $ 14,400 3% Real Property Transfer, Other Prop Taxes $ 399 $ 411 3% Property Tax In Lieu Of Vlf $ 5,796 $ 5,970 3% Transient Occupancy Tax $ 7,213 $ 7,753 7% Utility Users Tax $ 5,565 $ 5,565 0% Franchise Fees Business Tax Certificates Cannabis Tax $ 1,575 $ 2,426 $ 1,300 $ $ $ 1,606 2,547 1,500 2% 5% 15% :4 User Fee and Charges 1 2 3 4 5 6 7 8 9 10 thousands) Police Services Fire Services $ $ 637 1,404 $ $ 637 1,422 0% 1% Development Review $ 6,595 $ 6,864 4% Parks & Recreation $ 1,612 $ 2,039 27% General Government $ 438 $ 446 2% Cannabis $ 310 $ 388 25% Other Revenues $ 2,166 $ 2,208 2% Subventions & Grants Federal Stimulus Funding $ $ 900 4,465 $ $ 900 4,465 0% 0% Tax Revenue 81% 77 $50,000 $45,000 $40,000 $35,000 $30,000 c a In $25,000 .c $20,000 $15,000 $10,000 $5,000 Budget at a Glance Tax and Fee Revenue Trends Voter approved Local Sales Tax Measure ARPA Funding -- — — —— I .� 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 Sales & Use Tax Property Tax Other Tax Revenue Total Fees & Other Revenue What the Money is Spent On The City of San Luis Obispo provides daily services to the community and incurs operating and capital expenditures. It fulfills the ongoing services through its employees in Public Safety, Park & Recreation, Public Works, and Community Development which are supported by internal services departments such as Administration, City Attorney, Finance, and Human Resources. For each service, the capital cost of any equipment, infrastructure, or facility, needed to deliver the service, must be considered in addition to the ongoing operation and labor cost. Like most municipalities, the City is faced with balancing rising costs, limited resources, and continuing to provide excellent levels of service to its citizens. This balance is achieved through the budget process when departments undertake the analysis of budget needs and examination of work programs to find economies and efficiencies that are expected of a prudent and fiscally conscience service organization. The 2021-23 Financial Plan combines the strategic approach to the City Council's Major City Goals, the priorities of the local sales tax measure, and the City's efforts to recover from the worldwide Covid-19 pandemic. The City's annual operating budget for the General Fund totals $76 million and includes 68 programs reaching from Building and Safety, Development Review, Accounting, Purchasing, Emergency Response, Aquatics, Golf, Senior Services, Police Patrol, Traffic Safety, Streets & Sidewalk Maintenance, Transportation Planning, Sustainability, and the Urban Forest. 78 Budget at a Glance Operating Budget by Category' 1 Internal Services 2 Administration $9,737,859 $9,805,467 1% 3 City Attorney $1,185,571 $1,043,797 -12% 4 Finance $1,838,127 $1,938,643 5% uman Resource $1,700,849 $1,683,223 -1% 6 7 8 Non-Departmental/Citywide Public Safety Fire $1,083,058 $13,997,547 $2,514,628 $14,441,480 3% 10 Police Amu Community Services Community Services Group Admin Community Development $19,141,343 _AL $665,501 $6,981,163 $20,051,371 L $575,391 $6,841,987 -2% 1 12 13 Parks and Recreation $5,126,817 $5,336,170 4% 14 15 Public Works Utilities — Solid Waste $14,675,638 $199,699 $15,156,041 IF $176,280 3% -12% 1 Does not include transfers, cost allocation reimbursements, or projected operating budget savings. 79 Operating Budget Overview Operating Budget by Category -01 Inteft, Services Community 21% Services 36 % Public Safety \4446sh 43% Program Enhancements Budget at a Glance Operating Budget by Type Other Operating Expenditures 11% Contract Services 10% Transfers & Debt Service 3% Staffing 76% Program enhancements were included in the 2021-23 Financial Plan and address the organization's need to re-establish service levels at pre -pandemic levels. They adjust to forecasted workload and service level requirements set forth within the strategic direction and service expectations. As such the requests consider the following components: Essential for the Protection of health and safety Needed for the advancement of Major City Goals Realign ongoing services after budget cuts due to Covid-19 Needed to provide ongoing services to the community General Fund •: One-time General Fund (non-LRM) Local Revenue Measure G20 $ 3,947,423 $ 2,487,918 $ 1,204,785 $ 538,777 $ 2,370,132 $ 1,851,197 Other Funding Sources $ 372,506 $ 97,945 Ongoing $ 3,581,526 $ 4,147,670 General Fund (non-LRM) $ 1,165,143 $ 1,316,075 Local Revenue Measure G20 $ 1,493,039 $ 1,882,106 Development Review Revenue Offset TOTAL $ $ 923,344 .,. $ 949,488 80 Budget at a Glance Capital Budget —General Fund The City's 20-year capital budget is a plan that identifies projects, needed funding, and timelines including the impact of multi -year, and multi -department projects. Capital requirements are driven by the need to maintain, upgrade, or replace existing ageing infrastructure, meet industry standards, populations growth and invest in new capital assets in alignment with the City's major city goals and community need. The Capital budget incorporates the new revenue coming from the local sales tax measure bringing the annual investment to over $20 million for infrastructure improvements. The plan includes projects such as bridge replacements, street rehabilitation, urban forest care, facilities and parks maintenance, multi -modal transportation, and playground equipment. Two-year total Five-yeartotal Two-year total t Five-yeartotal - $33,253,1397 $153,985,097 The Capital Infrastructure Investment that c orresponds with the City's strategic plan and its Major City Goals for the two-year period amounts to $18.3 million. Capital investment in Major City Goals FA � Hai ■ Climate Action, Open Space, Sustainable Transportation (52.9 million) Diversity, Equity. Inclusion (5440 thousand) Economic Recovery, Resiliency and Fiscal Sustainability (511.6 million) Housing & Homelessness (53.4 million) 81 Budget at a Glance Total General Fund Capital Expenditures' Capital Investment by Governmental Fund 2% 3% ■ Capital Outlay ■ Fleet ■ IT Replacement a Major Facilities Maint ■ Infrastructure Investment ■ Public Art Fund Capital Expenditures' 1 Includes Local Revenue Measure Capital Investment and one-time ARPA Federal Stimulus funding. 82 Budget at a Glance Repayment of General Fund Debt Debt Issue - Asset Outstanding Principal Annual Payment FY 2021-22 Final Year 2012 Refunding Bond $2,970,000 $383,400 2030 2014 Revenue Bond — LOVR Overpass $6,635,000 $420,231 2045 2018 Refunding Bond $9,212,575 $945,333 2039 2018 Lease — Fire Truck $316,104 $146,131 2024 2014 State Loan — Energy Conservation $232,111 $ 94,242 2024 2017 Lease — Golf Carts $9,300 $ 7,448 2023 2020 Lease — Motorola RadioS2 $435,342 $217,671 2023 Total General Fund Expenditure Budget The total expenditures provided for the long-term forecast consider the operating reimbursements and transfers to the General Fund (see page 104), essentially showing the net resource need to provide operating services. $120,000 $100,000 $98,764 $103,621 $80,000 c a o $60,000 � $40,000 $70,682 $73,814 $20,000 $26, $27,820 $1,997 FY 21-22 Operating Expenditures ow Capital Debt Service Total Z 2022 and 2023 General Fund debt amounts include a $217,671 obligation for the 2020 Lease — Motorola Radios that is transferred directly from the IT Replacement Fund to the Debt Service Fund. Therefore, the amount in the General Fund long-term forecast is lower than what is represented in the table above. 83 Budget at a Glance General Fund Reserve Levels Per the City's Fiscal Policies (see Reference Material), the City maintains a minimum fund balance of 20% of operating expenditures in the General Fund. This is considered the minimum level necessary to maintain the City's credit worthiness and to adequately address: Economic uncertainties, local disasters, and other financial hardships or downturns in the local or national economy. Contingencies for unforeseen operating or capital needs. Cash flow requirements. In addition, the City now maintains a capital reserve of 20% of the annual Local Revenue Measure capital budget to offset unanticipated cost increases and unforeseen conditions and thus provides for continued investment in infrastructure maintenance and enhancement according to the adopted project list. The reserve will be accounted for in the Capital Outlay Fund. Projected Projected General Reserve $ 11.7 million $ 11.9 million Capital Reserve $ 3.4 million $ 3.6 million 84 CONSOLIDATED FINANCIAL PLAN PZ 42 rio A,Qm6mi ii 0 -1 • 85 Page intentionally left blank. 86 Consolidated Financials Combined Financials for all Major and Special Revenue Funds Total Funding Sources -All Funds Combined 1 Tax & Franchise Revenue $59,985 BudgetActual $64,461 ,.Budget $81,274 $84,379 4% 2 Service Charges & Other Revenue 3 General Fund $17,787 $12,785 $25,980 $17,730 $18,527 $19,369 I $26,001 $26,399 $23,885 $21,058 5% 4 Water Fund $26,484 Sewer Fund $20,306 Parking Fund $4,430 2% 5 -12% 6 $2,296 $5,542 $6,494 17% 7 Transit Fund $4,356 $6,189 $8,012 $4,950 -38% 8 Assessment Revenue $1,547 $1,507 $1,689 $1,812 7% 9 10 Proceeds from Debt Financing 11 Water Fund - $14,300 - - 12 Sewer Fund $14,846 $96,368 $23,921 $4,865 -80% 13 Total $149,741 $241,616 $188,850 $169,326 -10% In thousands Proceeds from Service Cha 44 ichise 87 Consolidated Financials All Expenditures Combined — By Fund General Fund Business Activities Water Fund Sewer Fund Parking Fund $75,824 $39,693 $34,738 $5,287 BudgetActual $76,901 ,.Budget $98,764 $25,501 $32,855 $6,547 1 $103,621 $27,632 $24,367 $11,520 5% 8% -26% 76% $35,011 $120,944 $4,748 Transit Fund Special Revenue Tourism Assessment $4,772 $1,383 $6,600 $1,225 $7,669 $1,443 $4,895 $1,551 -36% 7% Downtown Assessment 5272 $253 $245 $260 6% Total $161,969 $245,682 $173,024 $173,847 0% In thousands Sewer Funi 18% VrdLCl rums 20% Downtown Tourism Assessment ral Fund i4% 88 Consolidated Financials All Expenditures Combined — By Category Staffing $62,812 BudgetActual $64,341 ,.Budget $66,205 $70,407 6% Contract Services $11,536 $11,169 $11,394 $11,328 -1% Other Operating Expenses $26,809 $29,802 $26,632 $26,611 0% Capital Investment $51,392 $133,881 $54,578 $46,390 -15% Debt $9,420 $6,490 $6,685 $12,476 87% Operating Enhancements - General Fund $- Total $161,970 $- o $7,529 $6,635 -12/0 $173,024 $173,847 0% $245,682 In thousands Capital Inv 320, General Fund Other Operating 7% Expenses 15% ffing 8% 89 Consolidated Financials Fund Reserves and Undesignated Fund Balance General Fund BudgetActual 7 ,.Budget Operating $10,251 $11,394 $11,769 $11,916 Capital Outlay $120 $120 $3,426 $3,592 Water Fund $4,827 $4,201 $4,510 $4,483 Sewer Fund $2,268 $2,305 $2,386 $3,549 Parking Fund $605 $625 $718 $731 Transit Fund $755 $833 $842 $837 In thousands Balance/Working Capital General Fund Actual $7,123 Budget $4,482 Budget.• $4,512 $2,493 Water Fund $7,917 $13,944 $13,891 $12,668 Sewer Fund $23,458 $13,729 $25,533 $25,954 Parking Fund $13,944 $11,473 $10,375 $5,396 Transit Fund $1,617 $1,128 $1,463 $1,523 In thousands The City Council decided to leave the 2019-20 unassigned fund balance in the General Fund to counteract any adverse effects from the Covid-19 pandemic. It was originally designated to pay toward the City's unfunded pension obligation. The City will reassess the status of its pension obligation plan once the emergency status is eliminated and the City's finances have stabilized. Both, the Sewer and Parking Enterprise Fund have built-up working capital to pay for the construction of large projects. For Sewer, it is the upgrade of its Water Resource Recovery Facility and for Parking it is the fourth and final parking structure at Palm and Nipomo Street. For policy requirements, please see Financial Policies in Reference Section .o] 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 GENERAL FUND LONG TERM FORECAST 16 In Thousands Tax & Franchise Revenue Sales & Use Tax 1 1 24,542 1 1 28,278 • 1 1 •. •. 1 •. 1 $ 43,002 $ 44,627 45,073 45,524 45,979 Property Tax 18,795 19,554 $ 20,192 $ 20,781 21,405 22,047 22,708 Transient Occupancy Tax 6,326 6,267 $ 7,213 $ 7,753 8,291 8,374 8,542 Utility Users Tax 5,439 5,565 $ 5,565 $ 5,565 5,621 5,733 5,848 Franchise Fees Business Tax Certificates Cannabis Tax Fees for Service & Other Revenue Police Services Fire Services 1,888 2,914 82 902 1,442 1,544 2,854 400 550 1,325 $ 1,575 $ 1,606 1,638 1,671 1,704 $ 2,426 $ 2,547 2,674 2,942 2,971 $ 1,300 $ 1,500 _ 637 637 1,500 1,530 1 1,561 650 663 1,451 1,480 676 1,509 1,404 1,422 Development Review 1 7,258 5,722 6,595 6,864 7,070 7,282 7,500 Parks & Recreation 1,093 1,034 1,612 2,039 2,080 2,122 2,164 General Government 446 439 438 446 455 464 473 Cannabis Other Revenues Subventions & Grants Federal Stimulus Funding 2 68 5,530 1,047 321 1,820 1,572 310 388 428 464 509 2,166 2,208 2,204 2,247 2,302 900 900 900 900 900 4,465 4,465 Total Revenue $ Use of Funds 77,772 $ 77,245 $ 99,801 $ 103,748 $ 101,439 $ 103,441 $ 105,346 Staffing $ 51,203 $ 53,430 $ 54,284 $ 58,023 $ 58,961 $ 60,953 $ 62,215 Contract Services $ 5,900 $ 5,050 $ 4,963 $ 5,067 $ 5,169 $ 5,272 $ 5,378 Other Operating Expenditures $ 7,580 $ 7,688 $ 8,127 $ 8,345 $ 8,512 $ 8,683 $ 8,856 Cost Allocation $ (4,278) $ (4,578) $ (4,717) $ (4,812) $ (4,908) $ (5,006) $ (5,106) LRM G-20 Assigned $ 1,425 Carryover or assigned from fund balance $ 3,510 1 $ 4,397 $ 4,465 $ 4,597 •�1 SOBCs •. 60,406 $ 66,524 1 $ 7,529 $ 6,636 $ 70,186.1 Debt Service $ 2,742 $ 2,759 $ 1,997 $ 1,992 $ 2,000 $ 2,000 $ 2,000 Capital $ 11,238 $ 7,557 $ 26,087 $ 27,820 $ 25,597 $ 25,810 $ 26,020 Transfers Out $ Beginning Fund Balance 1,439 31,703 $ 61 11 $ 33,651 $ $ $ 495 98,764 30,9951 $ 550 $ 1�10,552 $ 824 $ 1,011 $ 103,1881 $ 1,208 Revenue Over/(Under) Expenses $ 1,948 $ 343 $ 1,036 $ 127 $ 887 $ 253 $ 178 Ending Fund Balance before CalPERS $ CAPERS Downpayments 33,651 $ _�kL 3,000 32,031 2,000 $ 30,1581 2,000 1,000 1,000 1,000 1 Policy Reserve Level - 20% 10,251 11,394 11,769 11,916 12,234 12,487 12,732 Assigned G 20 Future Funding 3 2,000 1,750 1,750 1,750 1,750 1,750 Capital Reserve 120 120 Revenue Stabilization Reserve 1,000 1,000 115 Pension Trust Fund 1,400 2,000 2,000 2,000 2,000 2,000 2,000 Restricted based on Audit (Estimate) 13,758 10,000 10,000 10,000 10,000 2,062 10,000 $ 1,062 10,000 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. 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. 91 WATER FUND LONG TERM FORECAST 1 Water Services Charges 14,464 13,785 15,776 16,329 16,900 17,492 17,841 2 Base Fee Revenue 5,052 5,168 5,560 5,754 5,956 6,164 6,287 3 Cal Poly Sales 966 920 972 1,006 1,041 1,077 1,099 4 Cal Poly Resilience & Capacity - 398 223 225 230 235 240 5 Recycled Water 898 910 962 995 1,030 1,066 1,088 6 Development Impact Fees 3,723 3,032 1,548 1,370 789 800 800 7 Investment & Property Revenue 818 303 408 424 394 430 451 8 Proceeds from Debt - 14,300 - - - - - 9 Grants - 1,197 256 - - - - 10 Miscellaneous Revenue 563 367 396 396 396 396 396 11 Rate Assistance Subsidy - (100) (100) (100) (100) (100) (100) 13 TOTAL:0 00 14 EXPENDITURE BY CATEGORY 15 Salaries & Benefits 4,761 4,520 4,735 4,901 5,557 5,816 5,943 16 Operating Expenditures 12,333 12,409 12,827 12,554 12,670 12,786 12,904 17 Capital Outlay 15,594 13,999 2,944 5,215 1,881 3,213 5,160 18 Debt Service 4,441 1,488 2,449 2,443 1,870 1,869 1,866 19 Transfers Out 2,564 2,595 2,546 2,519 2,818 2,865 2,939 20 TOTAL 21 EXPENDITURE BY FUNCTION 22 General Government 2,592 2,594 2,572 2,546 2,846 2,893 2,966 23 Water Source of Supply 14,188 14,144 10,550 10,383 10,457 10,539 10,622 24 Water Treatment 18,491 8,579 6,242 7,289 6,947 6,947 6,384 25 Water Distribution 2,435 8,284 3,888 5,268 2,432 3,843 6,665 26 Water Resources 243 402 533 465 452 463 474 27 Water Administration 1,743 1,008 1,442 1,400 1,372 1,568 1,397 28 Utilities Revenue (Billing) - - 274 281 291 297 302 29 TOTAL 30 CHANGES IN FINANCIAL POSITION 31 Working Capital - Beginning 28,373 15,164 20,433 20,933 19,700 21,539 22,550 32 Revenues over (under) Expenditure (13,209) 5,269 500 (1,233) 1,839 1,011 (710) 33 00 34 Operating Reserve _ 4,827 4,201 4,510 4,483 _ 4,583 4,667 4,730 35 Rate Stabilization 2,048 1,987 2,231 2,309 2,390 2,473 2,523 36 CALPERS Down Payment 252 180 180 120 120 120 120 37 UFLTrust Fund 120 120 120 120 96 72 - 38 92 SEWER FUND LONG TERM FORECAST RETE11 • • • - • 1 Sewer Service Charges 11,179 10,851 12,359 12,792 13,176 13,571 13,978 2 Base Fee Revenue 4,412 4,346 4,653 4,816 4,960 5,109 5,262 3 Cal Poly Sales 819 508 992 1,026 1,057 1,089 1,122 4 Cal Poly Capacity - 244 244 244 473 473 473 5 Development Impact Fees 2,031 870 1,384 1,190 618 600 600 6 Industrial User Charges 77 6 85 85 85 85 85 7 Investment & Property Revenue 1,182 539 402 608 732 585 537 8 Proceeds from Debt Financing 14,846 96,368 23,921 4,865 - - - 9 Miscellaneous Revenue 605 367 3,866 396 404 412 420 10 Rate Assistance Subsidy - (100) (100) (100) (100) (100) 11 TOTAL:• 12 EXPENDITURE BY CATEGORY 13 Salaries & Benefits 4,993 4,786 4,814 4,952 5,968 6,114 6,240 14 Operating Expenditures 2,569 3,055 3,334 3,271 3,320 3,370 3,421 15 Capital Outlay 23,365 109,420 20,923 6,623 9,652 4,993 2,406 16 Debt Service 1,382 1,388 1,384 7,190 7,285 7,100 7,099 17 Transfers Out 2,430 2,296 2,400 2,331 2,562 2,599 2,651 18 TOTAL 19 EXPENDITURE BY FUNCTION 20 General Government 2,460 2,327 2,430 2,361 2,592 2,629 2,681 21 Wastewater Collection 3,383 14,068 7,330 7,195 5,284 5,919 4,118 22 Environmental Compliance 112 305 279 275 291 299 306 23 Water Resource Recovery 25,653 101,763 20,044 11,885 17,026 11,483 10,992 24 Utilities Revenue 564 526 274 281 306 313 319 25 Water Quality Lab 581 932 864 828 867 888 908 27 Wastewater Administration 1,986 1,023 1,634 1,542 2,423 2,646 2,493 28 TOTAL 29 CHANGES IN FINANCIAL POSITION 30 Working Capital - Beginning 26,504 26,917 20,072 35,021 36,577 29,194 26,840 31 Revenues over (under) Expenditures 413 (6,846) 14,950 1,555 (7,383) (2,354) 562 32 33 Operating Reserve 2,268 2,305 2,386 3,549 3,827 3,837 3,882 34 Rate Stabilization 820 785 900 932 960 988 1,018 _ 35 CALPers Down Payment 252 180 180 120 120 120 120 36 UFLTrust Fund 120 120 120 120 96 72 - 37 WRRF Upgrade Debt Reserve - 2,953 5,903 5,903 5,903 5,903 5,903 93 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 PARKING FUND LONG-TERM FORECAST (in thousands) Actual 2019-20 Budget • Budget Budget Projected • Projected Projected REVENUES Service Charges --------------------- Parking Meter Collections Lots 84 77 122 108 135 129 159 Streets 1,047 821 2,056 2,197 2,676 2,630 3,201 Parking Structure Collections 838 200 1,275 2,007 2,551 2,527 3,474 Long -Term Parking Revenues 689 431 862 883 919 896 915 Lease Revenues 486 363 459 461 471 466 471 Parking In -Lieu Fees 15 21 21 21 --------------- 21 -------------- 21 21 Total Service Charges 3,159 1,913 4,795 5,676 -------- 6,773 -------- ------------- 6,668 ------------- 8,240 Investment and Property Revenues 546 79 76 64 55 30 39 Fines and Forfeitures 704 297 642 726 748 731 746 Other Revenues 22 7 30 28 30 29 29 Debt Proceeds • 37,052 EXPENDITURES (including • Operating Programs Operating Expenses_ 2,488 2,414 2,720 2,784 2,820 3,037 3,208 SOBCS 67 48 23 17 11 -------- --------------------- General Government (CAP Transfer) 537 710 870 870 870 870 870 Operating Transfers 228 (394) 235 235 235 235 235 Total Operating Programs 3,253 2,731 3,893 3,938 3,948 4,159 4,325 Capital Improvement Plan Projects 1,177 1,162 1,799 6,731 38,004 376 318 Debt Service 857 856 855 852 852 2,981 2,948 TOTAL:0• Revenues Over/(Under) Expenditures $ (857) $ (2,451) $ (1,005) $ (5,026) $ 1,854 $ (58) $ 1,464 0.0 Adjustment for LT Accruals $ (1,085) $ $ - $ - $ - $ - $ - Working Capital, End of Year 1 $ 14,550 $ 12,0981 $ 11,093 $ 6,127 $ 7,914 $ 7,857 $ 9,321 Reserve 1 $ 605 $ 625 $ 718 $ 731 $ 738 $ 781 $ 816 • 94 1 2 3 4 5 6 7 8 9 TRANSIT FUND LONG TERM FORECAST Federal $ 2,308 $ 3,477 $ 3,547 $ 1,463 $ 1,567 $ 1,613 $ 1,638 State $ 780 $ 858 $ 2,973 $ 1,976 $ 2,012 $ 2,050 $ 2,123 State (Direct Contribution to RTA from SLOCOG) 1 $ 580 $ 691 $ 634 $ 712 $ 726 $ 740 $ 755 Local $ 689 $ 473 $ 750 $ 800 $ 840 $ 850 $ 850 Secured Grant $ - $ 690 $ 109 $ - $ - $ $ Unsecured Grant or Funding $ - $ - $ - $ - $ - $ - $ - TOTAL ObligationsExpenditures & $ 4,356 $ 6,189 $ 8,012 $ 4,950 $ 5,145 $ 5,254 $ 5,366 10 Non -Operating Annual Expenditures 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Contribution to RTA Directly from SLOCOG 1 Operating Annual Expenditures ' Operating Expenditures - Purchased Transportation $ 580 $ 691 I $ 634 $ _ $ 2,563 $ 2,849 $ 2,949 $ 712 2,896 $ 726 $ 740 $ 755 1 $ 2,980 $ 3,039 $ 3,100 Operating Expenditures - Fuel & Maintenance $ 487 $ 545 $ 553 $ 560 $ 588 $ 617 $ 648 Operating Expenditures- Overhead/Ad min $ 432 $ 449 $ 482 $ 496 $ 500 $ 504 $ 508 Operating Expenditures - Cost Allocation $ 277 $ 322 $ 226 $ 231 $ 235 $ 240 $ 245 Capital Expenditures 2 $ 18 $ 1,744 $ 2,825 $ - $ - $ - $ - Depreciation/ GASB Adjustments $ 415 $ - $ - $ - $ - $ - $ - TOTAL $ 4,772 $ 6,600 $ 7,669 $ 4,895 $ 5,030 $ 5,142 $ 5,257 PositionChanges in Financial Beginning Working Capital $ 2,788 $ 2,372 $ 1,961 $ 2,305 $ 2,360 $ 2,475 $ 2,588 Revenues Over / (Under) Expenditures $ (416) $ (411) $ 343 $ 55 $ 115 $ 113 $ 110 Ending Working Capital $ 2,372 $ 1,961 $ 2,305 $ 2,360 $ 2,475 $ 2,588 $ 2,697 Operating Reserve $ 755 $ 833 $ 842 $ 837 $ 861 $ 880 $ 900 Unreserved Working1: 1. This funding is directly provided by SLOCOG to RTA from the City's apportionment of State funding. While the City does not receive this revenue or the associated expense, this shows the value of services provided by RTA and the City's share of that cost. 2. Capital Projects are highly reliant on future discretionary grant funding. Capital Projects and the associated grant revenue for outer years are not included in the long-term forecast at this time. Projects will not move forward unless funding is secured. However, in order to apply for funding, Council must approve the projects first. The long-term forecast will be updated and presented to Council on an annual basis. 95 Page intentionally left blank. 96 OPERATING BUDGETS -GENERAL FUND • 97 Page intentionally left blank. 98 44 Operating Budgets Fee Revenue Fee Revenue by Category Part of the City's revenue comes from cost recovery fees for services to the community and rendered by the City's operating departments. The cost recovery levels are determined every five years and approved by the City Council. The levels of cost recovery are defined in the City's adopted financial policies. User Fee Cost Recovery Levels In setting user fees and cost recovery levels, the following factors are considered: 1. Community -Wide Versus Special Benefit. The level of user fee cost recovery should consider the community -wide versus special interest nature of the program or activity. The use of general- purpose revenues is appropriate for community -wide services, while user fees are appropriate for services that are of special benefit to easily identified individuals or groups. 2. Service Recipient Versus Service Driver. After considering community -wide versus special interest benefit of the service, the concept of service recipient versus service driver should also be considered. For example, it could be argued that the applicant is not the beneficiary of the City's development review efforts: the community is the primary beneficiary. However, the applicant is the driver of development review costs, and as such, cost recovery from the applicant is appropriate. 3. Effect of Pricing on the Demand for Services. The level of cost recovery and related pricing of services can significantly affect the demand and subsequent level of services provided. At full cost recovery, this has the specific advantage of ensuring that the City is providing services for which there is genuinely a market that is not overly stimulated by artificially low prices. Conversely, high levels of cost recovery will negatively impact the delivery of services to lower income groups. This negative feature is especially pronounced, and works against public policy, if the services are specifically targeted to low-income groups. 4. Feasibility of Collection and Recovery. Although it may be determined that a high level of cost recovery may be appropriate for specific services, it may be impractical or too costly to establish a system to identify and charge the user. Accordingly, the feasibility of assessing and collecting charges should also be considered in developing user fees, especially if significant program costs are intended to be financed from that source. 100 Operating Budgets Fee Revenue Fire 1 Fire Department Permits Actual 104,153 Budget 103,044 Budget 100,000 Budget 100,000 2 Fire Alarm Permits 10,451 2,677 10,010 10,010 3 Fire Plan Check & Inspection 299,258 300,000 350,000 350,000 4 Medical ER Recovery 194,408 198,103 198,103 202,064 5 R1 Inspection Fees 299,566 260,000 280,000 280,000 6 Cal Poly Fire Services 318,058 315,241 300,373 314,122 7 CUPA Inspection Fees 173,984 140,000 160,000 160,000 8 Other Fire Dept Revenue 42,109 5,890 5,890 5,890 9 Total Fire Revenue $1,441,988 $1,324,955 $1,404,376 $1,422,086 General Government & Other Revenue 1 Business Licenses 446,038 BudgetActual 414,300 ,.Budget 418,443 426,812 2 Cannabis Operator License 68,139 320,000 310,000 388,000 3 Motor Vehicle Fines 100,459 117,357 118,500 118,500 4 Misdemeanors & Infractions 9,470 34,229 34,571 34,571 5 Miscellaneous Penalties 18,857 1,977 2,000 2,000 6 Administrative Citations - General 35,372 1,015 1,025 1,025 7 Other Rent & Lease Revenue 148,552 151,716 154,750 157,845 8 Disability Ins Reimbursement 23,439 19,100 19,100 19,100 9 Other Revenue 900,196 454,480 450,000 450,000 10 Total Other Fee Revenue $1,750,521 $1,514,174 $1,508,389 $1,597,853 101 Operating Budgets Fee Revenue Community Development 1 Building Permits 2,518,404 BudgetActual 2,200,000 ,.Budget 3,510,000 3,600,000 2 Encroachment Permits 356,434 305,000 305,000 315,650 3 Code Enforcement Fines 97,164 50,000 90,000 100,000 4 Planning & Zoning Fee 682,487 600,000 600,000 606,000 5 Development Review Fees 433,389 248,000 400,000 467,000 6 Plan Check Fees' 1,420,723 999,000 355,000 400,000 7 Infrastructure Plan Ck & Inspection 1,638,456 1,200,000 1,200,000 1,236,000 8 Engineering Dev Review Fees 108,498 120,000 135,000 140,000 9 Total CDD Fee Revenue $7,257,556 $5,722,000 $6,595,000 $6,864,650 Police 1 Police Department Permits Actual 4,610 Budget 3,000 Budget 1 7,511 Budget 7,511 2 Tobacco Permits 27,998 21,417 29,000 29,000 3 Alarm Permits - Contract (PD) 170,786 65,000 90,000 90,000 4 Police Issued Parking Fines 85,427 75,000 75,000 75,000 5 Admin Citations - Safety 245,963 152,833 152,833 152,833 6 Accident Reports 3,225 3,400 3,400 3,400 7 Collision Investigation 3,393 3,000 3,000 3,000 8 Witness Fees 3,880 2,500 1,606 1,606 9 Property Release Fees 733 500 (1,642) (1,642) 10 Tow Release Fees 9,675 9,000 9,000 9,000 11 Second Response Fees 628 1,000 1,071 1,071 12 DUI Cost Recovery 22,347 21,417 16,417 16,417 13 Other Police Revenue 323,824 190,000 250,000 250,000 14 Total Police Fee Revenue $902,489 $550,000 $637,196 $637,196 1 The decrease in 21-22 budget is due to Fiscal Policy Section 2.H.4 which allows the Finance Director to make appropriations (up to 65% of revenue) and the associated budget adjustments from the Plan Check revenue account into operating budget to cover the cost of services provided. Therefore, the City begins the year with only 35% of expected revenue budgeted and increases the budget as services are provided. 102 Operating Budgets Fee Revenue Parks & Recreation 1 Library Rental 15,188 BudgetActual - ,.Budget 6,500 21,500 54,331 2 Indoor Rental & Use Fees 33,726 20,000 39,532 3 Outdoor Rental & Use Fees 65,561 29,319 88,867 118,850 4 Special Events Insurance 6,770 - 2,400 9,600 5 Sales Taxable 8,030 7,481 10,000 10,000 6 Adult Athletic Fees 44,316 - 122,400 122,400 7 Youth Athletic Fees 31,518 14,000 48,000 53,709 8 Instruction Fees 41,118 10,000 61,400 70,000 9 Special Event Fees - App/Permit 26,101 - 20,000 30,600 10 Youth Services Childcare 500,294 658,283 611,785 766,700 11 Youth Services Camps 23,437 - 106,650 149,300 12 Junior Ranger Camps - - 4,500 4,500 13 Aquatics Daily Use Fees 61,900 42,308 73,075 121,132 14 Swim Instruction Fees 14,734 20,673 20,923 69,160 15 Multi Day Swim Passes 26,248 35,000 41,753 41,753 16 Therapy Pool Fees 6,706 8,327 8,627 10,096 17 Driving Range Fees 7,502 7,252 11,715 11,715 18 Golf Greens Fees 127,305 151,470 200,000 224,400 19 Golf Rental Fees 5,621 5,363 10,566 10,566 20 Other Parks & Rec Revenue 21,345 18,708 45,000 60,641 21 Special Events - City Sponsored 10,559 - 50,000 50,000 22 Golf Cart Rentals 15,346 5,975 28,262 28,262 23 Total Parks & Rec Fee Revenue $1,093,326 $1,034,299 $1,611,955 $2,039,215 103 Operating Budgets Transfers Interfund Transfers The City's General Fund receives reimbursements and operating transfers for various services and activities that are provided by General Fund operating programs. In turn, the General Fund provides funding to various functions for specific uses. The amounts shown below represent the anticipated funding that will be transferred between the funds. Reimbursement Transfers These transfers reimburse the General Fund for direct cost incurred for service to the City's Enterprise and Agency Funds. The cost comes largely from internal services departments such as City Administration (including IT), Human Resources, City Attorney's office, and Finance. It is annually assessed through the City's Cost Allocation Plan (CAP). General Fund Transfer out Transfer In Transfer out Transfer In 1 $4,717,442 $4,811,791 2 Parking Fund $869,887 $887,285 3 Sewer Fund $1,712,752 $230,707 4 Transit Fund $226,183 $1,747,007 5 Water Fund $1,722,409 $1,756,857 6 Whale Rock Fund $186,211 $189,935 7 Total $4,717,442 $4,717,442 $4,811,791 $4,811,791 Operating Transfers Transfer out Transfer In Transfer out $4,250,000 $1,245,026 $57,000 Transfer In $3,602,451 1 General Fund $4,146,445 $3,426,103 2 Gas Tax Fund $1,223,937 3 Housing Fund $57,000 4 TDA Fund $45,000 $45,000 5 TIF Fund $280,000 $280,000 6 TBID Fund $28,852 $31,012 7 Parking Fund $235,233 $235,233 8 Sewer Fund $655,312 $700,000 9 Water Fund $794,769 $900,000 10 Insurance Fund $4,146,445 $4,250,000 11 Total Operating Transfer $7,572,548 $7,572,548 $7,852,451 $7,852,451 104 Operating Budgets Transfers Replacement Transfers The City currently invest funding into the maintenance and replacements of its Fleet assets, its Information Technology Infrastructure, and its Major Facilities through designated funds. This allows for funding to be available when scheduled replacements and maintenance work is needed. The individual expenditure is accounted for under the City's Capital Improvement Plan which includes a replacement schedule for the City's fleet proposed over the Financial Plan period. Transfer out Transfer In Transfer out Transfer In 1 General Fund $7,177,916 $7,949,558 2 LRIM $17,866,400 $18,763,050 3 Capital Outlay $14,257,798 $16,967,220 4 Fleet $1,265,000 $1,045,000 5 IT Replacement $988,973 $564,777 6 Major Facilities Maintenance $867,500 $593,200 7 Infrastructure Investment $7,222,545 $7,099,911 8 Public Art Fund $442,500 $442,500 9 Total $25,044,316 $25,044,316 $26,712,608 $26,712,608 105 Operating Budget General Fund EXPENDITURE OVERVIEW The City has nine operating departments with 74 service programs. Eight of the departments are under the purview of the City's General Fund. The Utilities Department as well as the Parking and Transit programs are administered and accounted for as business -activities and the related information is presented in the Business Activities section of the Financial Plan document. This section provides an overview of all the General Fund departments and programs. It outlines the different mission statements, introduces the departments and their contributions towards strategic goals and performance measures, presents operating programs and cost, and details employee and position counts. 1 2 Administration City Attorney Actua $7,628,273 $1,000,636 $7,697,781 $778,167 Budget $9,737,859 $1,185,571 B 122-Audg $9,805,467 $1,043,797 3 Finance $2,395,353 $2,998,897 $2,921,186 $4,453,272 4 Fire $12,542,326 $12,615,778 $13,997,547 $14,441,480 5 Human Resources $1,226,188 $1,350,586 $1,700,849 $1,683,223 6 Police $17,632,020 $17,802,862 $19,141,343 $20,051,371 Community Services Group: Community Services Group Administration' $9,593 $404,998 $665,501 $575,391 7 8 Community Development $5,677,704 $5,325,811 $6,981,163 $6,841,987 9 Parks and Recreation $3,799,632 $4,274,301 $5,126,817 $5,336,170 10 Public Works $12,660,147 $13,196,459 $14,675,638 $15,156,041 11 Solid Waste 2 $90,336 $159,318 $199,699 $176,280 TOTAL GENERAL FUND $64,662,208 $66,604,959 $76,333,171 $79,564,479 1 The Community Services Group was developed during the 2019-21 Financial Plan as part of the "Organization of the Future". For administrative and accounting purposes, non -departmental administrative costs for this group are allocated to a unique cost center but are not specific to a department. z This program is funded by the General Fund but managed within the Utilities Department. 106 Operating Budget General Fund 2021-22 Department Operating Budget GENERAL FUND ■ Administration ■ City Attorney ■ Finance _ Fire ■ Human Resources ■ Police ■ Community Services Group Administration ■ Community Development ■ Parks and Recreation ■ Public Works ■ Utilities 2022-23 Department Operating Budget GENERAL FUND 18% 9% 250 ■ Administration ■ City Attorney ■ Finance ■ Fire ■ Human Resources ■ Police ■ Community Services Group Administration ■ Community Development ■ Parks and Recreation ■ Public Works ■ Utilities 107 Operating Program Enhancements Enhancements —General Fund As a cost control measure, the City requires in- or decreases to budget line items in the programs above $ 7,500 to be approved by the City Manager before being considered for appropriation. 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. Significant Operating Budget Requests (SOBCs) are divided into two categories: 1) one- time during the Financial Plan period 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. SOBC details can be found within the individual departmental sections. Combined Requests by Funding Source General . SOBCs One-time General Fund (non-LRM) $ 3,947,423 $ 2,487,918 $ 1,204,785 $ 538,777 Local Revenue Measure G20 $ 2,370,132 $ 1,851,197 Other Funding Sources $ 372,506 $ 97,945 Ongoing $ 3,581,526 $ 4,147,670 General Fund (non-LRM) $ 1,165,143 $ 1,316,075 Local Revenue Measure G20 $ 1,493,039 $ 1,882,106 Development Review Revenue Offset TOTAL $ $ 923,344 .,. $ 949,488 108 Operating Program Enhancements Total Enhancements by Major City Goal Investment FY 21-22 GENERAL FUND SOBC INVESTMENT BY TYPE t Economic ■ Core Services (non-MCG) ■ Housing & Homelessness N DEI ■ Climate Action Total: $7,528,949 FY 22-23 GENERAL FUND SOBC INVESTMENT BY TYPE ■ Economic ■ Core Services (non-MCG) ■ Housing & Homelessness A DEI ■ Climate Action Total: $6,635,588 109 Operating Program Enhancements One -Time Resources Title Applicable "CoreDepartment 21-22 22-23 1 Admin/IT "Undocu-Friendly Logo" DEI $1,000 $0 Admin/IT Arts, Culture and Community Partner $50,000 $25,000 2 Support Economic 3 Admin/IT Business Retention/Recovery Programs Economic $500,000 $250,000 4 Admin/IT Communications Program Support Economic $130,000 $25,000 Admin/IT Community -based Multicultural Center $40,000 $2,500 5 Admin/IT feasibility study Creation of DEI Office & Implementation of DEI $109,141 $94,345 6 Internal DEI Efforts DEI Community Outreach DEI 7 Admin/IT DEI $15,000 $15,000 8 Admin/IT DEI High Impact Grants DEI $150,000 $150,000 Admin/IT Economic Development Recovery $30,000 $30,000 9 Scorecard Economic 10 Admin/IT ECOSLO Partnership Micro Community Collaborative (MCC) Climate Action $20,000 $20,000 11 Admin/IT Climate Action $20,000 - Initiative Microgrid Feasibility Study 12 Admin/IT Climate Action $20,000 - 13 Admin/IT Minority/ Unrepresented Business Support DEI $0 $150,000 14 Admin/IT New Economic Development Strategic Plan Economic $0 $100,000 15 Admin/IT Office Retrofits Climate Action $10,000 - 16 Admin/IT Open Space Winter Hours of Use Study Core Services $75,000 - 17 Admin/IT PEN Manual Update DEI $15,000 $0 1 Admin/IT Sustainability & Natural Resources Staff Climate Action $75,122 $76,366 (Intern & Analyst) CDD/PW 919 Palm Office Modifications (to support Core $150,000 $70,000 19 increased workforce) Services/Economic Recovery CDD City Contribution to 25% Expansion of 40 Housing & $63,826 $63,826 20 Prado Homelessness Housing & 21 CDD Homelessness Strategic Plan $35,000 $0 Homelessness CDD Housing and Homelessness Staff and Housing & $257,000 $232,000 22 Resources Homelessness 23 CDD Safety Element Environmental Review Climate Action $25,000 $0 24 CDD TIPP Fast 2.0 Program Economic $250,000 $0 CDD Zoning Regulations Update for Downtown $125,000 $0 25 Uses Community Economic $105,000 - 26 Services Community Workforce Agreement Study Economic Departments City Attorney City Attorney Resources 27 Core Services Core Services $187,253 $34,017 - $35,568 28 Finance MOTION Subject Matter Expert Continued on next page 110 Operating Program Enhancements Department Title ApplicableOne-time "Core Services" 21-22 22-23 30 Fire Emergency Management Services Core Services $30,000 $30,000 31 Fire Fire Intern Program DEI $22,691 $23,257 32 Fire Pilot: Mobile Crisis Unit Housing & $300,000 $300,000 Homelessness 33 Fire Recruit Academy Support DEI $29,000 $0 34 Fire Suppression Staff Training Support Core Services $20,045 $17,570 35 Fire Technical Rescue Team Expansion Climate Action $6,000 $0 36 Fire Permit Compliance Software Economic $11,169 $9,369 37 HR Compensation Study Economic $30,000 - Core 38 HR HR Resources Services/Economic $61,005 $56,364 Pay Equity Audit Aquatics Resources to Implement COVID- Recovery 39 HR DEI $30,000 - 40 Parks & Rec Core Services $62,000 $0 19 Safety Protocols 41 Parks & Rec Open SLO Downtown Dining Resources Economic $13,688 $27,375 42 Parks & Rec Open Space Maintenance Support Climate Action $4,500 - 43 Parks & Rec SLO Swim Center Minor Capital Core Services $30,000 $30,000 Maintenance Social Worker -TMHA Support 44 Police Housing & $6,500 - Homelessness 45 Police Software Requirements DEI $15,400 - 46 Public Works CIP and Transportation Interns Climate Action/ $35,350 $36,971 Economic Recovery 47 Public Works Contract Heavy Equipment Mechanic Core Services $85,220 $89,065 48 Public Works Fleet & Mechanic Resources Core Services $20,991 $18,398 49 Public Works Increased Maintenance & Materials Costs Core Services $85,000 $25,000 50 Public Works Increased Trash and Recycling in Public Economic $125,000 $125,000 Spaces 51 Public Works Mobility as a Service Study Climate Action $25,000 - 52 Public Works Supplemental Process Improvement Core Services $34,000 $12,000 Manager 53 Public Works Supplemental Street and Parklet Economic $250,000 $250,000 Sweeping 54 Solid Waste (Util) Civic Spark Fellow Climate Action $29,000 $0 55 Stormwater (Util) Stormwater Inspector Core Services $93,506 $97,945 Total • •,$2,487,918 56 Funding Offset One-time Allocation of Development Services Designation -$93,506 -$97,945 Balance 57 Funding Offset AB939 (GF): Carryover at Year End -$29,000 - 58 Funding Offset Use of restricted funding allocated for tenant improvements' -$250,000 - Total • , 1 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. 111 Operating Program Enhancements Ongoing Resources Title Applicable MCG or Ongoing "CoreDepartment 21-22 22-23 $43,016 1 Community Services Community Services Marketing Core Services $40,043 Admin Coordinator 2 Admin/IT Communications Program Support Economic $60,000 $60,000 3 Admin IT Creation of DEI Office & / DEI $165,898 $174,995 Implementation of Internal DEI Efforts DEI Committee 4 Admin/IT Development/Operations DEI $5,000 $5,000 5 Admin/IT DEI Community Outreach DEI $5,000 $10,000 6 Admin/IT Grant Writing Support Services Climate Action $50,000 $50,000 7 Admin/IT Hazardous Tree Removal Climate Action $20,000 $20,000 8 Admin/IT Holiday Activation Support Downtown Economic $150,000 $150,000 9 Admin/IT HRC Operating Budget DEI $3,000 $5,000 10 Admin/IT IT Staffing Changes Core Services/ $179,720 $189,423 Economic Recovery 11 Admin/IT Open Space Fuel Reduction Climate Action $20,000 $20,000 12 CDD Building and Safety Division Core Services/ $359,026 $367,050 Streamlining and Succession Planning Economic Recovery 13 CDD Cannabis Business Support Core Services $163,993 $173,341 (reallocation from Police) 14 CDD Code Enforcement Body Cameras Core Services $5,440 $1,440 15 CDD Development Services Program Core Services/ $267,028 $277,164 Capacity Economic Recovery 16 CDD Housing and Homelessness Staff and Housing & $287 583 $295,212 Resources Homelessness 17 City Attorney City Attorney Staffing/ Re-org Core Services $282,165 $296,814 18 City Attorney Document Review Software Core Services $12,995 $11,395 19 Finance Cannabis Auditing Resources Core Services $18,000 20 Finance Finance Staffing Resources Core Services/ $120,249 $126,194 Economic Recovery 21 Fire Mobile Eyes Plan Check Software Core Services $12,200 $12,200 22 Fire Public Safety Equipment Replacement Core Services $8,300 $185,799 and Maintenance 23 Fire Suppression Staff Training Support Core Services/ $141,501 $209,276 Economic Recovery 24 Fire Technical Rescue Team Expansion Climate Action $11,850 $9,150 25 HR HR Re-org/ Resources to Support Core Services/ $397,495 $409,221 Organizational Demands Economic Recovery Continued on next page 112 Operating Program Enhancements Department Title Applicable IVICG or "Core Ongoing 0 Services" 21-22 22-23 $225,555 $243,115 26 Parks & Rec Open Space Maintenance Support Climate Action/Housing & Homelessness 27 Parks & Rec Youth Services Staffing Resources Core Services $93,227 $132,045 28 Police Cannabis Resources (see CDD SOBC) Core Services -$96,878 -$88,734 29 Police Employee Reclassification Core Services $21,822 $23,374 30 Police Lead Records Clerk Core Services $93,696 $97,868 31 Police Public Safety Equipment Core Services $11,600 $69,881 Replacement 32 Police Social Worker -TMHA Support Housing & Homelessness $118,688 $116,188 33 Police Software Requirements Core Services $8,555 $8,555 34 Police Supplies for Downtown Sergeant's Economic $1,000 $1,000 educational program 35 Public Works Fleet & Mechanic Resources Core Services $70,000 $70,000 36 Public Works Increased Maintenance & Materials Core Services/ Economic $186,700 $275,012 Costs Recovery 37 Public Works Increased Trash and Recycling in Housing & Homelessness $55,000 $55,000 Public Spaces 38 Public Works Utilities Locator Position Salary -Split Core Services $14,367 $14,367 Cost Centers Total • •. i 39 Funding Increase in Development Services Base Revenue Projectionsz -$913,637 -$939,426 Offset Total • •.$3,207,996 Z The Community Development Department is funded by fees for service; therefore, it forecasts revenue based on a cost of service "baseline" and up to 75% of the revenue above that baseline is eligible for placement in a designated account that can be used to fund one-time development services resources. This process helps ensure that the department has funding available for periods of high activity but is not over -staffed during periods of low activity. The City has been in period of high development activity for the last several years and based on economic indicators and the ongoing demand for housing, this trend is expected to continue during the five-year forecast period. To address the ongoing need for resources, the department is proposing to increase its "baseline" in the 2021-23 Financial Plan and hire ongoing resources. This update will significantly lower (or eliminate) over -realized revenue, but it will ensure consistent and quality staff resources which are often difficult to hire on a temporary or contractual basis. See the Fee Revenue section for a detailed breakdown. 113 Operating Budget —General Fund Capital Projects' Impact on Operating Cost The Capital Improvement Plan (CIP) and its annual implementation is one of the primary functions of local government. Through its adopted CIP, the City meets community needs by providing the infrastructure required for the community's economic vitality, neighborhood wellness, housing, transportation, sustainability, active and passive recreation, public safety, cleanliness, and other basic amenities. Capital Operating Budget Budget $26.2 mil $72.5 mil In the context of Capital Infrastructure, it is important to analyze the impact on operating budgets required to maintain the assets for longevity and appropriately adjust the annual budget appropriation. As such, the City invests $11.6 million to maintain existing assets and the support of new assets and asset replacements. With the passage of local sales tax measure G20, the City is expecting approximately $14-16 million of new revenue starting in FY 2021-22. Most of this funding will go towards infrastructure projects to bring the total annual capital investment to over $26 million. To deliver these projects, the City will need additional engineering and project delivery staff resources in addition to the existing CIP Engineering program and maintenance staff. Staff is currently analyzing the project staff required to deliver and subsequently maintain the assets over both the two-year and five- year time horizon. In order to assess the impact of the City's capital project plan and the resulting asset maintenance, Capital improvement projects must be presented with a full fiscal impact, including any specific ongoing dollar impacts before given approval. Those amounts are then incorporated into the operating budgets for future appropriations. Council Agenda Report - Fiscal Impact Table (Example) Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $700.000 $550.000 $150000 $25.000 State Federal Fees Othe r: Total $7DD 000 $550 000 $15 000 $26 000 114 114 Operating Budgets Employee Summary —All Major Funds Combined Employee Summary Department specific organization charts can be found in the Department Operating Budget section. There are two tables included in the section below that provide: 1. Ongoing Approved FTEs — These fully -benefited positions are approved by Council on an ongoing basis and generally are essential in providing the city's core services. 2. Contract and Supplemental employees — It is the policy of the City of San Luis Obispo to hire supplemental employees to meet the temporary needs of the City that result from emergencies, special projects of a short-term nature, extra -help, seasonal work, unexpected surges in workload, occasional hours for an ongoing need, and to provide substitutes for or support to regular employees to maintain optimal service levels. CITY WIDE POSITION OVERVIEW BY DEPARTMENT (NOT INCLUDING SUPPLEMENTAL/CONTRACT POSITIONS) 1% t Admin/IT ■ Community Services Group Admin ■ City Attorney ■ Finance ■ Human Resources N Community Development ■ Public Works ■ Utilities ■ Parks and Recreation ■ Police ■ Fire 115 Operating Budgets employee Summary -- All Major Funds Combined The tables below present the FTEs in the way that their costs are allocated. Some positions work across different programs or departments. For example, one FTE may be costed 50% in Utilities and 50% in Public Works. MLLEPARTMENT •ngoing Approved FTEs �w & PROGRAMI 21-23 Financial Plan --1000000� IPF-V A.. - CITY ADMINISTRATION 34.75 39.75 3 9.7 5 2 Administration 4 5 5 1 3 City Council 5 5 5 0 4 Economic Dev 1 1 1 0 5 Natural Resource Protection 3 3 3 0 6 Tourism and Bid Promotion 1.75 1.75 1.75 0 7 Community Promotion 0.25 0.25 0.25 0 8 Diversity, Equity Inclusion 0 1 1 1 9 City Clerk 4 4 4 0 10 Network Services 7.5 9 9 1.5 11 Information Services 8.25 9.75 9.75 1.5 CITY ATTORN EY'S OFFICE 3 3 - 13 City Attorney' 3 3 3 - - • COMMUNITY SERVICES GROUP ADMINISTRATION 2 3.5 3.5 1.5 COMMUNITY DEVELOPMENT 30.5 39.5 39.5 9 16 Community Dev Admin 5 5 5 0 18 Commissions and Committees 0 19 Planning 13 10 10 -3 20 Engineering 5 5 5 22 Building and Safety 11.5 15.5 15.5 4 23 Human Relations 24 26 Housing Assistance FINANCE Accounting 1 4.8 4 6.3 4 6.3 3 2 1.5 27 Budgets 1.2 1.2 1.2 - 28 Financial Administration 3 3 3 - 29 Purchasing 2 2 2 - 30 Revenue Management 2 2.5 2.5 .5 31 FIRE 56.5 57.5 57.5 1 32 Emergency Response 45 45 45 - 33 Fire Administration 4 4 4 - 34 Fire Apparatus Services 2 2 2 - 35 Hazard Prevention 5.5 5.5 5.5 - 36 Training Services - 1 1 1 1 Three contract positions have been approved and are funded on an ongoing basis, but the ongoing FTEs will be adopted after the organizational assessment has been finished. These additional positions can be found in the next table (Supplemental & Contract). 116 Operating Budgets Employee Summary — All Major Funds Combined HUMAN RESOURCES 6 10 10 38 Human Resources 6 10 10 4 39 Risk Management - - - - PARKS & RECREATION 17 28 28 41 Recreation Admin 4 4 4 0 42 Recreation Facilities 1 1 1 0 43 Youth Servicesz 2 8 8 6 44 Community Services 2 2 2 0 45 Ranger Service' 3 8 8 5 46 Aquatics 1 1 1 0 47 Golf Course 4 4 4 0 48 Jack House - - - 0 49 POLICE 90.5 91 50 Police Admin 6.5 6.5 6.5 0 51 Patrol 43 43 43 0 52 Investigations 17 16 16 -1 53 Police Support Services 19 20.5 20.5 1.5 54 Neighborhood Services 1 1 1 0 55 Traffic Safety 4 4 4 0 56 PUBLIC WORKS 83.64 a2.84 57 Building Maintenance 5 5 5 - 58 CIP Project Engineering 15 15 15 - 59 Flood Control - 1 1 1 60 Landscape & Parks Maintenance 12 12 12 - 61 Parking Operations/Maintenance 9 14 14 5 62 Public Works Administration 6 7 7 1 63 Stormwater 6.14 6.34 6.34 0.2 64 Streets & Sidewalk Maintenance 11 11 12 1 65 Swim Center Maintenance 1 1 1 - 66 Traffic Signal Lights 2 2 2 - 67 Transit Operations/Maintenance 3 3 3 - 68 Transportation Planning/Engineering 6 6 6 - 69 Urban Forest 3 2 2 -1 70 Vehicle Equipment Maintenance 4.5 4.5 4.5 - Z Conversion of Limited Benefit Positions (supplemental employees) to Full Time Equivalents with benefits. These positions were approved as full-time equivalents on 5/4/21 per R. 11243. 3 Conversion of four Limited Benefit Positions (supplemental employees) to Full Time Equivalents with benefits and one net new ranger. 117 Operating Budgets employee Summary -- All Major Funds Combined Utilities Positions (Majority Water & Sewer Funded) Q UTILITIES 0 a 69.88 70.63 V 70.63 JR 0.75 71 Water Admin and Engineering 4.94 5.34 5.34 0.40 72 Water Source of Supply 1.2 1.2 1.2 - 73 Water Treatment 11.45 11.45 11.45 - 74 Water Distribution 11.5 10.9 10.9 -0.60 75 Water Resources 3.0 3.0 3.0 - 76 Wastewater Admin and Engineering 5.94 6.44 6.44 0.50 77 Wastewater Collection 7.15 7.50 7.50 0.35 78 Environmental Programs 1.6 1.6 1.6 - 79 Water Resource Recovery 12.3 12.3 12.3 - 80 Utilities Revenue 2.0 2.0 2.0 - 81 Water Quality Lab 3.7 3.7 3.7 - 82 Solid Waste Recycling 1.1 1.1 1.1 - 83 Reservoir Operations 4.0 4.1 4.1 .10 Total Full -Time Employee Count TOTAL 1 406.77 I 447.72 1 448.72 41.95 isN Operating Budgets Employee Summary - All Major Funds Combined Total Contract & Supplemental Employee Count Supplemental1. •. ADMINISTRATION 3.9 Additio 1 City Administration 1 1 1 - 2 Administration & Records .1 .1 .1 - 3 Natural Resources Protection - 1.5 1.5 1.5 4 Network Services 1.5 .3 .3 -1.2 5 Diversity, Equity, Inclusion 1 1 1 CITYATTORNEY'SOFFICE - 5 3 5 Wr 7 City Attorney4 - 5 3 5 x COMMUNITY DEVELOPMENT 4.5 1.3 1.3 -4.2 9 Community Development Admin 1 .5 .5 -0.5 10 Planning 2.5 - - -2.5 11 Engineering - .8 .8 .8 1' Building and Safety 2 - - -2 FINANCE 1.5 .5 .5 14 Revenue Management .5 - - -0.5 15 Accounting 1 .5 .5 -0.5 16 FIRE .75 1.75 1.75 1 17 Fire Admin - .75 .75 .75 18 Emergency Response .25 - - -0.25 19 Hazard Prevention .5 - - -0.5 20 Mobile Crisis Unit - 1 1 1 HUMAN RESOURCES 2.51 .5 1 .5 Human Resources Admin 2.5 0.5 0.5 -2 PARKS & RECREATION 55.3 45.3 45.3 -10 24 Recreation Admin 1.7 1.7 1.7 0 25 Recreation Facilities 2.9 2.9 2.9 0 26 Youth Services 24.7 18.7 18.7 -6 27 Community Services 4.1 4.1 4.1 0 28 Ranger Service 8.8 4.8 4.8 -4 29 Aquatics 11 11 11 0 30 31 32 Golf Course POLICE Police Support Services 2.1 1 2.1 - 2.1 - 0 1.2 -1 33 Neighborhood Services 1.9 1.7 1.7 -0.2 34 PUBLIC WORKS 16.1 17.7 17.45 1.6 35 Public Works Admin 1.1 0.6 0.35 -0.51 36 Parks Maintenance 0 1.5 1.5 1.5 4 These positions are funded on an ongoing basis, but the ongoing FTEs will be adopted with the 22-23 Supplement or 23-25 Financial Plan after the organizational assessment is finished. 119 Operating Budgets Employee Summary — All Major Funds Combined 37 Swim Center Maintenance 1 1 1 0 38 Urban Forest Services 3 0 0 -3 39 Streets Maintenance 4 4 4 0 40 Fleet 0 1.5 1.5 1.5 41 CIP Project Engineering 3 0.7 0.7 -2.3 42 Transportation Plan and Engineering 0 1 1 1 43 Parking Structures 2 6.1 6.1 4.1 44 Parking Lots and Streets 2 0 0 -2 45 Stormwater 0 1.3 1.3 1.3 46 Flood Control 0 0 0 0 47 UTILITIES 3.09 -1.4TJ 48 Wastewater Admin & Engineering .065 - - -.65 49 Water Admin & Engineering .065 - - -.65 50 Water Resources .48 - - -.48 51 Water Resource Recovery Facility 1 1.5 1.5 .5 52 Water Quality Lab 1.48 .10 1 - -1.38 • • •A •• 120 Administration and Information Technology ADMINISTRATION AND INFORMATION TECHNOLOGY Mission Statement Providing leadership for the City organization in our quest to deliver exceptional service by facilitating citizen participation and government transparency, implementing City Council goals and programs, and fostering trust, respect and dignity for the City and the community members we serve. About the Department The City Administration and IT department is responsible for providing information and recommendations to the City Council, implementing Council policies and programs as well as managing the day-to-day operations of the City. It is the lead department charged with overseeing the implementation the Council's Major City Goals. The department is also responsible for coordinating the City's economic efforts including: the City's Tourism program; the new office of Diversity, Equity and Inclusion; the Office of Sustainability that houses the City's Climate Action Program, Natural Resources Program, Creeks and Watersheds Program and Community Partnerships; the Information Technology Division which provides network and information services technology infrastructure, support, training, policy and strategic planning; and the City Clerk program. It serves as the liaison to Downtown SLO, the Revenue Enhancement Oversight Commission, and Central Coast Community Energy. 014I Administration and Information Technology The Department at a glance • . Administration Actuals $1,266,811 Budget $1,046,504 Budget $1,263,350 Budget $1,314,380 City Council $157,339 $184,977 $214,151 $216,352 Cultural Activities $332,351 $337,601 $347,632 $357,963 Economic Dev $269,768 $309,954 $1,183,667 $907,271 Natural Resource Protection $617,952 $628,149 $904,897 $791,226 Community Promotion $393,509 $404,143 $405,085 $405,826 Diversity, Equity, Inclusion $- $506,041 $601,841 City Clerk $566,606 $606,113 $570,667 $657,638 Network Services $2,992,351 $3,163,906 $3,092,167 $3,261,983 Information Services $1,031,587 $1,016,434 $1,250,202 $1,290,988 Total Administration/IT $7,628,273 $7,697,781 $9,737,859 $9,805,467 Other OperatinL- Costs 18% Contract Services 28 EXPENDITURES BY FUNCTION Staffing 54% Existing FTEs 34.75 34.75 Additional FTEs (per SOBCs) 5 5 Supplemental/Contract FTEs 3.9 3.9 TOTAL 43.65 43.65 122 City Administration (5.00 FTE) City Council (5.00 FTE) Economic Administration Development (1.00 FTE) Community Promotion (0.25 FTE) City City Clerk Administration (4.00 FTE) (38 FTE) Office of Office of Tourism & BID Sustainability Sustainability (3.00 FTE) (1.75 FTE) Network Services Downtown BID (9.00 FTE) Information Technology Information Services (9.75 FTE) Administration and Information Technology Operating Budget Changes 1 Better Buildings Initiate a new grant program to catalyze energy One- SLO, Phase II - efficiency and decarbonization retrofit projects time Demonstration in existing buildings that will also serve as Project demonstration and showcase projects, in Implementation/Tar support of CAP Green Buildings task 2.1. Funding geted Grant (4.2.e) within existing PO. 2 Minor Office Retrofit existing Office of Sustainability One- $10,000 Retrofits workstations to accommodate return to work time with reduced office space. 3 "Undocu-Friendly" Funding will be used to develop a visual marker One- $1,000 $0 Logo - create. Part to put on City documents indicating a service or time of effort to support program eligible to undocumented residents. undocumented community 4 Administrative This funding will be used to support the Office of One- $30,555 $34,158 Support for MCG DEI with Administrative Support dedicated to the time Efforts office of DEI. This position will be responsible for supporting the DEI Manager and the overall success of the new program. 5 Central DEI Position Funding will be used for the creation and Ongoing $111,898 $115,995 (1 FTE) recruitment of a Central DEI Position that will lead the Office of DEI and the DEI Major City Goal. 6 City Funding will be used for the development of a One- $15,000 $15,000 101/Community City 101/Community Academy to increase time Academy - understanding / access / participation in City development & government throughout the community. pilot 7 Community -based Funding will be used to increase community- Ongoing $5,000 $10,000 Awareness, based Awareness, Education, and Outreach Education, Outreach Programming provided by Cal Poly and other Programming proven providers. 8 Community -based Funding will be used to support a feasibility One- $40,000 $2,500 Multicultural Center study for a Multicultural Center. time feasibility study 9 Comprehensive DEI This funding is requested to conduct needs, One- $35,000 Strategic Planning priority, and resource assessments for the City time and Community. The outcome of this initiative is to create comprehensive DEI initiatives and programming for the organization and community. 10 DEI Civic Spark This funding will be used to contract with One- $30,000 Fellows CivicSparks for a CivicSparks Fellow. Staff have time 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 `PzI Administration and Information Technology the implementation of Year 2 DEI Major City Goal initiatives. 11 DEI This funding will be used to retain consultation One- $30,000 $15,000 Consultant/subject from DEI expert(s) to advise on and conduct time matter expert 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. 12 DEI Employee Funding will be used to provide the internal DEI Ongoing $5,000 $5,000 Committee Employee Committee with training and Development/Oper development opportunities. ations DEI High Impact 13 Funding will be used to sustain the creation of One- $150,000 $150,000 Grants - community the 20-21 High -Impact DEI Grants that time programs successfully provided $109,800 in funding to 8 non -profits to advance DEI in the City of San Luis Obispo. 14 DEI Interns This funding will be used to hire Cal Poly, Cuesta, One- $13,586 $15,187 or Community Candidate Interns to support the time Office of DEI. 15 DEI Office Space This is a one-time funding request for office Ongoing $14,000 $24,000 space rental for the proposed DEI positions. As this is a new program there is currently no desk space for these positions to operate. 16 DEI Trainings for This funding will be used to implement and Ongoing $15,000 $15,000 Staff / Org maintain DEI training for all City Employees, and Development organizational development. efforts 17 HRC Operating This request is to increase the HRC's Operating Ongoing $3,000 $5,000 Budget Budget for enhanced presence, advocacy, community building, etc. (such as awareness campaigns, access/fairness efforts, citizen award, etc.). 18 Implementation of Funding will be used for training, cultural Ongoing $5,000 $15,000 DEI Programs - Both celebrations, speakers, forums, workshops, etc. in the Community for both the community and internal City staff. and for Internal City Staff. 19 PEN Manual Update This funding is needed to update the City's One- $15,000 $0 to enhance input formal Public Engagement & Noticing (PEN) time from procedures as well as other public outreach, input efforts to increase diverse participation. 125 underrepresented groups 20 Start -Up and Ongoing Costs for the Office of DEI 21 Communications Program Support 22 Grant Writing Support Services (4.1.d) 23 Half-time regular Application System Specialist 24 Reclass existing Information Technology System Engineer position to Security Engineer. Administration and Information Technology The funding will be used to develop and implement new tactics. Funding will be used for the start-up costs associated with the creation and maintenance of the Office of DEI. Funding 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. 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. This request is part of an effort to support necessary core GIS services to the organization considering 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 1.7 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 1.7 Ongoing 1 $20,000 I $5,000 Ongoing 1 $60,000 1 $60,000 Ongoing $50,000 $50,000 Ongoing $17,542 I $19,949 Ongoing $0 1 $0 126 Administration and Information Technology 25 Open Space Winter I Implement Open Space Winter Hours of Use at One- $75,000 Hours of Use - CEQA Cerro San Luis Natural Reserve, including time and technical Biological Studies & CEQA studies (4.3i) 26 Regular half-time This request is to align resources with the Ongoing $829 $1,077 Administrative workload for the division and allow technology Assistant to Regular staff to focus on technical issues in lieu of Full-time. administrative work. Costs partially offset by reductions in other operating areas. 27 Utilities Locator Administrative change to change the funding for Ongoing $3,592 $3,592 Position Salary -Split the Utilities Locator from the Water Fund to the Cost Centers 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 drains, street light conduits, and fiber optic conduits. 28 ECOSLO partnership Partner with ECOSLO to support the 10,000 Trees One- $20,000 $20,000 - SLO Stewards, Tree by 2035 goal through a tree planting and time Planting & Maint, maintenance program, as well as continue with Green Business, the SLO Stewards Docent Program, annual creek Creek Clean Up clean-up efforts, and administration of the SLO (4.3.c) Green Business Program. 29 Open Space - Following successful piloting at Terrace Hill Open Ongoing $20,000 $20,000 Vegetation Space, implement and expand vegetation Management / Fuel management for fire fuel reduction, as well as to Reduction (Goats & promote soil health and recruitment of native Sheep contractor) perennial bunchgrasses, using goats and sheep 4.5.b) with a professional contractor in order to ensure a safe and effective operation. 30 Open Space and Provide resources to be able to respond quickly Ongoing $20,000 $20,000 Creeks - Hazardous to instances when hazardous trees are identified Tree Removals on City Open Space lands or creek areas where (4.5.f) the City has a property interested. 31 Sustainability & Create a limited term Sustainability & Natural One- $62,753 $62,753 Natural Resources Resources Analyst position to support open time Analyst (4.1.a) 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. 32 Sustainability & Restore the Sustainability & Natural Resources One- $12,368 $13,613 Natural Resources Intern position to support open space time Intern/ Urban administration and planning efforts and climate Forest Master Plan action plan implementation efforts, including Intern (4.1.b) completion of the Community Forest Master Plan. (Funded by GF in year 1) 127 33 Focused efforts to attract & retain businesses owned by minorities and underrepresented communities. Support businesses serving underserved/underr epresented communities (1.1) 34 Arts, Culture and Community Partner Support 35 Business Promotions and Communication Support(1.2) 36 Business Retention/Recovery Programs (1.2) 37 Economic Development Program Support (1. 1.) 38 Economic Development Recovery scorecard (1. 1.) 39 Fund approved Application Systems Specialist position 40 Holiday Activation support downtown(1.4) 41 New Economic Development Strategic Plan (1.1.) 42 Regular half-time Technology Project Administration and Information Technology 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. Funding to support the recovery of arts, culture and community partners. 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. 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 throughout the City and including downtown. Funding to ensure adequate temporary and flex resources available to develop and execute required initiatives. 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. Maintain 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 1.5b Support Downtown SLO in expanding the Holiday "Light up Downtown" program and incentivize private participation through a matching program. Funding to update the Economic Development Strategic plan. One- $150,000 time One- $50,000 $25,000 time One- $80,000 time One- $500,000 $250,000 time One- $50,000 $25,000 time One- $30,000 1 $30,000 time Ongoing $105,312 1 $110,384 Ongoing $150,000 $150,000 One- time The Technology Project Manager will continue to I Ongoing $52,444 drive improvements to the Motion ERP necessary to achieve the desired efficiency and $100,000 $54,669 128 Administration and Information Technology Manager to Regular ' effectiveness from the system. This position will Full-time support the completion of approximately 15 high priority projects over the next two years. management of an ERP system and IT project management. MCG 1.5b 43 Microgrid Feasibility Conduct a microgrid feasibility assessment to One- $20,000 Study identify City properties that could add solar, time battery storage, and controls to allow operation during times of electrical grid outages as an uninterruptable power supply. 44 Micro Community The Micro Community Collaborative initiative is a One- $20,000 Collaborative (MCC) 1) web platform for community members to time Initiative learn how they can take sustainability initiatives in their own lives, and 2) coordinating support to advertise the web platform and support communities of practice throughout the city. TOTAL 1 $1,918,880 1 $1,622,877 129 Administration and Information Technology 2021-23 Department Goals Department strategic priorities for the 2021-23 Financial Plan are to help advance the City's overall goals tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals are in addition to ongoing community program services (listed in program sub -sections). Strategic Goal(s) Continue to lead the City's communications program and provide timely, accurate and 8.5* concise communications that provide opportunities for the community to engage with the City. Continue to manage the City's Information Technology Program to provide reliable resources for improving organizational productivity, effectiveness and customer service to the entire City organization and the community. �i Work with regional partners to focus on the creation of head -of -household jobs, promoting innovation and entrepreneurship, and supporting economic activities, as including tourism, to ensure the overall economic health and quality of life. Implement the primary tasks set forth for the next two years as identified in the Climate Action Plan for Community Recovery. Continued commitment and expanded focus on Open Space protection and stewardship, as well as fire fuel reduction and creek and flood control maintenance. Vor Create the Office of Diversity, Equity and Inclusion (DEI) and continue to advance DEI priority initiatives in the City organization and community. Econom"c Stabil'ty Housing Climate Act -or DEI O:her Department Objectives 130 Administration and Information Technology Performance Measures Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo's goals and objectives. 2019-20 2020-21 i2022-23 Objective Measure Actual Actual Target Target Provides City-wide Open City Hall Participant Satisfaction communications to the 90% 93% o 90% 0 90% community. Rating Strategic Goal: Citywide # of City News Releases' 185 2003 150 175 Communications Provides reliable IT Maintain City Network Reliability 99 9% 99 9% 99 9% 99 9% resources to the Uptime Status Data backed -up in Gigabytes 78,200 173,000 173,000 173,000 organization and community. Strategic Goal: Information Number of GIs layers maintained 905 905 905 905 Technology Contacts with businesses regarding Economic Stability starting, expanding, and/or staying in 50 3004 75 75 the City Strategic Goal: Economic One-time funds used for direct aid to 0 $932,0002 $500,000 $250,000 Recovery and Stability local businesses and non -profits Supports our commitment to sustainability and # of Green Teams Meetings 10 10 10 10 provides open space # of Open Space Conservation Plans resources to the community. that will guide the long-term Strategic Goal: Climate protection and stewardship of natural 0 1 1 1 Action, Open Space, and resource values while guiding Sustainable Transportation appropriate public use Strengthens the City's # of City-wide DEI Trainings Offered N/A 9 10 12 commitment to advancing Diversity, Equity and Inclusion Funds for High -Impact DEI Grants N/A $109,800 $150,000 $150,000 Awarded Strategic Goal: DEI 2 Actuals for FY20 and FY21 includes COVID-19 County Press Releases sent by the City. From FY15 through FY20, the City averaged 143 City News Items per year. 3 As of March 15, 2021 4 This performance measure is significantly higher than a typical year as the Department's work programs for FY21 have shifted drastically to address the pandemic. The Department contacts businesses in a variety of ways including direct contact, business emails, the Business Ambassador Program, and the Vacancy Task force s The Green Team is a cross -departmental collaborative body that helps guide the approach of the CAP Pillar 'Lead By Example: Carbon Neutral City Operations'. As noted in the Major City Goal Work Program, in 2021-23, the Green Team will focus on implementing the carbon neutral municipal operations plan, completing the Resilient SLO project, and facilitating all -staff sustainability training. 131 Operating Budget General Fund City Administration Program Description City Administration The City Administration and IT department is responsible for providing information and recommendations to the City Council, implementing Council policies and programs as well as managing the day-to-day operations of the City. It is the lead department charged with overseeing the implementation of the Council's Major City Goals. Core Services & Objectives Lead the Economic Recovery, Resiliency and Fiscal Sustainability Major City Goal. Lead the Diversity, Equity and Inclusion (DEI) Major City Goal. Lead the Climate Action, Open Space and Sustainable Transportation Major City Goal. Lead the citywide communication program. Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 2021-22 Change 2022-23 Change $827,936 $886,604 $1,095,150 24% $1,148,180 5% $409,059 $125,000 $121,000 -3% $121,000 0% $29,817 $34,900 1 $47,200 35% $1,266,811 $1,046,504 1 $1,263,350 21% Major City Goal Contributions $45,200 -4% $1,314,380 4% The City Administration program will be responsible in supporting the Department's programs in leading the Major City Goals of Economic Recovery, Resiliency and Fiscal Sustainability; Diversity, Equity and Inclusion; and Climate Action, Open Space and Sustainability Transportation. Opportunities and Challenges During the 2021 Fiscal Year, the Administration program was approved to hire a new Public Communications Manager. The creation of the position will provide new opportunities forthe department to continue to lead the citywide communications program and establish new ways of engaging the public on the City's ongoing community services and programs. 132 Operating Budget General Fund City Council City Council Program Description The Council governs the City of San Luis Obispo by enacting and enforcing all laws and regulations concerning municipal affairs, subject only to limitations and restrictions of the City Charter and the State Constitution. Seventeen standing advisory bodies help the Council with this work. Core Services & Objectives Implementation of the selected Major City Goals: Economic Recovery, Resiliency and Fiscal Sustainability Major City Goal. 4 Diversity, Equity and Inclusion (DEI) Major City Goal. �g Climate Action, Open Space and Sustainable Transportation Major City Goal. 4 Housing and Homelessness Major City Goal. Program Budget 2019-20 Staffing $142,386 Contract Services Other Operating Costs $14,953 Total Program $157,339 2020-21 2021-22 Change 2022-23 Change $155,577 $184,751 19% $186,952 1% $29,400 $29,400 0% $29,400 0% $184,977 I $214,151 16% $216,352 1% 133 Operating Budget General Fund Cultural Activities Cultural Activities Program Description The Cultural Activities Program administers partnerships with the Cal Poly Performing Arts Center, City - County Public Library, and many other cultural organizations that provide community value. Core Services & Objectives Continue support to the City -County Library. Continue financial support of the Performing Art Center (PAC). Participate on the PAC Board and Facilities Committee. Continue to provide support to Community Partners and explore new partnerships. Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 2021-22 Change 2022-23 Change $332,351 $334,351 $344,382 3% $354,713 3% $3,250 $3,250 0% $3,250 0% $332,351 $337,601 I $347,632 3% $357,963 3% Opportunities and Challenges The challenges to Cultural Activities due to COVID-19 have been significant, however, the City is working to partner with community stakeholders to provide alternative ways of conducting business. Additionally, the City is continuing to participate on the PAC Board and Facilities Committee to work with Cal Poly to address the negative impacts that COVID-19 has had on the PAC's budget. 134 Operating Budget Economic Development Program Description Economic Development The Economic Development Program emphasizes support for creation of head -of -household jobs, collaborates with Cal Poly, Cuesta College, the business community, and other agencies to promote innovation and entrepreneurship, and supports economic activities, including tourism, to ensure the overall economic health and quality of life. Core Services & Objectives Lead the Economic Recovery, Resiliency & Fiscal Sustainability Major City Goal. Support the Climate Action, Open Space and Sustainable Transportation Major City Goal and the Diversity Equity & Inclusion Major City Goals with a focus on economic development. Lead the process to update to the Economic Development Strategic Plan. Continue to implement traditional and non-traditional economic development programs. Work with our partners across the region to address common economic development challenges and opportunities including attraction, reducing barriers to job creation, and addressing the impacts of the closure of the Diablo Canyon Nuclear Power Plant. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $111,071 $174,080 $181,017 4% $184,621 2% i Contract Services $145,729 $108,224 $975,000 801% $695,000 -29% Other Operating Costs $12,967 $27,650 $27,650 0% $27,650 0% Total Program— $269,768 $309,954 $1,183,667 282% $907,271 -23% Major City Goal Contributions The recovery from the economic impacts from the COVID-19 pandemic will require significant efforts from the Economic Development Program in leading the Economic Recovery, Resiliency & Fiscal Sustainability Major City Goal. The program will also be involved in the other Major City Goal work programs to further their objectives. Opportunities and Challenges While the challenges related to COVID-19 are significant, the pandemic has also created opportunities for the Economic Development Program to assist the business community to speed recovery and build resilience. The longer -term opportunity to update the Economic Development Strategic Plan is a significant undertaking in the second year of the budget cycle. One of the potential challenges is 135 Operating Budget Economic Development managing expectations of the public. Given the speed of the shutdowns the public might expect a similarly swift recovery which will take longer as new businesses replace those that closed. Communication regarding expectations for recovery will be critical as the City moves forward. Other Key Points The City's Economic Development partnerships with other organizations, including the San Luis Obispo Chamber of Commerce, REACH, Downtown SLO, Cal Poly, and others continue to strengthen and will be invaluable in dealing with the recovery as well as other ongoing issues like the closure of the Diablo Canyon Nuclear Power Plant. The response to pandemic highlighted opportunities to expand the Economic Development Program's communication to the business community and will be part of the efforts moving forward. 136 Operating Budget Sustainability Office of Sustainability Program Description The Office of Sustainability provides leadership through direct action, catalyzes positive action through collaborative engagement and policy development, and creates measurable benefits for the City of San Luis Obispo and our region through Natural Resources, Climate Action, Creeks and Watersheds, and Community Partnerships. Core Services & Objectives: Implement the Climate Action Plan for Community Recovery and lead the Climate Action Major City Goal. Coordinate and lead inter -departmental efforts to achieve carbon neutral municipal operations by 2030. Assess community vulnerability to the impacts of climate change and continue planning and implementation efforts that support resilience and adaptation through inter -departmental collaboration. Implement the Greenbelt Protection Program through land conservation planning, land stewardship, and real property acquisitions, and support development review. Participate and play a leadership role on the Stormwater Program Technical Team and Steering Committee. Provide inspections and pre -season treatments in the creeks to reduce the likelihood of flooding; implement recovery efforts for threatened and endangered species through monitoring and habitat restoration projects; support regulatory compliance and development review activities. Engage in community partnerships with arts, cultural, historical, environmental, social, civic, and business groups. Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 ' 2020-21 2021-22 Change I 2022-23 Change $458,442 $484,190 1 $606,438 25% $617,767 2% $101,682 $70,500 1 $215,000 205% $100,000 -53% $57,827 $73,459 1 $83,459 $617,952 $628,149 1 $904,897 14% $73,459 -12% 44% $791,226 -13% 137 Operating Budget Major City Goal Contributions Sustainability The Office of Sustainability is responsible for implementing large portions of the Climate Action, Open Space and Sustainable Transportation Major City Goal. Given the interconnectedness of housing, economic development, and diversity, equity, and inclusion with climate action goals, the Office of Sustainability will be involved in collaborating across all Major City Goals. Opportunities and Challenges As the state and federal governments continue to prioritize climate action, the City will monitor opportunities for funding of priority climate actions. Ongoing implementation of the Climate Action Plan will be a challenge due to the rapidly evolving regulatory environment and increasingly complicated technical issues. The City's Greenbelt Protection program has historically been able to significantly leverage its open space acquisition budget with grants from other agencies, creating the opportunity to pursue priority open space purchases that otherwise would have been very expensive. While the City has usually been successful in this regard, arranging external funding when needed oftentimes presents an additional challenge. Other Key Points c Implementing and updating the Climate Action Plan involves initiating multiple actions while moving other actions from pilot phase to ongoing implementation. The Climate Action Plan for Community Recovery explicitly commits to equity, economic recovery and development, and housing, directly tying the work to all proposed Major City Goals. The City's continued commitment to the Greenbelt Protection Program necessarily means continued investments in Ranger Service in order to ensure long-term care and stewardship of the City's cherished open space system. 138 Operating Budget General Fund Community Promotion Program Description Community Promotion The Community Promotions program works to improve the quality of life for all City residents and visitors. The program implements projects to help promote the City as a regional trade, recreation, and tourist center consistent with community goals. The program is administered by the Promotional Coordinating Committee (PCC) and works collaboratively with the City's Tourism Business Improvement District (TBID) to ensure a unique San Luis Obispo experience for residents and visitors. Core Services & Objectives To promote the City as a regional trade, recreation, and tourist center consistent with community goals. Support of cultural, recreational, and social activities to enhance the community's well-being. Develop promotional programs and projects for the City of San Luis Obispo. Initiate and support community activities that are meaningful to residents and visitors of the City of San Luis Obispo. Program Budget Staffing Contract Services 2019-20 2020-21 $37,205 $37,143 2021-22 Change 2022-23 Change $38,085 3% $38,826 2% $320,789 $328,000 $328,000 0% $328,000 0% Other Operating Costs $35,514 $39,000 $39,000 0% $39,000 0% Total Program $393,509 $404,143 $405,085 0% $405,826 0% Major City Goal Contributions The recovery from the economic impacts due to the COVID-19 pandemic will require significant efforts from the Community Promotions program in supporting the Economic Recovery, Resiliency & Fiscal Sustainability Major City Goal. The program may also be involved in the other Major City Goals including Climate Action, Open Space and Sustainable Transportation and Diversity Equity & Inclusion. 139 Operating Budget General Fund City Clerk Program Description City Clerk The City Clerk's office handles a myriad of duties relating to the official business of the City Council, its commissions and committees. The City Clerk's office is generally responsible for keeping minutes of City Council meetings; compiling the agenda and collecting backup information for each council meeting; processing council agreements; recording official documents; handling legal advertising; conducting municipal elections; maintaining current files on all commissions and committees; maintaining the city seal; and handling all other legal or official documents. Core Services & Objectives g Ensure that records are preserved as provided by City Charter and State and Municipal Law. Administer procedures for City elections for elective offices, initiatives, referendum and recalls. g Conduct elections that conform to the State Elections Code and the City's campaign regulation Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $410,696 $406,687 $440,322 8% $457,293 4% Contract Services $128,883 $150,081 I $81,000 -46% $151,000 86% Other Operating Costs $27,027 $49,345 $49,345 0% $49,345 0% Total Program $566,606 $606,113 I $570,667 -6% $657,638 15% Opportunities and Challenges The City Clerk's office is in the process of implementing Escribe as its new Agenda Management System. The new system will allow the City Clerk's office to streamline the agenda packet process for City Council and several of the Advisory Bodies. The public will see an improvement in the video archiving which will allow for bookmarking of each agenda item for easy and quick access to topics of interest. 140 Operating Budget General Fund T Network Services Program Description IT Network Services The IT Network Services Program is responsible for ensuring that the City's information technology resources are effectively managed and used as key tools in improving organizational productivity, effectiveness, customer service and public access to City information. IT support services range from end user support to infrastructure design, installation, and maintenance. The Network Services program also provides training to City staff on the use of implemented technologies and applications. Additional Core Services include support of the City's Public Safety departments and their technology needs. The Network Services program works with the Utilities departments to install, maintain, and secure their critical SCADA (Supervisory Control and Data Acquisition) systems. Core Services Public Safety infrastructure support Core Network and Internet infrastructure support City cyber security services and threat monitoring Citywide Communication Support— radio system, wireless system, camera system, access control systems, telephones (VolP & analog), cell phones Support City telemetry and SCADA systems Program Budget Actual Budget 2019-20 2020-21 Staffing $1,033,312 $1,232,853 Contract Services $464,595 $443,979 Other Operating Costs $1,494,444 $1,487,074 Total Program $2,992,351 $3,163,906 Opportunities and Challenges 2021-22 Change 2022-23 Change $1,240,775 1% $1,277,990 3% $443,979 0% $443,979 0% $1,407,413 -5% $1,540,014 9% $3,092,167 -2% $3,261,983 5% IT Network Services has been heavily involved in the push to move employees to a work from home model during the COVID pandemic and is transitioning to prepare for the City's workforce to return to normal work conditions post pandemic. It will continue to position the City's workforce as a mobile first workforce to accommodate the future needs of a City that must remain highly resilient and flexible to provide Core Services to the community. IT Network Services will be heavily involved in building the support structure around the City's investments in applications and infrastructure to ensure these are used to provide a high level of service to the public. IT Network Services will continue to strengthen the City's Public Safety communications infrastructure and the City's underlying IT infrastructure platform. `E Operating Budget General Fund IT Information Services Program Description Information Services The IT Information Services Program operates and maintains the City's geographic information system (GIS), enterprise databases, and enterprise applications. The Program provides accurate and comprehensive information services for managing resources, making informed decisions, and expediting work processes. The City's GIS and enterprise applications have expanded over the years due to the valuable insights the data provides, and the IT Information Services Program continues to position itself to best serve the City's needs now and into the future. Core Services Enterprise Application Support Analysis and Training Database Management and Maintenance Motion Support Provide GIS mapping and enterprise database support Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $958,522 $940,534 $1,167,302 24% $1,208,088 3% Contract Services $11,128 $11,400 $11,400 0% $11,400 0% Other Operating Costs $61,937 $64,500 $71,500 11% $71,500 0% Total Program $1,031,587 $1,016,434 $1,250,202 23% $1,290,988 3% Major City Goal Contributions IT Information Services will provide GIS and enterprise database support for elements of the Housing, Climate Action, and Economic Recovery Major City Goals. Opportunities and Challenges The use of GIS technology will inevitably continue to expand. The challenge will be in maintaining adequate staffing levels as we continue to depend on and invest heavily in GIS-centric applications and systems and continue to automate work processes. `EW Operating Budget CITY ATT O R N E Y Mission Statement City Attorney Providing excellent legal advice and services to the City Council, Advisory Bodies and City Staff to support legal compliance, equity, accountability, and transparency in Public Service. About the Department The legal services program is a support function that provides legal advice and representation to the City Council, all City departments, and City advisory bodies to accomplish Major City Goals, other important objectives, and core operational functions in accordance with the law. The responsibilities include: Council, Planning Commission, Advisory Body, and cross departmental legal review and advice to ensure general compliance with applicable laws and to minimize liability exposure; defending or managing the defense of claims and litigation against the City and initiating civil actions on behalf of the City; enforcing and prosecuting violations of the Municipal Code, including both criminal violations and civil/administrative enforcement; coordinating the City's review of and response to proposed county, state, and federal legislation; advising City staff on compliance with the California Public Records Act, and reviewing and producing documents subject to disclosure; and administering and providing staff support for administrative citation appeals to hearing officers and the City's Administrative Review Board. 143 Operating Budget The Department at a glance Contract Services 8% City Attorney EXPENDITURES BY FUNCTION Other Operating Costs 2% Staffing 90% Existing FTEs 3 3 Additional FTEs (per SOBCs) Supplemental/Contract FTEs 5 3 TOTAL 8 6 144 Operating Budget Department Organizational Chart' 1 Does not include supplemental or contract positions. City Attorney 145 Operating Budget SOBC Paralegal (contract hire 1 until Org Assessment complete) Deputy City Attorney 2 (contract resource until Org Assessment complete) Legal Assistant (contract 3 hire until Org Assessment complete) 4 Part-time Asst. City Attorney 5 Short-term, Part-time Legal Asst. 2 6 Short-term, Full-time Legal Asst. 1 Department Org Assessment 8 eDiscovery/Document Review Software 9 Legal Analyst (reclassification) Staffing Reconfiguration: 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. Contract 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. A 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. 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. City Attorney 2021-22 Ongoing $84,045 $87,709 Ongoing $130,174 $135,039 Ongoing $65,442 $68,131 One-time $108,646 One-time $11,055 One-time $7,552 One-time $60,000 Ongoing $12,995 $11,395 Ongoing $2,504 $5,935 146 Operating Budget 2021-23 Department Goals City Attorney As a support department, the City Attorney's Office primary goal is to ensure that the City Council, its advisory bodies and all city departments and staff are fully informed of available legal options and compliant with applicable laws in the implementation of Major City Goals and delivery of core services. Strategic Goal(s) Provide timely and responsive legal advice and support to City Council, Planning A16 Commission, Advisory Bodies, and all city departments to ensure legally rt compliant implementation of Major City Goal work programs and delivery of AV*l�J core services. Provide proactive and regular training and support to the City Council, Advisory ,r} Bodies, and all city departments regarding compliance with public agency laws, including the Brown Act, Public Records Act and Political Reform Act, and Government Code Section 1090. Provide timely and effective legal representation and case management of civil claims and litigation cases, as well as effective municipal code enforcement and prosecution services to the City to minimize liability exposure and enhance community welfare. %' Economic Stability Hsu -;in. Climate Action MAUS * CEI 0) Other Cepartmegt Qb_e.tives IEW Operating Budget General Fund Performance Measures City Attorney Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo's goals and objectives. Strategic Goals i i Administrative Citation Appeals 2123 2064 150 150 Received by the City Appeals closed without need of a 40 31 25 25 Timely and Responsive hearings legal advice and City assisted corrections to support defective appeals to allow access to 23 20 15 15 Strategic Goal: hearing City facilitated hearings on the Department Objectives record without need for personal 48 44 50 50 appearance by Appellant # of hearing days scheduled 9 13 7 7 Legal Training & # of Council, Staff, and Advisory Compliance Body legal trainings, legal updates, - - 12 15 Strategic Goal: and compliance advisory sessions Department Objectives Municipal Litigation & Percentage of Claims Resulting in 5.3/ o 2.2/0 0 <5/0 0 0 <5/0 Prosecution Litigation Management Strategic Goal: Liability Claims Against the City 76 46 70 70 Department Objectives Reviewed/Managed 2 Current as of 3/19/2021 3 Since March 2020 (generally the start of COVID-19 emergency orders which required enforcement action to gain community compliance) the number of administrative citations being appealed has increased significantly. The expectation is that the volume will return to pre-COVID levels during the 2021-23 Financial Plan. 4 Same as footnote 2 s Closed in some way that did not include a decision being issued (e.g. withdrawn by appellant, untimely filed, voided by the issuing department) e New performance measure so no values for previous year actuals. Estimate is 8-12 completed annually. 148 Operating Budget General Fund City Attorney City Attorney Program Description The City Attorney department has only one program which completes all the legal and administrative support functions under its purview. Core Services & Objectives Y Enhance and maintain a high level of legal support to City government. g Provide prompt, thorough legal advice in response to inquiries, with emphasis on legal options. z_ Minimize liability exposure of the City through the practice of preventative law. Apprise City Council on pending litigation, legislation, and other significant legal matters. Strengthen Municipal Code enforcement practices. Program Budget 2019-20 2020-21 2021-22 Change � 2022-23 Change Staffing $815,900 $742,567 $1,073,381 45% $993,037 -7% Contract Services $40,801 $20,000 $92,995 365% $31,395 -66% Other Operating Costs $143,935 $15,600 $19,195 23% $19,365 1% Total Program $1,000,636 $778,167 1 $1,185,571 52% $1,043,797 -12% Major City Goal Contributions Based on the proposed Major City Goal work programs, the City Attorney has estimated that, over the two-year financial plan, 2-2.5 FTE annually will be devoted just to supporting those efforts, apart from supporting existing programs and performing core services. Opportunities and Challenges The first year of the financial plan will include the challenge of completing a department organizational assessment, while simultaneously completing the existing workload, but that effort will result in the possibility of a more efficient staffing structure more capable of meeting the demands of the City Council, all City departments and City advisory bodies. 149 Page intentionally left blank. 150 Operating Budget ZONING REGULATIONS __- Community Development COMMUNITY DEVELOPMENT Mission Statement Our mission is to serve all persons in a positive and courteous manner and help ensure that San Luis Obispo continues to be a healthy, safe, attractive, and enjoyable place to live, work, or visit. We help plan the City's form and character, support community values, preserve the environment, promote the wise use of resources, and protect public health and safety. About the Department The Community Development Department includes the Administration, Housing Policy and Programs, Planning, Engineering, and Building & Safety divisions which develop, implement, and track guiding policies in the City's General Plan. Plans for new construction are reviewed through planning applications to ensure compliance with city standards and policy objectives. Construction is supported through implementation of zoning, building, and engineering codes and through coordination with a wide variety of City departments. The Community Development Department provide service to the community directly at its public counter and services offered on-line on its website. The department helps maintain the health and safety of the community directly through code enforcement activities, and indirectly by guiding the City's urban form from concept to construction. 151 Operating Budget The Department at a glance Community Development • . Community Dev Admin $867,164 BudgetActuals $800,126 ,.Budget $994,382 $917,663 Commissions and Committees $15,513 $51,453 $34,939 $34,939 Planning' $1,053,548 $2,563,867 $2,021,316 $1,943,562 Engineering $114,993 $- $678,898 $688,625 Development Services $1,003,441 $- $- $- Building and Safety $2,269,498 $1,463,365 $2,296,644 $2,321,228 Human Relations $353,546 $447,000 $3,000 $5,000 Housing Policy and Programs $- $951,983 $930,970 Total Community Development $5,677,704 $5,325,811 $6,981,163 $6,841,987 Community Services Group Admin — Multi Departmental (PW, Parks & $9,593 $404,998 Rec, CDD) EXPENDITURES BY FUNCTION Other Operating Costs 5% Contract Services 21% affing A01 $665,501 $575,391 Existing FTEs 2021-22 30.5 2022-23 30.5 Additional FTEs (per SOBCs) 9 9 Supplemental/Contract FTEs 1.3 1.3 TOTAL 40.8 40.8 1 Planning, Engineering, and Development Services were combined into a single cost program for FY 20-21. Planning and Engineering are separated out for the 21-23 Financial Plan. 152 Operating Budget Department Organizational Chart' 2 Does not include supplemental or contract positions. Community Development 153 Operating Budget Operating Budget Changes 1 2 Community Development Community Services Group Administration (Serves Public Works, CDD, P&R, and Utilities) Conversion of Under the Community Services Group, Ongoing $40,043 $43,016 Supplemental the Marketing focused Community Position to CSG Coordinator is a business support Marketing position that provides communications Coordinator FTE 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. Reallocation of Staff has assessed staffing and Ongoing $0 $0 Contract Services organizational structure needs as related Budget to Part- to the Organization of the Future effort Time and is requesting reallocation of $37,000 Administrative in Contract Servicesto a part-time (20 Assistant 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. 154 Operating Budget Community Servicc 3 Community Workforce Agreement Study 4 919 Office Reconfiguration 5 Cannabis Business Program Position Community Development �s Group Administration (Serves Public Works, CDD, P&R, and Utiliti Hire a consultant, support legal review, One- $105,000 and establish an internal working group time and hire a consultant 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. The Community Services Group will be leading this effort. Community Development Department $0 Funding is needed to plan and One- $150,000 $50,000 implement changes at 919 Palm to time 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. This request is for a dedicated support Ongoing $111,898 $115,996 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. 6 1 Cannabis Business This request is for required consultant C Support Contract support of the Cannabis Business Services Program and is funded through business fees. The new fee structure approved by the Council includes consultant support 155 Operating Budget 7 Code Enforcement Body Cameras 8 1 Housing Element Program Implementation; Consultant Support 9 ' Safety Element Environmental Review 10 I Zoning Regulations Update for Downtown Uses and Flexible Use of Outdoor Spaces Citywide Community Development 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. 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. Ongoing $5,440 1 $1,440 Consultant support is needed to complete four specific Housing Element Programs (2.13, 4.6, 5.4, 6.20). This includes updating our Inclusionary Housing Ordinance, Missing Middle Housing and Subdivision Regulations. Inclusionary Housing Ordinance = 120k; Missing Middle Housing = 100k; Subdivision Regulations = 35k. One - time One-time expense for consultant support _ One - to complete the environmental review time for the safety element update. 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. Two major updates to the Zoning One - Regulations will require consultant time 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 citywide to implement changes that will allow more effective use of outdoor spaces, including parking lots. $140,000 I $115,000 $25,000 $125,000 $0 156 Operating Budget 11 Homelessness mM% I Strategic Plan 12 Pilot: Housing and Homelessness Major City Goal (25% Expansion of 40 Prado HSC Beds) - Proportions City share to County contribution 13 Pilot: Housing and Homelessness Major City Goal (Consultant Contract) 14 Building and Safety Division Streamlining and Succession Planning (1 FTE - Deputy Building Official) Community Development Community Development Department 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. Work 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. 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. 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. One- 1 $35,000 $0 time One- $63,826 $63,826 time One- $117,000 $117,000 time Ongo 157 Operating Budget Community Development Community Development Department 15 Building and Safety This SOBC would implement an Division organizational structure change to align Streamlining and all building permit plan check and permit Succession issuance activities under a single Planning (Net Cost supervisor. This requires reclassification of Reclassification of the Permit Services Coordinator to a of Building and Building Permit Services Manager. In Safety Supervisor addition, the Building and Safety and Permit Supervisor position would be reclassified Services as a Supervising Building Inspector to Coordinator) provide more field resources for inspections and an improved level of customer service in the field. 16 Development This request is to convert a current Services Program contract position into a regular FTE. The Capacity Building position was originally funded as a (1 FTE - Assistant contract during the 2019-21 Financial Planner) 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. 17 Development This request is to convert a current Services Program contract position into a regular FTE. The Capacity Building position was originally funded as a (1 FTE - Associate contract during the 2019-21 Financial Planner) 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. 18 Training & This request will help fund training and Education / Trips & education activities that were delayed Meetings 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. Ongoing Ongoing M $78,844 Ongoing $99,978 Ongoing $11,700 e $104,773 $11, 700 158 Operating Budget 19 Building and Safety Division Streamlining and Succession Planning (2 FTE - Building Permit Technicians) 20 Building and Safety Division Streamlining and Succession Planning (software for reporting, performance management, and customer transparency) 21 Development Services Program Capacity Building (temp salaries for Engineering Division) Housing and Homelessness Major City Goal (1 FTE - Code Enforcement Tech II - 75% Safe Housing, 25% Homelessness Prevention) Community Development Community Development Department 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. 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. 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. 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 I Ongoing 1 5132,214 1 $142,681a Ongoing $46,528 $39,234 Ongoing $88,206 $89,408 Ongoing 1 $73,882 $77,281 159 Operating Budget Community Development protection support - connecting community members with needed services available in the community for rental assistance and landlord -tenant dispute resolution. 23 Housing and This position is necessary to provide Ongoing $124,143 $124,143 Homelessness management and oversight for a new Major City Goal (1 Housing Policy and Programs section in FTE - Housing and the Planning Division. The position will Homelessness supervise the Housing Coordinator, Division Manager) 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. 24 Housing and This position is necessary to assist with Ongoing $89,558 $93,788 Homelessness Housing Element Program Major City Goal (1 implementation for the City's 6th cycle FTE Assistant Housing Element. The Assistant Planner Planner) will support the rest of the team in the division (including the Housing Policy and Programs Manager, 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. The TIPP-FAST program provides One- 25 TIPP Fast 2.0 - $250,000 $0 Utilize $250k from expedited Tenant Improvement permits time $2 million for new businesses. The City is working restricted to offer these permits free of charge for a limited period. TOTAL $2,143,646 $1,513,111 I.1 Operating Budget 2021-23 Department Goals Community Development Department strategic priorities for the 2021-23 Financial Plan are to help advance the City's overall goals tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals are in addition to ongoing community program services (listed in program sub -sections) Strategic Goal(s) Lead the implementation of the Housing and Homelessness Major City Goal Support the implementation of the Climate Action and Economic Recovery Major City Goals Provide excellent customer service to internal and external customers, and advisory body members, in the processing of permit applications Ensure a safe community through implementation of Building and Safety Division programs, including Code Enforcement Monitor growth, and support and update General Plan policies and Zoning Regulations standards to ensure coordination with all City Departments that provide municipal services for the community iL 0J Economic Stability Housing Climate Action DEI Other Department Objectives 161 Operating Budget Performance Measures Community Development Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo's goals and objectives •. Actual Actual •2022-23 Target Target Affordable housing Number of affordable production housing units secured Strategic Goal: through entitlements or 115 40 50 50 Housing construction Provide Excellent Customer Service Customer survey response 95% 95% Strategic Goal: positivity rate Other Department Objectives Percent of Code Enforcement cases Ensure a Safe Community investigated on -time: First Strategic Goal: 96% 88% 85% 85% Tier - 24 Hours, Second Housing Tier - 2 Days, and Third Tier - 3-5 Days The target goal of meeting Development Review cycle times 75% of the time activities reflects an increase in more Strategic Goal: complex and 85% 80% 75% 75% Other Department resource intensive Objectives development review activities. Building Inspections Percent of inspections Strategic Goal: performed the next 87% 92% 85% 85% Economic Stability working day 162 Operating Budget Community Development Admin General Fund Community Development Administration Program Description The Community Development Administration program provides management and support for the Planning, Housing Policy and Programs, Engineering, and Building & Safety divisions of the Community Development Department. The department also supports the work of the City Council through its recommendations, and provides liaison services to the Planning Commission, Architectural Review Commission, Cultural Heritage Committee, Human Relations Commission, and the Construction Board of Appeals. The program goals are: 1) providing effective and efficient management and support for other operating divisions; 2) establishing customer service and performance management standards for the Community Development Department; 3) coordinating priorities and tasks with other City departments; 4) establishing and maintaining complete and accurate records of staff and advisory body actions; and 5) providing prompt, courteous and accurate responses to request for public information. Core Services & Objectives Community Development Department leadership, management, and organizational development g Database and records management, including citywide addressing; public information support services Building inspection scheduling coordination Front counter cashiering/revenue collection Housing and Climate Action Major City Goals Implement proactive public engagement tools for projects Identify and support ideas for continued improvement and development within the Community Development Department. Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 2021-22 Change 2022-23 Change $689,798 $623,721 $659,222 6% $678,803 3% $21,302 $3,600 1 $153,600 $156,063 $172,805 1 $181,560 $867,164 $800,126 1 $994,382 4167% $53,600 -65% 5% $185,260 2% 24% $917,663 -8% 163 Operating Budget General Fund Major City Goal Contributions Community Development Admin The Administrative division supports maintaining complete and accurate records of staff and advisory body actions and major city goals related to housing and economic stability. The administrative team oversees the scheduling building inspections for the Building and Safety division to ensure that housing and business developments continue to progress and provide services to the community. Opportunities and Challenges Software and online tools are becoming increasingly important to our efficiencies and efficacy in supporting the City. The implementation and use of online payments and online scheduling of building inspections by customers will reduce the volume of calls staff receives. The online services will also allow the applicant to review plan and inspection notes online rather than calling CDD. The reduction of call volume will translate to increased time to support of other division's major city goal objectives. Retaining qualified people for the workload continues to pose a challenge. 164 Operating Budget General Fund Commissions & Committees Program Description Commissions & Committees Three commissions, one committee, and an appeal board advise the City Council on planning, building, and social and human service issues. Community Development Department staff serve as the staff liaison to all four of these commissions and committees. Core Services & Objectives Planning Commission (PC). Implement General Plan, Zoning Regulation, Subdivision Regulation and Community Design Guideline goals, policies, objectives and standards in plan and project reviews Architectural Review Commission (ARC). Implement the Community Design Guidelines in plan and project reviews Cultural Heritage Committee (CHC). Help identify and advise on suitable treatment for archaeological and historical resources Human Relations Commission (HRC). Advise on matters concerning human health and social issues Construction Board of Appeals. Hear and decide appeals of orders, decisions, and determinations made by the Chief Building Official and serve as the Appeals Board for Disabled Access. City Objectives. Protect, maintain, and enhance the social and economic values created by past and present investments in the community by requiring all future development to respect these traditions and require that all buildings and structures placed on the land respect the natural landforms, and become a compatible part of the total community environment. Long Term Financial Stability. Maintain a sustainable City budget and level of services by focusing on infrastructure maintenance, new revenue sources, and prudent use of Local Revenue Measure Funds. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $11,426 $26,753 $23,739 -11% $23,739 0% Other Operating Costs $4,087 $24,700 $11,200 -55% $11,200 0% Total Program $15,513 $51,453 $34,939 -32% $34,939 0% 165 Operating Budget Commissions & Committees General Fund Major City Goal Contributions Commissions and Committees review and approve entitlements for housing projects, density bonuses, tract maps, conditional use permits, and affordable housing projects. The planning staff prepares and oversees reports that study the environmental effects of development projects and identify ways of avoiding environmental damage (CEQA). Staff reports, attends meetings, and presents the development proposals to the Commissions and Committees to evaluate for consistency with the City's General Plan, and all other applicable plans and regulations. Opportunities and Challenges Virtual advisory meetings have presented new opportunities to facilitate more streamlined and efficient meetings, with more control for the chair to preside over the meeting, and ease for staff to share documents and resources on the screen. However, this also poses a challenge due to accessibility resulting in a reduction in public comment. 166 Operating Budget Planning General Fund Planning Program Description The Planning Program assists the community with land use issues and evaluates all types of development applications (including City -sponsored projects) relating to compliance with the City's General Plan, Zoning Regulations, Subdivision Standards, and other development regulations. Development review also maintains the City's development regulations. Reviewing development proposals prior to allowing construction is a key component of the City's General Plan implementation strategy. New development must conform to goals and standards established for housing, economic development, and environmental protection. Program goals are to 1) assist in achieving desired development in conformance with established policies, guidelines, standards, and acceptable timeframes; 2) provide timely processing of applications consistent with State and Local laws and policies; 3) create and maintain enjoyable places to live, work, and visit; 4) protect the public health, safety and welfare, and 5) create high public awareness of decisions on planning and environmental issues. Core Services & Objectives Residential Development. Support the City's Housing Program objectives, specifically, facilitate the approval of housing developments for Margarita Area, Orcutt Area, San Luis Ranch, Avila Ranch, Froom Ranch, and other sites identifies in the Housing Element and other key infill sites. Commercial Development. Support the City's Economic Development Program objectives by facilitating approval of mixed -use projects and businesses which bring head -of -household jobs to the community. Process Improvements. Continue to improve the development review process by implementing the recommendations of the Department's Organizational Assessment. Performance Measures. Continue to monitor a comprehensive performance management system to track the efficiency and effectiveness of permit reviews. 167 Operating Budget General Fund Program Budgets IF W Staffing Contract Services Other Operating Costs Total Program Planning 2019-20 2020-21 2021-22 Change 2022-23 1 Change $894,724 $2,251,417 $1,549,521 -31% $1,616,517 4% $139,343 $284,500 $436,595 53% $291,845 -33% $19,480 $27,950 $35,200 26% $35,200 0% $1,053,548 $2,563,867 I $2,021,316 -21% $1,943,562 -4% Major City Goal Contributions The Planning division reviews plan submittals and aims to increase the production of housing options for all income groups in the community. This includes working with developers and commissions and committees to align projects with City housing goals and objectives. Opportunities and Challenges Opportunities to expand our software and research tools are becoming increasingly important to our efficiencies and efficacy in supporting the City, Department, and Division goals and objectives. Software that allows customers to submit plans online will create an opportunity for customers to see progress of their applications in real-time. Challenges such as the reliance on non-profit and for -profit developers to come forward with development proposals to increase the supply of housing since the City does not own, manage, or build affordable housing itself. 168 Operating Budget General Fund Engineering Program Description Engineering The Engineering Program oversees design and construction of various public works projects build by private developers for city ownership. These projects typically include additions to the City's water, wastewater, recycled water storm drain, street, flood protections, and park systems. This program is also responsible for the review of the design of commercial, industrial, and residential private development projects for compliance with the Grading Ordinance, Parking & Driveway Standards, site development and drainage designs. This program is responsible for verifying plan compliance with Waterway Management Plan Drainage Design Manual and the adopted Post Construction Stormwater Regulations as promulgated by the Regional Water Quality Control Board for all private development projects. To ensure public safety, this program also grants permission for various uses of public right-of-way and issues permits accordingly. The program represents the City as Floodplain Manager and prepares regular responses and reports to Federal Emergency Management Agency (FEMA) and the public in this regard. The program reviews development projects for compliance with the Tree Regulations and coordinates with the City Arborist on tree removals, tree plantings, and tree preservations requirements. The program's goal is to ensure compliance with the City's Engineering Standards, Community Stormwater Regulations and to provide for the construction of safe, effective, and efficient public works which meet established engineering standards and specifications. Core Services & Objectives Development Review. Reviewing parcel maps, subdivision maps, and subdivision construction plans as required by the Subdivision Map Act; reviewing submittals for private building and development project plans for compliance with standards; reviewing Planning Applications for establishment of Mitigation Measures, Conditions and code requirements Encroachment Permit Review/Issuance. Process all encroachments into the public right-of-way, including: private constructions, construction staging, pedestrian an traffic control plans, utility installation and repair, news racks, and outdoor dining facilities. Coordinate with the Public Works Department inspectors regarding plan requirements, project conditions, compliance with City Engineering Standards, and permit conditions. Monitoring Truck routes and issuing wide -load transportation/trucking permits. Recordkeeping. Preparing and filing record drawings of private and public works construction; preparing legal descriptions for property transactions; preparing abandonment, easement, and covenant requests. Document all construction activities, reports, and filings related to the Floodplain Management Regulations. Miscellaneous Projects. Coordinating miscellaneous engineering activities, enforcing FEMA standards which are intended to reduce damage caused by flooding; implementations of National Pollution Discharge Elimination System (NPDES) initiatives, implementation of the stormwater ordinance and post construction guidelines being prepared by other departments or divisions. 169 Operating Budget General Fund Engineering Participation in neighborhood wellness efforts related to sidewalk upgrades, tree plantings, and undergrounding of overhead wiring. Downtown vitality efforts relate to private development projects and the enforcement of our news rack ordinance. Program Budget 2019-20 2020-21 2021-22 ' Change 2022-23 Change Staffing $46,271 $- $608,398 - $618,125 2% Contract Services $68,722 $- $57,000 - $57,000 0% Other Operating Costs $- $- $13,500 $13,500 0% Total Program $114,993 $- $678,898 - $688,625 1% Major City Goal Contributions The Engineering Division supports the Planning Division entitlement process, Building Division permitting process, and is the lead for processing subdivision maps and subdivision improvement plans. The most significant housing development projects have required a subdivision map and related improvement plan approvals. As such, most of the work of the division supports housing. The housing and construction industry supports the economy, jobs, and has remained vital throughout the pandemic. The division is involved in many in -fill housing projects, mixed -use projects, and commercial developments that support recovery and reopening. Opportunities and Challenges The Engineering division assists other City departments, divisions, and the development community in the collaborative contribution to our Major City Goals. The division continues to endeavor to meet established process cycle times, provide timely encroachment permits, and coordination with other stakeholders, including the Downtown Association on permits within the downtown core. The challenges include the development review process, namely the surges in applications and associated activities that are submitted with limited warning. Keeping up with the workload in a timely manner will continue to be a challenge. Increasing staffing levels and cross -training will be important remedies to this challenge. The Engineering Division supports the Planning Division entitlement process, Building Division permitting process, and is the lead for processing subdivision maps and subdivision improvement plans. The most significant housing development projects have required a subdivision map and related improvement plan approvals. As such, most of the work of the division supports housing. The housing and construction industry supports the economy, jobs, and has remained vital throughout the pandemic. The division is involved in many in -fill housing projects, mixed -use projects, and commercial developments that support recovery and reopening. 170 Operating Budget General Fund Building and Safety Program Description Building and Safety The Building and Safety Division implements the adopted construction codes and other state and local laws that regulate building construction, use, and maintenance, including disabled access regulations, and the California Building, Residential, Electrical, Plumbing, Mechanical, Energy, and Green Building Codes. The program operates a public permit counter responsible for the processing and coordinating of construction applications which are reviewed by other departments including Public Works, Planning, Utilities, and Fire, as well as external agencies such as County Environmental Health and the Air Pollution Control District. Building & Safety is responsible for calculation and collection of all fees at time of construction permit issuance. The program also includes a major focus on Neighborhood Wellness and code enforcement to address blight and public nuisances in order to preserve the community's aesthetics, health and safety, property values, and the quality of life for city residents. Overall program goals are a safe, accessible, and energy -efficient build environment that is compliant with all applicable construction regulations. Core Services & Objectives Community Health and Safety. Building inspectors ensure new and remodel construction adheres to state and local laws for building, electrical, mechanical and plumbing code. Ensure new development is constructed in accordance with the highest standards of safety and existing structures are maintained in safe condition. Enforcement and updating of relevant codes. Permitting Center. Receive and review building permit applications for completeness. Route to required departments for review. Ensure efficient and timely plan review. Coordination and collection of building permit fees and impact fees. Permit issuance. Plan Review. In-house pre -application review process for applicants that have complex & mixed - use projects for code compliance as well as for other applicants seeking advice and coordinate with other divisions as needed. Neighborhood Preservation. Promote and preserve neighborhood wellness by coordinating proactive code enforcement activities and timely compliance with a variety of regulatory programs city wide. Code Enforcement. Investigate potential building code and land use violations in response to complaints. Enforce fire and life safety codes on public and private property. `ni Operating Budget General Fund Program Budget P Staffing Contract Services Other Operating Costs Total Program Building and Safety 2019-20 I 2020-21 2021-22 Change 2022-23 $1,274,958 $1,284,865 $1,912,176 49% $1,973,054 $962,970 $150,000 $290,000 93% $265,000 $31,570 $28,500 $94,468 231% $83,174 $2,269,498 $1,463,365 $2,296,644 57% $2,321,228 Major City Goal Contributions Change 3% -9% -12% 1% The Building and Safety division reviews initial plan submittals and issues permits for all development in the City, including affordable housing projects and solar permits. The program also manages and tracks the Clean Energy Choice Reach Code from the beginning to end of a permit application. Opportunities and Challenges With the addition of two full-time Building Permit Technicians, faster processing times and opportunities to generate additional revenue from permit processing will be realized. Successful recruitments are a challenge for this program. Two current vacancies with unsuccessful recruitments, along with new positions listed in the financial plan, will pose a challenge for the department to keep up with workload demands while keeping costs down with consultant services. Operating Budget General Fund Housing Policy & Programs Program Description Housing Policy & Programs This section of the Planning Division includes the management, administration, and implementation of the City's Housing Element, Inclusionary Housing Program, and federal, state, and local grant and loans administration. Staff in this program also serve as the liaison to the Human Relations Commission (HRC) and oversee the streamlined coordination of City homeless services and support. Housing program activities include: aggressively seeking grants; issuance of low -interest loans; development of public - private housing partnerships, and other types of affordable housing assistance; monitoring and supporting new and existing deed -restrictions on units in the City's Below Market Rate (BMR) portfolio; coordinating on housing programs with public and private agencies; evaluating non -identified infill areas for new residential developments; managing the Community Development Block Grant (CDBG), Affordable Housing Fund (AHF), and HRC Grants -in -Aid (GIA) program; offering technical assistance to other departments; preparing federal environmental documents associated with housing financing applications;. Additionally, the Housing Policy & Program section will also provide funding assistance and policy recommendations to help meet the housing needs of homeless persons in San Luis Obispo. The goals of these programs are: 1) achieve the City's housing goals set forth in the General Plan; 2) help support sheltering programs that meet immediate housing needs of homeless persons; 3) serve as a liaison to the community and Council, regarding social and human service issues; and 4) monitor and inform the Council, Advisory Bodies, and the community on policies, achievements, and areas for improvement impacting the overall health and well-being of the community. Core Services & Objectives Housing Programs Coordination. Coordinate with housing developers to facilitate the production of affordable housing; develop partnerships (when appropriate) to expand prevalence of applications for grant and other housing -related financing and funding programs; BMR portfolio administration and monitoring; grant and City financing program administration and monitoring (i.e. CDBG, AHF, GIA); annual housing reporting (i.e. DOF, APR); Housing Element Program implementation; and staff liaison to the Human Relations Commission (HRC). Housing Element Implementation. Implement Housing Element policies and programs; facilitate development of missing -middle affordable, supportive and transitional housing options; assist with identifying gaps and financial support for needed infrastructure within associated housing developments. Homeless Services Coordination. Enhance City Homeless Team coordination among various key staff from City Departments and develop a strategic plan to guide City actions; initiate and participate in regional collaboration efforts and seek out grant opportunities to support regional solutions to reduce chronic homelessness; support implementation of a Mobile Crisis Unit (MCU) for outreach to the chronically homeless population, which can be adopted by other agencies and scaled up to meet the regional need; and continue and work to expand support for funding of 173 Operating Budget General Fund Housing Policy & Programs non-profit social service providers that specialize in services to help people transition into housing. Homeless Services Support. Overall administration and management of annual financial assistance to Community Action Partnership of SLO County (CAPSLO) for ongoing operations and associated programs at the Homeless Services Center located at 40 Prado Road; Grant and Loan Administration and Management. Overall program administration and management of the City's various grant and loan programs, including the Community Development Block Grant (CDBG), HRC Grants -in -Aid (GIA), and Affordable Housing Fund (AHF). Support and coordinate with the HRC when appropriate. Low Income Water and Sewer Customer Subsidy. Coordinate with Utilities and Finance Departments to continue providing reduced rates for low-income utility customers. Program Budget AL Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 1 2021-22 Major City Goal Contributions $- 1 $429,831 $- $512,152 $- $10,000 $- 1 $951,983 Change 2022-23 Change 100% $443,318 3% 100% $477,652 -7% 100% I $10,000 1 0% 100% $930,970 -2% The implementation of the City's Housing Element and Inclusionary Housing Program are key major city goal work efforts. The Housing Policy and Programs division continues to work towards developing a strategic plan to guide city actions to reduce chronic homelessness. Opportunities and Challenges The reestablished Housing Policy and Programs division has a specific focus on housing opportunities, production, affordability and advocating for resources and solutions to homelessness. This includes the addition of the Housing Programs Manager and the Homelessness Response Manager to aid in mitigating the situation with regional partners. However, the ongoing changes to State Legislation related to Housing and Land Use policies that may require periodic amendment and/or update of our housing policies and programs creates a challenge. 174 Operating Budget AM 00 4-4 Ms FINANCE Mission Statement Finance 25� 45 as'° Safeguarding the City's resources and fiscal health by implementing financial policies, procedures, and reporting systems to serve the citizens and enable operating departments to achieve their objectives. About the Department The Finance Department is responsible for managing the City's financial operations in accordance with applicable law, policies, standards, and procedures. This includes the preparation of the City's budget and financial reports, administration of the City's treasury and revenue operations, management of the City's fiscal resources, and administration of the accounting functions including indirect City-wide costs not easily charged to operating programs or projects. The Department also prepares the City's audit and its Comprehensive Annual Financial Report as well as the Popular Annual Financial Report. Lastly, the Department assists the City Manager's office in monitoring and reporting on both annual revenues and expenditures. 175 Operating Budget The Department at a glance Finance • .• Finance Administration Actuals Budget $434,843 $451,906 Budget $492,719 Budget $492,334 Budgets $151,090 $191,859 $155,510 $185,543 Revenue Management $300,855 $381,120 $410,752 $444,732 Purchasing $133,014 $208,482 $225,183 $236,398 Accounting $770,086 $821,057 $906,663 $932,335 Non -Departmental (Citywide) $605,465 $944,474 $730,358 $2,161,928 Total Finance $2,395,353 $2,998,897 $2,921,186 $4,453,272 Other Operating Costs 16% Contract Services 12% EXPENDITURES BY FUNCTION :affing 72% Existing FTEs 13 13 Additional FTEs (per SOBCs) 2 2 Supplemental/Contract FTEs .5 .5 TOTAL 15.5 15.5 176 Operating Budget Department Organizational Chart' 1 Does not include supplemental or contract positions. Finance 177 Operating Budget Operating Budget Changes Reclassification of an existing Financial Specialist - Accounting Assistant to a Payroll 1 Payroll Specialist for account for the (reclassification) increased workload and higher level duties. This request is for a subject matter MOTION Subject expert to help continue the 2 Matter Expert (.5 implementation and enhancement of FTE Supplemental) the Oracle ERP system in support of relevant, accurate and timely accounting processes. This request is to augment the current budget for annual Cannabis audits Cannabis Auditing required for local Cannabis 3 Resources businesses. This ongoing requests assumes all business are open by FY 22-23. Accounting These requests are to right -size the 4 Assistant (1 FTE) finance department resources in line Financial Specialist - with the growth of the City and the 5 Accounting (1 FTE) workload associated with protecting p g the City's financial stability. These Reallocate positions are vital to track and 6 Supplemental account for the additional measure G- Resources to 20 revenue that the City will be Ongoing FTE managing. (MCG 1.5 b) Finance Ongoing ' $ 3,520 1 $ 3,566 One-time $ 34,017 $ 35,568 Ongoing I $ 18,000 Ongoing $ 68,004 $ 71,106 Ongoing $ 73,882 $ 77,281 Ongoing $(25,157) $ (25,759) TOTAL 1 $154,266 1 $ 179,762 178 Operating Budget 2021-23 Department Goals Finance Department strategic priorities for the 2021-23 Financial Plan are to support the advancement of the City's overall objectives tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals are in addition to ongoing community program services assigned to an internal services department (listed in program sub -sections). Strategic Goal(s) Continue to monitor the City's unfunded liabilities for the pension and . retiree health plan and make recommendations as needed to achieve the AiL City Council directed goal to reduce the pension unfunded liabilities and maintain the retiree health plan. • ,t In coordination with Information Technology and Human Resources, A& continue to enhance and utilize the Oracle ERP and Human Resources Management System in support of accurate and timely accounting processes and reporting. In coordination with the Office of Sustainability and administration, 11► continue to enhance the City's purchasing policy to support Climate Action, DEI, and the Local Economy. Performance Measures Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo's goals and objectives. Z111L5_Z111 ZIZI-Zi • Objective Measure Actual Target Target Target Enables &enhances # of calendar days following 180 180 170 170 transparency, accountability year-end until CAFR is issued & integrity. # of audits/reviews Strategic Goal: Fiscal Policies conducted/ # of additional 2/2 2/1 2/2 2/2 agreed upon procedure audits performed # of funds within fund balance requirements/ total funds with 8/8 8/8 8/8 8/8 Protects & prudently fund balance requirements Net direct debt per capita manages its financial resources. (General Fund) $59 $59 $44 $44 Strategic Goal: Fiscal Policies Twelve-month total rate of 4.79% 3.9% 3% /° 3° return/City portfolioAiL .+ G Economic Stability Housing Climate Action DEI Other Department Objectives 179 Operating Budget General Fund Finance Administration Program Description Finance Administration This program leads, organizes, and monitors the divisions within the Finance Department. It is responsible for managing the City's treasury function and financial operations in accordance with established accounting standards, policies and strategic plans. Core Services & Objectives Be a proactive participant in citywide strategic planning and decision -making adding value as a provider of financial strategy advice, analysis, auditing, and investment and debt management. Continue developing and implementing operation efficiencies and best practices. Fiscal policy advice and guidance. Department Administration and Leadership. Manage cash flow and invest cash in accordance with established policies and procedures. Program Budget Staffing Contract Services Other Operating Costs ' Total Program 2019-20 2020-21 2021-22 Change 2022-23 Change $352,116 I $418,806 $439,619 1 5% I $459,234 4% $61,299 $12,500 1 $32,500 $21,429 I $20,600 1 $20,600 $434,843 $451,906 1 $492,719 Major City Goal Contributions 160% $12,500 -62% 0% I $20,600 1 0% 9% $492,334 0% The Finance Department supports all Major City Goals by providing timely and regular reporting to the City Council and the community on status and progress of the strategic goals. The department has a integral role in the Economic Stability goal and its strategic approach to pension obligations and funding. Opportunities and Challenges The fiscal situation brought on by the worldwide pandemic offers its unique challenges as well as opportunities in a low -interest rate environment. Finance Administration is at the forefront of investment and debt issuance strategies which will both be strategically pursued to best serve the long-term fiscal health of the City. 180 Operating Budget General Fund Budget Budget Program Description The Budget Program is responsible for citywide coordination of the development and preparation of the City's two-year Financial Plan budget, the Supplemental Budget and corresponding quarterly and mid- year reports to the City Council. The Financial Plan allocates the City's resources to achieve the highest priority objectives established by Council. The program is responsible for implementation of budgetary controls and financial reporting and compliance with adopted Financial Plans and budget appropriations. Core Services & Objectives: • Lead development and preparation of the two-year Financial Plan in accordance with Council adopted highest priorities and fiscal policies. • Evaluate, monitor, and produce reports documenting the City's financial progress for internal customers and for presentation to the City Council every three months. Manage and update the five-year budget forecast for all major funds and prepare periodic revenue and expenditure estimate updates. Program Budget Staffing Contract Services Other Operating Costs Total Program Actual At 2019-20 2020-21 $138,451 $167,359 $10,877 $22,000 $1,762 $2,500 $151,090 $191,859 Opportunities and Challenges 2021-22 Change 2022-23 Change $153,010 -9% $161,043 5% $- -100% $22,000 - $2,500 0% $2,500 0% $155,510 -19% $185,543 19% As the City recovers from the pandemic, the Budget division will need to continue to closely monitor revenues and expenditures and ensure a sustainable and balanced budget. With the full implementation of a new budgeting software ready in FY 21-22, staff hopes to be able to improve the budgeting process internally and increase transparency with the use of an online publicly accessible budget portal. 181 Operating Budget General Fund Revenue Management Program Description Revenue Management The Revenue Management Program administers the City's treasury and revenue operations in accordance with established fiscal policies and industry best practices. It provides day-to-day cashier service to City customers and is proactive in developing automated features and conveniences for an efficient revenue collection. Core Services & Objectives Ensure Fiscal Sustainability and Responsibility Administer the Finance public counter and daily cashiering duties such as deposits and invoices. Promote and enhance electronic payment options for customers. Administer the City's Business tax and license program. Monitor receipts of local revenues and initiate effective collection strategies to ensure that revenues and taxes are paid by those who are obligated to pay them. Manage collection programs for Transient Occupancy Tax, Utility User Tax, , and Cannabis Tax. Coordinates the annual update and periodic changes to the Master Fee Schedule, ensuring that customers are being charged the Council -approved rate. Provides revenue analytics and forecast updates on a monthly basis. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $197,328 $216,380 $254,812 18% $264,792 4% Contract Services $94,336 $148,540 $139,740 -6% $163,740 17% Other Operating Costs $9,191 $16,200 $16,200 0% $16,200 0% Total Program $300,855 $381,120 $410,752 8% $444,732 8% Opportunities and Challenges The Revenue Management Program is updating the City's Revenue Management Manualto allow for day- to-day operational efficiencies and the training of new employees. The division continues its transactional data analysis which will drive future decisions on cash flow levels and liquidity for use in investments and acquisitions. 182 Operating Budget General Fund Purchasing Program Description Purchasing The Purchasing Program is responsible for supporting and facilitating the timely and efficient procurement of supplies, materials, equipment, and services required by City Departments while ensuring compliance to City Policies, applicable government regulations, and best practices in public sector procurement to obtain the lowest cost while maintaining appropriate internal controls. The program aids all departments in their purchasing activities. Core Services and Objectives: • Responsible for City purchasing and contracting policies to effectuate more efficient and standardized purchasing procedures for citywide implementation. • Oversee City purchasing and ensure compliance with all applicable laws, regulations, and policies. Develop and maintain standards and procedures for purchasing activities for all departments. Maintain best practices in purchasing to ensure responsible use of City funds. Administer City contracts, assist in contract negotiations, and performance compliance. Provide quality service, analytical support and information regarding procurement and contracting to all departments. Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 $132,511 $195,472 $- $8,510 $503 $4,500 $133,014 $208,482 Opportunities and Challenges F__� 2021-22 Change 2022-23 Change $206,973 6% $218,188 5% $13,710 61% $13,710 0% $4,500 0% $4,500 0% $225,183 8% $236,398 5% Purchasing is updating the City's purchasing policy to reflect lessons learned since Oracle ERP go -live. Suggested revisions will allow for more operational efficiencies across all departments. Purchasing is updating the City's sustainable purchasing policy to support the City's Climate Action goals to assist with the impact of purchased products onthe enviroment, , human health, and social standing. 183 Operating Budget General Fund Accounting Program Description Accounting The Accounting Program prepares citywide financial statements, ensures integrity of financial data, processes accounts payable and payroll, and prepares financial reports in compliance with Federal and State regulations. The Program is responsible for developing and monitoring the reporting systems that help assure the City's long-term fiscal health, providing quality customer service, and protecting the City's financial assets from unauthorized use. Core Services and Objectives: Provide accurate and timely financial reports to internal and external stakeholders. Process timely cash disbursements to City business partners. Maintain City employee payroll records and meet payroll disbursement and reporting deadlines. Provide general oversight over the City's investments, banking, and debt services. Manage banking services and debt service administration. g Provides General Accounting services to the organization and monitors compliance with accounting standards, policies and best practices. Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 12021-22 Change 2022-23 1 Change $660,051 $651,937 $736,543 $106,993 $159,020 $160,020 $3,041 $10,100 $10,100 $770,086 $821,057 $906,663 Opportunities and Challenges 13% $762,215 3% 1% $160,020 0% 0% $10,100 0% 10% $932,335 3% Completing the implementation of all aspects of the Oracle Motion system, such as bank reconciliation and accounts payable scanning, will provide challenges to workload and staffing resources that will need to be involved in the deployment of the system while simultaneously providing ongoing operations. Appropriate resource have been approved in this budget as these investments will result in more efficient, effective, and accurate day-to-day operations in the long-term. 184 Operating Budget General Fund Finance Non -Departmental Support Services & Non -Departmental Expenses Program Description The Support Services and Non -Departmental Program accounts for indirect Citywide costs not easily charged to operating programs or projects. The Finance Department is responsible for disbursing the allocated budget according to established policies. Core Services and Objectives: Effective budgeting, disbursement, and accounting for Citywide costs in accordance with adopted City policies Budget is allocated for: Citywide copier maintenance and supplies. �g Citywide postage and mailing supplies. Citywide membership and conference fees for the League of California Cities. Ventures and Contingency Funding for use at the City Manager's discretion to support innovative proposals. General Fund leave payouts and staffing related contingency funds. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $5,688 $541,285 $307,658 -43% $1,739,228 465% Contract Services $438,461 $333,189 $352,700 6% $352,700 0% Other Operating Costs $599,777 $403,189 $422,700 5% $422,700 0% Total Program $1,043,927 $1,277,663 $1,083,058 -15% $2,514,628 132% 185 Page intentionally left blank. 186 Operating Budget FIRE Mission Statement Fire To enhance and protect the lives, environment, and property of our community and its visitors. About the Department In addition to providing exceptional and compassionate emergency response, the Fire Department embraces inclusive fire prevention and education strategies that includes fire and life safety inspections, plan review services, fire/arson investigation, fire safety and public safety education, and disaster preparedness classes. The Fire Department has automatic and mutual aid agreements with surrounding departments, California Office of Emergency Services, and the Los Padres National Forest. With the values of Service, Loyalty, Ownership, Family, Integrity, Respect and Excellence the Department's vision is to be a progressive organization that leads the community in public safety and preparedness demonstrated through an unwavering commitment to the protection of lives, property, and our environment. The service we provide will be of the highest quality recognized against local, state, and federal standards. 187 Operating Budget The Department at a glance Fire • .• Fire Admin $936,461 BudgetActuals $1,041,211 ,.Budget $1,032,267 $1,233,678 Emergency Response $10,175,128 $10,129,843 $10,721,361 $11,074,406 Hazard Prevention $885,601 $825,723 $865,767 $898,617 Training Services $73,793 $140,550 $392,673 $381,076 Recruit Academy $- $32,000 $137,200 $- Fire Apparatus Services $379,185 $401,966 $466,149 $474,223 Fire Station Facility Support $30,106 $37,625 $44,955 $42,305 Mobile Crisis Support $- $6,860 $300,000 $37,175 $300,000 $37,175 Disaster Preparedness and Assistance Fire Total $62,052 $12,542,326 $12,615,778 $13,997,547 $14,441,480 Other Operatinj EXPENDITURES BY FUNCTION Costs 5% Contract ----- Services 1% Existing FTEs Additional FTEs (per SOBCs) Supplemental/Contract FTEs TOTAL Staffing 94 56.5 57.5 1 1 1.75 1.75 60.25 60.25 188 Fire Administration 0 Administration (4.00 FTE) Emergency Response (45.00 FTE) Recruit Academy Emergency IleTraining Fire Response (57.50 FTE) Services (1.00 FTE) Fire Apparatus Services (2.00 FTE) Hazard Prevention Hazard (5.50 FTE) Prevention Disaster Preparedness & Assistance Operating Budget Operating Budget Changes 1 Fire Station Generator Maintenance - Moved from Public Works 2 Recruit Academy Overtime Reduction - Training/Safety Captain Offset 3 Technical Rescue Team Expansion 4 Pilot: Mobile Crisis Unit This 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. Reduction in bi-annual overtime amount due to the hiring of a full- time Fire Training Captain (LRM Funded) This 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. The 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. Ongoing $0 Fire $0 Ongoing-$67,775 $0 Ongoing $17,850 $9,150 One-time $300,000 $300,000 190 Operating Budget 5 Fire Intern Program Request 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. 6 Training and Permit This request is to fund the costs of Compliance Lexipol software which ensures Software 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. Mobile Eyes This request is to fund the ongoing Software 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. Fire One-time $22,691 I $23,257 One-time $11,169 $9,369 Ongoing $12,200 $12,200 191 Operating Budget s Public Safety Equipment Replacement Project Suppression Staff Training Support 9 Fire Training/Safety Captain 10 ER Live -Fire Training Improvements 11 Injury Reduction Program This 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. 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 fo the City including City training, certification, policy management and public preparedness educatioi The added Training/Safety Officer will result in a reduced need for overtime budget that was previou, utilized to pull afire captain away from normal duties to run the recruit academy. The overtime savings will be realized every othe year moving forward as the recrui academy is budgeted every other year. Live fire training facility improvements are needed to ensu live fire trainings are both frequen and sustainable and the injury reduction program funding is Ongoing Fire $191,276 $191,276 One-time $20,045 $17,570 nngning S1 R_nnn �1 R_nnn 192 Operating Budget 13 Emergency Management Services needed to further the reduction of on job injuries related to Musculo- skeletal injuries. This 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. In the absence of a full-time emergency manager, this request is to support emergency management services both FY2022 and FY2023. 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. Fire One -Time $30,000 $30,000 TOTAL $584,456 $788,321 193 Operating Budget Fire 2021-23 Department Goals Department strategic priorities for the 2021-23 Financial Plan are to help advance the City's overall goals tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals are in addition to ongoing community program services (listed in program sub -sections). Strategic Goal(s) Vof In coordination with Public Works and Human Resources, continue to enhance the department's diversity, equity, and inclusion through improvements to fire station facilities, firefighter recruitment and training. G� In coordination with the Office of Sustainability, continue to reduce the department's carbon footprint to support Climate Action through best practices and thoughtful replacement of department apparatus resources. In coordination with Community Development and Administration, implement mobile health care response model to connect services to unhoused residents and visitors in the City. Continue the implementation of the five strategic directions identified in the 0Department's Annual Operational Plan as part of the 5-Year Strategic Plan by connecting with our community, continuously evaluate programs and service delivery, analyze relevant data to inform decision making, improve organizational culture, sustainability, and health, and support fiscal sustainability in department operation. Econonn c Stabil-ty Housing climate Act -or DEI :her Department Objectives 194 Operating Budget Performance Measures Fire Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo's goals and objectives. Objective Measure Actual Actua 12 Target Target Meet the Response Time objective as defined by General Plan Safety Element of 4 minutes to 95% of all 6:05 6:17 4:00 4:00 lights -and -siren emergencies in the City. Meet the Total Response Time (TRT) goal of 7 minutes or less to 90% of all lights - and -siren emergencies in the City as Deliver Timely defined by the Department's Master Plan. 8:25 8:27 7:00 7:00 Emergency TRT Includes Call Processing Time, Response to ensure Turnout Time, and Travel Time. rapid care and hazard mitigation. Meet the Call Processing Time goal of 1 minute or less to 90% of all lights Strategic Goal: and -siren emergencies in the City as g y art p 1:57 2:01 1:00 1:00 Other Department of TRT. Objectives Meet the Turnout Time goal of 2 minutes or less to 90% of all lights and -siren emergencies in the City as part 3:10 3:11 2:00 2:00 of TRT. Meet the Travel Time goal of 4 minutes or less to 90% of all lights and -siren emergencies in the City as part 6:05 6:15 4:00 4:00 of TRT. Provide timely service to the development % of Fire Department Development community. Review activities 62% 67% 80% 80% completed within published cycle times. Strategic Goal: Housing z 2020/21 Actuals are July 1, 2020 through March 15, 2021. Economic Stability Housing Climate Action 195 DEI Other Department Objectives Fire Administration Fire Department Fire Administration Program Description The Fire Administration program provides strategic leadership to the organization through planning, directing and evaluating all Fire Department programs and their activities. Core Services & Objectives • Provide responsive, effective, and efficient fire department emergency service programs • Develop well planned, long-term sustainability focus for fire department personnel, service, facilities, equipment, and organization Department Administration and Leadership Public Information and support services Human resource recruitment, testing and management Fiscal and contract management Disaster preparedness and document management Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 $785,925 $5,809 $144,727 $936,461 Major City Goal Contributions 2020-21 $855,232 $4,400 $181,579 $1,041,211 2021-22 Change 2022-23 Change $824,380 -4% $843,017 2% $5,750 31% $5,550 -3% $202,137 11% $385,111 91% $1,032,267 -1% $1,233,678 20% The fire department is requesting a significant operating budget change to implement a new fire intern program in support the City's Diversity, Equity, and Inclusion Major City Goal. The intern program will seek young individuals in the community that do not traditionally seek the fire service out as a career. The department has a strong history of hiring previous interns for full time positions in the department and staff would like to use this as a recruitment tool to improve diversity within the department's ranks. 196 Operating Budget General Fund Emergency Response Program Description Emergency Response Fire Department The Emergency Response Program is responsible for protecting life, the environment, and property by responding to a wide variety of all-risk emergencies, including, but not limited to: medical emergencies, structure fires, vegetation fires, hazardous materials incidents, vehicle fires/accidents, flooding, utility emergencies, and a wide range of urgent public assists. Core Services & Objectives Deliver Timely Response Provide exceptional Emergency Medical Services (EMS) including Advanced Life Support Provide effective weight of response personnel for initial attack on all types of fires Provide effective incident response to protect life and limit environmental damage caused by release of hazardous materials Minimize property damage through quick and efficient incident mitigation Provide exceptional fire protection efforts to limit the cause and spread of fire Provide modern technical rescue such as vehicle extrication and care of victims trapped in wrecked vehicles, collapsed buildings, swift water rescues, trench rescue and trail/cliffside/open space Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 2021-22 Change 2022-23 Change 710,0 00,164 $9,988,492 $10,570,093 6% $10,922,638 3% $13,063 $13,120 $131,902 $128,231 $15,175 $136,093 $10,175,128 1 $10,129,843 1 $10,721,361 Major City Goal Contributions 16% $16,175 1 7% 6% 1 $135,593 1 0% 6% 1 $11,074,406 1 3% The fire department is requesting a significant operating budget change to expand the roster of the Department's Technical Rescue Team to support the Open Space component of the Major City Goal of Climate Action, Open Space, & Sustainable Transportation. The requested funding will allow the department's technical rescue specialty trained staff to increase from 3 to 6 members. This change will improve City's ability to serve those who encounter emergencies while out in the growing Open Space areas. 197 Operating Budget General Fund Hazard Prevention Program Description Hazard Prevention Fire Department The Hazard Prevention Program prevents injury and loss of life, property and the environment damaged by fire, explosion or exposure to hazardous materials. Core Services & Objectives: Reduce and/or eliminate fire hazards and investigate fires in buildings, properties and equipment through plan review and safety inspection services. Participate in the County Certified Unified Program Agency (CUPA) program to track, inspect, and increase safety related to hazardous materials. Expand public awareness about the dangers of fire and hazardous materials. Conduct thorough Fire and life safety inspections and abatement. g Conduct Fire investigation cause and origin determination, support SLOPD for Arson Investigations. g Conduct Hazardous material inspection and abatement. z— Provide prompt building plan review and construction inspections. g Ensure proper Hazardous waste removal and disposal. g Provide modern Fire Prevention Education. Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 2021-22 Change 2022-23 Change $813,684 $770,773 $796,186 3% $828,275 4% $33,556 $4,500 $1,500 $38,361 $50,450 $68,081 $885,601 $825,723 1 $865,767 -67% $1,500 0% 35% $68,842 1% 5% $898,617 4% 198 Operating Budget General Fund Training Services Program Description Training Services Fire Department The Fire Training Program schedules, coordinates, and documents both in-house and outside training and certification for fire department staff. The program also works to maintain and improve the health fitness of fire department employees. The overall program goal is to provide and support highly qualified, well trained, safe, healthy, and fit employees. Core Services & Objectives Provide and support highly qualified, well -trained employees to maintain safety, good health, and fitness among fire department staff. Provide high quality and modern in-service training delivery on All -Risk incident topics. Support external training opportunities for State Fire and CICCS Training Certifications. Continue to improve on the functional fitness injury reduction program. Provide required safety training to all employees including after action reporting. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $- $62,700 $261,276 317% $259,926 -1% Contract Services $25,034 $29,000 $47,852 65% $48,730 2% Other Operating Costs $48,760 $48,850 $83,545 71% $72,420 -13% Total Program $73,793 $140,550 $392,673 179% $381,076 -3% 199 Operating Budget General Fund Recruit Academy Fire Department Recruit Academy Program Description The Recruit Academy Program is responsible for coordinating and completing the training of new hire firefighters. Core Services & Objectives Conduct ten -week task -based recruit -training for all new hire firefighters Outfit all firefighter recruits with proper personal protective equipment (PPE) Program Budget 2019-20 Staffing Contract Services Other Operating Costs Total Program 2020-21 $32,000 $32,000 2021-22 Change $46,900 47% $18,000 - $72,300 - $137,200 329% 2022-23 Change $- -100% $- -100% $- -100% $- -100% 200 Operating Budget General Fund Fire Apparatus Services Fire Department Fire Apparatus Services Program Description The Fire Apparatus Program performs fire apparatus services, maintenance, and repair of light and heavy fire apparatus and vehicles. Core Services & Objectives Perform all required maintenance on light and heavy fire vehicle apparatus and vehicles and related equipment Maintain all apparatus and equipment in sound working order Maintain all fire station generators in sound working order Oversee annual inspections of both ground and aerial ladders Program Budget 2019-20 2020-21 Staffing $227,250 $212,186 Contract Services $8,384 $13,980 Other Operating Costs $143,551 $175,800 Total Program $379,185 $401,966 2021-22 Change 2022-23 Change $259,876 22% $267,650 3% $24,235 73% $27,235 12% $182,038 4% $179,338 -1% $466,149 16% $474,223 2% 201 Operating Budget General Fund Fire Station Facilities Support Fire Department Fire Station Facilities Support Program Description Fire Stations Facilities Support manages and maintains the City's four fire station facilities, their grounds and miscellaneous related equipment, appliances, and furnishings. Core Services & Objectives Maintain safe, functional, attractive, and energy efficient fire stations. Work closely with the Public Works Department to facilitate building repairs and landscape maintenance. Minor facilities maintenance Public Access Automatic External Defibrillators (AED) maintenance Fire Mapping Program Fire Radio System and Equipment Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 $3,392 $ 26, 714 $30,106 2020-21 $730 $8,020 $28,875 $37,625 2021-22 Change $630 -14% $6,450 -20% $37,875 31% $44,955 19% 2022-23 Change $630 0% $12,800 98% $28,875 -24% $42,305 -6% 202 Operating Budget Disaster Preparedness & Assistance General Fund Fire Department Disaster Preparedness & Assistance Program Description The Disaster Preparedness Program has three areas of focus: 1) ensures that City personnel can provide appropriate rescue and relief services following a major disaster such as earthquake, flood, nuclear power accident, hazardous material spill, wildland fire and pandemics: 2) provides information and education on disaster preparedness, and fire safety to the general public: and 3) provides assistance to communities outside of the City of San Luis Obispo as part of the State's Mutual Aid system. Core Services & Objectives Provide disaster response training to City employees. Maintain up-to-date hazard mitigation and disaster response plans. Provide outreach and education to residents and businesses in disaster and emergency preparedness. Participate in the State's Mutual Aid response system. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing Contract Services Other Operating Costs Total Program $- $3,460 $3,360 -3% $3,360 0% $37,486 $- $30,000 - 12% $30,000 $3,815 0% 0% $24,566 $3,400 $3,815 $62,052 $6,860 $37,175 442% $37,175 0% 203 Operating Budget General Fund Mobile Crisis Support Program Description Mobile Crisis Support Mobile Crisis Support is a pilot program for the Fire Department newly established for the 2021-23 Financial Plan. The pilot program establishes a Mobile Crisis Unit which is staffed with a social worker paired with an Emergency Medical Technician and will be dispatched to non -emergency calls for service involving unhoused residents and community members in crisis. Core Services & Objectives Provide crisis support to unhoused residents. Improve unhoused resident access to needed social services. Reduce law enforcement and paramedic response in non -emergency situations when possible. Improved patient care; reduced emergency room transports. Program Budget 2019-20 2020-21 Staffing Contract Services Other Operating Costs Total Program 2021-22 Change 2022-23 Change $91,612 - $95,014 4% $105,335 - $105,335 0% $103,053 - $99,651 -3% $300,000 - $300,000 0% Contributions to Major City Goal Objectives In partnership with the community development and police departments, the fire department is requesting a significant operating budget change to create a two-year Mobile Crisis Unit pilot program. The establishment of this program is aligned with the City's Major City Goal of Housing and Homelessness and is intended to provide needed support to the unhoused residents of San Luis Obispo while also reducing the strain on emergency services staff within the Fire and Police Departments. During the pilot period of FY22 and FY23 staff will monitor and analyze the effectiveness and long-term viability of the program. The results will help shape potential ongoing budget requests as part of the 2023-25 Financial Plan. 204 Operating Budget Human Resources HUMAN RESOURCES Mission Statement Helping employees realize their full potential so they can effectively serve our community. About the Department The Human Resources Department provides support to all City departments through programs: Human Resources Administration, Risk Management, and Wellness. The services provided under the Human Resources Administration program include coordination of recruitment and selection processes; classification and compensation; labor relations and negotiations; performance management; employee training and development; and employee benefit administration. Services provided in the Risk Management program include liability and property claims administration; workers' compensation administration; employee safety and compliance; and insurance review. The Wellness program promotes a healthy organization through the Employee Assistance Program and various education and wellness activities. 205 Operating Budget The Department at a glance Human Resources Admin Risk Management' Wellness Human Resources Total Contract Services 23% $1,217,672 $1,317,975 $5,402 $15,200 $3,114 $17,411 91.226.188 91.350.586 EXPENDITURES BY FUNCTION Human Resources $1,683,438 $17,411 ffing 4% Existing FTEs 6 6 Additional FTEs (per SOBCs) 4 4 Supplemental/Contract FTEs .5 .5 TOTAL 10.5 10.5 $1,665,812 $17,411 1 The administrative risk management costs have been absorbed in the human resources administration cost center. 206 Operating Budget Department Organizational Chart' Z Does not include supplemental or contract positions. Human Resources 207 Operating Budget Operating Budget Changes Human Resources .: 1 Pay Equity Audit This request will allow the Human One-time $30,000 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. 2 Onboarding software This request provides funding for Ongoing $11,000 $11,500 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. 3 HR Reorganization to Additional 1.5 Human Resources Ongoing $165,589 $172,175 support Analyst II to support demands and organizational complexities of the citywide demands 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. 4 Convert 2.5 FTE Convert contract staff that have Ongoing $192,106 $195,246 Contract staff to been retained for the past five Regular staff 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. 5 Office furniture to This request is for an office One-time $34,000 support New Staff reorganization and additional furniture/equipment to support staff. 6 Compensation Study This request is to fund consultant One-time $30,000 support for a compensation study. 208 Operating Budget 7 Transition to electronic files This request is to hire a scanning company to transition files from paper to electronic. 8 Increased tuition Funding to bring the total tuition reimbursement reimbursement budget in line with recent historical averages. 9 Increases to Increases to recruitment -related recruitment -related expenses to utilize technology for expenses more efficient and effective recruitment processes. Includes text -messaging capabilities for candidates and software for dispatch testing. 10 Funding for This request provides funding for 2 Investigations Investigations per year outside of the City Attorney's capacity. Funding for an ongoing Human 11 Intern Funding Resources Intern to assist with special projects and succession planning. 12 Professional Recruiter Anticipated need for a Department Head recruitment using a professional recruiter. Human Resources One-time 1 $11,000 Ongoing 1 $7,500 1 $7,500 Ongoing 1 $6,300 1 $7,800 Ongoing 1 $15,000 1 $15,000 One-time $16,005 $16,364 One-time I I $40,000 TOTAL 1 $518,500 1 $465,585 209 Operating Budget 2021-23 Department Goals Human Resources The Human Resources Department has developed a strategic plan that aligns with the 2021-23 Financial Plan and includes strategic objectives of integrated human resources services, employee development and growth, and an engaged and aware culture. The Human Resources Department aims to achieve the objectives listed above through the following strategic goals. Strategic Goals +` Present high -quality integrated human resources solutions, aligned with fiscal sustainability, to effectively deliver city services. Provide tools and opportunities that empower employees to reach their full l0J potential. At* Promote a high -performing and self-sufficient employee organization that is connected to the community through shared organizational values and goals. Performance Measures Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo's goals and objectives. Actual Actual* Target Target Average days between injury and Workers' Compensation claim filed. 15 9 4 3 Integrated HR Services Achieved lower severity of Workers' (Strategic Goal) Compensation claims than the risk pool No Yes Yes Yes Annual liability claims payment under the Self -Insured Retention amount. Yes No Yes Yes Percentage of On -Time Employee Employee Performance Evaluations o 81/0 a 88/0 o 95/0 0 95/ Development & Growth Percentage of Internal Promotions 51% 48% 40% 40% (Strategic Goal) Training Sessions Coordinated 35 29 35 35 Engaged and Aware Number of Policies Communicated 9 9 5 5 Culture (Strategic Goal) Informational Sessions Coordinated 65 122 80 90 *As of 0311012021 Allil�d�'C? �► 66 Economic Stability Housing Climate Action DEI Other Department Objectives 210 Operating Budget General Fund Human Resources Program Description Human Resources Administration The Human Resources Administration Program provides support to all City departments in all aspects of attracting and retaining highly qualified employees. The Program manages a variety of functions including coordination of recruitment and selection, classification and compensation, performance management, employee training and development, labor relations and negotiations, employee benefits and statutory and regulatory compliance. Core Services & Objectives Employee recruitment, selection, orientation, development, and training administration. Employee classification, compensation, and benefits administration. Employee performance management. Employee/employer labor relations and negotiations. Legal compliance. Program Budget Staffing Contract Services Other Operating Costs Total Program BudgetActual 2019-20 2020-21 $922,624 $1,059,475 $270,102 $225,300 $24,946 $33,200 2021-22 Change $1,265,198 19% $369,840 64% $48,400 $1,217,672 $1,317,975 1 $1,683,438 Major City Goal Contributions 2022-23 1 Change $1,308,129 3% $308,883 -16% 46% $48,800 1% 28% $1,665,812 -1% HR supports the Economic Recovery Major City Goal through continued enhancement to the Oracle Cloud system to increase efficiencies and overall effectiveness of the system. It also contributes by negotiating successor agreements with employee groups in alignment with Council adopted Labor Relations Objectives. The program also supports the Diversity, Equity, and Inclusion Major City Goal through review and revision of Human Resources policies and practices. PA`1 Operating Budget Human Resources General Fund Wellness Wellness Program Description The Wellness Program aids in managing the life experience of our employees by providing employee tools and education to improve their physical and emotional well-being, thus enhancing employee productivity, resiliency, and performance. The program provides employees with fitness, nutrition, and health and safety information, education, and programs as well as professional counseling and referral services through the Employee Assistance Program. Core Services & Objectives Maintain wellness rooms for employee use. Encourage physical activity and healthy lifestyle. g Provide health, wellness, and safety information to employees. Continue to encourage utilization of the Employee Assistance Program. Program Budget 2019-20 2020-21 2021-22 Change Contract Services $3,114 $14,911 $14,911 0% Other Operating Costs $- $2,500 $2,500 0% Total Program $3,114 $17,411 $17,411 0% 2022-23 Change $14,911 0% $2,500 0% $17,411 0% 212 Operating Budget Insurance Fund Risk Management — Insurance Fund Program Description Human Resources Risk Management The Risk Management Program aims to promote safety in the workplace and in the community by minimizing accidents, reducing liabilities and associated costs. The City established an Insurance Fund for the purpose of paying its annual premiums for liability, Workers' Compensation, special events, volunteer, and property insurance needed to protect the City and to manage the fluctuations in claims -related expenses. Core Services & Objectives: • Continue to review and update safety policies and procedures, increase safety awareness, and reduce preventable injuries through training and education of employees. • Monitor liability claims and workers' compensation claims and recommend operating changes to reduce risk of liability or injury. Review insurance plans and coverage and process renewals annually, seeking the most cost- effective methods of insuring. Review standards for insurance requirements in contracts with those who do business with the City to make sure the City is adequately protected in the event of liability claims. Support a culture of safety among city employees, maintain compliance with applicable regulations, and implement improvements to ensure a high quality of life in the community. Program Budget 1 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing' $2,611,827 $2,037,611 $2,181,044 7% $2,668,844 22% Other Operating Costs $1,710,500 $1,781,006 $2,055,128 3% $2,002,059 12% Total Program $4,322,327 $3,818,617 $4,183,103 10% $4,723,972 13% Major City Goal Contribution Supports the Economic Recovery Major City Goal through continuing to monitor liability and workers' compensation claims through actions aimed at reducing liability and workers' compensation costs. 3 Staffing costs in the Insurance Fund represent workers' compensation insurance costs. 213 Page intentionally left blank. QEH Parks and Recreation Operating Budget It �. PARKS AND RECREATION Mission Statement Inspiring happiness by creating community through people, parks, programs, and open spaces. About the Department The Parks and Recreation Department is committed to providing quality parks and facilities (such as the SLO Swim Center, Damon -Garcia Sports Complex, and Laguna Lake Golf Course) where recreation programs, special events, activities for youth and seniors, cultural and educational opportunities occur in an effort to encourage wellness and develop community through leisure, cultural, and social pursuits. The Department also protects and preserves the City's natural resources and open spaces. The Parks and Recreation budget is predominately related to staffing costs. In addition to the annual full- time Parks and Recreation employees, the Department relies heavily on supplemental employees who provide service to the community year-round. Depending on the season, the Department may have 150 to 200 supplemental employees providing services such as lifeguarding and instructional swim lessons, providing afterschool childcare, hosting special events and pop-up events, providing open space enforcement, promoting all the department activities and classes through social media and more. 215 Operating Budget The Department at a glance Parks and Recreation • .. BudgetActualls Recreation Admin $780,489 $738,905 ..Budget $768,149 $797,183 Recreation Facilities $190,312 $238,878 $284,066 $310,738 Youth Services $853,586 $997,873 $1,255,147 $1,332,290 Community Services' $481,757 $623,395 $649,546 $685,228 Ranger Service $496,081 $525,780 $817,872 $864,222 Aquatics $402,346 $483,225 $651,167 $624,856 Golf Course $595,060 $666,245 $700,871 $721,653 Parks and Recreation Total $3,799,632 $4,274,301 $5,126,817 $5,336,170 EXPENDITURES Other Operating Costs 12% Contract Services 5% BY FUNCTION .a•ainn6 83 Existing FTEs 17 17 Additional FTEs (per SOBCs) 11 11 Supplemental/Contract FTEs 45.3 45.3 TOTAL 73.3 73.3 1 Includes $10,500 operating budget for the Jack House each year. MM Operating Budget Department Organizational Chart' Z Does not include supplemental or contract positions. Parks and Recreation PAN Operating Budget Parks and Recreation Operating Budget Changes 1 I Fuel Reduction Crew (4000 Open Space Fire Fuel Reduction Resources Ongoing $60,140 $61,589 Supplemental Staff Hours) (MCG 4.5): This request is to establish an Open Space Fire Fuel Reduction Crew 2 Fire Fuel Reduction Crew (part-time staff, 4,000 hours), including Tools and PPE procurement of necessary equipment, to ensure that the City has a reliable means of conducting fuel reduction activities. 3 Net New Ranger Ranger Staffing Resources (MCG 4. 1): This Maintenance Worker (1 New request is to add an additional Ranger FTE) Maintenance Worker and convert supplemental staff to full-time to create a sustainable Ranger staffing model in 4 Conversion of Ranger LBTs to response to increased Open Space FTE (Equals 4 FTE Additions) TAdd't' 1 t ff' acreaee a i Iona s a inresources g. g are needed to properly maintain the City's Open Spaces, including recent acquisitions 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. 5 Open SLO Downtown Dining This request is for additional supplemental Resources (MCG 1.4a) staffing budget to support the Open SLO Program Downtown Dining within Mission Plaza. 6 Open Space Environmental This request is to provide additional Clean-up Resources (MCG financial resources for environmental 3.7) 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. One- $4,500 time Ongoing $70,854 $74,105 $92,421 One- $13,688 $27,375 time , Ongoing 1 $10,000 1 $15,000 7 Aquatics Resources to This request is for additional staffing One - Implement COVID-19 Safety resources to adhere to COVID-19 safety time Protocols guidelines 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). 8 SLO Swim Center Minor This request is for resources to update and One - Capital Maintenance replace operational safety equipment such time as lane lines, lane line reels, and stanchion posts for participant safety at the SLO $62,000 1 $0 $30,000 , $30,000 218 Operating Budget Parks and Recreation Swim Center. These purchases are based on life expectancies (5-10 yrs.). 9 Youth Services Staffing This request is for equitable wages and Ongoing $93,227 $132,045 Resources (MCG 1.2a) 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. TOTAL $428,969 $432,535 219 Operating Budget Parks and Recreation 2021-23 Department Goals Department strategic priorities for the 2021-23 Financial Plan are to help advance the City's overall goals tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals are in addition to ongoing community program services (listed in program sub -sections). Strategic Goal(s) tit ..' .i- Continue to activate parks and public spaces with an emphasis on neighborhoods and downtown through pop-up events and public art that promote inclusivity, provides cultural unity, develops a sense of community and supports healthy lifestyles. Adopt the Parks and Recreation Blueprint for the Future and initiate public 0 engagement for prioritization of projects, focused on meeting amenity needs identified by the City-wide inventory assessment and specific to City subareas, that also factor in to help achieve carbon neutrality, inclusivity and accessibility. In coordination with the Office of Natural Resources, continue to develop the new networks of Open Space Trails at Righetti Hill and Miossi preserve while maintaining the current 4,000+ acres of Open Space and trail system. Continued focus on fire fuel reduction and creek and flood control. { Continue to provide quality childcare to the community to support economic recovery through regional partnerships to enhance and expand childcare offerings to the community. Performance Measures Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo's goals and objectives. • • • • • Objective Measure Actual Actual Target Target # of Department 10 15 20 20 Community Events # of non-profit permitted 110 Provide inclusive, accessible Facility Uses 15* 120 120 programming that serves the whole 1,833 as of community. # of program registrations 2,865 3/12/21 3,200 3,500 # of program offerings p s 270 Strategic Goal: Programming is g g 168 as of 3/12/21 300 320 Directed to Diverse Users (P&R # of childcare spots Strategic Plan Goal), DEI and filled/offered Economic Vitality MCGs 1085 /1085 152/152* 1085 /1085 1100 /1100 51 CAPSLO # of children receiving 22 CAPSLO* 51 CAPSLO 51 CAPSLO subsidy 27 City 27 City 27 City 27 City scholarship scholarship scholarship scholarship 220 Operating Budget Parks and Recreation 0• 020 Objective Measure Actual Actual Target Target In Coordination with Public Works, # of public outreach engage the public to prioritize new 2 5 6 6 and revitalized Recreational meetings Amenities Strategic Goal: Expand Parks & # of updated or new parks 2 3 4 5 Facilities (P&R Strategic Plan Goal), and amenities in process MCG Economic Stability Creates and fosters a sense of community through citizen # of volunteers/hours 36/108hrs* 11/22hrs* 100/400hrs 400/1200hrs involvement Strategic Goal: Maximize Community Resources & # of temporary Public Art 3 4 5 5 Collaborations (P&R Strategic Plan or Cultural Art Events Goal) 5,507 of as as6,700 Leverage technology to engage the # of Instagram followers 5,220 3/12/21 7,900 community and promote program 4,547 as of offerings # of Facebook followers 4,408 3/12/21 4,890 5,200 Strategic Goal: Programming is Directed to Diverse Users (P&R Strategic Plan Goal) # of Virtual Program 19 15 15 15 Offerings Open Space Preservation and # of miles of Open Space 58.5 60 as of 61 61.75 Enhancement trails maintained 3/12/2021 Strategic Goal: Nurture Open Space # of staff hours dedicated 76* 304 2,500 2,500 (P&R Strategic Plan Goal), Climate to fuel reduction Action MCG # of encampment site 44* 103 as of 60 60 clean-ups removed from 3/12/21 Open Spaces *FY 19-20 programming was suspended in March 2020 due to COVID-19 and FY 20-21 programming was modified due to COVID-19 restrictions (includes COVID-10 restrictions surrounding encampment clean-ups and modified childcare programming from traditional school year to cohort programming during SLCUSD distanced learning) . • r--. Economic Stabil-ty Housing Climate Act -or DEI :her Department Objectives 221 Operating Budget General Fund Recreation Administration Program Description Recreation Administration The Recreation Administration Program plans for new improvements to existing parks and recreation facilities, applies for, and administers grant programs, research industry trends and best practices. It provides clerical assistance department -wide including the hiring of supplemental staff and manages the overall department budget. Staff provides support to two advisory bodies; the Parks and Recreation Commission and the Jack House Committee and manages the Public Art program. Core Services & Objectives Department Administration and Leadership Supplemental staff recruitment and onboarding Oversees Department and Division budgets for financial sustainability and accountability. Oversees Registration Software and program registration. Provide customer service to the public associated with Department programming. Support and facilitation of Parks and Recreation Advisory Bodies (Parks and Rec Commission and Jack House) Public Art Program implementation and policy development Recreational Capital Improvement Project Management in alignment with new Parks and Recreation Plan and Element of the General Plan Management of Parkland and Public Art Impact Fee Funds Marketing and Community Engagement surrounding Recreational programming and construction of recreational facilities. Implement and/or plan for the Parks and Recreation Department Strategic Plan Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $681,743 $675,590 $673,334 0% $702,368 4% Contract Services $80,214 $15,255 $15,255 0% $15,255 0% Other Operating Costs $18,533 $48,060 I $79,560 66% $79,560 0% Total Program $780,489 $738,905 1 $768,149 4% $797,183 4% Major City Goal Contributions Recreation Administration supports the Economic Recovery Goal through supporting Arts and Culture and assisting in Downtown Vitality efforts. 4% Operating Budget General Fund Opportunities and Challenges Recreation Administration With the anticipated Parks and Recreation Blueprint for the Future, the Department will be focused on community outreach and planning for new and improved recreational amenities. The Department will update programmatic focus for each division with the next Financial Plan to reflect the major goals and objectives of the Blueprint. Work on that effort will begin with the Blueprint adoption. With COVID-19 impacts, staff will evaluate the department service desk and determine appropriate staffing for when the office reopens to the public. Other Key Points The Marketing Specialist Limited Benefit temporary position has been reclassified to an on -going regular permanent FTE that supports marketing and promotions for all four departments within the Community Services Group. The budget for this position has been moved to the Community Services Group Cost Center from Recreation Administration. Registration software fees (including credit card processing fees) are now budgeted as an expenditure and not a reduction in revenue. This is an administrative change recommended based on accounting best practices. There is no net budgetary effect from this change. 223 Operating Budget General Fund Facilities Facilities Program Description The Facilities Program manages, supervises, and schedules the use and maintenance of community recreation buildings and reserved park areas, and oversees the approval and issuance of facility rental permits, banner permits, and film permits. The department additionally supports the Downtown Dining Mission Plaza program through equipment set-up and staffing. Core Services & Objectives Manage and coordinate use of City indoor and outdoor facilities to optimize use and availability. Manage the commemorative Bench Program and associated Donations. Coordination of Street Banner Reservations and Commercial Filming Permits. Hire, recruit and train supplemental staff to facilitate use of City's indoor and outdoor facilities Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $179,606 220,948 $266,051 20% $292,723 10% Contract Services $2,343 $5,100 $5,100 0% $5,100 0% Other Operating Costs $8,363 $12,830 $12,915 1% $12,915 0% Total Program $190,312 $238,878 $284,066 19% $310,738 9% Major City Goal Contributions Facilities supports the Economic Recovery Major City Goal and Downtown Vitality by providing resources to assist with OpenSLO. Opportunities and Challenges With COVID-19 impacts, staff will need to adjust and or modify indoor programming when authorized by state and county health guidelines. 224 Operating Budget General Fund Youth Services Program Description Youth Services The Youth Services program provides licensed childcare during school closures (before and after school, spring break, teacher workdays, and throughout the summer) with a focus on healthy and positive development of children through anti -bias curriculum, STEAM based activities, social experiences, focus on inclusion and opportunities that promote learning, awareness of community, fitness and health, academic support and recreational play. Core Services & Objectives • Collaborate with SLCUSD to provide school age childcare programs on City school campuses and CAPSLO to provide subsidized care for qualifying families. • Provide school age childcare through the State Community Care Licensing Continue to assess and modify the current business practices to optimize number of children receiving care (accommodating wait list) and accommodate increasing number of children needing care due to changes in school schedules and increased TK programs in the school district. Provide a variety of childcare programming during school closure times, including: before and after school childcare, summer camp, Spring Break Camps and Teacher Workday camps. Develop inclusive care programs with community partners to provide support for children with special needs (using agency partners and internal trained support staff). Stay current on professional trends, both academic and developmental, and incorporate trainings and practices to ensure an environment that is diverse and inclusive. Recruit, onboard and retain quality staff through professional development opportunities and relevant workforce training. Plan and implement curriculum which spotlights community partnerships, educational opportunities, guest speakers and local field trips, encouraging children to be lifelong learners and active community members. Program Budget Staffing Contract Services Other Operating Costs Total Program Actual Budge'- 2019-20 2020-21 $762,126 $855,543 $9,761 $17,900 $81,700 $124,430 $853,586 $997,873 2921-23 Financial Plan M 12OM21 22 Change 2022-23 1 Change $1,109,377 30% $1,186,520 7% $20,300 13% $20,300 0% $125,470 1% $125,470 0% $1,255,147 26% $1,332,290 6% 225 Operating Budget General Fund Major City Goal Contributions Youth Services Youth Services supports the Economic Recovery Major City Goal through business support by providing childcare to the community to enable residents to return to work. In addition, the division supports the Diversity, Equity and Inclusion Major City Goal and workforce recruitment and retention by serving as a community partner involved in the SLO County Child Care Study (First 5's analysis). The division will review, evaluate and implement findings from the study as resources permit. Opportunities and Challenges There are also recruitment and retention challenges surrounding the COVID-19 pandemic and hesitancy and concern surrounding health and safety of working in the classroom. The division continues to adjust programming as the district changes the classroom schedule in response to the COVID pandemic. Other Key Points The City reclassified the Limited Benefit Temporary Site Specialists to Regular Benefited Full-time staff, increasing full-time budget and decreasing temporary staffing for a net increase of $93,227 to address on- going compaction and retention issues and fair wages surrounding job tasks. Youth Services employs many supplemental employees and the update to the supplemental salary schedule in response to mandated minimum wage increases and subsequent compaction has led to an increase in supplemental staffing budget. 226 Operating Budget General Fund Community Services Program Description Community Services The Community Services Program hosts a variety of community -based events (community wide and neighborhood based), coordinates special event permits, manages youth and adult athletic leagues, offers recreational activities and classes, manages the City's community gardens, manages the skate park and senior center. The programming promotes community engagement, healthy lifestyles and social interactions, and coordinates volunteer opportunities. Core Services & Objectives Continued partnership with Cal Poly Industry Experience Management Department students' to develop and support innovative programming �g Host community -wide events and events in neighborhoods based on City subareas Expand enrichment class offerings to the community Coordinate volunteer activities for the Department Offers sports clinics and coordinate youth and adult athletic leagues Develop and offer pilot recreational programs designed to support unmet community needs Serve as liaison to the Jack House Committee Coordination and upkeep of community gardens Management and provide safe programming of Skate Park Assist with Senior Center program and facility management Coordination of special event permits Develop new marketing strategies for promotion of recreational sports and program offering Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 2021-22 Change 2022-23 $350,549 $384,225 $415,136 8% $443,918 $63,235 $119,000 1 $122,800 $67,973 $120,170 1 $111,610 $481,757 $623,395 1 $649,546 3% $123,600 -8% 117,710 4% $685,228 Change 6% 227 Operating Budget General Fund Major City Goal Contributions Community Services Community Services supports the Economic Recovery Goal through supporting Arts and Culture and assisting in Downtown Vitality efforts. Challenges and Opportunities The COVID-19 pandemic has proven to be a challenge to event programming. The Division will need to strategically and creatively develop events and build community while safely adhering to County guidelines. Other Key Points Due to COVID-19 capacity restrictions on large group gatherings, the TRI event for July 2021 was cancelled. Accordingly, operating budgets for FY 22 were adjusted. Staff anticipate holding the TRI event in July 2022 and operating budgets for FY 23 are reflected to show the staffing and material cost. Community Services employs many supplemental employees and the update to the supplemental salary schedule in response to mandated minimum wage increases and subsequent compaction has led to an increase in supplemental staffing budget. 228 Operating Budget General Fund Ranger Service Program Description Ranger Service The Ranger Service Program preserves and protects the natural resources in the City's open space with daily maintenance, construction, rehabilitation, mitigation projects, and patrol. Rangers conduct year- round environmental education programs and hikes and educate the community about how to help protect the City's natural resources and open spaces. Core Services & Objectives Complete installation of adopted trail systems in new Open Space acquisitions Maintain the Open Space consistent with the adopted Open Space Maintenance Plan Facilitate mitigation and fire fuel reduction projects in the City's Open Spaces Assist with the City's Storm Water Program compliance Conduct environmental education programs and hikes >- Support encampment clean-ups and facilitation between the unhoused community and the Homeless Response Manager and CAT program staff. Remove trash and debris in the City's Open Spaces and creeks Patrol open space areas ensuring compliance with the City Open Space Ordinances, the safety of users, and preservation of the natural environment Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 2021-22 Change I 2022-23 I Change $446,656 $483,550 $759,592 57% $805,442 6% $28,843 $17,400 1 $27,400 $20,583 $24,830 1 $30,880 $496,081 $525,780 1 $817,872 Major City Goal Contributions: 57% $32,400 18% 24% $26,380 -15% 56% $864,222 6% Ranger Services supports the Housing Major City Goal through supporting Environmental Protection and Water Quality and plays a key role in the Climate Action Major City Goal through the team's work on preservation, maintenance and enhancement of City's open space and urban forest, and the team's planning and implementation for resilience. 229 Operating Budget General Fund Opportunities and Challenges Ranger Service Currently with COVID-19 restrictions, educational programs and hikes are limited by County Health guidelines but staff is creatively utilizing technology to continue to educate the public. Open Space usage has increased by 30% amidst the COVID-19 pandemic and staff anticipates this trend to continue post-COVID-19. Due to increased usage, there is a need for more education and patrol. Other Key Points The division increased their full-time staff by one net new Ranger Maintenance Worker to meet level of service standard consistent with recent Open Space expansion. To provide reliable, consistent staffing, reclassified Ranger Service Limited Benefit Temporary staff to full- time staff resulting in a net increase of $84,561. Increased supplemental staffing budget by 4,000 hours and operating budget for machinery and equipment to establish a fire fuel reduction crew in order to ensure the City has a reliable means of conducting fuel reduction activities. 230 Operating Budget General Fund Aquatics Aquatics Program Description The Aquatics Program provides a safe, well -maintained facility offering the community diverse aquatic activities designed to incorporate recreation swim, fitness, therapy, exercise, rehabilitation, skill development and socialization regardless of economic status, disability, fitness level or age. The aquatics program additionally provides well -trained and skilled staff to ensure patron safety and provides emergency response if needed. Core Services & Objectives Provide instructional, lap, and recreational swimming programs Provide a wide range of aerobic activities to meet a diverse population (therapy, exercise, etc.) Maintain a clean, accessible and safe facility as paramount to the prevention of incidents and injury at the SLO Swim Center. Adjust programing to be creative and meet the needs of the community Ensure all staff maintain California and American Red Cross certifications and attend monthly in-service trainings Provide water safety, educational and preventative events throughout the year. Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 1 2021-22 Change 1 2022-23 Change $348,345 $431,395 $565,167 $36,624 $37,800 $38,500 $17,377 $14,030 $47,500 $402,346 $483,225 I $651,167 Opportunities and Challenges 31% 1 $538,057 I -5% 2% 1 $39,299 2% 239% $47,500 0% 35% $624,856 -4% County Health Department guidelines for operating an Aquatic facility during a pandemic led to capacity restrictions and additional staffing needs to adhere to sanitation and health protocols. The division's supplemental staffing budget increased for FY 2022 to provide the staffing needs to follow County Health guidelines and requirements. Other Key Points The Division increased its Machinery and Equipment budget for the ongoing replacement of program facility equipment (manikins, pace clocks, etc.) and for minor capital replacements (lane lines, lane line reels, and stanchion posts). 231 Operating Budget General Fund Golf Course Program Description Golf Course The Golf Course Program operates and maintains the Laguna Lake Golf Course as a 10-hole par three golf course, Pro -Shop, and driving range. Core Services & Objectives Maintain and enhance the Laguna Lake Golf Course including equipment maintenance and irrigation repair. Provide a comprehensive Pro -Shop operations and reliable customer service. Promote and provide alternative golf related programming. Provide community focused events to enhance the use of the facility. Identify environmental initiatives focused on creek preservation, water conservation, and long- term sustainability. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $394,711 $402,701 $444,048 10% $462,695 4% Contract Services $27,050 $21,560 $21,560 0% $21,713 1% Other Operating Costs $173,298 $241,984 $235,263 -3% $237,245 1% Total Program $595,060 $666,245 $700,871 5% $721,653 3% Opportunities and Challenges Due to antiquated infrastructure, on -going irrigation leaks monopolize staff time and take away from standard course maintenance. Demand for golf activities have increased amidst the pandemic, and staff are developing new and diverse programming. Other Key Points Other Operating costs decreased due to a change in budgeting for Golf Cart Leases. Per GASB 87 — Lease Accounting, budget for the leases has been moved from the Golf Course operating budget to the Debt Service Fund. 232 Operating Budget General Fund POLICE Mission Statement Maintaining a safe city by working in partnership with the community to protect life and property, prevent and reduce crime, and improve the quality of life in our neighborhoods while preserving the rights of all through a commitment to Service, Pride and Integrity. About the Department The Police Department consists of two operating bureaus: Operations and Administration. The Operations Bureau consists of patrol services, traffic safety, and neighborhood services. The Administrative Services Bureau includes administrative services, investigative division, communications, and records units. 233 Operating Budget General Fund The Department at a glance Police • .. Police Admin 1 1 Actuals $1,997,594 1 Budget $1,925,154 12022-23 Budget $2,126,833 Budget $2,171,555 Patrol $9,337,298 $9,659,843 $9,493,388 $10,049,646 Investigations $2,786,997 $2,662,527 $3,458,235 $3,623,590 Police Support Services $2,484,815 $2,524,226 $2,908,916 $3,019,376 Neighborhood Services $229,238 $260,956 $272,863 $277,062 Traffic Safety $796,078 $770,156 $881,108 $910,143 Police Total $17,632,020 $17,802,862 $19,141,343 $20,051,371 EXPENDITURES BY FUNCTION Other Operating Costs 3% Contrad Services 3% Staffing 94 Existing FTEs 12022-23 90.5 90.5 Additional FTEs (per SOBCs) .5 .5 Supplemental/Contract FTEs 1.7 1.7 TOTAL 92.7 92.7 234 Operating Budget General Fund Department Organizational Chart' 1 Does not include supplemental or contract employees. Police 235 Operating Budget General Fund Police Operating Budget Changes 1 Reclassification for Reclassifying the Police Operations Ongoing $12,200 $13,751 Police Operations Support Specialist from a supplemental to Support Specialist FTE position, but annual hours will remain at 1040. Staff will work with Human Resources to change pay grade 2 EvidenceOnQ and EvidenceOnQ is software that integrates Ongoing $8,555 $8,555 DigitalOnQ 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. 3 Reclassification for SNAP Changing the pay grade of SNAP Ongoing $9,622 $9,622 Employees 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 workload for SNAP and the change in pay grade would bring the positions in line with a Parking Enforcement Officer. 4 Lead Records Clerk This position will assist the Records Ongoing $93,696 $97,868 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 involve working with the City Attorney to ensure compliance. 5 Ongoing costs related to Funding for police will be used to assist Ongoing $95,272 $105,292 Cannabis backgrounds with operator and employee background and operation checks, monitoring and investigating all compliance 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 program 6 Eliminate Cannabis Eliminate an officer position due to fewer Ongoing-$192,150-$194,026 Officer Position business permits than anticipated; as a result, the program has been reassessed and modified. 236 Operating Budget General Fund 7 Supplies for Downtown Ongoing costs for supplies created and Sergeant's educational used by the downtown Sergeant for program educational programs for downtown business owners. This may include printed materials, easels, binders, etc. 8 Social Worker -TMHA Adding a second social worker to the Support - Fully Community Action Team to enhance Burdened Cost 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. 9 Onetime costs for Social Set up costs related to office supplies, Worker position desk, and phone for Social Worker position. Office will be located at the Police Department. 10 Public Safety Supplies Costs related to ammunition have increased significantly and the number of officers requesting monthly allotment (per the POA MOA) has increased as well. Duty ammunition must replace annually based on the manufacturer's recommendations. 11 Spillman 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 DO1 is a requirement. 12 Public Safety Equipment Ongoing Contribution amount for the Replacement Project 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 ' $1,000 Police $1,000 Ongoing $118,688 $116,188 One- $6,500 time Ongoing $11,600 $11,600 One- $15,400 time Ongoing $0 $58,281 TOTAL $180,384 $228,131 237 Operating Budget General Fund 6 2021-23 Department Goals Department strategic priorities for the 2021-23 Financial Plan are to help advance the City's overall goals tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals are in addition to ongoing community program services (listed in program sub -sections). Strategic Goals • ; Continue to provide public safety presence in the downtown by utilizing the AILa downtown Bike patrol team. 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. AIL 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). Develop a CAT AiL staffing plan with second social worker, to ensure public safety and social service resources in both the downtown and creek area. Evaluate a plan to reestablish a downtown substation for public safety (Potential of adding to Mission Plaza Project). Additionally, the department will track and analyze hours worked (regular and overtime hours) by the downtown sergeant and downtown officers and tracking crime statistics. Implement all state and federal government changes in law enforcement including the Governor's recommendations regarding protests when issued and the After - Action Report recommendations. Focus on and enhance de-escalation and diversity training. Review new Police Station building program and budget for opportunities to reduce costs to preserve resources for community service investments. Active Transportation Plan - Micro mobility: Continue to monitor state of micro mobility industry and feasibility of a future city bikeshare system. Economic Stability Housing Climate Action DEI Other Department Objectives 238 Operating Budget General Fund Performance Measures Police Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo's goals and objectives. Objective Reduce Crime # of total Part I Crime Strategic Goal: by year. 1,925 1,825 1,825 1,789 Economic Recovery, Department Mission Vehicle:588 Vehicle:288 Vehicle:500 Vehicle:475 # of total traffic Pedestrian:31 Pedestrian:19 Pedestrian: 30 ............................................................................ Pedestrian:25 collisions .3 .................................................................— ............................................................................ Provide Bicycle:44 Bicycle:44 Bicycle:42 Bicycle:40 safe roadways for DUI Checkpoints: 3 DUI Checkpoints: 2 DUI Checkpoints: 2 DUI Checkpoints: 2 pedestrians, vehicles, ............................................................................... DUI Saturation DUI Saturation DUI Saturation ............................................................................. DUI Saturation and bicyclists. # of targeted Patrols: 16 Patrols: 21 Patrols: 30 Patrols: 30 enforcement Traffic Enforcement .............................................................................. Traffic Enforcement Traffic Enforcement ............................................................................. Traffic Enforcement Strategic Goal: Patrol operations Operations: 13 Operations: 10 Operations: 15 Operations: 15 Objectives, conducted under the ............................................................................. ............................................................................ Department Mission Office of Traffic Motorcycle Safety Motorcycle Safety Motorcycle Safety Motorcycle Safety Safety Grant per year Enforcement: 2 Enforcement: 2 ...... Enforcement: 2 Enforcement: 2 ............................................................................. Bicycle & Bicycle & Bicycle & Bicycle & Pedestrian Pedestrian Pedestrian Pedestrian Enforcement:6 Enforcement:4 Enforcement:6 Enforcement:6 # calls related to homelessness4 7032 7344 7200 7000 # of unique Reduce Homeless individuals contacted 437 524 600 700 related Calls for by CAT Service through # of Family & Agency proactive Reunification 47 56 60 65 engagement. # of Local Permanent 22 26 28 30 Housing Strategic Goal: # of major camp Economic Recovery, cleanups 3 6 10 12 Department Mission, # of Mental Patrol Objective Health/Substance 112 146 160 180 A Abuse Treatment Referrals z Part 1 Crimes include: homicide, forcible rape, robbery, aggravated assault, burglary, and motor vehicle theft. Figures shown represent calendar year. 3 Traffic Collision data is shown by calendar year. 4 All stats related to homelessness are based on calendar year. 239 Operating Budget General Fund Police Administration Program Description Police Administration The Police administration program plans, directs, and evaluates all police services, including overall department leadership provided by the Chief of Police. Police administration provides business and fiscal management; personnel hiring and training; risk management; claims/lawsuit coordination; contract service administration; equipment purchases and maintenance; and computer application support for public safety information systems, including computer aided dispatch (CAD) and records management applications. This program is also responsible for preparing and implementing policies and procedures, ensuring appropriate training and performance standards are maintained and ensuring compliance with mandates. Core Services & Objectives Provide overall department administration and leadership. Implement strategies to enhance intelligent lead policing to work toward reducing crime. Provide business and fiscal administration including grant management and contract administration. Process and oversee internal affairs investigations. Manage the hiring and training of department personnel. Manage Lexipol and policy development. Ensure department fiscal sustainability and responsibility. Program Budget I= 2021-23 Financial Plan 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $1,315,158 $1,211,337 $1,274,885 5% $1,323,998 4% Contract Services $393,782 $404,665 $527,458 30% $528,767 0% Other Operating Costs $288,655 $309,152 I $324,490 5% $318,790 -2% Total Program $1,997,594 $1,925,154 I $2,126,833 10% $2,171,555 2% Major City Goal Contributions The Police Administration program will be responsible for ensuring the department contributes to the work programs for the following Major City Goals: Housing and Homelessness; Economic Recovery; Resiliency and Fiscal Sustainability; Diversity, Equity and Inclusion; and Climate Action and Open Space. Opportunities and Challenges With an incoming new Police Chief, the department will be able to incorporate ideas from a new perspective. The Chief will also need to familiarize himself with the laws of California and department business processes and culture. 240 Operating Budget Police Administration General Fund Patrol Program Description The police patrol services program utilizes uniformed personnel to respond to emergencies and calls for service; conduct preliminary investigations of criminal activity and routine traffic collisions; enforce state and City laws and statutes; apprehend criminals; manage unusual incidents; implement crime prevention strategies; and provide other public safety services. Core Services & Objectives Use intelligent lead policing strategies focusing on neighborhood safety and quality of life and utilizing the current Neighborhood Officer Program. Enforce traffic laws focused on violations that tend to increase collisions. Deploy the Community Action Team and Downtown Bike Unit to address adverse behavior and homeless issues within the downtown and explore ways to manage and address homeless related issues that negatively impact our community. Continue to partner with Transitions Mental Health Association (TMHA) to address the needs of individuals that may be dealing with Mental Health related issues within our community. Utilize the department's two Field Service Technicians to respond to non -emergency calls for service and posting of abandon vehicles throughout the city. Provide emergency and non -emergency response and service to the community. School Resource Officer provides public safety resources to local educational communities. Program Budget 2019-20 2020-21 Staffing $9,173,299 $9,554,943 Contract Services $505 $- Other Operating Costs $163,493 $104,900 Total Program $9,337,298 $9,659,843 ____17-Financial Plan L 10 2021-22 Change 2022-23 Change $9,365,488 -2% $9,868,465 5% $127,900 22% $181,181 42% $9,493,388 -2% L $10,049,646 6% 241 Operating Budget General Fund Major City Goal Objectives Patrol Housing & Homelessness —The Patrol program will expand current Community Action Team (CAT) resources by adding an additional social worker position. The downtown bike team will also continue to provide public safety services to the downtown core. Economic Recovery & Resiliency — in addition to resources provided by the downtown bike team and CAT, the department will develop an educational program for business owners to become more familiar with how to handle emergency situations that require public safety support. Opportunities and Challenges The replacement of the officer's Mobile Data Computers is slated to occur in FY 20-21. The MDCs allow officers to rapidly obtain critical updates to calls for service as they are responding, and to ensure the safety of the public and successful resolution of the call for service. The department continues to have challenges with recruitment and retention, as the current national and local narrative in law enforcement creates difficulties in recruiting high quality candidates for officer positions. PZIW Operating Budget General Fund Investigations Program Description Investigations This program provides investigation of any kind of criminal activity. Program staff also interview and monitor convicted sex and arson offenders, coordinate and deliver enforcement, intervention, and education services to the high school, and junior high, provide forensic investigative services and evidence collection and analysis, and process and dispose of evidence and property. Core Services & Objectives Collaborate with organizations to identify and improve sexual assault prevention and investigation efforts. Conduct pro -active investigations in crime trends which victimize City residents and businesses. Provide crime awareness and public training opportunities to reduce victimization within the community. Manage all evidence and property in accordance with the law and established policy. Work collaboratively with other law enforcement agencies to address criminal activity. Conduct compliance checks in accordance with the City's Municipal Code related to alcohol and tobacco licenses. Monitor licensed cannabis retail/delivery businesses and conduct investigations related to illegal cannabis retail. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $2,757,125 $2,632,227 $3,329,263 26% $3,484,598 5% Contract Services $356 $4,600 $99,872 2071% $109,892 10% Other Operating Costs $29,516 $25,700 $29,100 13% $29,100 0% Total Program $2,786,997 $2,662,527 I $3,458,235 30% $3,623,590 5% Opportunities and Challenges The department has seen a high turnover rate in the detective bureau, as multiple detectives have left and taken employment with other law enforcement agencies. Officers in the detective bureau are typically some of the highest caliber employees and it is challenging to replace them with new officers who need to attend over six weeks of training to reach a minimum competency level. 243 Operating Budget General Fund Police Support Services Program Description Police Support Services The support services program is divided into two divisions: Communications and Records. The program is involved in Department of Justice audits, acts as custodian of criminal records and compliance with State and Federal regulations. Staff are responsible for receiving, processing and dispatching emergency and non -emergency calls for service, public outreach, processing police reports and citations, tracking and reporting crime statistics, and maintaining confidential information. Core Activities & Objectives Public Safety Answer Point for all emergency and non -emergency calls. Dispatch all police and fire related calls for service in a timely and efficient manner. Provide effective communication to support public safety personnel at all times. Process all police records and provide quality assurance. Respond and prepare public records requests and discovery letters. Prepare and submit all mandated statistical reports to Department of Justice and other agencies. Program Budget Staffing Contract Services Other Operating Costs Total Program Actual -- Ad 2019-20 2020-21 $2,342,760 $2,357,126 $124,760 $129,200 2021-22 Change 2022-23 Change $2,706,481 15% $2,832,341 5% $159,735 24% $144,335 -10% $17,295 $37,900 I $42,700 13% $42,700 0% $2,484,815 $2,524,226 1 $2,908,916 15% $3,019,376 4% Opportunities and Challenges Challenges for Support Services include getting the new Records Clerks and Dispatchers trained as the department fills vacancies due to retention issues. As we return from the pandemic, it will be an opportunity to provide in -person service to the community by opening the department lobby and counter. 244 Operating Budget General Fund Neighborhood Services Program Description Neighborhood Services The Neighborhood Outreach & Education Program is responsible for the coordination of services and outreach to community members with an emphasis on residential neighborhoods. The Program coordinates response to violations of the City noise ordinance, along with related follow-up, data collection, and the issuance of warning notices and administrative citations to property owners. The program also includes support to various committees and neighborhood groups as well as receiving and acting on concerns of neighborhood residents about issues affecting the quality of life. Core Activities & Objectives Collaborate with patrol to improve public outreach related to crime trends including web/social media outreach, in -person presentations, media releases, videos, etc. Respond to neighborhood concerns/complaints, facilitate assistance for residents. Create social media content calendar and push information via Nextdoor, Instagram, Facebook, and Twitter. Evaluate, update, and enhance noise and Safety Enhancement Zone materials to maintain the positive downward trend of noise disturbances in the neighborhoods. Management of S.N.A.P. (Student Neighborhood Assistance Program) Enforcement of neighborhood parking regulations. Oversee Party registration requests. SLO Solutions contract management for conflict resolution. Department Volunteer Coordination. Program Budget L2019-20 2020-21 2021-22 I Change 2022-23 Change Staffing $191,889 $209,556 I $217,463 4% $221,662 2% Contract Services $16,822 $23,000 I $27,000 17% $27,000 0% Other Operating Costs $20,527 $28,400 I $28,400 0% $28,400 0% Total Program $229,238 $260,956 I $272,863 5% $277,062 2% Opportunities and Challenges The Neighborhood Services program is always looking for opportunities to enhance communication with the community with the use of social media and other forms of messaging. An ongoing challenge has been the hiring and retention of SNAP employees. The proposed increase in SNAP employee's salary will potentially help with recruitment and ongoing retention in the future. 245 Operating Budget General Fund Traffic Safety Program Description Traffic Safety The traffic safety program provides enforcement of traffic laws, collision investigations, education programs, and coordination and support of special events. Core Activities & Objectives Conduct special enforcement operations in the City's most hazardous intersections and roadways to reduce collisions, including a focus on collisions involving bicycles and pedestrians. Provide enforcement efforts of DUI violations. Implement data -driven approaches to crime and traffic safety to maximize resources and reduce crime and collisions and conduct programs designed to increase traffic safety in the neighborhoods. Continue to actively participate in traffic safety programs such as Selective Traffic Enforcement Programs through the California Office of Traffic Safety grants. Conduct collision investigations and special event coordination within the city. Work collaboratively with the City's Public Works Engineering staff to improve overall traffic and pedestrian safety. Program Budget L2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $769,482 $743,056 I $849,108 14% $884,543 4% Contract Services $- $6,200 1 $6,200 0% $6,200 0% Other Operating Costs $26,596 $20,900 1 $25,800 23% $19,400 -25% Total Program $796,078 $770,156 1 $881,108 14% $910,143 3% Major City Goal Objectives Climate Action, Open Space and Sustainable Transportation: work with Public Works to achieve meaningful progress towards the "Vision Zero" goal by implementing recommendations from the City's annual Traffic Safety & Operations Program. Continue Active Transportation Education and Outreach. Opportunities and Challenges The department is currently operating at a 33% reduced capacity in Traffic which greatly affects the department's ability to conduct education and enforcement. The department cannot fully staff Traffic due to ongoing recruitment and retention issues at the officer level. 246 Operating Budget General Fund Public Works PUBLIC WORKS Mission Statement Preserve and enhance city infrastructure for an accessible, safe, and inclusive community experience. About the Department The City of San Luis Obispo's Public Works Department accomplishes its mission in two primary ways. One is by providing safe mobility options for residents and visitors so that all may enjoy the cultural, recreational, economic, educational, and quality of life amenities in San Luis Obispo. The other is to build and maintain the City's assets and infrastructure to enhance community safety, health, and wellness. None of the City's assets are an end unto themselves but rather enable residents and visitors to experience an enhanced quality of life. The Department's Vision: 'Inspiring you to have the best day you have ever had,' essentially means if we provide high quality mobility options and well -maintained infrastructure, then users can experience the full benefit of living, visiting, and working in San Luis Obispo. The Department's twelve programs each have a critical and unique role in fulfilling the Department's mission. Most of the Department is funded by the General Fund, and two programs, Parking and Transit, are Enterprise Funds, funded by users of those services. 247 Operating Budget General Fund The Department at a glance Public Works 17 • .• BudgetActuals Public Works Admin $945,448 $860,714 ,.Budget $854,910 $872,405 2 Parks Maintenance $2,587,151 $2,935,567 $3,261,245 $3,399,785 3 Swim Center Maintenance $504,654 $479,743 $578,561 $602,752 4 Urban Forest Services $830,659 $680,571 $441,419 $457,534 5 Facilities Maintenance $1,157,246 $1,142,493 $1,353,398 $1,389,285 6 Streets & Sidewalk Maint $1,143,992 $1,276,107 $1,955,852 $2,089,464 7 Traffic Signals and Lighting $519,399 $524,166 $562,586 $519,510 8 Fleet $1,076,773 $1,114,498 $1,370,660 $1,389,527 9 CIP Project Engineering $2,205,278 $2,240,356 $2,127,337 $2,221,737 10 Transportation Plan and Eng $896,195 $902,428 $1,013,980 $1,027,504 11 Stormwater & Flood Control $793,352 $1,039,816 $1,155,690 $1,186,536 12 Public Works Total $12,660,147 $13,196,459 $14,675,638 $15,156,041 EXPENDITURE BY FUNCTION Other Operating Contract Services 12% Staffing 62% Existing FTEs 83.64 83.64 Additional FTEs (per SOBCs) 6.2 7.2 Supplemental/Contract FTEs 17.7 17.45 TOTAL 107.54 108.3 248 Public Works Administration (7 FTE) St FT er Administration 21 (6.34 .34 FTE) Public Works I� Engineering & (73.84 FTE) Maintenance Parking (14 FTE) Transit (3 FTE) Flood Control (1 FTE) Parks Maintenance (12 FTE) Swim Center Maintenance (1 FTE) Urban Forest Services (2 FTE) Facilities (5 FTE) Street Maintenance (12 FTE) CIP Engineering (15 FTE) Traffic Signals & Lighting (2 FTE) Transportation �� Fleet (4.5 FTE) Transportation Planning & Engineering (6 FTE) Operating Budget General Fund Public Works Operating Budget Changes 1 Office Modifications This one-time request is to fund office One-time $0 $20,000 modifications to accommodate anticipated additional CIP Engineering staff at the 919 Palm office. 2 Utilities Locator Position Administrative change to change the funding Ongoing $14,367 $14,367 Salary -Split Cost Centers 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 drains, street light conduits, and fiber optic conduits. $25,000 3 Mobility as a Service Prepare a Mobility as a Service Study to One-time Study 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. _ 4 Transportation Interns This request will provide 2 paid One-time $30,350 $31,071 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 these tasks. 5 Variable Electricity Costs The Swim Center is converting to solar power One-time $25,000 $25,000 until Solar Costs are in fall of 2021. The total cost of electricity is Known at Swim Center anticipated to increase; however, the ultimate amount is still unknown. 6 CIP Interns Increase hours on 2 paid CIP Interns from One-time $5,000 $5,900 740 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. 250 Operating Budget General Fund 7 Increased budget to This contract funding will fund increase existing Landscape maintenance in Mission Plaza and Downtown Maintenance Contracts to maintain creek walk and maintain newly City owned landscape improvements in developments and landscape improvements within separated bike lanes. 8 Pilot: Contract Services Increased solid waste in the parks has been for increased trash and challenging because of Covid dining recycling services in restrictions and increased use of the Public Spaces 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. 9 Supplemental Street and The City's current street sweeping program Parklet Sweeping consist of over 260 miles of curb and gutter and is at capacity. 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. 10 Increased contract The number of homeless camps and the services budget for amount of property the City is responsible abandoned personal for addressing is increasing. This additional property and trash funding will allow the department to keep up cleanup for parks, paths, with the anticipated work. bridges, and railroad right of way 11 Additional Streets The City is scheduled to accept multiple new Operator for residential developments as well as Maintenance of Streets separated bike lanes. This additional and Right of Way infrastructure will cause increased maintenance for the Streets program. 12 Continue supplemental This position will assist the department with Accessibility and Process completing the ADA ROW assessment and Improvement Manager transitioning this into work plans, as well as for Project Completion reprogramming in the City's asset management system to align workflows with optimal efficiencies. Additional duties include programing software for workflow efficiencies, training on programing, assistance with a variety of reports and Public Works Ongoing $55,000 $65,000 One-time $125,000 $125,000 One-time $250,000 $250,000 Ongoing $55,000 $55,000 Ongoing $0 $78,312 One-time $34,000 $12,000 251 Operating Budget General Fund requests for proposals, document fleet disposal auction process. Public Works 13 Contract Heavy This funding will provide added capacity in One-time $85,220 $89,065 Equipment Mechanic the Fleet program and addresses a current staffing shortage. In addition, this will provide flexibility as the program evaluates long term needs considering transitioning the fleet to electric vehicles. 14 Contract with Body Shop This request is for specialized repair work Ongoing $20,000 $20,000 for Vehicle Accident performed by body shops to repair accidents Repairs on City vehicles. These repairs are outside the scope of the fleet maintenance function. 15 Fleet Intern This funding would allow the City to partner One-time $17,991 $18,398 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. 16 Increased Asphalt and The City is scheduled to accept multiple new Ongoing $60,000 $60,000 Concrete Budget residential developments as well as separated bike lanes. This additional infrastructure 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. 17 Increased budget for This will provide for miscellaneous traffic Ongoing $15,000 $15,000 Signals and Street Light signal and street light equipment to support Equipment 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. 18 Increased Chemical The Swim Center is a popular City Facility and Ongoing $25,000 $25,000 Costs at the Swim the increased programming over the years Center has resulted in higher than budgeted chemical costs. With Covid the Health Department is requiring a higher sanitizer level. To keep up expected increased 252 Operating Budget General Fund chemical costs and increased supply requirements additional funds are needed. 19 Increased Contract Additional funding is needed to provide Funds for Specialized specialized mechanic services while the City's Mechanic Services fleet transitions to electric vehicles. 20 Increased Electricity This provides budget for the continued Costs for New Signals acceptance of privately developed lights and and Street Lights signals associated with new residential developments as well as other increases in light and signal inventory. 21 Increased Misc. Facilities maintenance has historically Materials and Supplies overspent in materials and supplies and made up the difference with utilities savings that were a result of efficiency projects. As the peak time of day electricity rates significantly increase, the savings historically used to offset these purchases is no longer available. 22 One Time Tools and City These are onetime costs associated with the uniforms - Mechanic Mechanic Intern program. interns 23 Payment Correction This is a one-time request to correct an error Hwy 227 Signals/Street in transitioning the billing for signal/street Lights electrical costs mistakenly billed to Caltrans, instead of the City, during the relinquishment of Highway 227. Public Works Ongoing I $50,000 I $50,000 Ongoing 1 $10,000 1 $10,000 Ongoing $30,000 I $30,000 One-time $3,000 $0 One-time I $60,000 I $0 TOTAL I $994,927 I $999,112 253 Operating Budget General Fund Public Works 2021-23 Department Goals Department strategic priorities for the 2021-23 Financial Plan are to help advance the City's overall goals tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals are in addition to ongoing community program services (listed in program sub -sections). Strategic Goal(s) Invest in critical infrastructure in the form of the City's Capital Improvement Plan �'.`. (CIP) that furthers the success of the Major City Goals and provides transparency and information sharing with the community, including downtown businesses. Implement objectives from the Active Transportation Plan including trail, pedestrian, and bicycle improvements and street enhancements to uphold traffic safety. Further the preservation, maintenance, and enhancement of the City's Urban Forest, including the completion of the Urban Forest Strategic Maintenance and Operations Plan which will include a comprehensive tree inventory update. Continue to enhance community and downtown cleanliness through daily sidewalk scrubbing, street sweeping and clean up, and ongoing maintenance and rehabilitation of parks and facilities utilized by all residents to ultimately support the revitalization of the City. CRI Economic Stability Housing Climate Action DEI Other Department Objectives 254 Operating Budget General Fund Performance Measures Performance measures are allocate resources, and evaluate objectives. Public Works designed to determine accountability, improve service quality, departmental performance in meeting San Luis Obispo's goals and Objective Proactively enhances traffic Pavement Condition safety by providing a system Index 72 74 74 74 of safe, reliable and well- Bicycle network in total 11/27.7/23/7/0 11/28.4/25/0.1 12.4/28.9/24.6/2.1 14.7/31/24.8/4 maintained roadways, miles (Class 1/11/III/IV) sidewalks, traffic signals and streetlights. MCG: Climate Action Strategic Goal: Enhance Safe Street miles maintained 134 134 135 137 & Efficient Transportation (PW Strategic Plan) Enhance the City's Urban Forest and maintains visually appealing public spaces. # of trees to be 20,000 20,000 20,250 20,500 maintained MCG: Climate Action Strategic Goal: Proactively Manage Assets (PW Strategic Total acreage of park Plan) inventory 570 582 583 585 Provide high quality services to the community through efficient and effective delivery of capital improvement projects and management of the City's Total value of CIP $19M $28M $59M $64M infrastructure. Managed MCG: Economic Recovery Strategic Goal: Connect with our Community (PW Strategic Plan) 255 Operating Budget General Fund Public Works Administration Program Description Public Works Admin Public Works The Public Works Administration Program helps plan and direct the twelve operating programs, the capital improvement program, and provides department -wide administrative and fiscal support. Core Services & Objectives Provides leadership and strategic planning to enhance ongoing Department operations. Manages staff, fiscal and other resources to ensure efficient maintenance, inspection, operation, and construction service delivery. Provides Department leadership, organization development, and fiscal support services. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $896,021 $822,810 $816,710 -1% $834,205 2% Contract Services $28,060 $1,000 $1,000 0% $1,000 0% Other Operating Costs $21,366 $36,904 I $37,200 1% $37,200 0% Total Program $945,448 $860,714 1 $854,910 -1% $872,405 2% Major City Goal Contribution In partnership with Utilities, 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. Opportunities and Challenges Adjusting budgets to adapt to the economic impacts of COVID have been a challenge requiring deferment and delay to many Capital Improvement Plan projects. With the passage of Measure G 2020 delivery of these deferred or delayed projects as well as adjusting the City delivery capacity for an increased Capital Improvement Plan budget will be imperative to meet community expectations. As the City's infrastructure ages and population density increases additional emphasis on infrastructure maintenance is a priority. Filling the Maintenance Operations Manager and City Engineering vacancies with permanent staff to support the City's infrastructure needs is a high priority. 256 Operating Budget General Fund Parks Maintenance Program Description Parks Maintenance Public Works The Park Maintenance Program maintains City parks and landscaped areas as well as oversees contract services forjanitorial maintenance of restrooms and park buildings and landscape maintenance of smaller parks and medians. Core Services & Objectives Provides the community with safe park facilities. Partner with the Parks and Recreation Department to provide venues for recreational programs and services. �g Provides maintenance of park and other landscaped areas. �; Provides special event support. Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 $1,200,920 $1,181,598 $507,493 $462,385 $878,738 $1,291,584 $2,587,151 $2,935,567 Major City Goal Contribution 2021-22 ' Change ' 2022-23 Change $1,316,745 11% $1,372,385 4% $570,000 23% $580,000 2% $1,374,500 6% $1,447,400 5% $3,261,245 11% $3,399,785 4% In partnership with Parks and Recreation, environmental clean-ups in City Parks and public spaces associated with abandoned personal property and trash. (Housing & Homelessness, #3.7.b) Opportunities and Challenges Covid-19 dining restrictions, abandoned property clean ups, and increased vandalism within the parks system has been challenging to the Parks Maintenance program. The program is optimistic the City's Major City Goal for Housing and Homelessness will ease some of these impacts. 257 Operating Budget Swim Center Maintenance General Fund Public Works Swim Center Maintenance Program Description The Swim Center Maintenance Program maintains the swimming/diving pool and the therapy pool including all water treatment and mechanical equipment in compliance with Health Department Standards. Additionally, this program the two bathhouses and swim deck area. All of these facilities are located at the pool complex located at Sinsheimer Park and referred to as the SLO Swim Center. Core Services & Objectives Maintain the aquatic facilities in a clean, safe, and efficient manner. Provides skilled maintenance and specialized technical services. Operates the aquatic facilities in compliance with Health Department Regulatory requirement Program Budget W- 2021-23 Financial Plan 2019-20 2020-21 IIL2021-22 Change 2022-23 Change Staffing $232,763 $144,311 $157,361 9% $160,852 2% Contract Services $14,916 $24,900 1 $24,900 0% $25,100 1% Other Operating Costs $256,975 $310,532 $396,300 28% $416,800 5% Total Program $504,654 $479,743 $578,561 21% $602,752 4% Opportunities and Challenges The Swim Center Maintenance Program is eager to assist the Parks and Recreation Department implement recommendations resulting from the soon to be completed Strategic Plan as well as reopening the Swim Center to maximum operational capacity post-COVID. 258 Operating Budget General Fund Urban Forest Services Program Description Urban Forest Services Public Works The Urban Forestry Program maintains the urban forest located in streets and parks areas by pruning, removing, replacing, and plantings trees. The Program also provides staff liaison support to the Tree Committee, Downtown SLO's Urban Foresters, and assist in tree related development review activities. Core Services & Objectives Provide and maintains a sustainable urban forest to increase neighborhood wellness, increase carbon sequestration to mitigate impacts of climate change, and provides aesthetic and other quality of life improvements to the community. Maintains the City's inventory of publicly owned and maintained trees within streets and parks. Provides staff support for the Tree Committee. Program Budget Staffing Contract Services Other Operating Costs Total Program Actual Budg 2019-20 2020-21 $537,253 $272,307 $21,099 $830,659 Major City Goal Contributions $600,293 $54,078 $26,200 $680,571 2021-222 Change 2022-23 Change $360,969 -40% $376,584 4% $54,000 0% $54,000 0% $26,450 1% $26,950 2% $441,419 -35% $457,534 4% In partnership with Administration and Information Technology Department, staff will evaluate the Urban Forest Program's future role in advancing sustainability goals and objectives and complete the Urban / Community Forest Master Plan, comprehensive tree inventory update, database tracking system, pruning and maintenance (CAP Natural Solutions 2.1) and will adjust maintenance activities and delivery to reflect the Plan objectives. Opportunities and Challenges The Department will continue to evaluate the Urban Forest Program to develop a program model that best meets the community's needs. Increased contract services are more prevalent in many agencies due to the risks and injuries associated tree maintenance work. The program has made significant progress with tree maintenance through contract services recently eliminating a backlog of work and moving into more routine area pruning. This has been possible by the recent increase in contract funding, which is programmed to continue in 2021-23 Financial Plan. z The 2021-22 budget is lower than the 2020-21 for several reasons: 1) An Urban Forest Services FTE position was transferred to the Streets Maintenance program. 2) One-time Major City Goal funding was allocated during the 2019-21 Financial Plan. 259 Operating Budget Facilities General Fund Public Works Facilities Program Description The Facilities Maintenance Program provides interior and exterior maintenance services for City buildings, except for the Utilities Treatment Plants and Pump Stations, , Parking Structures, Bus Yard facility, Parks Restrooms, Laguna Lake Golf Course, and City Adobes. The program oversees unplanned repairs to existing building features such as roofs, ceiling, walls, floors, doors, windows, HVAC, plumbing, electrical systems, Hayworth systems furniture, security and fire alarm systems. The program also oversees planned and budgeted building maintenance minor capital projects that are not costly or complex enough to require engineering oversight, as well as contract services for HVAC, janitorial services (where applicable), applicable fire suppression, limited first aid kit service, elevator inspection, alarm monitoring and testing, sprinkler system testing and certification, and pest control. Core Services & Objectives Maintain City buildings in a clean, safe, and efficient manner. Provides skilled maintenance and specialized technical services. Oversee contract maintenance services. �; Provides technical support and consultation services for building improvements Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 $496,916 $157,525 $502,806 2020-21 2021-22 Change 2022-23 Change $592,575 $654,398 10% $667,785 2% $254,000 1 $254,700 0% $258,000 1% $295,918 1 $444,300 $1,157,246 $1,142,493 1 $1,353,398 Opportunities and Challenges 50% $463,500 4% 18% $1,389,285 3% The program has been dealing with staffing reductions over the past fiscal year due to the Program Manager working out of grade as the Maintenance Operations Manager. Returning to appropriate staffing levels will be essential as facilities start to reopen. This program will play an integral role assisting the City to meet Carbon Neutrality goals. This will be accomplished by facility improvements funded through capital projects and on -bill financing. The partnership between Facilities and the Office of Sustainability has been instrumental in managing the inception of the solar and on -bill financing project that are scheduled to be constructed later this calendar year. 260 Operating Budget Street & Sidewalk Maintenance General Fund Public Works Street and Sidewalk Maintenance Program Description The Street Maintenance Program maintains the paved portion of the City's streets and manages the sidewalk maintenance program. Staff within this program repair and reconstruct streets, as well as sidewalks damaged by City owned street trees. They maintain street furnishings, signs, and pavement markings, provides regular downtown trash pickup, and oversees sidewalk scrubbing, and provide weekly traffic control for the Farmer's Market. Core Services & Objectives Provides the community safe public transportation infrastructure. Maintains existing roadway infrastructure including pavement, striping and signs. Provides traffic control services for Farmer's Market. Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 1 2021-22 Change 2022-23 1 Change $827,811 $872,457 $1,093,852 25% $1,214,264 $63,993 $60,200 I $317,600 428% $318,600 $252,188 $343,450 1 $544,400 $1,143,992 $1,276,107 1 $1,955,852 11% 0% 59% $556,600 2% 53% $2,089,464 7% Major City Goal Contributions Reconstruct and resurface streets; shared -use path maintenance; traffic signs and striping maintenance; additional street sweeping for sidewalks, bike lanes and downtown parklets; and sidewalk repairs and ADA curb ramp installations. (Climate Action, 4.4: e., f., g.) Opportunities and Challenges The roadway infrastructure the Streets and Sidewalk Maintenance Program maintains will increase during the next several years due to the construction of multiple new residential developments, additional protected pedestrian and bicycle improvements, and the need for additional cleaning and street sweeping in the downtown. The approval of an additional Streets Maintenance Operator position in FY 2022-23 will allow the program to keep up with the large increase of infrastructure maintenance. Support for the additional street sweeping contract funding will help meet the community's expectations for clean and well -maintained streets. 261 Operating Budget General Fund Traffic Signals & Lighting Program Description Traffic Signals & Lighting Public Works The Signal and Light Maintenance Program operates and maintains traffic signals and streetlights on City streets, and the installing, operating, and monitoring of the City's traffic management and detection systems. Core Services & Objectives Provides safe and efficient traffic flow for all modes of travel through signalized intersections. Provides appropriate lighting for streets and neighborhoods. Maintains traffic signal operations and maintenance and street light operations and maintenance. Program Budget 2019-20 2020-21 1 2021-22 Change 2022-23 Change Staffing $224,615 $239,205 I $258,186 8% $263,110 2% Contract Services $9,535 $13,881 1 $75,000 440% $15,000 -80% Other Operating Costs $285,249 $271,080 $229,400 -15% $241,400 5% Total Program $519,399 $524,166 $562,586 7% $519,510 -8% Opportunities and Challenges With ongoing installation of new streetlights, off-street path lights, downtown decorative "zig-zag" lighting, and new traffic signals throughout the City, the Traffic Signal and Streetlight Program will need to continually evaluate staffing resources and operating budgets to ensure that there are sufficient funds to maintain the traffic signal and streetlight infrastructure in a state of good repair. Approval of the SOBCs requesting additional equipment budget and additional funds for electricity costs will help ensure that sufficient resources are available for this program. With both City's existing Traffic Signal/Streetlight Technicians nearing eligible age for retirement within the next five years, there will likely be a need funds to recruit a third full-time technician looking ahead towards the FY2023-25 Financial Plan to ensure that there is adequate staffing overlap and opportunity for training and transition planning. The increasing availability of solar street and path lighting products presents a significant opportunity for the City to install and repair lighting infrastructure without the additional costs and delays often associated with coordinating hard -wired electrical installations with PG&E. Continued funding of the New Streetlight Annual Asset Maintenance and New Solar Path Lighting Capital Improvement Project requests will allow for additional flexibility and efficiencies with maintaining the City's streetlight infrastructure. 262 Operating Budget General Fund Fleet Program Description Fleet Public Works The Fleet Maintenance Program maintains and repairs all City vehicles and construction equipment except those used in the Transit Program and Fire Department. Core Services & Objectives Provides a safe and reliable City fleet balancing maintenance and capital outlay costs. Provides comprehensive support for Police fleet asset maintenance and repair. Responsible for safeguarding and disposal of hazardous material stored at the Corporation Yard. Provides specialized maintenance and fabrication services. Completes vehicle procurement and disposal. Completes reporting for State and Federal regulatory programs. Completes fuel purchasing. >- Maintains fuel dispensing station and vehicle wash facility. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $451,494 $444,598 $627,660 41% $643,427 3% Contract Services $95,056 $90,325 $160,300 77% $160,300 0% Other Operating Costs $530,224 $579,575 $582,700 1% $585,800 1% Total Program $1,076,773 $1,114,498 $1,370,660 23% $1,389,527 1% Major City Goal Contributions In partnership with Administration and Information Technology Department, install electric vehicle chargers to support the transition to all -electric fleet vehicles. Opportunities and Challenges The Fleet program will be essential in the City being successful in achieving carbon neutral goals. This will be accomplished though reducing the number of vehicles and equipment that produce GHG's. Many fleet replacements were deferred to allow for additional electric options to come onto the market. Approval of the Heavy Mechanic and intern positions as well as the increased contract funding will allow the program to keep up the workload while delivering a high level of customer service. This interim direction will assist in keeping a well maintained, aging fleet which ultimately will expedite the transition of City's fleet to electric and other green options. 263 Operating Budget CIP Engineering General Fund Public Works Capital Improvement Plan Engineering Program Description The CIP Project Engineering Program oversees design and construction of infrastructure projects in the City's Capital Improvement Plan (CIP) and provides inspection services for public infrastructure improvements built by the private sector. Core Services & Objectives Deliver the City's capital construction program in a timely and cost-effective manner Inspect private development to meet community needs and engineering standards CIP project design CIP project construction management Private development inspection CIP administration g Maintain current City Engineering Specifications and Standards Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 1 2021-22 Change ' 2022-23 Change $2,121,148 $2,154,681 1 $2,002,036 $18,355 $- $65,775 $85,675 $24,400 $100, 901 $2,205,278 $2,240,356 1 $2,127,337 -7% $2,074,736 $24,500 18% $122,501 -5% $2,221,737 4% 0% 21% 4% Major City Goal Contributions In partnership with Utilities, 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. Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza Concept Plan and Council Direction; construct the new Palm/Nipomo structure in coordination with SLO REP theatre; and establish and implement a plan to make the Zig Zag lights permanent in the current locations as well as other locations in the downtown. 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 264 Operating Budget CIP Engineering General Fund Public Works 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. In partnership with Community Development, develop and present a long-term plan for the initiatives started under the Open SLO like parklets and street closures in the downtown. In partnership with Administration and Information Technology, Implement Laguna Lake Dredging and Sediment Management and Shoreline Stabilizations Projects in order to begin restoration of the lake for recreation and habitat improvement purposes. Complete various CIP projects such as, New Bob Jones Trail & Railroad Safety Trail Solar Path Lighting, and Prado Road Creek Bridge Replacement & S. Higuera/Prado Road Protected Intersection. Opportunities and Challenges With the passage of Measure G 2020 the funding provided to implement Capital Improvement Plan projects will increase. The Capital Improvement Plan Engineering program will need to scale in order to implement. Consultant services has been retained to develop recommendations for change to deliver a larger Capital Improvement Plan. 265 Operating Budget General Fund Transportation Planning & Eng Transportation Planning & Engineering Public Works Program Description The Transportation Planning and Engineering Program manages analysis, planning, operations, and design of the City's multimodal circulation systems. Core Services & Objectives Enhance accessible regional transit, bicycle, and pedestrian mobility. Create safe and accessible walking and bicycling opportunities. Provide infrastructure supporting housing and reducing Vehicle Miles Traveled (VMT). Support emerging transportation trends and technologies to transition towards sustainability. Completes Transportation Planning and Engineering Services in compliance with regulatory requirements. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $845,125 $854,851 $927,680 9% $964,004 4% Contract Services $5,921 $9,000 $39,000 333% $15,000 -62% Other Operating Costs $45,149 $38,577 $47,300 23% $48,500 3% Total Program $896,195 $902,428 $1,013,980 12% $1,027,504 1% Major City Goal Contributions 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. (Climate Action, 4.4.a) 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. (Climate Action, 4.4.b) 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. (Climate Action, 4.4.c) 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 266 Operating Budget Transportation Planning & Eng General Fund Public Works the CAP Connected Communities task 2.1, ATP. Specific projects and programs within the current work program include: Plan, Design and Construct the ATP Tier 1 Network Construct Minor Bicycle and Pedestrian Access & Safety Improvement Complete preliminary design and right-of-way acquisition for the Railroad Safety Trail (Tiburon to Orcutt Road) Implement complete street improvements as part of 2021 and 2022 Roadway Sealing Projects Continue to monitor trends in the Micromobility industry and feasibility of future SLO Bikeshare Program. Complete construction of the Broad/Woodbridge Pedestrian Hybrid Beacon crossing (Climate Action, 4.4.d) 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. (Climate Action, 4.4.e) Construct sidewalk repairs and new ADA curb ramps to improve access and safety for pedestrians, particularly those with mobility challenges. (Climate Action, 4.4fJ Vision Zero - Implement 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. (Climate Action, 4.4. g) Construct the Anholm Neighborhood Greenway Phases 1B and 2, completing the priority bicycle and pedestrian route between Foothill Boulevard and Downtown SILO, including safety lighting and public artwork at the US 101/Chorro Undercrossing. (Climate Action, 4.4.h) 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. (Climate Action, 4.4.i) Complete construction of the California/Taft Roundabout, reducing congestion and auto emissions and improving access and safety for bicycles, pedestrians and drivers. (Climate Action, 4.4J) Install new streetlights throughout the city and new solar path lights along the Bob Jones and Railroad Safety Trails, utilizing solar options where feasible, to improve safety for active transportation users. (Climate Action, 4.41) • 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. (Climate Action, 4.4.1) • Complete construction of the Prado Road Interchange project, proving 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. (Climate Action, 4.4.m) 267 Operating Budget Transportation Planning & Eng General Fund Public Works Continue Active Transportation Education and Outreach to encourage safe behaviors for all road users and to encourage interest and use of active transportation modes. (Climate Action, 4.4. n) 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. (Climate Action, 4.4.o) Continue advancing the electrification of the SLO Transit vehicle fleet, including electrification of buses and bus charging infrastructure. (Climate Action, 4.4.p) Replace SLO Transit bus shelters to maintain a quality environment for new and future transit users. (Climate Action, 4.4.y) Opportunities and Challenges With the passage of Measure G 2020, the funding provided to implement the sustainable transportation projects within the Capital Improvement Plan will increase. In addition, the likely continuation of a very active private development market within the city will also continue to increase the level of responsibilities required by the Transportation Planning and Engineering program, which is heavily involved in development entitlement review, CEQA technical studies, design, and construction review of new development -driven transportation infrastructure. The Transportation Planning and Engineering program will likely need to scale up in order to continue to support both the City's Capital Improvement Program, development -related transportation activities, and overall maintenance of transportation infrastructure in a state of good repair. Consultant services operating budget has been retained to help assist City staff with these responsibilities and the team is requesting ongoing SOBC to support funding for two part-time transportation interns. 268 Operating Budget General Fund Stormwater Program Description Stormwater The Stormwater and Flood Control Program maintains storm drain facilities within the City, coordinates emergency response during storms, and implements the State's National Pollutant Discharge Elimination System (NPDES) Permit and City Storm Water Management Plan. Core Services & Objectives: A well -maintained storm drainage system that minimizes property damage from flooding. A creek system maintained to balance conveyance with environmental concerns. Regularly swept streets to minimize pollution entering storm drains and creeks. Cost-effective implementation of the City's Storm Water Management Plan. Implementation of San Luis Obispo Creek Wasteload Allocation Attainment Plan (WAAP) Meet State and Federal water quality regulations. Program Budget Staffing Contract Services Other Operating Costs Total Program MW 2019-20 2020-21 2021-22 Change 2022-23 Change $586,595 $758,485 $819,122 8% $849,680 4% $146,602 $220,900 I $243,112 10% $243,325 0% $60,155 $60,431 $93,456 $793,352 $1,039,816 1 $1,155,690 Operating Budget Changes for Stormwater This position will oversee storm water compliance on all construction sites across the City to remain compliant with storm water permit requirements to inspect Stormwater construction sites. This position will report to the Inspector 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. 55% I $93,531 1 0% 11% $1,186,536 1 3% One-time $93,506 I $97,945 269 Page intentionally left blank. 270 BUSINESS ACTIVITIES • 271 Page intentionally left blank. 272 UTILITIES ro 1; klq4.. Ko I AFQMA N- I • 273 Page intentionally left blank. 274 Utilities UTILITIES Mission Statement Operating Budget Ensuring safe and reliable essential water and sewer services. About the Department The Utilities Department provides essential services that support the community's health, well-being, and quality of life. Through its efforts, water for the community is safely transported, treated, distributed, used, collected, recovered, and beneficially reused. These efforts are accomplished by the department's water and wastewater divisions. Additionally, the department manages the City's solid waste program and administers the City's stormwater compliance program. Long range planning for water resources and infrastructure needs, environmental stewardship, and business management are required to provide these vital services and are critical functions of the Utilities Department. In total there are 14 programs that constitute the Utilities Department. 275 Utilities Operating Budget The Department at a glance $1,679,135 BudgetActuals $1,005,075 ,.Budget $1,378,025 $1,383,469 Water Admin and Engineering Water Source of Supply $10,944,379 $10,675,781 $10,400,483 $10,233,236 Water Treatment $2,519,796 $3,096,837 $3,196,356 $3,229,197 Water Distribution $1,708,336 $1,746,863 $1,814,548 $1,867,617 Water Resources $243,077 $403,698 $498,435 $465,259 Wastewater Admin and Engineering $1,787,048 $1,058,249 $1,506,939 $1,511,145 Wastewater Collection $1,076,390 $1,177,019 $1,219,795 $1,261,897 Environmental Programs $111,533 $270,079 $278,695 $274,771 Water Resource Recovery $3,443,196 $3,937,511 $4,001,618 $4,062,458 Utilities Revenue $563,736 $525,979 $548,120 $561,214 Water Quality Lab $581,483 $872,297 $864,379 $827,721 Solid Waste & Recycling' $87,156 $159,318 $199,699 $176,280 Total $24,745,265 $24,928,706 $25,907,092 $25,854,264 EXPENDITURES BY FUNCTION Staffing Other Operati Costs 57 Existing FTEs 69.88 69.88 Additional FTEs (per SOBCs) .75 .75 Supplemental/Contract FTEs 1.60 1.60 TOTAL FTEs 72.23 72.23 1 This program is funded through the General Fund but managed by the Utilities department. 276 Water Administration & Engineering (5.34 FTE) Water Source of Supply (1.20 FTE) Water Treatment Water (11.45 FTE) Utilities Department (70.63 FTE) Solid Waste Recycling, (1.1 FTE) Sewer Water Distribution (10.90 FTE) Water Resources (3.0 FTE) Wastewater Administration & Engineering (6.44 FTE) Wastewater Collections (7.50 FTE) Environmental Compliance (1.60 FTE) Water Resource Recovery (12.30 FTE) Utilities Revenue (2.00 FTE) Water Quality Lab (3.70 FTE) Reservoir Operations Reservoir Operations (4.10 FTE) Utilities Operating Budget 2021-23 Department Goals Department strategic priorities for the 2021-23 Financial Plan are to help advance the City's overall goals tied to Major City Goals, Department Strategic Plans, and other priorities as they may arise. These goals are in addition to ongoing community program services (listed in program sub -sections). Strategic Goal(s) Continue to pursue grant funding and innovative funding strategies to mitigate rate increases and ensure continued affordability. 0 Improve resiliency to ensure continued service delivery through emergency planning, infrastructure maintenance, and expansion of source water supplies. In coordination with the Community Development Department, continue to optimize water and wastewater systems to facilitate the City's housing goals. Improve community outreach and education. AIL e C.� Economic Stability Housing climate Action DEI Other Department Objectives 278 Utilities Operating Budget Performance Measures Performance measures are designed to determine accountability, improve service quality, allocate resources, and evaluate departmental performance in meeting San Luis Obispo's goals and objectives. Objective Grant and partnership dollars $78 814 $1,196,575 $4,454,168 $939,368 to be obtained to offset rates Manage Assets Responsibly & Transparently Minimize number of Customers Shut -Off 306 0 500 450 Strategic Goal: Public Stewardship for Nonpayment' Average Infrastructure Asset 21.34 20.92 20.42 19.92 Age (years)' # Unplanned Service Interruptions' 68 38 0 0 Connecting the Community to High Quality & Reliable Service # of Sewer Lateral Replacements 168 70 100 100 Strategic Goal: Public Service including Offsets Recycled Water 234.71 130.69 300 325 Delivered (CCF) Foster Leadership, productivity, and opportunity for personal and professional growth. % of New Hire Safety N/A6 33%1 100%8 100% Trainings Conducted Strategic Goal: Workforce Provide Coworkers and the Community with Information & Opportunities to Public Outreach : # Participate in Decisions that Impact of Communications 120 107 170 200 them with the Community9 Strategic Goal: Communication z As of March 15, 2021 ' Both 2019-2020 and 2020-2021 are artificially low due to the Covid-19 shut-off moratorium. In 2018-2020 (a typical year), there were 533 shut -offs for non-payment. 4 Average asset age from City fixed assets data. This should decrease each year as assets are replaced. ' Includes water main and service line outages; and sanitary sewer overflows. 6 Did not start tracking until 2020-21. ' New hire training has been delayed due to Covid-19. s Goal is to have all safety trainings conducted for all new employees within their first three months of employment. 9 Includes Facebook posts, blog posts, email bulletins, groundbreaking event, quarterly project reports, the Resource, website news articles, and bill inserts. 279 Page intentionally left blank. 280 WATER FUND • 281 Page intentionally left blank. 282 WATER FUND LONG TERM FORECAST 1 Water Services Charges 14,464 13,785 15,776 16,329 16,900 17,492 17,841 2 Base Fee Revenue 5,052 5,168 5,560 5,754 5,956 6,164 6,287 3 Cal Poly Sales 966 920 972 1,006 1,041 1,077 1,099 4 Cal Poly Resilience & Capacity - 398 223 225 230 235 240 5 Recycled Water 898 910 962 995 1,030 1,066 1,088 6 Development Impact Fees 3,723 3,032 1,548 1,370 789 800 800 7 Investment & Property Revenue 818 303 408 424 394 430 451 8 Proceeds from Debt - 14,300 - - - - - 9 Grants - 1,197 256 - - - - 10 Miscellaneous Revenue 563 367 396 396 396 396 396 11 Rate Assistance Subsidy - (100) (100) (100) (100) (100) (100) 13 TOTAL:0 00 14 EXPENDITURE BY CATEGORY 15 Salaries & Benefits 4,761 4,520 4,735 4,901 5,557 5,816 5,943 16 Operating Expenditures 12,333 12,409 12,827 12,554 12,670 12,786 12,904 17 Capital Outlay 15,594 13,999 2,944 5,215 1,881 3,213 5,160 18 Debt Service 4,441 1,488 2,449 2,443 1,870 1,869 1,866 19 Transfers Out 2,564 2,595 2,546 2,519 2,818 2,865 2,939 20 TOTAL 21 EXPENDITURE BY FUNCTION 22 General Government 2,592 2,594 2,572 2,546 2,846 2,893 2,966 23 Water Source of Supply 14,188 14,144 10,550 10,383 10,457 10,539 10,622 24 Water Treatment 18,491 8,579 6,242 7,289 6,947 6,947 6,384 25 Water Distribution 2,435 8,284 3,888 5,268 2,432 3,843 6,665 26 Water Resources 243 402 533 465 452 463 474 27 Water Administration 1,743 1,008 1,442 1,400 1,372 1,568 1,397 28 Utilities Revenue (Billing) - - 274 281 291 297 302 29 TOTAL 30 CHANGES IN FINANCIAL POSITION 31 Working Capital - Beginning 28,373 15,164 20,433 20,933 19,700 21,539 22,550 32 Revenues over (under) Expenditure (13,209) 5,269 500 (1,233) 1,839 1,011 (710) 33 00 34 Operating Reserve _ 4,827 4,201 4,510 4,483 _ 4,583 4,667 4,730 35 Rate Stabilization 2,048 1,987 2,231 2,309 2,390 2,473 2,523 36 CALPERS Down Payment 252 180 180 120 120 120 120 37 UFLTrust Fund 120 120 120 120 96 72 - 38 283 Budget at a Glance Water Fund Water Fund The City's water operations provide safe potable water to the City's customers year-round. They 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) and are accounted for in the Water Enterprise Fund. 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 community's access to water and the Water Fund's fiscal situation. The health of the Water Fund will also benefit from improved impact fee and investment revenue budget projection methodologies, and an additional revenue source from Cal Poly. 2021-23 Financial Plan Key Assumptions When preparing the budget, the Water Division analyzes past financial results, reviews upcoming operational and capital needs, and current and future debt obligations to assess the financial position of the fund for its continued health. The budget prepared for the two-year financial plan follows a "zero based budgeting" approach, considering each line item and its future needs. Asset condition, infrastructure age, and future capacity needs are driving factors in determining the Capital Project plan and debt financing evaluations. The needed revenue to cover the assessed expenses is then evaluated based on current rates and revenue levels, analysis of current water use and effects on future revenue potential to provide a rate recommendation and possible increases. ' Utility User's Tax (UUT) is a general fund tax which is applied to most utility bills. Customers pay a 5% UUT on their water bill. 284 Budget at a Glance Water Fund FUND REVENUES As an enterprise fund, the Water Fund finances its operation mainly with rates charged for water services. According to its mandate, rates must be sufficient to cover operation, capital asset improvements and maintenance, debt obligations, and appropriate reserve levels to keep the fund healthy and prepared for unforeseen and future funding needs. Revenues are collected from multiple sources which include: • Water Service Charges combining a base fee and volumetric charge per unit • Sales to Cal Poly • Development Impact Fees • Miscellaneous charges such as account set-up fees, late charges, meter sales, and connection fees • Investment and Property Revenue Revenue Forecast Investment and Property Revenue Actual $817,787 Budget $303,000 Projected $407,600 Projected $423,500 Water Service Fees $14,463,879 $13,785,121 $15,776,464 $16,328,641 Water Base Fees $5,051,588 $5,167,974 $5,559,695 $5,754,284 Cal Poly Sales $966,478 $919,895 $971,788 $1,005,801 Cal Poly Resilience & Capacity $0 $398,180 $223,000 $224,795 Recycled Water Sales $897,650 $910,455 $961,817 $995,481 Development Impact Fees $3,723,460 $3,032,000 $1,548,200 $1,370,400 Other Revenue $563,058 $367,010 $396,000 $396,000 Grants $0 $1,196,575 $256,395 $0 Debt Proceeds $0 $14,300,000 $0 $0 Rate Assistance Program $0 ($100,000) ($100,000) (100,000) Total Revenue $26,483,900 $40,280,209 $26,000,960 $26,398,902 WATER FUND REVENUE OVERVIEW ■ Water Services Charges ■ Base Fee Revenue ■ Cal Poly Sales & Resilience/Capacity ■ Recycled Water ■ Development Impact Fees ■ Other Revenue 285 Budget at a Glance Water Fund Water Rate Increase Recommended water rate increases for 2021-22 and 2022-23 are lower than originally projected. The Water Fund is 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, had projected the water rate increase would need to 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 from Cal Poly and refined investment and impact fee revenue projections, the rate consultant has now recommended lower than previously projected rate increases. The recommended rate increases are subject to a public notification and protest process, including a public hearing scheduled for June 15, 2021. The proposed rates, if adopted, will add increased long-range stability and predictability to revenues and provide funding necessary to meet future infrastructure needs. 2021-22 Proposed 2022-23 Proposed 2023-24 Projected 3.5% 3.5% 3.5% Rate Assistance Program The Water Fund is recommending 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 as it will be funded by late charges paid by utilities customers who do not make their payments on time. Late charges are not considered 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. It is important to note that all customers across the City are subject to the same late fees. This includes large corporate customers, other businesses, and all residential customers. 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 hiring 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 the average of the next five years of impact fee projections. This equals an additional $748,200 in budgeted impact fee revenue in 2021-22 and an additional $570,400 in 2022-23. This improved budgeting methodology for estimating impact fee revenue in advance of collection could serve to mitigate future rate increases. 2021-22 Budget 2022-23 Budget Historical Methodology $800,000 $800,000 New Methodology $1,548,200 $1,370,400 Difference $748,200 $570,400 286 Budget at a Glance Water Fund 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 $357,600 investment revenue budget increase in 2021-22 and an increase of $423,500 in 2022-23. This improved budgeting methodology for estimating investment revenue in advance of collection could serve to mitigate future rate increases. MethodologyInvestment Revenue Fee 2021-22 Budget 2022-23 Budget Historical Methodology $50,000 $50,000 New Methodology $407,600 $423,500 Difference $357,600 $373,500 Cal Poly Resilience & Capacity Payment The City recently signed agreements with Cal Poly to renegotiate its 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 (WTP) upgrade to maintain the University's capacity interest in the plant. These agreements will generate an additional $223,000 of Water Fund revenue each year, $137,000 per year for Operational Resiliency and $86,000 per year for the term of the WTP upgrade loan. 287 Budget at a Glance Water Fund FUND EXPENDITURES Operating Programs 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 budget amounts for fiscal years 2021-22 and 2022-23. Budget Projected Water Admin $1,005,075 $1,378,025 Source of Supply $10,675,781 $10,400,480 Projected $1,383,469 $10,233,236 Water Treatmentm $3,096,837 $3,196,353 $3,229,196 Water Distribution $1,799,483 $1,814,549 $1,867,616 Water ResourcesIff $403,698 $498,434 $465,257 Utilities Revenue z ---- $274,060 $280,608 General Government $2,595,274 $2,546,009 $2,519,158 Total Expenses $19,523,527 $20,107,911 $19,978,537 Proposed Enhancements to Operating Programs Overall, operating expenditure budgets are changing very little in 2021-22 and 2022-23. The Water Fund is requesting the following budget changes. Program Enhancements $353,571 $234,734 Water Fund Overview $45,000 $40,000 $35,000 $30,000 a $25,000 $20,000 $15,000 $10,000 $5,000 ' 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 � Revenue � Expenditures Unreserved Working Capital - Year End z These costs were previously not split between Water and Sewer Funds. 288 a Y Budget at a Glance Water Fund Program Enhancements Detai One- MCG or FY FY SOBC Description time/ Core 2021-22 2022-23 Ongoing ServicesUtilities - Water 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 Deputy Director - more stringent State and Federal Core Planning & regulations into the foreseeable future. Ongoing $60,292 $62,583 Engineering There has also been an increased role Services coordinating with Public Works and Community Development work efforts, which could include such things as policy, workflow, and practices. This position will be split between the water, sewer, and Whale Rock funds (50% Sewer, 40% Water, 10% Whale Rock). This line reflects just the water fund contribution. Expand recruitment beyond Utilities Expanded Recruitment professional agencies including direct Services Expenses to recruitment to persons with applicable Ongoing DEI $10,000 $10,000 Augment Human certifications. Utilities would also like to Resources diversify recruitment activities to further Diversity, Equity, and Inclusion efforts. Administrative change to split the Utility Utility Billing - Split Billing program between the water and Ongoing Core $0 $0 Cost Center sewer funds to better reflect the programs Services benefit to both funds. Moving Various Budget Items from the Moving and increasing public outreach Water Resources to responsibility and budget from Water Ongoing Core $144,000 $144,000 the Water Resources to Water Administration. Services Administration Cost Center The Water Quality Lab is required by State mandate to comply with new The Nelac Qualtrax Quality Institute (TNI) regulations by January 2023. Management System - Qualtrax software will meet TNI policy, Core Implementation and operating procedure, audit, document Ongoing Services $4,250 $2,250 Ongoing control, corrective actions, Quality Assurance/ Control, and staff competency requirements. This SOBC is split between the water and sewer funds (75% Sewer, 289 Budget at a Glance 10 Program Enhancements Detai Water Fund One- MCG or FY FY SOBC Description time/ Core - Water Ongoing ServicesUtilities 2021-22 2022-23 25% Water). This line reflects just the water fund contribution. Replace the software integration between Springbrook (water and sewer billing Velosimo - software) and Cityworks (Utilities asset Springbrook/Cityworks management software). This SOBC is split Ongoing Core $8,000 $5,000 Integration between the water and sewer funds. (50% Services water, 50% sewer). This line reflects just the water fund contribution. Administrative change to 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 Utilities Locator of the funds. The Utilities Locator is an Position Salary -Split existing position responsible for all physical Ongoing Core -$43,101 -$43,101 Cost Centers mark -outs of underground City utilities: Services water, sewer, storm drains, street light conduits, and fiber optic conduits. This line reflects the impact of this SOBC to the water fund. The most recent bid for liquid oxygen was Cost of Liquid Oxygen much higher than in the past partially due Ongoing Core $54,000 $54,000 to an oxygen shortage because of the Covid- Services 19 pandemic. Additional funding for chemicals required because the price of chemicals is increasing, and more recycled water is being produced. Recycled Water These chemicals will likely be significantly Ongoing Core $9,880 $0 Chemicals reduced or eliminated after the new facility Services comes online and the City receives State approval of the new Ultraviolet (UV) disinfection process. 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 benefit of the community. With the WRRF upgrades and the expansion of the recycled Maximization of water infrastructure within the City's Water Recycled Water Reuse Master Plan Area, the City has an One- Core $50,000 $0 Resources opportunity to deliver surplus recycled time Services water to additional customers. Ultimately, this work will refine and document the Utilities Department policies on delivery of recycled water, so that future project plans can be developed with the best available data. 290 11 12 13 Budget at a Glance Water Fund Program Enhancements Detail SOBC - Water Filter Media Assessment Description The Water Treatment Plant (WTP) uses anthracite, sand, and gravel media to filter water suitable for drinking. This is a one- time purchase to have the WTP filter media analyzed and the WTP's current filter media monitoring program evaluated in FY 21/22. One- time/ Ongoing One- time MCG or Core ServicesUtilities Core Services FY 2021-22 $20,000 FY 2022-23 $0 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 Replacement of water caused by large numbers of individual Controllers on Filter particles that are generally invisible to the One- Core $10,000 $0 Effluent Turbidity naked eye. The measurement of turbidity is time Services Meters 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. Hire a consultant, support legal review, and establish an internal working group and hire a consultant to research methods to support local contractors, local vendors, Community Workforce and labor through workforce agreements, One- Economic $26,250 $0 Agreement Study local purchasing requirements, alternative time project delivery methods and other options to support local businesses and employees. The Community Services Group will be leading this effort. 291 Budget at a Glance Water Fund Capital Improvement Plan 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 significant, with source water supplied to the City from reservoirs as far as 50 miles away and with 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 $ 2,943,998 in 2021- 22 and $ 5,215,253 in 2022-23 as detailed at the end of this section. 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 approximately 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 a recycled water pipeline 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 2021-22 and $1,040,000 in 2022-23. 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 2021-22. Debt Service 2022 2012 Water Revenue Refunding Bond $1,080,000 $573,200 2023 2018 Refunding Bond (Dispatch Center) $267,235 $27,422 2039 2018 Refunding Water Bond (Refund 2006 Bonds) $8,785,000 $889,700 2035 2020 State I -Bank Loan — Water Treatment Plant $13,740,196 $958,524 2040 1. 2012 Water Revenue Refunding Bond —This bond paid for upgrades to the Water Treatment Plant in 2002 to meet water quality standards. 2. 2018 Refunding Bond —This bond paid for Water Treatment Plant improvements in 2006. 3. 2018 Refunding Water Bond — This is the water fund's contribution to construction of the Public Safety Dispatch Center. 4. 2020 Infrastructure Bank Loan — This loan is paying for the current Water Treatment Plant upgrade. 292 Budget at a Glance Water Fund Water Rates Usage IL 0 -aim Single -Family (three tiers) Tier 1: 0 to 5 units $6.44 $6.67 $6.90 Tier 2: 6 to 12 units $7.51 $7.77 $8.04 Tier 3: 13+ units $13.76 $14.24 $14.74 Multi -Family (all use) $7.36 $7.62 $7.88 Non -Residential (all use) $8.93 $9.24 $9.57 Landscape (all use) $10.95 $11.33 $11.73 Monthly Base Fee Residential 1 $22.52 1 $23.31 1 $24.12 Multi -Family, Non -Residential, and Landscape By Water Meter Size: inch or less $22.52 $23.31 $24.12 1-inch meter $37.60 $38.92 $40.28 1.5-inch meter $75.04 $77.67 $80.38 2-inch meter $120.06 $124.26 $128.61 3-inch meter $225.27 $233.15 $241.31 4-inch meter $375.50 $388.64 $402.24 6-inch meter $750.82 $777.10 $804.30 8-inch meter $1,201.35 $1,243.40 $1,286.92 Water System Access $91.34 $94.54 7771 $97.85 Charge' s Current rates effective February 1, 2021 (deferred from July 2020) 4 This charge applies where the City provides fire protection only to businesses that utilize a private well for domestic purposes. 293 Capital Improvement Plan Water Fund Water Fund Capital Improvement Plan 1 6 1000052 Buchon-Santa Rosa Intersection Improvements $0 $150,000 $0 0. $0 $0 2 108 1000513 Electric Vehicle Charging Station at Various Facilities $37,500 $0 $0 $0 $0 3 Utilities - 879 Morro $37,500 $0 $0 $0 $0 4 16 1000521 Fleet Replacement: Utilities $50,000 $15,000 $0 $207,500 $175,000 5 Water Resources - Chevy Bolt $35,000 $0 $0 $0 $0 6 Water Distribution Signboard (0613) $15,000 $0 $0 $0 $0 7 WTP 1/2 ton Crew Cab 4X4 Pickup (10044150) $0 $0 $0 $0 $75,000 8 Water Distribution Valve turning trailer (1005) $0 $0 $0 $150,000 $0 9 Water Distribution Compact Pickups (1011,1012 Dakota) $0 $0 $0 $0 $100,000 10 Waste Water Collections Dump Truck (0840) $0 $0 $0 $57,500 11 Water Distribution Trailer (0235) $0 $15,000 $0 $0 $0 12 17 1000059 Fredericks Paving $0 $0 $0 $0 $300,000 13 20 1000074 IT Replacement $24,498 $13,753 $14,500 $228,917 $30,322 14 Asset Management (Cityworks - Utilities Integration) $14,120 $0 $0 $11,960 $0 15 VMware Infrastructure Upgrade $7,875 $0 $0 $0 $15,822 16 Uninterruptible Power Supplies (UPS's Servers and Storage) $2,503 $0 $0 $1,963 $0 17 Firewall Replacement $0 $0 $0 $12,713 $0 18 City SAN $0 $8,146 $0 $0 $0 19 Motion ERP $0 $0 $14,500 $14,500 $14,500 20 Utility Billing System $0 $0 $0 $75,000 $0 21 Virtual Private Network Replace $0 $0 $0 $2,341 $0 22 VolP Telephone System $0 $0 $0 $16,510 $0 23 Network Security Upgrade $0 $0 $0 $8,953 $0 24 Wireless System Citywide $0 $5,607 $0 $0 $0 25 Network Switching Infrastructure Equipment $0 $0 $0 $29,977 $0 26 Radios, Mobiles and stations not replaced - EF & PW Only $0 $0 $0 $55,000 $0 27 22 1000075 Major Facility Maintenance $0 $7,500 $50,000 $0 $0 28 879 Morro - Roof $0 $7,500 $50,000 $0 $0 29 74 90649 Mid-Higuera Bypass $0 $100,000 $0 $0 $0 30 33 1000531 Recycled Water Annual UV Bulb Replacement $0 $0 $10,000 $10,000 $10,000 31 118 1000528 Recycled Water Broad Street - Tank Farm to Aerovista $45,000 $1,040,000 $0 $0 $0 32 119 1000529 Recycled Water Orcutt Street - Fernwood to Laurel $0 $0 $0 $25,000 $675,000 33 77 1000530 Recycled Water Tank $237,500 $50,000 $0 $0 $0 34 78 91368 Reservoir 2 Replacement $0 $0 $0 $780,000 $0 35 43 1000150 Sustainable Groundwater Management Act GSP $150,000 $150,000 $150,000 $150,000 $150,000 36 46 99653 Treatment Major Facilities Maintenance $274,000 $109,000 $109,000 $180,000 $150,000 37 Ozone System Maintenance $125,000 $40,000 $40,000 $0 $0 38 WTP Roof Repair $80,000 $0 $0 $0 $0 39 Air Compressor and Dryer Maintenance $36,000 $36,000 $36,000 $0 $0 40 Chemical System Maintenance $33,000 $33,000 $33,000 $0 $0 41 WTP Major Maintenance $0 $0 $0 $180,000 $150,000 42 48 91147 Trench Repairs- Water $200,000 $200,000 $200,000 $200,000 $200,000 43 51 1000540 Water Distribution System Hydraulic Model Update $100,000 $0 $0 $0 $0 44 52 1000062 Water Meters and Boxes $143,000 $165,000 $167,500 $171,500 $175,000 45 53 1000034 Water Storage Tank Maintenance $50,000 $1,355,000 $1,000,000 $0 $0 46 Wash water tank #1 $40,000 $325,000 $0 $0 $0 47 Reservoir 2 Cover Replacement $10,000 $950,000 $0 $0 $0 48 Edna Tank Recoating $0 $80,000 $1,000,000 $0 $0 294 Capital Improvement Plan Water Fund 49 123 1000541 Water Treatment Plant - Power Storage Units Tesla Battery Grant $30,000 $0 $0 $0 $0 50 124 1000126 Water Treatment Plant Emergency Power - PSPS $465,000 $0 $0 $0 $0 51 54 1000542 Water Treatment Plant Major Facility Maintenance $270,000 $180,000 $50,000 $0 $25,000 52 Facility Master Plan $150,000 $0 $0 $0 $0 53 Aluminum Bulk Tank #1 Replacement $50,000 $0 $0 $0 $0 54 Cityworks Integration (water) $45,000 $90,000 $0 $0 $0 55 Transfer Pump CLA-VAL Re -build $25,000 $0 $0 $0 $0 56 Actiflo Poly Blend Units $0 $0 $0 $0 $25,000 57 Package Thickener $0 $25,000 $50,000 $0 $0 58 Actiflo Train #2 Mixer Bearing/Gear $0 $35,000 $0 $0 $0 59 Lab TOC Analyzer Replacement $0 $30,000 $0 $0 $0 60 55 91149 Water Valve Cover Adjustments $50,000 $30,000 $30,000 $30,000 $30,000 61 88 1000545 Waterline Replacement: California Ave - Stafford to Mill $140,000 $1,650,000 $0 $0 $0 62 89 1000547 Waterline Replacement: Chorro - Highland to Meinecke $0 $0 $100,000 $1,100,000 $0 63 90 1000556 Waterline Replacement: Craig, Christina, Jaycee $0 $0 $0 $0 $880,000 64 91 1000544 Waterline Replacement: Highland - Oakridge to Cuesta $0 $0 $0 $130,000 $1,430,000 65 92 1000546 Waterline Replacement: Highland at UPRR and Cal Poly $0 $0 $0 $0 $850,000 66 93 1000543 Waterline Replacement: Stenner Canyon $0 $0 $0 $0 $80,000 67 56 1000065 Waterline Replacements - Point Repair $590,000 $0 $0 $0 $0 68 59 1000077 WRRF Major Maintenance $87,500 $0 $0 $0 $0 69 Chain Link Fence Extension $87,500 $0 $0 $0 $0 71 Grand Total $2,943,998 $5,215,253 $1,881,000 $3,212,917 $5,160,322 295 Operating Budget Water Fund Water Administration Program Description Water Administration Utilities The Water Fund's Administration program provides guidance and direction for effective management of the Water Fund programs. It evaluates and provides strategic and long-term planning, rate setting and funding, and engineering and capital plan development for the water system. Program goals are 1) efficient management and achievement of Water enterprise Core Services & Objectives and 2) well -planned and effectively delivered capital improvement project implementation. Core Services & Objectives Department Administration and Leadership. Continue developing and implementing operational efficiencies. Monitor water enterprise fund financial condition and recommend rates and revenues needed to support program and service objectives. Administer Capital Improvement and planning activities. Continue implementation and tracking of strategic planning activities. Continue safety assessments and ensure compliance with safety regulations. Manage water -related public outreach and communication efforts. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $1,573,694 $858,443 $867,358 17% $902,452 4% Contract Services $42,773 $66,350 $107,200 56% $78,700 -24% Other Operating Costs $62,668 $80,282 $403,467 397% $402,317 0% Total Program $1,679,135 $1,005,075 $1,378,025 54% $1,383,469 1% Challenges and Opportunities In 2021-22 the Utilities Department will establish a new program, Planning & Engineering, separate from the Water and Sewer Administration programs. The program will be directed by a new Deputy Director of Planning & Engineering and will be staffed by the Utilities Engineer and Utilities Project Manager. The newly expanded program will provide additional support to the City's Water Treatment Plant and source water supply. These areas of focus are not fully supported by the Public Works Engineering team which generally focuses on potable water distribution system improvement projects such as waterline replacements, tank replacements, and pump station upgrades. Engineering support for Water Treatment 296 Operating Budget Water Fund Water Administration Utilities Plant upgrades and work related to the City's groundwater program and surface water storage supplies are currently largely contracted out and not managed internally, this change should allow the City to better plan for and accommodate non -distribution system capital projects. Additionally, the Administration section intends to focus efforts over the next financial plan on finalizing the City's Groundwater Sustainability Plan (GSP). Scheduled to be completed in January 2022, this plan will ensure the City has a detailed outline on how it will ensure the groundwater basin is operated in a sustainable manner. Upon completion of the GSP, work efforts related to implementing projects and management actions will be transitioned to the City's Water Resources section. 297 Operating Budget Water Fund Water Source of Supply Program Description Water Source of Supply Utilities The Water Source of Supply program procures raw water from the City's three primary surface sources: Whale Rock Reservoir, Salinas Reservoir (Santa Margarita Lake), and Nacimiento Reservoir, to provide a dependable supply of raw water for treatment at the City's water treatment plant. Additional sources of supply include highly treated recycled water from the City's Water Resource Recovery Facility that is used for irrigation and other approved purposes, and groundwater supplies that are currently being redeveloped and expanded. Core Services & Objectives Deliver raw water supplies in a reliable, cost-effective manner. Operate, maintain, and repair supply facilities. Maximize production and use of recycled water. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $60,398 $157,172 $165,265 5% $171,281 4% Contract Services $13,513 $20,600 $20,915 2% $23,915 14% Other Operating Costs $10,870,468 $10,498,009 $10,214,303 -3% $10,038,040 -2% Total Program $10,944,379 $10,675,781 I $10,400,483 -3% $10,233,236 -2% Opportunities and Challenges For many years the Source of Supply program has focused its efforts on expanding surface water supplies to meet City water needs. Surface water supplies are currently maximized so the department is focusing efforts on expansion of recycled water supplies as well as reestablishment of its groundwater pumping program. Expansion of these alternative supplies will help alleviate demand on the City's surface water supplies and will provide the department with additional sources of supply to combat drought and climate change. More details about the expansion of these water supplies can be found in the Water Resources program narrative. 298 Operating Budget Water Fund Water Treatment Program Description Water Resources Utilities The Water Treatment program receives raw water from three surface reservoirs, treats it to meet potable water standards, and delivers it into the water distribution system. The Water Treatment Plant produces an average of 4.7 million gallons of potable water per day for the City of San Luis Obispo and Cal Poly. The program goal is to provide an adequate water supply, treated to State and Federal standards, for domestic consumption and fire suppression. Core Services & Objectives: • Protect public health - Continue to provide uninterrupted supply of high -quality water to the distribution system. • Continue to meet all treatment standards as required by Environmental Protection Agency (EPA), State Water Resource Control Board's (SWRCB) Division of Drinking Water, and other regulatory agencies. • Continue with succession planning goals through development of standard operating procedures, an internship program, etc. • Continue development of computerized maintenance database and work order system. • Continue development and implementation of Capital Improvement Projects. Program Budget 2019-20 2020-21 1 2021-22 Change 2022-23 Change Staffing $1,545,568 $1,792,632 $1,754,966 -2% $1,814,249 3% Contract Services $238,760 $285,320 $316,185 11% $302,185 4% Other Operating Costs $735,469 $1,018,885 $1,125,205 10% $1,112,763 -1% Total Program $2,519,796 $3,096,837 $3,196,356 3% $3,229,197 1% Opportunities and Challenges In 2021-22, the Water Treatment Plant will begin utilizing the upgrades that were made as part of the Water Treatment Plant Energy Efficiency Project. These improvements include a new ozone disinfection system that decreases electrical demand while providing the section with increased operational flexibility to treat water from any of the City's sources without having to 299 Operating Budget Water Resources Water Fund Utilities blend with higher -quality Whale Rock water. The new ozone system is modular in nature and designed so that any equipment failures will only disable small portions of the ozone treatment system, leaving the remaining in place to continue treating water for public consumption. Additionally, this project includes major updates to the Water Treatment Plant's SCADA system which allows for computerized operation of the plant as well as highly sophisticated water quality and plant performance tracking and monitoring. During the next fiscal year staff will be learning the new systems and developing Standard Operating Procedures and other operational plans. Beyond the newly installed infrastructure, Water Treatment Plant staff will begin work on digitally mapping the Water Treatment Plant and selecting a vendor for a new Computerized Maintenance Management System. This new system will help improve tracking of scheduled maintenance activities and should result in fewer operational issues that impact the plant's ability to provide water to the community. The selection of this technology will take place alongside the City's Water Resource Recovery Facility to ensure that both facilities are using the same technology. 300 Operating Budget Water Fund Water Distribution Program Description Water Resources Utilities The Water Distribution Program is responsible for the delivery of potable water from the Water Treatment Plant and wells to system users and fire hydrants via 12 water storage facilities, seven pump stations, and approximately 180 miles of water mains. The Water Distribution Program also delivers recycled water from the Water Resource Recovery Facility to landscape irrigation users via approximately 13 miles of recycled water mainlines (purple pipelines). Program staff collaborates with Public Works to design, construct, and commission capital improvement projects. The program goal is uninterrupted water flow at adequate pressure with minimum water leakage. Core Services & Objectives: • Continue the water distribution system improvements in accordance with the Capital Improvement Plan. • Design, construct, and implement the recommendations in the Water System Improvement Plan. • Maintain compliance with all applicable regulations and protect public health. • Conduct preventative maintenance programs to reduce infrastructure life -cycle costs while reducing the likelihood of leaks and breaks that result in water outages for City residents and businesses. Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 2021-22 Change 2022-23 Change $1,378,566 $1,410,138 I $1,460,905 4% $1,509,074 3% $72,417 $78,600 $257,353 $258,125 $86,515 10% $88,515 2% $267,128 $1,708,336 $1,746,863 1 $1,814,548 Challenges and Opportunities: 3% $270,028 1% 4% $1,867,617 3% The Water Distribution section operations are forecasted to be impacted substantially by the large amount of development occurring within the City. The section intends to focus efforts on ensuring safe and orderly expansion of water distribution infrastructure while ensuring that existing customers are minimally impacted by water distribution system expansion. The 301 Operating Budget Water Resources Water Fund Utilities department plans to focus new efforts on increasing the use of digital mapping software to help manage the process of bringing new developments online and into the City's distribution system. In addition to system expansions due to new development, the section will be leading several Capital Improvement projects to decrease asset age, increase fire flow capacity, and reduce the likelihood of water outages within the community. These projects include replacement of the floating cover on Reservoir 1, replacing under -sized water lines on Jeffrey Drive, and replacing aged infrastructure on Cuesta Drive, Loomis Street, and Beebee Street. By focusing on expanding its preventative maintenance programs for assets such as fire hydrants, pressure reducing valves, pump stations, and water tanks, the section will continue to increase its ability to serve its customers with minimal interruption while reducing the life cycle costs of expensive infrastructure. Over the next few years an area of specific focus for the section is related to the replacement of aging water meter infrastructure. Additional CIP funding has been requested to support additional meter replacement work efforts on an annual basis. 302 Operating Budget Water Fund Water Resources Program Description Water Resources Utilities The Water Resources program coordinates the planning, development, implementation, and regulatory reporting for programs and services related to water use projections, recycled water, water conservation, and groundwater pumping. Core Services & Objectives: • Increase water conservation and water use efficiency opportunities within the community. • Implement water conservation programs in alignment with California's goals for making water conservation a way of life. • Monitor development trends and City growth and ensure water resources are available. • Increase the beneficial use of recycled water to offset potable water use and to sustain local water supplies. • Expand the use of groundwater as a source of supply through groundwater quality and availability related studies and projects. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $203,234 $301,118 $402,135 34% $419,009 4% Contract Services $4,892 $8,000 $58,100 626% $8,200 -86% Other Operating Costs $34,951 $94,580 $38,200 -60% $38,050 0% Total Program $243,077 $403,698 $498,435 23% $465,259 -7% Challenges and Opportunities In accordance with the Sustainable Groundwater Management Act (SGMA), the City is required to adopt a Groundwater Sustainability Plan (GSP) by January 31, 2022. Upon adoption of this plan the department will enter the implementation phase of SGMA and will be tasked with ensuring basin -wide groundwater sustainability is achieved by 2042. The Water Resources section will be tasked with ensuring SGMA-related projects and management actions are 303 Operating Budget Water Resources Water Fund Utilities implemented in accordance with the GSP and will monitor groundwater levels to ensure the basin is operated in a sustainable manner. Alongside sustainable groundwater management, the Water Resources section will be tasked with completing the PCE Groundwater Contamination Study for which the department was recently awarded a $2,000,000 grant. This study hopes to pinpoint and better understand the source of PCE contamination within the groundwater basin so remediation efforts can be implemented by the state. Emerging from the 2011-2015 drought, the State of California set in place new indoor and outdoor water use efficiency standards for water purveyors across the state. For the first time in history, the state is in the process of setting separate water use goals for indoor uses versus outdoor uses within a community. While the regulation tracks water use cumulatively, and not on a customer -by -customer basis, Water Resources section staff will be tasked with ensuring that the City has appropriate programs in place to comply with the upcoming standards. 304 SEWER FUND v7v=w�-W-V� 1 305 Page intentionally left blank. 306 SEWER FUND LONG TERM FORECAST RETE11 • • • - • 1 Sewer Service Charges 11,179 10,851 12,359 12,792 13,176 13,571 13,978 2 Base Fee Revenue 4,412 4,346 4,653 4,816 4,960 5,109 5,262 3 Cal Poly Sales 819 508 992 1,026 1,057 1,089 1,122 4 Cal Poly Capacity - 244 244 244 473 473 473 5 Development Impact Fees 2,031 870 1,384 1,190 618 600 600 6 Industrial User Charges 77 6 85 85 85 85 85 7 Investment & Property Revenue 1,182 539 402 608 732 585 537 8 Proceeds from Debt Financing 14,846 96,368 23,921 4,865 - - - 9 Miscellaneous Revenue 605 367 3,866 396 404 412 420 10 Rate Assistance Subsidy - (100) (100) (100) (100) (100) 11 TOTAL:• 12 EXPENDITURE BY CATEGORY 13 Salaries & Benefits 4,993 4,786 4,814 4,952 5,968 6,114 6,240 14 Operating Expenditures 2,569 3,055 3,334 3,271 3,320 3,370 3,421 15 Capital Outlay 23,365 109,420 20,923 6,623 9,652 4,993 2,406 16 Debt Service 1,382 1,388 1,384 7,190 7,285 7,100 7,099 17 Transfers Out 2,430 2,296 2,400 2,331 2,562 2,599 2,651 18 TOTAL 19 EXPENDITURE BY FUNCTION 20 General Government 2,460 2,327 2,430 2,361 2,592 2,629 2,681 21 Wastewater Collection 3,383 14,068 7,330 7,195 5,284 5,919 4,118 22 Environmental Compliance 112 305 279 275 291 299 306 23 Water Resource Recovery 25,653 101,763 20,044 11,885 17,026 11,483 10,992 24 Utilities Revenue 564 526 274 281 306 313 319 25 Water Quality Lab 581 932 864 828 867 888 908 27 Wastewater Administration 1,986 1,023 1,634 1,542 2,423 2,646 2,493 28 TOTAL 29 CHANGES IN FINANCIAL POSITION 30 Working Capital - Beginning 26,504 26,917 20,072 35,021 36,577 29,194 26,840 31 Revenues over (under) Expenditures 413 (6,846) 14,950 1,555 (7,383) (2,354) 562 32 33 Operating Reserve 2,268 2,305 2,386 3,549 3,827 3,837 3,882 34 Rate Stabilization 820 785 900 932 960 988 1,018 _ 35 CALPers Down Payment 252 180 180 120 120 120 120 36 UFLTrust Fund 120 120 120 120 96 72 - 37 WRRF Upgrade Debt Reserve - 2,953 5,903 5,903 5,903 5,903 5,903 307 Budget at a Glance Sewer Fund 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 sewer 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. 2021-23 Financial Plan Key Assumptions When preparing a new budget, the Wastewater Division analyzes the Sewer Fund's past financial results, upcoming operational and capital needs, current and future debt obligations, and the financial outlook of the fund ten years into the future. The financials prepared for the two-year financial plan follows a "zero based budgeting" approach, considering each line item and its future need anew. The condition, infrastructure age, and future capacity needs are driving factors in determining the Capital Project plan presented in this report and influence the assessment of debt issuance needs. This forms the base for the evaluation of required revenue and the rate levels needed to support ongoing operation for wastewater collection and treatment. 1 Utility User's Tax (UUT) is a general fund tax which is applied to most utility bills. Customers pay a 5% UUT on their water bill. 308 Budget at a Glance Sewer Fund FUND REVENUES As an enterprise fund, the Wastewater Division finances its operation mainly with rates charged for sewer services. Additional revenue is collected from development impact fees, and sewer account related charges. In accordance with its mandate, sewer rates need to be sufficient to cover operation, capital asset improvements and maintenance, debt obligations, and appropriate reserve levels to keep the Sewer Fund healthy and prepared for unforeseen and future funding needs. Sewer Fund revenue is collected from multiple sources which include: • Sewer Service Charges, including a base fee and volumetric charge per unit • Sales to Cal Poly • Development Impact Fees • Industrial User Fees • Misc. Charges such as account set-up fees, late charges, meter sales, and connection fees. • Investment and Property Revenue Revenue Forecast Revenue Type (in thousands) Sewer Service Charges Budget 2019-20 2020-21 2021-22 2022-23 111179 4,412 10,851 4,346 12,359 12,792 Base Fee Revenue 4,653 4,816 Cal Poly Sales 819 508 992 1,026 Cal Poly Capacity - 244 244 244 Development Impact Fees 2,031 870 1,384 1,190 Industrial User Charges 77 6 85 85 Investment & Property Revenue 1,182 538 402 608 Proceeds from Debt Financing 14,846 96,368 23,921 4,865 Miscellaneous Revenue 605 367 3,866 396 Rate Assistance Subsidy - - (100) JL (100) Total Revenue $35,152 $114,097 $47,804 $25,923 SEWER FUND REVENUE OVERVIEW ■ Sewer Service Charges ■ Base Fee Revenue ■ Cal Poly Sales ■ Development Impact Fees * Other Revenue *Excluding debt proceeds. 309 Budget at a Glance Sewer Fund Sewer Rates Increase Recommended sewer rate increases for 2021-22 and 2022-23 are lower than originally projected. The Sewer is 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 were subject to a public notification and protest process. 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. 2021-22 Proposed 2022-23 Proposed 2023-24 Projected 3.5% 3.5% 3.5% Rate Assistance Program The Sewer Fund is recommending a more robust rate assistance program. Proposition 218 does not allow for any sewer 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 has been revised to include a larger range of community members. It is important to note that all types of customers across the City are subject to the same late fees. This includes large corporate customers, other businesses, and all types of residential customers. 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 hiring 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 the average of the next five years impact fee projections. This equals an additional $783,900 budgeted impact fee revenue in 2021-22 and an additional $590,200 in 2022-23. This improved budgeting methodology for estimating impact fee revenue in advance of collection could serve to mitigate future rate increases. 2021-22 Budget 2022-23 Budget Historical Methodology $600,000 $600,000 New Methodology $1,383,900 $1,190,200 Difference $783,900 $590,200 310 Budget at a Glance Sewer Fund 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- end working capital balance. This equals a $351,514 investment revenue budget increase in 2021-22 and an increase of $558,300 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 ....• 2021-22 Budget 2022-23 Budget Historical Methodology $50,000 $50,000 New Methodology $401,514 $608,300 Difference $351,514 $558,300 Cal Poly Capacity Payment The Utilities Department recently signed agreements with Cal Poly to renegotiate its rate and capacity agreements with the City. The capacity payment is Cal Poly's contribution to the Water Resource Recovery Facility (WRRF) upgrade to maintain the University's capacity interest in the plant. These agreements will generate an additional $243,568 in each of the two years of the financial plan and then $472,534 each year going forward for the term of the WRRF upgrade loan. 311 Budget at a Glance Sewer Fund FUND EXPENDITURES Operating Programs 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. •. • Budget Wastewater Admin $1,058,249 •2022-23 Projected $1,506,939 Projected $1,511,145 Wastewater Collection $1,177,019 $1,219,795 $1,261,897 Environmental Programs $270,079 $278,695 $274,771 Water Resource Recovery $3,937,511 $4,001,618 $4,062,458 Water Quality Lab $872,297 $864,379 $827,721 Utilities Revenue (Billing)2 $525,979 $278,340 $284,997 General GovernmentIEW $2,327,026 $2,399,836 $2,331,358 Total Expenses $10,168,161 $10,549,692 $10,554,347 Proposed Enhancements to Operating Programs Overall, operating expenditure budgets are changing very little in 2021-22 and 2022-23. The Sewer Fund is requesting the following changes. Program Enhancements $386,148 $474,952 Sewer Fund Overview $140,000 $120,000 $100,000 c a $80,000 $60,000 $40,000 $- 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 � Revenue � Expenditures Unreserved Working Capital -Year End z These costs were previously not split between Water and Sewer. 312 a v Y Budget at a Glance Sewer Fund Program Enhancement Detail One- MCG or SOBC Description time/ Core FY 21-22 FY 22-23 Ongoing Services Utilities - Sewer 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 Deputy Director - technology, and adherence to new and more Core Planning & stringent State and Federal regulations into Ongoing $75,365 $78,229 Engineering the foreseeable future. There has also been Services an increased role coordinating with Public Works and Community Development work efforts, which could include such things as policy, workflow, and practices. This position is split between the water, sewer, and Whale Rock funds. This line reflects the sewer portion of the position. Expand recruitment beyond Utilities Expanded Recruitment professional agencies including direct Services Expenses to recruitment to persons with applicable Ongoing DEI $10,000 $10,000 Augment Human certifications. Utilities would also like to Resources diversify recruitment activities to further Diversity, Equity, and Inclusion efforts. Administrative change to split the Utility Utility Billing - Split Billing program between the water and Ongoing Core $0 $0 Cost Center sewer funds to better reflect the programs Services benefit to both funds. Pretreatment Program Software - LINKO - Software will allow Environmental Programs Core Implementation and to transition from paper to electronic Ongoing $21,000 $7,000 ongoing license and records. Services fees 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, Qualtrax Quality operating procedure, audit, document Management System - control, corrective actions, Quality Ongoing Core $12,750 $6,750 Implementation and Assurance/Quality Control, and Services Ongoing staff demonstration of competency requirements. This SOBC is split between the water and sewer funds (75% sewer, 25% water). This line reflects just the sewer portion. 313 Budget at a Glance 10 11 12 13 14 Program Enhancement Detail Sewer Fund One- MCG or SOBC Description time/ Core FY 21-22 FY 22-23 Utilities Sewer Ongoing Services - Verizon Monthly Data Administrative change to move cell phone Core data charges from the cost allocation to Ongoing $19,200 $19,200 Services operational budgets. Services Replace the software integration between Velosimo - Springbrook (Utilities billing software) and Springbrook/Cityworks Cityworks (Utilities asset management Ongoing Core $8,000 $5,000 software). This SOBC is evenly split between Services Integration the water and sewer funds. This line reflects just the sewer portion. Compliance and Increase Environmental Programs Core Surveillance Sampling surveillance monitoring for the five Ongoing Services $10,000 $10,000 significant industrial users. Maintenance of Dual New process control system software at the One- Core Software Systems WRRF will require additional funding during $8 065 $11,865 during WRRF Upgrade construction. time Services The new biosolids handling process designed WRRF Contract to reduce odors at the Water Resource Core Services - Biosolids Recovery Facility (WRRF) will require Ongoing Services $22,586 additional hauling costs from the City's biosolids contractor beginning in 2022-23. Contracted laboratory testing prices have remained constant since January 2017. The National Pollutant existing lab contract will expire January 2022 Discharge Elimination and discussions with vendors have suggested Ongoing Core $34,270 $34,270 System (NPDES) increases in the cost of analysis contract Services Permit Analysis services in the range of 15%. Award of this contract will be through a competitive bid process. 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 NPDES Studies and Central Coast Water Board. The results will Whole Effluent become the requirements for the new Ongoing Core $36,654 $44,910 Toxicity discharge limitations. This request is for Services testing and increased sampling to establish the Toxicity Requirements and ongoing effluent toxicity sampling. Sampling frequency may increase from annually to monthly with the City advocating for the most reasonable requirements. Reallocation of the funding for the Utilities Locator to the Water, Sewer, and General Utilities Locator Funds to better reflect the position's benefit Core Position Salary -Split to each fund. The Utilities Locator is an Ongoing $25,142 $25,142 Cost Centers existing position responsible for all physical Services mark -outs of underground City utilities: water, sewer, storm drains, street light 314 15 16 17 18 Budget at a Glance Sewer Fund Program Enhancement Detai One- MCG or SOBC Description time/ Core FY 21-22 FY 22-23 Ongoing Services Utilities - Sewer conduits, and fiber optic conduits. This line reflects the impact to the sewer fund. Electrical costs at the WRRF are expected to increase due to new processes coming online WRRF Electrical in 2022-23. Some savings may be realized Ongoing Core $150,000 when the new processes are optimized, and Services operations become normalized after construction. 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 COVID-19 Wastewater with Cal Poly and the County. Wastewater One- Core $49,452 Analysis measurements have been documented by time Services 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. Public Outreach Increasing public outreach budget. Ongoing Core $50,000 $50,000 Services Hire a consultant, support legal review, and establish an internal working group and hire a consultant to research methods to support local contractors, local vendors, and labor Community Workforce through workforce agreements, local One - Economic $26,250 $0 Agreement Study purchasing requirements, alternative project time delivery methods and other options to support local businesses and employees. The Community Services Group will be leading this effort. TOTAL ,; $474,952 315 Budget at a Glance Sewer Fund Capital Improvement Plan 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 $ 20,923,401 in 2021-22 and $6,623,483 in 2022-23, as presented at the end of this section. 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 or 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. 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 (1/1) of stormwater into the wastewater collection system. This project will cost $200,000 in 2021-22 and $250,000 in 2022-23. 316 Budget at a Glance Sewer Fund Debt Service Issue - Asset Outstanding PrincipalDebt Annual 2022 Final 2008 Suntrust Loan $515,000 $183,165 2024 2009 State I -Bank Loan - Farm Lift Station $6,938,580 $553,411 2038 2014 US Bank Wastewater Lease Agreement $4,404,405 $617,584 2029 2018 Refunding Bond (Dispatch Center) $295,365 $30,308 2039 2019 SRF Loan — WRRF Upgrade $140,000,000 2052 Total Sewer Fund Debt :4,4. 1. 2008 Suntrust Loan — This loan was used to construct the Tank Farm Lift Station and Force Main Project. 2. 2009 Infrastructure Bank Loan —This loan was also used to construct the Tank Farm Lift Station and Force Main Project. 3. 2014 US Bank Lease Agreement — This lease was used to construct energy conservation improvements at the Water Resource Recovery Facility. 4. 2018 Refunding Bond — This is the sewer fund's contribution to construction of the Public Safety Dispatch Center. The Sewer Fund has approval for a $140 million, 30-year loan from the Clean Water State Revolving Fund (SRF) for the upgrade of the Water Resource Recovery Facility. The loan carries a 1.8% interest rate with an annual payment of $ S,902,9S3 with the first payment of $S,808,792 anticipated in 2023. 317 Budget at a Glance Sewer Fund Sewer Rates Usage Current Rates 2021-22 Rates 2022-23 Rates Single -Family and Multi- $8.58 $8.88 $9.19 Family Residential Per Unit Cost (Up to Sewer Ca p)' Non -Residential Per Unit $8.58 $8.88 $9.19 Cost (for All Water Consumption) Monthly Base Fee Single -Family Residential I $20.43 1 $21.15 $21.89 1 Multi -Family and Non - Residential By Water Meter Size: inch or less $20.43 $21.15 $21.89 1-inch meter $34.12 $35.31 $36.55 1.5-inch meter $68.02 $70.40 $72.86 2-inch meter $108.88 $112.69 $116.63 3-inch meter $204.28 $211.43 $218.83 4-inch meter $340.53 $352.45 $364.78 6-inch meter $680.85 $704.68 $729.34 8-inch meter $1,089.40 $1,127.53 $1,166.99 10-inch meter $1,566.17 $1,620.99 $1,677.72 s One Unit = 748 Gallons 4 Current rates effective February 1, 2021 (deferred from July 2020) 318 Capital Improvement Plan Sewer Fund Sewer Fund Capital Improvement Plan 1 108 1000513 Electric Vehicle Charging Station at Various Facilities $37,500 $0 $0 $0 $0 2 Utilities - 879 Morro $37,500 $0 $0 $0 $0 3 16 1000521 Fleet Replacement: Utilities $120,000 $505,000 $60,000 $102,500 $0 4 WRRF F550 Flatbed with crane (06114550 Diesel) $80,000 $0 $0 $0 $0 5 WRRF Forklift (0622) $40,000 $0 $0 $0 $0 6 Sewer WRRF Compact Pickup (0851) $0 $0 $0 $45,000 $0 7 Waste Water Collections Dump Truck (0840) $0 $0 $0 $57,500 $0 8 Sewer Hydrocleaner (0718) $0 $475,000 $0 $0 $0 9 Sewer WWCL Portable Pump (0826) $0 $0 $60,000 $0 $0 10 Sewer WWCL Tilt -Trailer (0616) $0 $30,000 $0 $0 $0 11 70 1000094 Foothill Sewer Siphon $0 $0 $0 $0 $200,000 12 18 91739 Inflow/Infiltration Reduction $200,000 $250,000 $250,000 $250,000 $0 13 19 91736 Infrastructure Renewal Strategy Report Update $0 $250,000 $100,000 $80,000 $0 14 Flow Study $0 $250,000 $100,000 $80,000 $0 15 20 1000074 IT Replacement $87,838 $19,358 $14,982 $254,015 $35,745 16 IT Pipes Inspection Software and Licenses $58,750 $0 $0 $0 $0 17 Asset Management (Cityworks - Utilities Integration) $17,650 $0 $0 $7,060 $0 18 VMware Infrastructure Upgrade $8,114 $0 $0 $0 $20,630 19 Uninterruptible Power Supplies (UPS's Servers and Storage) $3,324 $0 $0 $2,942 $0 20 City SAN $0 $8,146 $0 $0 $0 21 Motion ERP $0 $0 $14,500 $14,500 $14,500 22 Firewall Replacement $0 $0 $0 $13,357 $0 23 Radios, Mobiles and stations not replaced - EF & PW Only $0 $0 $0 $55,000 $0 24 Utility Billing System $0 $0 $0 $75,000 $0 25 Network Security Upgrade $0 $0 $0 $8,521 $0 26 Virtual Private Network Replace $0 $0 $0 $13,378 $0 27 Network Switching Infrastructure Equipment $0 $0 $0 $50,379 $0 28 VoIP Telephone System $0 $0 $0 $13,396 $0 29 Wireless System Citywide $0 $11,212 $0 $0 $0 30 Public Surveillance Citywide Cameras Storage add redundancy $0 $0 $0 $482 $0 31 Public Surveillance Cameras -citywide 5 year replace, 1/3 of cameras $0 $0 $482 $0 $615 32 22 1000075 Major Facility Maintenance $0 $7,500 $50,000 $0 $0 33 879 Morro - Roof $0 $7,500 $50,000 $0 $0 34 79 1000093 Serrano, Bressi, Dana Pipe Replacement $0 $0 $25,000 $1,275,000 $0 35 35 1000084 Sewer Maintenance Hole Cover Adjustments $85,000 $25,000 $25,000 $25,000 $25,000 36 47 91740 Trench Repairs- Sewer $25,000 $25,000 $25,000 $25,000 $25,000 37 83 1000091 Verde, Luneta, Ramona Pipe Replacement $1,276,000 $0 $0 $0 $0 38 50 1000527 Wastewater Collections System - Point Repairs $50,000 $50,000 $0 $0 $0 39 84 1000539 Wastewater Collections System Improvements $160,000 $3,860,000 $2,450,000 $135,000 $1,485,000 40 Morro, Mill, Santa Rosa $135,000 $1,485,000 $0 $0 $0 41 Islay, Henry, Sierra Way $25,000 $1,825,000 $0 $0 $0 42 San Jose, Ramona, Monte Vista, California $0 $25,000 $1,225,000 $0 $0 43 Taft, Hathaway, Phillips, Buena Vista, Loomis $0 $25,000 $1,225,000 $0 $0 44 Broad, Murray, Chorro $0 $0 $0 $135,000 $1,485,000 45 Murray, Chorro, Meineke $0 $500,000 $0 $0 $0 319 Capital Improvement Plan Sewer Fund 46 85 91369 Wastewater Lift Station Rehabilitation: Airport Lift Station $2,020,000 $0 $0 $0 $0 47 122 1000083 Wastewater Lift Station Rehabilitation: New Buckley Lift Station $396,000 $0 $0 $0 $0 48 86 1000082 Wastewater Lift Station Rehabilitation: Silver City Lift Station $0 $70,000 $100,000 $0 $1,980,000 49 52 1000062 Water Meters and Boxes $143,000 $165,000 $167,500 $171,500 $175,000 50 95 1000552 WRRF - Demolish Old Effluent Structure $0 $0 $50,000 $495,000 $0 51 96 100551 WRRF - Digester Flare Upgrade $0 $100,000 $385,000 $0 $0 52 97 100550 WRRF And Wastewater Collection Shop $150,000 $350,000 $5,500,000 $0 $0 53 59 1000077 WRRF Major Maintenance $2S2,S00 $520,000 $400,000 $125,000 $125,000 54 Chain Link Fence Extension $87,500 $0 $0 $0 $0 55 Security Lighting $50,000 $0 $0 $0 $0 56 Cityworks Integration $50,000 $100,000 $0 $0 $0 57 Digester Portable Heaters $50,000 $0 $0 $0 $0 58 Coating Maintenance $15,000 $0 $0 $0 $0 59 Headworks Grit Piping and Blowers $0 $95,000 $0 $0 $0 60 Screenings Washer Auger $0 $0 $350,000 $0 $0 61 UV Bulb Replacement (annual replacement) $0 $0 $50,000 $50,000 $50,000 62 Rebuild Influent Storm Pumps $0 $0 $0 $75,000 $75,000 63 Headworks Grit Pump $0 $175,000 $0 $0 $0 64 Lab Improvements $0 $150,000 $0 $0 $0 65 98 91219 WRRF Upgrade $15,920,563 $426,625 $0 $0 $0 66 Construction $11,069,088 $22,335 $0 $0 $0 67 Construction Management $3,088,281 $257,357 $0 $0 $0 68 Office Engineering $1,235,313 $102,943 $0 $0 $0 69 Program Management $527,881 $43,990 $0 $0 $0 711 Grand Total $20,923,401 $6,623,483 $9,602,482 $2,938,015 $4,050,745 320 Operating Budget Sewer Fund Wastewater Admin & Eng Wastewater Administration & Engineering Program Description Utilities The Wastewater Administration & Engineering program leads, evaluates, and provides guidance and direction for effective resource management for the various wastewater programs. It provides strategic and long-term planning and engineering for wastewater systems, production of recycled water and the water quality laboratory and environmental programs sections. Program goals include: 1) efficient management and achievement of wastewater enterprise objectives; 2) well -planned and efficient delivery of capital improvement plans; and 3) protection of water quality. Core Services & Objectives: >- Monitor sewer enterprise fund financial operations and recommend rates and revenues needed to support program and service objectives. Continue implementation and tracking of strategic planning activities. >- Ensure compliance with water quality regulations. Continue safety assessments and ensure compliance with safety regulations. Continued optimization of program operations. Administer capital improvement and planning activities. Manage wastewater -related public outreach and communication efforts. Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Staffing $1,713,092 $939,207 $1,091,887 33% $1,122,243 3% Contract Services $30,558 $43,500 $79,750 75% $53,500 -30% Other Operating Costs $43,398 $75,542 $335,302 344% $335,402 0% Total Program $1,787,048 $1,058,249 $1,506,939 60% $1,511,145 1% Opportunities and Challenges In 2021-22 the Utilities Department will establish a new program, Planning & Engineering, separate from the Water and Sewer Administration programs. The program will be directed by a new Deputy Director of Planning & Engineering and will be staffed by the Utilities Engineer and Utilities Project Manager. The newly expanded program will focus on projects and studies outside the areas currently not supported by Public Works engineering, such as lift stations, the WRRF, and flow studies. The program will continue to manage the Water Resource Recovery Facility upgrade, development, and infrastructure planning. 321 Operating Budget Sewer Fund Wastewater Admin & Eng Utilities Wastewater administration will continue to focus on supporting housing and climate action major City goals as it strategically replaces infrastructure, explores additional energy efficiency measures and on -site self- generation of power. Water quality programs will continue to see increased focus as stormwater and wastewater regulations become more stringent. Collaboration with other City departments and coordinating activities to accommodate goals, regulations, studies and projects is an ongoing focus of wastewater administration. 322 Operating Budget Sewer Fund Wastewater Collections Wastewater Collections Utilities Program Description The Wastewater Collection program is responsible for delivering wastewater from its various sources to the Water Resource Recovery Facility (WRRF) via eight pump stations and 147 miles of gravity sewer mains. The program goals are: 1) to operate the wastewater collection system to meet all Federal and State regulatory requirements; 2) provide uninterrupted wastewater flow without health hazard, leakage, or groundwater inflow/ infiltration (1/1). Core Services & Objectives: Evaluate and optimize the sewer main maintenance and hydro -cleaning program. Evaluate the operation and maintenance of the sewer lift stations. Complete the wastewater collection main replacement capital improvement projects. Continue Closed Circuit Television (CCTV) sewer main inspections and prioritize structural condition ratings. Continue to optimize the Infrastructure Renewal Strategy Plan. Continue to implement program recommendations to reduce inflow/ infiltration (1/1), including voluntary and offset lateral replacements. Program Budget Staffing M Contract Services Other Operating Costs Total Program 2019-20 2020-21 $859,556 $922,662 $52,894 $68,965 $163,940 $185,392 2021-22 Change 1 2022-23 $976,441 $51,035 $192, 319 $1,076,390 $1,177,019 1 $1,219,795 Opportunities and Challenges 6% $1,003,555 -26% $51,235 4% $207,107 4% $1,261,897 Change 3% 0% 8% 3% The Wastewater Collection section continues to identify and address 1/1 in both the public and private (laterals) wastewater collection system. 1/1 causes spills and regulatory violations, harms water quality, threatens human health, limits capacity in the City's wastewater collection system, and results in significant electrical and chemicals use to pump and treat wastewater at the WRRF. A second wastewater collection system flow study will begin in 2022-23 to determine system issues, focus staff activities, and inform future capital projects. Ongoing 1/1 programs as well as the flow study and Infrastructure Renewal Strategy will help accommodate infill and new housing projects and will reduce power and chemical consumption to meet the City's Major City Goals related to Housing and Climate Action. The Wastewater Collection Program is not requesting any Significant Operating Program Changes. 323 Operating Budget Sewer Fund Environmental Programs Program Description Environmental Programs Utilities The Environmental Programs section is responsible for ensuring compliance with various aspects of the Clean Water Act. This involves the coordination, planning, development, and implementation of mandated industrial pretreatment and stormwater programs. Industries are permitted and inspected to ensure industrial waste discharges do not harm the wastewater collection system, treatment processes at the Water Resource Recovery Facility (WRRF), and Utilities department staff. Environmental Programs is also responsible for administration of the City's stormwater program which protects local waterways from construction site run-off, commercial, residential, and municipal activities. The Program goals are: Full compliance with State, Federal, and local pretreatment and stormwater regulations. Protection of the environment, human health, and wastewater facilities from damage or injury caused by illegal discharge of regulated pollutants. Ensuring wastewater effluent and biosolids can be safely recycled and the prevention of harmful discharges to the City's sanitary sewer system. Protection of local waterways. Inspection of industrial users and stormwater discharges. Implementing the Stormwater Management Plan, WRRF Industrial Stormwater Plan, best management practices, and reporting requirements. Core Services & Objectives Implement all Best Management Practices related to the Municipal Stormwater Permit. Revise and implement WRRF Industrial Stormwater Plan to reflect changes in General Industrial Permit. Implement Wasteload Allocation Attainment Plan for Pathogen TMDL. Program Budget 2019-20 2020-21 2021-22 ' Change 2022-23 Change Staffing $81,518 $227,929 $195,645 -14% $205,721 5% Contract Services $23,942 $23,850 $40,050 68% 1 $40,050 1 0% Other Operating Costs $6,073 $18,300 $43,000 135% $29,000 -33% Total Program $111,533 $270,079 I $278,695 3% $274,771 -1% 324 Operating Budget Sewer Fund Opportunities and Challenges Environmental Programs Utilities The Environmental Programs program has assumed overall administration of the City's stormwater program. Future challenges include implementation of the State's revised Municipal Stormwater General permit anticipated to include significant additional requirements and changes. The new permit is expected to be released later in 2021 or the first half of 2022. Additional administration, permitting, and inspections will be required to meet the current and future requirements of the stormwater program for construction and municipal activities along with industrial and commercial facilities. The City will modify documentation and workflows to meet the current requirements and future changes. Environmental Programs will be implementing a facility management software program to transition from its paper -based tracking system to better track permitted industries and required inspections in the Pretreatment and stormwater programs. 325 Operating Budget Sewer Fund Water Resource Recovery Facility Program Description Water Resource Recovery Facility Utilities The Water Resource Recovery Facility (WRRF) receives and treats an average of 3 million gallons of wastewater per day. Program goals are: Protecting public and environmental health by treating and discharging wastewater that continuously meets all State and Federal standards. Beneficial reuse of biosolids that continuously meet all State and Federal standards and harnessing biogas for on -site electrical generation. Treating and delivering recycled water to the recycled water distribution system. Continuous compliance with local air quality regulations. Continual optimization of operating and treatment processes. Creating and maintaining safety and emergency response programs that meet all State and Federal requirements. Promoting awareness of WRRF operations through community outreach, education, and volunteer training programs. Core Services & Objectives Assist in construction of the WRRF upgrade project. Meet increased demand for recycled water. Participate in community outreach by giving tours, presentations and providing a volunteer internship program. Continue to build upon the partnerships established with local educational institutions. Continue succession planning goals and development of standard operating procedures. Continue to foster a safety culture and pursue energy efficiency programs. Continue to explore initiatives that address the objectives identified in the City's Climate Action Plan. Program Budget 2019-20 2020-21 2021-22 Staffing $1,712,262 $1,875,260 $1,927,463 Contract Services $340,302 $357,975 $362,931 Other Operating Costs $1,390,632 $1,704,276 $1,711,224 Total Program $3,443,196 $3,937,511 I $4,001,618 Change 2022-23 Change 3% $1,978,484 3% 1% $382,916 6% 0% $1,701,058 -1% 2% $4,062,458 2% 326 Operating Budget Sewer Fund Opportunities and Challenges Water Resource Recovery Facility Utilities The WRRF must meet regulatory requirements while under construction, including the production of recycled water. This includes start up and commissioning of new processes while operating elements of the old facility. The new ultraviolet (UV) process will require a study to validate disinfection requirements while other process will require careful coordination with the contractor before City acceptance. Construction and Utilities staff are coordinating and facilitating these activities as the project progresses. The WRRF will be under construction during the 2021-23 financial plan and its operating budget reflects the anticipated changes in operations associated with simultaneously operating two treatment systems until construction is complete. The WRRF's National Pollutant Discharge Elimination System (NPDES) permit is anticipated to be reissued in 2021 and will contain additional sampling and monitoring requirements and some additional studies. These changes are also reflected in the WRRF's and Water Quality Laboratory operating budgets. The WRRF will be modernizing its out-of-date computerized asset management program to a GIS based system that will allow staff to optimize maintenance and operational activities. The WRRF project will increase treatment capacity to meet the requirements for the City's General Plan and the Housing Major City Goal. 327 Operating Budget Sewer Fund Water Quality Lab Program Description Water Quality Lab Utilities The Water Quality Laboratory (WQL) is an Environmental Laboratory Accreditation Program (ELAP) State certified laboratory which performs sampling and/or analyses in support of City services including wastewater, recycled water, groundwater, drinking water, San Luis Obispo Creek watershed, and protecting public health and biosolids. The WQL operates under regulations as defined in Title 22 of the California Code of Federal Regulations ensuring compliance with Federal, State and local regulations, ELAP, and National Pollutant Discharge Elimination System (NPDES) permit guidelines with other directive documents. Core Services & Objectives Laboratory Analyses and Sampling. Providing analysis and sampling in support of City services. Analyzing untreated and treated drinking water supplies, wastewater, recycled water, new construction, drinking water line repairs, surface waters, and biosolids which are used for process control, permit compliance sampling, and protecting public health. Investigation and analysis of special projects as they arise. Participation in ELAP. Participating in ELAP certification allows the City to perform its own analysis for certain constituents, allowing for self -reporting to regulatory agencies. ELAP allows the City to streamline sample turnaround and reduces analysis costs. Community Outreach. Participating in community -based facility tours, internship programs enhance relationships and communication between the City, students, community organizations, Cal Poly and Cuesta College. Reporting and Record -keeping. Preparing and submitting reports to local, State, and Federal regulatory agencies monthly and annually for the WRRF, Water Treatment Facility and Stormwater program. Maintaining comprehensive files, records, reports, and computer databases. Special Projects. Providing analysis, sampling, and documents in support of Utilities' special projects and internal WQL projects such as: negotiating the WRRF NPDES permit, WRRF nutrient loading and removal, onboarding new processes of the WRRF Upgrade, storage and generation of electronic reports, and optimization of the WRRF. 328 Operating Budget Sewer Fund Program Budget 1W 0 Staffing Contract Services Other Operating Costs Total Program Water Quality Lab Utilities 2019-20 2020-21 2021-22 I Change 2022-23 $468,415 $642,374 $536,311 -17% $548,149 $68,842 $159,200 $235,426 48% $194,230 $44,226 $70,723 $92,624 37% $85,342 $581,483 $872,297 $864,379 0% $827,721 Opportunities and Challenges Change 2% -17% -10% -4% The Water Quality Laboratory will be implementing a new standard for accreditation referred to as The Nelac Institute (TNI). The State Water Resources Control Board adopted the new regulations in May 2020 and the Water Quality Lab must make several changes to maintain its accreditation. These requirements are reflected in its operating budget and four SOBCs. The lab has expanded its role in collecting additional sampling for the Water Treatment Plant and has taken the lead role in community wastewater COVID-19 sampling and in the State required San Luis Obispo Creek pathogen sampling among other regulations. The lab will be a key resource for sampling, analysis, studies, and reports for the WRRF project as the City validates new processes and provides reports and samples to determine if it meets specifications and requirements for regulatory agencies. 329 Operating Budget Water & Sewer Funds Utilities Revenue Water & Sewer Utilities Revenue Program Description The Utilities Revenue program is responsible for the accurate and timely collection of revenues that support the City's water and wastewater programs. It provides the customer interface for billing inquiries and service requests as well as account auditing and data analysis that supports other Utilities programs. Core Services & Objectives Provide exceptional, respectful service. Responsible for collection of 90% of all water and sewer revenue. Proactively manage utility meter reading contract and continually maintain the water meter database. Conduct accurate and timely monthly water and sewer billing and daily payment collection. Maintain programs designed to reduce past -due payment and associated service terminations. Monitor usage trends and analyze water use data for use in multiple studies and reports. Maintain awareness of and compliance with applicable regulations related to utility service. Program Budget Staffing Contract Services 2019-20 2020-21 2021-22 Change 2022-23 Change $157,78 $$178,529 $168,720 1 -5% $178,314 6% $196,587 $205,500 1 $200,000 -3% I $202,000 1 1% Other Operating Costs I $209,360 I $141,950 I $179,400 ' 26% I $180,900 I 1% Total Program $563,736 $525,979 I $548,120 4% $561,214 2% Opportunities and Challenges During 2021-23, the Utilities Revenue program will implement a new rate assistance program. Under the City's current rate assistance program, only about 100 of nearly 16,000 customers are eligible. The new program will allow more customers to qualify for a 15% discount on their monthly water and sewer bill. The program is compliant with Proposition 218 because it will be funded by customer late charges, not from water and sewer rates for service. The Utilities Revenue program will also continue to monitor past due customer balances and strategize ways to incentivize payment. 330 Operating Budget General Fund Solid Waste & Recycling Program Description Solid Waste & Recycling The Solid Waste & Recycling program coordinates the planning, development, and implementation of programs and services related to solid waste, recycling, organic waste, zero waste, and other waste diversion programs. The program goals are to: Core Services & Objectives Increase organics recycling in order to reduce greenhouse gas emissions and create a local source of renewable energy. Promote the use of reusable items in order to reduce solid waste generation and embedded energy costs of material production and transportation. Partner with the Integrated Waste Management Authority (IWMA) to provide household hazardous waste and motor oil disposal, and to provide school education and other special programs to the community. Ensure adequate and efficient solid waste, recycling, and organics services are provided to businesses and residents within the City of San Luis Obispo at rates that comply with Proposition 218. Assist in meeting the goals of the Climate Action Plan associated with waste diversion. Program Budget Staffing Contract Services Other Operating Costs Total Program Actual —13u�d 2021-23 Financial Plan 2019-20 2020-21r 21-22 Change 1 2022-23 Change $73,209 $112,808 I $124,189 $10,000 1 $39,000 $13,947 1 $36,510 1 $36,510 $87,156 ' $159,318 1 $199,699 Opportunities and Challenges 10% $129,770 4% 290% $10,000 -74% 0% $36,510 0% 25% $176,280 -12% The Solid Waste program is a key component to the City's Climate Action Plan Major City Goal. In 2021- 23 the Solid Waste program will, in coordination with the IWMA and the waste hauler, implement the State's most extensive solid waste law of the past 30 years (S61383) which prescribes actions the City will take to reduce California's landfilled organic waste by 75% by 2025. Components of the law include: updating the City's three franchise hauling agreements, passing up to seven local ordinances or adopting regional IWMA ordinances, facilitating data share and waste generation reports, and updating the solid waste sections of the City's Municipal Code. 331 Operating Budget General Fund Solid Waste & Recycling Operating Budget Changes for Solid Waste & Recycling SOBC Description Type 2021-22 2022-23 The 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'. Civic Spark Fellow 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 $29,000 $0 332 Operating Budget Whale Rock Fund Reservoir Operations Program Description Reservoir Operations The Whale Rock Commission is a joint powers authority with six voting members that represent two state agencies and the City of San Luis Obispo. This commission was formed to build the Whale Rock Reservoir and sets policy for its operation. The City of San Luis Obispo (City), California Men's Colony (CIVIC), and California Polytechnic State University (Cal Poly) are the actual water users, sharing the costs and benefits of the reservoir in proportion to their original investment, with the City at 55%, Cal Poly at 34%, and CIVIC at 11%. The reservoir operations program provides for raw water storage in a 38,967 acre-foot reservoir and raw water delivery through 18 miles of pipeline and two pump stations. The program goal is safe dam operation and maintenance, and a reliable, easily treatable supply of raw water for the participating agencies. Core Services & Objectives z_ Collect, store, and pump raw water to member agencies in a reliable, cost-effective manner. g Protect the dam from vandalism and contamination through effective surveillance. g Increase awareness of Whale Rock Reservoir as a community asset. Promote public use of fishing, biking, and hiking trails. Identify additional recreational activities that do not negatively impact water quality. Maintain reservoir infrastructure to maximize lifespan. Manage the capital improvement program to renew infrastructure and ensure reliability of water delivery. Program Budget Staffing Contract Services Other Operating Costs Total Program 2019-20 2020-21 2021-22 Change 2022-23 Change $549,573 $634,497 $605,171 $39,949 $154,000 $120,796 $297,090 $385,100 $398,868 $886,612 $1,173,597 $1,124,835 Opportunities and Challenges -5% $619,740 2% -22% $123,296 2% 4% $407,043 2% -4% $1,150,079 2% During the next budget cycle, staff at Whale Rock Reservoir have several capital projects that will occupy their time. During this time, the team plans begin go out to bid for construction on the spillway drain repairs project that was required by the Division of Safety of Dams (DSOD). This project will ensure that the spillway underdrain system is fully operational, protecting the structural integrity of the earthen dam 333 Operating Budget Whale Rock Fund Reservoir Operations and spillway. Additionally, the team will conduct another capital project to repave the existing road that travels from the Whale Rock office up to the face of the dam. This paving project will ensure that staff and contractors have safe and continuous access to the face of the dam, intake structure, and spillway. Aside from CIP projects, Whale Rock staff will complete the update of the Emergency Action Plan (EAP) which is a regulatory document that outlines the emergency actions that dam staff and local partners will take in case of any type of dam failure, spillway damage, or significant flooding. This document requires large amounts of community outreach and coordination to ensure that emergency response agencies and regulators are all informed of the plan's contents and prepared to respond in case of emergency. 334 PARKING FUND • 335 Page intentionally left blank. 336 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 PARKING FUND LONG-TERM FORECAST (in thousands) Actual 2019-20 Budget • Budget Budget Projected • Projected Projected REVENUES Service Charges --------------------- Parking Meter Collections Lots 84 77 122 108 135 129 159 Streets 1,047 821 2,056 2,197 2,676 2,630 3,201 Parking Structure Collections 838 200 1,275 2,007 2,551 2,527 3,474 Long -Term Parking Revenues 689 431 862 883 919 896 915 Lease Revenues 486 363 459 461 471 466 471 Parking In -Lieu Fees 15 21 21 21 --------------- 21 -------------- 21 21 Total Service Charges 3,159 1,913 4,795 5,676 -------- 6,773 -------- ------------- 6,668 ------------- 8,240 Investment and Property Revenues 546 79 76 64 55 30 39 Fines and Forfeitures 704 297 642 726 748 731 746 Other Revenues 22 7 30 28 30 29 29 Debt Proceeds • 37,052 EXPENDITURES (including • Operating Programs Operating Expenses_ 2,488 2,414 2,720 2,784 2,820 3,037 3,208 SOBCS 67 48 23 17 11 -------- --------------------- General Government (CAP Transfer) 537 710 870 870 870 870 870 Operating Transfers 228 (394) 235 235 235 235 235 Total Operating Programs 3,253 2,731 3,893 3,938 3,948 4,159 4,325 Capital Improvement Plan Projects 1,177 1,162 1,799 6,731 38,004 376 318 Debt Service 857 856 855 852 852 2,981 2,948 TOTAL:0• Revenues Over/(Under) Expenditures $ (857) $ (2,451) $ (1,005) $ (5,026) $ 1,854 $ (58) $ 1,464 0.0 Adjustment for LT Accruals $ (1,085) $ $ - $ - $ - $ - $ - Working Capital, End of Year 1 $ 14,550 $ 12,0981 $ 11,093 $ 6,127 $ 7,914 $ 7,857 $ 9,321 Reserve 1 $ 605 $ 625 $ 718 $ 731 $ 738 $ 781 $ 816 • 337 Budget at a Glance Parking Fund The Service of Parking The City's Access and Parking Management Plan is the Parking Services Program's strategic document and provides guidance regarding critical access to parking facilities and resources throughout the City with focus on the downtown area and residential neighborhoods. It will be updated during this Financial Plan. Parking, access and traffic circulation are interrelated in the community and parking plays an integral role in the successful operations of the City's transportation infrastructure. The Parking Services Program works with stakeholders including businesses, residents, other government agencies, and visitors to meet their diverse parking and access needs. The Program promotes services through direct education, community outreach, engineering, and enforcement efforts that strive to balance the high demand for access to areas by providing a variety of transportation and parking options. 2021-23 Financial Plan Key Assumptions When preparing the budget, the Parking Services Program analyzed impacts from the ongoing COVID-19 pandemic, past financial results, upcoming operational and capital needs, as well as projected future debt obligations to assess the financial position and overall health of the Parking Fund. The budget prepared for the two-year financial plan follows a "zero based budgeting" approach, considering each line item and its future needs anew. Asset conditions, infrastructure age, and future parking capacity needs are driving factors in determining the Capital Improvement Plan projects and debt financing scenarios. The revenues needed to support future operations and projects are then 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. This is imperative since, as an Enterprise Fund, Parking relies solely on those revenue streams. Consistent with previously adopted policies and considering impacts associated with the pandemic, the Parking Fund's proposed revenue sources and fee structure assume a conservative annual growth rate over the entire projection period. 338 Budget at a Glance Parking Fund The prolonged impacts from the pandemic and the support of economic recovery 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 revenues over expenditures fall well 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 need for a General Fund loan of up to $650,000 at fiscal year-end to support the Fund's ability to meet debt service requirements for the FY 2020-21. The Program is also 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 parking structure project located at Palm and Nipomo Streets. Minimum operating reserves should equal at least 20% of the total Operating Program expenditures according to the City's fiscal policy and fund specific risk assessments. Based upon this policy, the minimum reserve level should be approximately $605,000 for FY 2021-22 and will increase incrementally through the Fund's long-term projections. However, as an Enterprise fund, Parking can build unreserved working capital in preparation for larger infrastructure maintenance and replacement needs and smooth rate increases to accomplish capital investments. Revenues from the past two fiscal years have remained lower than initially anticipated due to the Fund's assistance with economic recovery efforts and downtown vitality. The Fund plans to use remaining working capital to self -finance the approximately $6.5 million to cover the Phase 1 costs of the Palm- Nipomo parking structure and may opt to contribute additional capital towards reducing the debt obligation for the construction costs. FUND REVENUES As an enterprise fund, the Parking Services Program finances its operations through rates and fees charged for parking services, property lease income, and one-time incomes such as Parking In -Lieu fee payments. According to City fiscal policies, rates must be sufficient to cover operations, capital asset improvements and maintenance, debt obligations, and maintain appropriate reserve levels to keep the fund healthy and prepared for unforeseen and long-term funding needs. 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 long-term forecast 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 prepare to cover debt service cost associated with the Palm-Nipomo parking structure project. 339 1 2 3 4 s 6 8 9 10 11 12 13 14 15 16 17 18 Budget at a Glance Parking Fund 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 Proposed Potential Revenue Strategies Garages Potential Revenue Implementation Year Elimination of 15t 60 Minutes Free $702,500 2022-23 Reduction of Max Daily Rate $(112,800) 2021-22 Rate Increase (Approved for July 2020) $230,300 2021-22 On -Street and Lots Expansion of Enforcement Hours (6p-9p) $319,500 2021-22 Rate Increase (Approved for July 2020) $224,200 2021-22 Tier -Based Pricing $ 0 2021-22 Paid Parking at Railroad Square $91,200 2021-22 Paid Parking in Upper Monterey Area $169,500 2022-23 Loss of Meters to Old Town District $(45,800) 2021-22 Enforcement Expansion of Enforcement Hours (6p-9p) $159,200 2021-22 State and County Parking Citation Surcharges $(86,900) 2021-22 Penalty Schedule Fine Increases $48,900 2021-22 Old Town District Enforcement $61,200 2021-22 Districts Establishment of Old Town District $35,600 2021-22 TOTAL $1,796,600 340 Budget at a Glance parking Fund 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 202S. 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. 3uaget 9W Nrolectea rolectea -mange- Meter Collections - Lots Meter Collections - Streets $ $ 83,961 1,047,023 $ $ 0 76,700 821,300 $ $ 122,400 2,055,500 60% 150% $ 107,600 $ 2,196,600 -12% 7% Parking Structure Collections $ 837,513 $ 200,000 $ 1,274,900 537% $ 2,007,400 57% Long -Term Parking Revenues $ 688,941 $ 431,300 $ 862,200 100% $ 882,700 2% Lease Revenues $ 485,737 $ 363,200 $ 459,200 26% $ 460,900 0% Parking In -Lieu Fees $ 15,405 $ 20,600 $ 20,600 0% $ 20,600 0% Investment & Property Revenue $ 546,118 $ 78,500 $ 75,600 -4% $ 64,100 -15% Fines and Forfeitures liff $ 703,686 $ 297,300 $ 641,600 116% $ 726,300 13% Other Revenues $ 21,706 $ 7,400 $ 30,000 305% $ 28,100 -6% PARKING REVENUE OVERVIEW ■ Meter Collection f Parking Structures ■ Long-term Parking ■ Lease Revenue ■ Other Revenue 341 1 2 3 4 s 6 s 9 10 11 12 13 Budget at a Glance Parking Fund PARKING RATES 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 Council subsequently 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. This is 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 recommend these increases as part of future financial plans. Parking Rate Changes IN!"b- Current Parking Rates Parking Meters (Hourly) Proposed* Effective July 1, 2021 Proposed" Effective July 1, 2023 Proposed**-' I Effective July 1, 2025 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. 342 Budget at a Glance Parking Fund FUND EXPENDITURES Operating Programs The Parking Services Program operating costs for the 2021-23 Financial Plan are summarized below. The primary operating costs consist of staffing, contracted services, capital infrastructure investments, and debt service payments. Indirect costs to the Parking Fund consist of reimbursement to the General Fund for general government services to support parking programs. These amounts are calculated annually through the City's Cost Allocation Plan. In response to the COVID pandemic, the Parking Fund reduced budgeted amounts for several non -staffing line -item expenditures as part of the FY 2020-21 Supplemental Budget. The Parking Fund has continued these reductions forward into FY 2021-22 based on the continued effects of the COVID pandemic. Also, as part of the FY 2020-21 Supplemental Budget, the Parking Fund decided to temporarily freeze the filling of two full-time vacant positions as well as reduce part-time staffing levels. The Fund will continue the temporary freeze of the positions until the recovery from the pandemic necessitates the filling of the positions. Part-time staffing levels will also continue at a reduced rate due to the low activity currently experienced in the parking structures. Operating Expenditures by Program (Including SOBCs) Parking Admin $1,838,624 $2,414,155 $2,039,648 $2,058,029 Parking Enforcement $205,098 $0 $288,131 $297,443 Parking Structures $378,552 $0 $368,806 $380,647 Parking Lots and Streets $66,045 $0 $90,094 $96,291 General Government $765,047 $316,600 $1,105,100 $1,105,100 Total Parking Fund* $3,253,366 $2,730,755 $3,891,779 $3,937,510 *Does not include debt or capital Operating Expenditures by Type (Including SOBCs) Staffing $1,465,774 $1,177,211 $1,666,213 $1,803,012 Contract Services $626,375 $776,265 $553,265 $449,265 Other Operating Costs $396,169 $460,678 $568,201 $580,133 Transfers $765,047 $316,600 $1,105,100 $1,105,100 Total Parking Fund $3,253,366 $2,730,755 $3,891,779 $3,937,510 1 All budget was loaded into the Parking Administration Cost Center (Program ) in FY 20-21. 343 Budget at a Glance Parking Fund Proposed Changes to Operating Programs 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. •: One-time $ 17,500 Community Workforce Agreement Study Ongoing Parking Enforcement (3 FTE Additions) $ 220,927 $ 230,947 Parking Maintenance (2 FTE Additions) $ 69,375 $ 144,392 Contract Services Reduction $ (240,500) $ (327,000) Revenue Offset Total $ (317,100) $ ,. $ (317,100) 344 Budget at a Glance Parking Fund Parking Fund Overview $50,000 $45,000 $40,000 Palm Nipomo Parking Garage Capital Project $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5 $O Actual 2019- Budget 2020- Budget 2021- Forecast 2022-Forecast 2023-Forecast 2024-Forecast 2025- 20 21 22 23 24 25 26 � Revenue* � Expenditure —Unreserved Working Capital w/ Enhancements Unreserved Working Capital - No changes *includes debt proceeds Capital Improvement Plan The Five -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 as outlined in the Condition Assessment and Management Plan (CAMP). 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. Project budget estimates in the capital plan forecast include inflationary adjustments assuming a moderate increase in material costs over time. The Fund continues to make infrastructure improvements with the addition of multi -space pay -stations which will expand sidewalk mobility and the implementation of mobile application and gateless parking operations at the structures. All operational improvement elements have been proposed to help ensure the Fund is able to meet the completion goal forthe Palm-Nipomo Parking Structure. Currently estimates for the structure are 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 debt proceeds for phase 2 of construction that will begin in FY 2023-24. The construction phase is estimated to take 18-24 months with the structure opening for operation at the beginning of FY 2025-26. For complete CIP detail Capital Improvement Plan section of this Financial Plan. 345 Budget at a Glance Parking Fund Capital Improvement Plan Overview Palm-Nipomo $ 850,000 $5,582,000 $37,052,000 $0 $0 $43,484,000 Parking Structure 871 Marsh $400,000 $400,000 $400,000 $125,000 $125,000 $1,450,000 Maintenance 842 Palm $400,000 $400,000 $400,000 $125,000 $125,000 $1,450,000 Maintenance $100,000 $100,000 $100,000 $50,000 919 Palm $50,000 $400,000 Maintenance Enforcement and Gate Entry $40,000 $90,000 $0 $0 $0 $130,000 Equipment HVAC Air Handler $5,000 $25,000 $0 $0 $0 $30,000 IT Replacement $4,160 $4,279 $130,000 $14,693 $37,000 $76,091 $0 $18,227 $0 $117,450 $167,000 Fleet Replacement $0 Total .0 $6,731,279 $38,003,6930• Debt Service Parking Fund Detail and Debt Retirement The Parking Fund will begin to construct its fourth Downtown parking structure in 2023-24. To finance the construction cost, the fund will seek a loan for $35 million to be financed over 30 years. 346 Operating Budgets Employee Summary Employee Summary Parking Parking Operations & Maintenance 9.0 14.0 14.0 Parking Services Manager 1.0 1.0 1.0 Parking Services Supervisor 1.0 1.0 1.0 Parking Meter Repair Worker 1.0 1.0 1.0 Parking Coordinator 0.0 0.0 0.0 Parking Maintenance Worker 0.0 2.0 2.0 Parking Enforcement Officer 4.0 7.0 7.0 Supervising Administrative Assistant 0.0 0.0 0.0 Administrative Assistants 2.0 2.0 2.0 347 Operating Budget Parking Fund Parking Operations and Maintenance Parking Operations & Maintenance Program Description The Parking Services program implements the Access and Parking Management Plan and directs the operation and maintenance of the City's parking lots, on -street metered spaces, parking structures, residential permit parking districts and timed parking areas. Objectives Promote economic and social vitality in the downtown core. Implement the Conceptual Physical Plan for the City's Center. Provide enough parking in the commercial core for visitors and employees. Reduce parking demand. Implement the transportation strategy presented in the General Plan Circulation Element. Activities Compliance/Enforcement. Parking Fund Revenue Management. Structure Operations. Parking Management and Demand Reduction Program Budget Actual Budge& 2019-20 2020-21 [20210-22 Staffing $1,465,774 $1,177,211 Contract Services $626,375 $776,265 Other Operating Costs $396,169 $460,678 Total Program $2,488,319 $2,414,155 $1,666,213 $553,265 $568,201 $2,787,679 Change 2022-23 42% $1,803,012 -29% $449,265 23% $580,133 15% $2,832,411 Change 2% 348 TRANSIT FUND • 349 Page intentionally left blank. 350 1 2 3 4 5 6 7 8 9 TRANSIT FUND LONG TERM FORECAST Federal $ 2,308 $ 3,477 $ 3,547 $ 1,463 $ 1,567 $ 1,613 $ 1,638 State $ 780 $ 858 $ 2,973 $ 1,976 $ 2,012 $ 2,050 $ 2,123 State (Direct Contribution to RTA from SLOCOG) 1 $ 580 $ 691 $ 634 $ 712 $ 726 $ 740 $ 755 Local $ 689 $ 473 $ 750 $ 800 $ 840 $ 850 $ 850 Secured Grant $ - $ 690 $ 109 $ - $ - $ $ Unsecured Grant or Funding $ - $ - $ - $ - $ - $ - $ - TOTAL ObligationsExpenditures & $ 4,356 $ 6,189 $ 8,012 $ 4,950 $ 5,145 $ 5,254 $ 5,366 10 Non -Operating Annual Expenditures 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Contribution to RTA Directly from SLOCOG 1 Operating Annual Expenditures ' Operating Expenditures - Purchased Transportation $ 580 $ 691 I $ 634 $ _ $ 2,563 $ 2,849 $ 2,949 $ 712 2,896 $ 726 $ 740 $ 755 1 $ 2,980 $ 3,039 $ 3,100 Operating Expenditures - Fuel & Maintenance $ 487 $ 545 $ 553 $ 560 $ 588 $ 617 $ 648 Operating Expenditures- Overhead/Ad min $ 432 $ 449 $ 482 $ 496 $ 500 $ 504 $ 508 Operating Expenditures - Cost Allocation $ 277 $ 322 $ 226 $ 231 $ 235 $ 240 $ 245 Capital Expenditures 2 $ 18 $ 1,744 $ 2,825 $ - $ - $ - $ - Depreciation/ GASB Adjustments $ 415 $ - $ - $ - $ - $ - $ - TOTAL $ 4,772 $ 6,600 $ 7,669 $ 4,895 $ 5,030 $ 5,142 $ 5,257 PositionChanges in Financial Beginning Working Capital $ 2,788 $ 2,372 $ 1,961 $ 2,305 $ 2,360 $ 2,475 $ 2,588 Revenues Over / (Under) Expenditures $ (416) $ (411) $ 343 $ 55 $ 115 $ 113 $ 110 Ending Working Capital $ 2,372 $ 1,961 $ 2,305 $ 2,360 $ 2,475 $ 2,588 $ 2,697 Operating Reserve $ 755 $ 833 $ 842 $ 837 $ 861 $ 880 $ 900 Unreserved Working1: 1. This funding is directly provided by SLOCOG to RTA from the City's apportionment of State funding. While the City does not receive this revenue or the associated expense, this shows the value of services provided by RTA and the City's share of that cost. 2. Capital Projects are highly reliant on future discretionary grant funding. Capital Projects and the associated grant revenue for outer years are not included in the long-term forecast at this time. Projects will not move forward unless funding is secured. However, in order to apply for funding, Council must approve the projects first. The long-term forecast will be updated and presented to Council on an annual basis. 351 Transit Fund The Service of Public Transit SLO Transit is the local fixed -route public transit operation for the City of San Luis Obispo. SLO Transit operates 14 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. Services operate 363 days a year. On average, one million rides are utilizing the service annually. Ridership demographics reflect a broad cross section of the community, including seniors, disabled community members, Indigent, K-12 students, University students, commuters and visitors. Trips are routinely taken to access educational, medical, employment, commercial and social services throughout the area. Transit services play a vital role, not only as a "safety net" for the transit - dependent, but also addresses climate change issues associated with greenhouse gases. The Transit Enterprise fund closes out the 2019-21 Financial Plan with a balanced budget. The budget is balanced for 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 forecast purposes have been projected at current contract cost. 2021-23 Financial Plan Key Assumptions When preparing the budget, the Transit Division analyzes past subsidies (federal, state, and the Cal Poly contract) and ridership trends to forecast revenues. Transit service based on costs are then matched to revenue forecasts. Bus replacement schedules are based on federally approved "useful -life" criteria and best -case scenarios for aging vehicles. However, the availability of funds is highly dependent on discretionary grants from the state and federal government. Without these subsidies, bus replacements are often deferred. The budget prepared for this two-year financial plan follows a "zero based budgeting" approach, considering each line item and its future needs anew. 352 Transit Fund FUND REVENUES As an Enterprise Fund, Transit funds its operations within subsidy and fare revenues. Revenues are projected to sufficiently keep pace with escalating costs. However, any expansion of the transit program will require additional funding sources. Federal funding assistance is provided to SLO Transit in the form of Federal Transit Administration (FTA) 5307 grant funds that can be used for transit service operating and capital expenses. These Federal resources are available to urbanized areas, with a population of 50,000 or more. The SLO Urbanized area includes populations of Cal Poly and adjacent county areas which reach the 50,000 population criteria. The federal share for the funding of any one of these activities is not to exceed 50 percent of operating expenses or 80 percent of capital expenses of the net project cost. State funding assistance is provided to SLO Transit in the form of the State's Transportation Development Act (TDA) funding. TDA is comprised of two sources of funding for transportation programs. The first is Local Transportation Fund (LTF) which is derived from % cent retail sales taxes, the second is State Transportation Assistance (STA) which is derived from the statewide sales tax on diesel fuel. Both funds are distributed to the regions by the State. San Luis Obispo Council of Governments (SLOCOG) then allocates this amount regionwide to each of the seven cities, the County of San Luis Obispo, and the Consolidated Transportation Services Agency for the San Luis Obispo region. LTF funds are apportioned according to population numbers, for: public transit, street/road improvements and bikeway/pedestrian facilities. STA funds are formula -based and used for public transit purposes. Local revenue from cash fares, pass sales and Cal Poly uses (an agreement with Cal Poly providing a Transit pass for students), is 20% of the total Transit Fund operating budget. These sources are expected to see modest gains; enough to meet the mandated farebox recovery. Cal Poly plays a considerable role in the generation of local farebox and the overall health of the Transit Fund. The last four-year agreement expired June 30, 2016. Staff has been working with Cal Poly administration to develop a new agreement since that time. To date, the agreement has been annually extended multiple times. The University has requested another one-year extension as both SLO Transit and Cal Poly transition from away from pandemic operations. This extension will be provided for Council's consideration in the coming months. The crux of this issue for Cal Poly is that the university is receiving a large number of services verses the funding that it provides. Additionally, Cal Poly has yet to define and obtain an additional funding source so that it may contribute more towards the transit services provided. Providing this transit service to Cal Poly also benefits the City's transit system to be able to meet local generated revenue targets and a large increase in ridership. The new agreement will need to address each agency's benefits from the agreement and be financial sustainable for the long-term. The transit fund is anticipating that cash fares will likely continue to be impacted by the pandemic and potentially lower ridership and revenue generation. 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 farebox requirements. 353 Transit Fund To better support SLO Transit's customers during the pandemic, between March 2020 and July 2020 SLO Transit went fare -free and delayed the planned July 2020 rate increases. This action 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. Revenue Forecast Federal Funding $2,307,585 $3,477,321 $3,546,517 $1,462,600 State Funding $779,667 $858,414 $2,973,064 $1,975,804 State (SLOCOG)l $580,000 $690,993 $633,596 $711,723 Local Fare Box Revenue $688,506 $473,040 $750,000 $800,000 Other Secured Grant $689,641 $109,000 Total Revenue $4,355,767 $6,189,409 $8,012,177 $4,950,127 In order to maintain Federal and State Funding, the local jurisdiction has to provide at least 20% of revenue from its bus fares and set rates accordingly. Legislation acknowledged the toll Covid- 19 has taken on transit services and FY2019-20 and FY2020-21 were not held to that mandate. The required revenue corresponds with the base subsidies and does not apply to additional funding received through the CARES and American Rescue Plan Act, nor can CARES and American Rescue Plan Act funding be used as a contribution towards the 20% revenue for fares. FUND EXPENDITURES Operating Programs As mentioned, reduced usage of public transit during the pandemic has resulted in lowered expenditures. It is uncertain when ridership will return to "normal" after the pandemic. Under 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 releasing a Request for Proposal for 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 mentioned previously, negotiations with Cal Poly to develop a short-term Transit Service Agreement continue. While both agencies desire a long-term agreement to service Cal Poly's transit needs, many unknowns remain concerning recovery from the pandemic and how quickly riders will return to public transit. Part of that conversation is also focused on the capital investment needed to "green the Transit fleet" and the proportional share of this substantial investment for all users. 1 This funding is directly provided by SLOCOG to RTA from the City's apportionment of State funding. While the City does not receive this revenue or the associated expense, this shows the value of services provided by RTA and the City's share of that cost. 354 Transit Fund Expenditure Type* Staffing Actual 0• $357,718 Budget 020 $327,181 Budget $358,181 Budget $372,314 Contract Services $2,562,826 $2,849,033 $2,949,033 $2,895,950 Other Operating Costs $561,239 $666,800 $676,600 $684,100 Cost Allocation $276,806 $321,727 $226,183 $230,707 Contribution to RTA1 $580,000 $690,993 $633,596 $711,723 Total $4,338,589 $4,855,735 $4,843,593 $4,894,793 *Operating costs only, does not include capital or depreciation (as shown in the long-term forecast). Proposed Operating Budget Enhancements The Transit Fund is requesting two SOBCs as outlined below. These costs are included in the long-term forecast and division expenditures overview. Regional Transit Authority Analysis The RTA is currently building a Regional Transit HUB 800 feet from the City's SLO $ 50,000 Transit Bus Yard. Much of the infrastructure that supports SLO Transit is aged and nearing the end of its lifespan. All transit providers are required to shift the fleet of transit vehicles to zero emission vehicles. This funding would support the analysis and review of SLO Transit's operations and infrastructure to determine if there is an advantage to sharing infrastructure, equipment or centralizing services with RTA at the same or reduced costs. Transit Innovation Study Prepare a Transit Innovation Study to provide a blueprint to guide Transit to $ 50,000 increased service frequency, electrification, and feasibility of no -fare service for students, seniors, and others as called for in CAP Connected Communities strategies 4.2, 4.3, and 4.4. Total I $100,000 355 Transit Fund Capital Improvement Plan The City of San Luis Obispo Transit Division maintains several capital assets. 1. 17 Revenue Vehicles and two Support Vehicles 2. Operations & Maintenance Facility 3. Bus wash system 4. Transit Center with Sawtooth bays and four deluxe shelters 5. 165 bus stops Capital needs are based on federally approved "useful -life" criterion and best -case scenarios for replacing aging equipment. Capital projects continue to be a challenge for the Transit Fund due to its reliance 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 projects. Capital Improvement Projects 1 1 Bus Shelter Replacement 2 Bus Replacement with Electric Vehicles 3 Bus Yard Parking Lot Maintenance a EV Bus Infrastructure s Bus Wash Replacement 6 Vault Room Addition Study 7 Replace Supervisor ADA Van with EV s VM Infrastructure Upgrade (Transit Portion of Project) 9 Uninterruptible Power Supplies (Transit Portion of Project) 10 City SAN (Transit Portion of Project) 11 Wireless Infrastructure Upgrade (Transit Portion of Project) 12 $ 105,000 $ - $ 1,854,000 $ 1,910,000 $ 5,000 $ 500,000 $ 715,000 $_ $75,000 $ 450,000 $ - $ 15,000 $ 70,000 $ - $955 $246 $1,121, $2,036 TOTAL $ 2,825,201 $ 2,878,157 z Capital Projects are highly reliant on future discretionary grant funding. Capital Projects and the associated grant revenue for outer years are not included in the long-term forecast at this time. Projects will not move forward unless funding is secured. However, in order to apply for funding, Council must approve the projects first. 356 Employee Summary —Transit Fund Transit Operation 3 3 Transit Manager 1 1 Transit Assistant 1 1 Transit Coordinator 1 1 357 Operating Budget Transit Fund Transit Operations & Maint. Public Works Transit Operations and Maintenance Program Description The Transit Program provides local fixed -route public transit operations within the 23 square miles of the City and adjacent Cal Poly University. Objectives Quality transportation for transit dependent people. Convenient transportation for all residents. An attractive alternative to driving which can reduce traffic congestion and air pollution. Activities Administration. Vehicle Operations and Maintenance. Non -Vehicle Maintenance. Program Budget 2017-18 2018-19 2019-20 Change 2020-21 Change Staffing $357,718 $327,181 $358,181 9% $372,314 4% Contract Services $2,562,826 $2,849,033 $2,949,033 4% $2,895,950 -2% Other Operating Costs $561,239 $666,800 $676,600 1% $684,100 1% Total Program $3,481,783 $3,843,015 $3,983,814 4% $3,952,364 -1% 358 Operating Budget Downtown SLO Downtown SLO Assessment Downtown SLO Business Improvement District Program Description The Downtown Business Improvement District (DBID) was established in 1975 as a parking and promotions district for the City's downtown area. As a special fee district, fees are collected from business license holders operating within the designated area and revenue supports the operations of Downtown SLO, a non-profit organization. The City and Downtown SLO (DSLO) agreed by contract that DSLO would provide various services for the economic, social, cultural, and environmental vitality and beautification of downtown San Luis Obispo. The assessment is a special revenue and is administered through a separate and distinct fund. Objectives Support the vitality of downtown San Luis Obispo Assist with economic recovery efforts and attract people to shop and dine downtown Activities Special Events. Integral to DSLO's services is the provision of special events in the downtown. Those events include: 1. Holiday Activities such as the Annual Downtown Holiday Parade, Santa's House and the Classic Carousel in Mission Plaza 2. Concerts in the Plaza 3. Thursday Night Promotions including the Farmers' Market Services such as: events in Mission Plaza; downtown maintenance, plaza activation & beautification; economic recovery and development 359 Operating Budget Downtown SLO Downtown SLO Assessment Revenue The Downtown Business Improvement District assessment is collected annually with the Business Tax renewal as it is based on the gross receipts of businesses located within the geographical boundary of the Downtown District. Revenue MoftI gr k -J 2019-20 2020-21 2021-22 Change 2022-23 Change Assessment Revenue $271,714 $252,588 $245,0001 -3% $260,400 6% Program Operating Budget Actual 2019-20 Budget 2020-21 2021-23 2021-22 Financial Change Plan 2022-23 OEM - Change Staffing Contract Services Other Operating Costs Total Program $272,165 $252,588 $245,0001 -3% $260,400 6% - - - - - - $272,165 $252,588 $245,000 -3% $260,400 6% 1 Decrease based on projected revenue from DBID assessment. Downtown business closures and vacancies will lead to fewer business renewals. 360 Operating Budget TBID Fund Tourism & BID Promotion Tourism Business Improvement District Promotion Program Description The City established a Tourism Business Improvement District (TBID) as requested by the local lodging industry in 2008. The district levies an assessment on all lodging properties for the purpose of tourism promotion for the benefit of the district's constituents. The assessment is a special revenue and is administered in a separate and distinct fund. Objectives Continue diverse marketing efforts to promote overnight stays in San Luis Obispo. Actively participate in local, regional and state organizations such as Visit SLO CAL, Central Coast Tourism Council, Downtown SLO, and other tourism organizations. Activities Tourism marketing efforts. Promote and sponsor events that attract visitors from outside the County of San Luis Obispo. Coordination with strategic local, regional and statewide tourism partners. Participation in tourism tradeshows and industry conferences. Development, management, and implementation of the City's TBID Strategic Plan. 361 Operating Budget TBID Fund Revenue Tourism & BID Promotion The TBID assessment levy was set at 2% of the lodging industry's gross receipts. For this Financial Plan the following collection is anticipated: Revenue Actual Bucllv� XL L 2019-20 2020-21 2021-22 Change 2022-23 Change Assessment Revenue 1 $1,274,048 $1,254,800 $1,444,000 15% L!�552,000 7% 1 - Includes projected interest revenue Program Operating Budget Actual 2019-20 Budget 2020-21 2021-23 2021-22 227,580 Financial Change Plan 2022-23 '4111 Change Staffing 201,126 213,320 7% 232,064 2% Contract Services 1,089,786 Other Operating Costs 92,297 Total Program $1,383,208 923,000 1,125,920 18% 1,229,436 9% 89,100 89,100 -3% 89,100 0% $1,225,420 $1,442,600 15% $1,550,600 7% 362 Operating Budget Boysen Ranch Conservation Fund Boysen Ranch Boysen Ranch Program Description Boysen Ranch consists of approximately 116 acres bounded by Los Osos Valley Road, Foothill Boulevard, and O'Connor Way. In 2005, the City accepted and currently holds a series of conservation easements that protect approximately 25 acres at the Boysen Ranch to mitigate for impacts to wetlands and waters by the Home Depot, Costco, and other Irish Hills Plaza development projects on Los Osos Valley Road. Boysen Ranch is part of the City's designated greenbelt. The funding was set up as an endowment to fund monitoring and maintenance of the restored wetland area. Objectives • Continue to monitor and maintain the approximately 25 acres of conservation easement area as part of the City's greenbelt. • Continue to monitor and maintain the wetland restoration areas. Activities >- Monitor the property to ensure adherence to conservation easement terms and successful recruitment of wetland functions and values. Revenue The Boysen Ranch Conservation Fund projects to earn $2,000 annually in investment and property revenues. 363 Operating Budget Boysen Ranch Conservation Fund Boysen Ranch Revenue 2019-20 2020-21 2021-22 Change 2022-23 Change Investment and Property $11,800 $2,000 $2,000 - $2,000 Revenues - Program Budget 2019-20 2020-21 2021-22 Change 2022-23 Change Total Program $3,341 $7,500 $7,500 - $7,500 - Fund Balance As of 2019-20 Year End Boysen Ranch $427,140 The Boysen Ranch Conservation fund balance is restricted for spending on mitigation requirements of the United States Army Corps of Engineers in order to offset the loss of wetlands and associated habitat that occurred with the development of Irish Hills Plaza projects on Los Osos Valley Road. The City Council accepted a series of conservation easements that encumber a portion of Boysen Ranch on Foothill Boulevard where the required wetland restoration and enhancement activities took place. The funds can only be used for long-term maintenance and monitoring of the wetland restoration projects, as well as for the long-term administration of the conservation easements. 364 DEBT SECTION LOA ro ; klq4.. Ko I AFQMA M- I • 365 Page intentionally left blank. 366 �N I The City of San Luis Obispo is guided by its budget and fiscal policies when managing its debt. In accordance with the policy section "Capital Financing and Debt Management": • The City's debt capacity cannot exceed 15% of General Fund revenues. • Its direct debt will not exceed 2% of assessed valuations. • No more than 60% of capital improvement outlays will be funded from long-term debt. Debt should only be incurred for one-time capital expenditures and not for on -going operations. Borrowing for one-time capital expenditures allows for the cost of the project to be spread over the useful life of the asset and results in the cost being paid by future beneficiaries as well as current taxpayers. Debt Management The City's bond issues are periodically reviewed by rating agencies to provide insight to the City's financial outlook and hence its creditworthiness. The 2018 refinancing of three different lease revenue bonds was rated by Standard & Poor's that gave the City an AA rating. Fitch Ratings reviewed the City's financial condition during the Winter of 2021 and upheld its AA+ rating despite Covid-19 emergency conditions by reflecting on: • The City's strong operating performance, a moderate long- term liability burden, strong revenue growth and solid expenditure flexibility offsetting a constrained revenue raising environment. • The City's gap closing capacity being superior given ample reserves and moderate revenue volatility. • Budget management at times of recovery being very strong, leaving the City well prepared to manage the current period of economic stress. • The City's engagement in thorough and conservative long- term financial planning with a focus on maintaining structural budget balance. • The City maintaining its capital assets with minimal debt reliance and proactive efforts to pay down its unfunded retirement liabilities above actuarially determined levels. • Extremely strong capacity to meet financial commitments. Highest rating. • Very strong capacity to meet financial committments. • Strong cpacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstance. • Adequate capacity to met financial commitments, but more subject to adverse economic conditions. • Less vulnerable in the near -term, but faces 1 major ongoiong uncertainties to adverse J business, financial, and economic conditions. • Currently vulnerable and dependent on favorable business, financial, and economic conditions to meet financial committments • Highly vulnerable; default has not yet occured, but it is expected to be a virtual certainty. �. • Currently highly vulnerable to non-payment, and ultimate recovery is expected to be lower than that of higher rates obliations. 367 The City's Current Debt The City currently holds $205 million in overall outstanding debt in a combination of lease revenue bonds, State Revolving Fund loans, Infrastructure -Bank loans, and vehicle leases. The longest outstanding maturity is to 2052. $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Debt Principal & Interest Payments WIZO ►AWAS)" iZIM, ■ ■ GENERAL ■ PARKING ■ SEWER ■ WATER In numbers, the City's debt payments for each of its funds are considered in its long-term financial assumptions and will amount to: 20221 GENERAL $ 2,214,456 PARKING*Year $ 855,278 $ 1,384,469 $ 2,448,846 $ 6,903,041 20231 $ 2,209,804 $ 851,577 $ 7,189,731 $ 2,442,083 $ 12,693,195 2024 $ 1,842,660 $ 852,116 $ 7,285,299 $ 1,870,392 $ 11,850,467 2025 $ 1,757,889 $ 850,609 $ 7,100,094 $ 1,868,807 $ 11,577,399 2026 $ 1,750,515 $ 848,810 $ 7,098,607 $ 1,865,911 $ 11,563,843 2027 $ 1,539,618 $ 745,641 $ 7,090,097 $ 1,855,405 $ 11,230,761 2028 $ 1,539,404 $ 742,858 $ 7,088,453 $ 1,854,858 $ 11,225,573 2029 $ 1,540,008 $ 742,630 $ 7,086,939 $ 1,852,923 $ 11,222,500 2030 $ 1,543,477 $ 741,756 $ 6,469,600 $ 1,864,401 $ 10,619,233 2031 $ 1,142,757 $ 740,233 $ 6,468,162 $ 1,853,539 $ 10,204,691 *Current debt only 12022 and 2023 General Fund debt amounts include a $217,671 obligation that is transferred directly from the IT Replacement Fund to the Debt Service Fund. Therefore, the amount in the General Fund long-term forecast does not include this loan. 368 The following tables outline by fund: the current debt, the purpose, the outstanding principal, the annual debt service cost, and the retirement year of the debt. Several smaller debt issues are falling off in 2024, but the next significant retirement of debt payments is not scheduled until 2030. General Fund Debt Detail and Debt Retirement OutstandingDebt Issue - Asset Principal Payment FY 2022 Year 2012 Refunding Bond (Damon Garcia Sport Fields) $2,970,000 $383,400 2030 2014 Revenue Bond — LOVR Overpass $6,635,000 2018 Refunding Bond (919 Palm Street & Dispatch $9,212,575 Center) 2018 Lease — Fire Truck $316,104 2014 State Loan — Energy Conservation $232,111 $420,231 2045 $945,333 2039 $146,131 2024 $ 94,242 2024 2017 Lease — Golf Carts $9,300 $ 7,448 2023 2020 Lease — Motorola Radios $435,342 $19,810,432 $217,671 2023 General Fund Debt policy adherence: FY 2022 Revenue $99,801,000 Debt Payments $ 2,214,456 Percentage of Revenue 2.2% Maximum Allowed 15% Parking Fund Debt Detail and Debt Retirement FY 2022 2001 State I- Bank Loan - Marsh St. Garage $3,763,140 $415,085 2032 2018 Refunding Bond (919 Palm Street Structure) $4,289,825 $440,193 2039 The Parking Fund will begin to construct its fourth Downtown parking structure in 2023-24. To finance the construction cost, the fund will seek a loan for $35 million to be financed over 30 years. 369 Sewer Fund Debt Detail and Debt Retirement 2022 2008 Suntrust Loan $515,000 $183,165 2024 2009 State I -Bank Loan - Farm Lift Station $6,938,580 $553,411 2038 2014 US Bank Wastewater Lease Agreement $4,404,405 $617,584 2029 2018 Refunding Bond (Dispatch Center) IM06 $295,365 $30,308 2039 2019 SRF Loan — WRRF Upgrade 1 $140,000,000 2052 The Sewer Fund has approval for a $140 million, 30-year loan from the Clean Water State Revolving Fund (SRF) for the upgrade of the Water Resource Recovery Facility. The loan carries a 1.8% interest rate with an annual payment of $ 5,902,953 with the first payment of $5,808,792 anticipated in 2023. Water Fund Debt Detail and Debt Retirement 370 CAPITAL IMPROVEMENT PLAN • 371 Page intentionally left blank. 372 Capital Improvement Program 21-23 Capital Improvement Program The Capital Improvement Program (CIP) enables the City to plan, schedule, and finance capital projects to ensure cost effectiveness and conformance with established plans and policies. The City's budget process guides the capital priorities through community input, Council goal setting, Local Revenue Measure priorities, and the biennially adopted Major City Goal work programs. 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 because it allows for the City to forecast, plan and in turn budget over a longer time horizon that aligns better with the lifespan to deliver a capital improvement project. 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. Minor capital outlays costing less than $25,000 are included with the Financial Plan operating program budgets. Capital asset maintenance and replacement represent one of the fundamental functions of local government. Many capital projects extend the life of existing City assets like streets, parks, bridges, water and sewer pipelines, and plants. Other projects replace aging facilities and equipment. Finally, some projects, representing community desires and Council priorities, are new projects intended to enhance the overall quality of life of residents and visitors. Based on the Council determined goals, and balanced with the City's financial circumstances, the recommended capital improvement projects total $128 million for the 2021-23 Financial Plan and $384.5 million over the five-year plan. Unprecedented 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 available CIP budget has nearly tripled because of the voters' general support of Measure G20, the City's local sales tax measure. Moreover, the City is receiving funds from the American Recovery Plan and has the potential to receive additional grant funds for capital projects as part of potential Federal Government funding. What this means is that there is continued uncertainty and there will be a need for a sustained effort to identify, leverage and secure additional funds to deliver vital and meaningful infrastructure projects. Page 1 1 373 Capital Improvement Program 21-23 Acknowledgments A capital budget and plan document takes countless hours of teamwork, collaboration, and patience to produce. I would like to offer special thanks to departments involved in developing the CIP as led by Public Works in partnership with Administration and IT, Community Development, Finance, Fire, Parks and Recreation, Police and Utilities. Completing this budget could not have been accomplished without the skill, dedication, and professionalism of this team. Their willingness to work through these unique circumstances and sacrifice countless hours are a testament to their commitment to this organization and to the community. Special thanks are also due to the CIP Review Committee of Shelly Stanwyck, Greg Hermann, Matt Horn, Brian Nelson, Brigitte Elke, Natalie Harnett, Keith Aggson, Greg Avakian, Aaron Floyd, Jennifer Thompson, Miguel Barcenas, Tavy Garcia, Chris Read, Debbie Malicoat, Esteban Cano, James Blattler, and Rebecca Bernstorff. I am also grateful to the Department Directors of our Leadership Team and the department personnel who worked on the material. There are too many to list here by name, but the budget could not have been produced without the analysts, division managers, administrative assistants, and others throughout the organization who helped produce this CIP. Page 1 2 374 Capital Improvement Program 21-23 Reader's Guide The following pages provide a high-level summary of the steps in the process of how infrastructure needs become projects implemented through the City's CIP. The rest of the guide provides detailed supplemental information. Introduction: What is Infrastructure? Infrastructure is the basic physical structures, systems, and facilities needed to provide critical services to the community such as sidewalks, streets, parks, fire stations, police BIKEWAYS facilities, and water and wastewater systems. BRIDGES Infrastructure impacts the public health, safety, and quality of life of San Luis Obispo neighborhoods, businesses, and visitors. Different entities are COMPLIANCE WITH ADA SIDEWALK A IMPROVEMENTS WATER & SEWER 00 FACILITIES GENERAL .•••••.•••• FACILITIES PF PARKS & RECREATION MMEAQ LLTI E S responsible for installing and INFRASTRUCTURE WITHIN TNECITY'SARIA OF RESPONSIBILITY STREETLIGHTS & TRAFFIC SIGNALS STREET IMPROVEMENTS STORM DRAINAGE & FLOOD CONTROL FACILITIES maintaining the infrastructure that they POLICE FIRE FACILITIES ` own and operate, within their FACILITIES ul boundaries or jurisdiction. For example, the City of San Luis Obispo is responsible for maintaining assets such as storm drains, streets, facilities, and the other items listed in the graphic on the right. Multiple City departments own or maintain these assets, known as asset -managing departments. The County of San Luis Obispo, State of California, and U.S. governments also have responsibility for assets within the City of San Luis Obispo, including respective facilities, roads, and highways. CIP Definitions & Policies A. CIP Project Amount: Construction projects and equipment purchases that cost $25,000 or more will be included in the CIP. Minor capital outlays of less than $25,000 will be included with the operating program budgets. B. CIP Purpose: The purpose of the CIP is to systematically plan, schedule, and finance capital projects to ensure cost-effectiveness in conformance with established policies. The CIP is a five-year plan organized into the same functional groupings used for the operating programs. The CIP reflects a balance between Page 1 3 375 Capital Improvement Program 21-23 capital replacement projects that repair, replace, or enhance existing facilities, equipment, or infrastructure; and capital facility projects that expand or add to the City's existing fixed assets. C. Project Manager: Every CIP project will have a project manager who will prepare the project scope, ensure that required phases are completed on schedule, authorize all project expenditures, ensure that all regulations and laws are observed, and periodically report project status. D. CIP Review Committee: Headed by the City Manager or his/her designee (currently the Public Works Director), this Committee will review project proposals and scope, determine project phasing, assign project managers, review, and evaluate the draft CIP budget document, and report CIP project progress on regular basis. E. CIP Appropriation: The City's annual CIP appropriation for study, design, acquisition and/or construction is specific to the projects designated by the Council through adoption of the Financial Plan. Adoption of the Financial Plan CIP appropriation does not automatically authorize project contract expenditures and any expenses and purchases must conform to Municipal Code requirements. Spending approval generally occurs only after the preceding project phase has been completed. Accordingly, construction expenditure approvals are generally made when Council authorizes the release of the project plans and specifications for bidding. In that same action the Council authorizes a contract to be entered into if the project costs are within the budgeted amount. F. CIP Budget Carryover: Appropriations for CIP projects lapse three years after budget adoption if spending approval has not been obtained (see CIP Appropriation). Project accounts, which have received spending approval, will not lapse until completion of the approved project phase. G. Public Art: CIP projects are evaluated during the budget process for conformance with the City's Public Art policy, which generally requires that 1% of eligible project construction costs be set aside for public art. Excluded from this requirement are underground projects and utility infrastructure projects. It is generally preferred that public art be incorporated directly into the project. In the case this is not practical, an in -lieu contribution to public art will be made. To ensure that funds are adequately budgeted for this purpose regardless of whether public art will be directly incorporated into the project, funds for public art will be identified separately in the CIP. H. General Plan Consistency Review: The Planning Commission will review the preliminary CIP for consistency with the General Plan as required by California Government Code Section 65401 and provide its findings to the Council prior to plan adoption. 376 Page 14 Capital Improvement Program 21-23 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 project types. In categorizing projects and considering them for funding, the CIP Review Committee engaged in a rigorous ranking and review process to develop the proposed project list 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 CIP Review Committee evaluation of project feasibility. CIP Project Categories The City categorizes CIP projects into broad functional areas that represent fundamental local government activities. Projects within 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 Page 15 377 Capital Improvement Program 21-23 spaces to name a few. In addition to the maintenance of existing assets, assets at the end of their life expectancy may need replacement or substantial remodel. Less frequent but more significant are design and construction efforts for new projects on the community and City Council prioritize to enhance the overall quality of life in the City. 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 federal government grants. This increased funding is accompanied by a significant number of 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 will need additional engineering and/or project delivery staffing Page 1 6 378 Capital Improvement Program 21-23 resources. Staff is currently analyzing the project resources required to deliver the proposed capital plan over both the two -year and the five- year forecast period. While City staffing levels are adequate to deliverthe 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, will require additional staffing. Additional project staffing resources are not reflected in any proposed operating budgets in the 2021-23 Financial Plan, instead a general cost estimate for future expansion of CIP staff is included as a line item in the proposed CIP and is planned to be incorporated into the cost of the project's delivery. Staff is working with a consultant group, Management Partners, to best determine the organizational structure, job types, and functions, and methods of costing to right -size the engineering team. This consultant group has performed this service for other agencies, including Midpeninsula Regional Open Space District that experienced a similar growth in capital budgets due to large revenue increases. Staff anticipates returning to the City Council in February 2022 with recommendations on staffing, policy, and bid process changes to optimize CIP delivery and incorporate any new projects as a result of revenue offsets such as grant funding to advance active transportation or other projects that accelerate policies or Major City Goals. General Fund Capital Expenditures (in thousands) $30,000 $25,000 $20,000 $15,000 510,000 $5,000 ' Actual FY Actual FY Actual FY Actual FY Budget Budget Budget Projected Projected Projected 16/17 17/18 18/19 19/20 FY20/21 FY21/22 FY22/23 FY 23/24 FY 24/25 FY 2526 Page 17 379 Capital Improvement Program 21-23 CIP Project Life Cycle PROJECT IDENTIFICATION AND BUDGETING � } developed detailed Information Geo-technical 4 Pavement deflections and caring Hazardous or contarolni ted materlals Coordinate guidies and testing with Third Party Utilities -4--- PROJECT DESIG 50% Plan design Review 90% Plan Reviewf Design Iteniex Draft plans Meetings and input Design Supervisor, Construction Supervisor, Traffic Engineer Review Pre re summary of plan reaiew mmments and any Impacts for project scope schedule Revise and budget and furnish to team Public Input Advisory Body Review Additional Public Input FnequEnt Permit Applications Army Corp of Engineers (ACOE) Fish g Wildlife (F&W) Regional Water Quality Control Board (RWQCB) Union Pacific Railroad (LIPRR) Air Pollution Control Dlstrlct (APCD) Caltrans Encroachment Design Complete 100% Plan Review PERMITS City Building Permit Submlt plans to the Building Department Building Department reviews Emrironmental Address Building Department comments Review Resubmit Plans, Specifications and of CIP Estimates to Bullding Department Building Department Issues permit 100% Plans, Estimate and Advertise Project for Public Bid Special Provisions Prepare report and route for approval Advertise project to Construction I ndustry Build InZ Perm It Issued and Encroachment Bid opening "CADY To C014511A) Project Comm unications Initial mntact with property owners Inform Public Engage Public Award CIP Construction Corrtract Award Report Execute contracts and Insurance Begin Public Information Campaign FINISH! Q1 . Pre -construction meeting Proliect Complete Rlhbon rutting . Public outreach Notice of completion project Work days — warles by closeout CONS�R�; Page 1 8 380 Capital Improvement Program 21-23 Project Prioritization Because the City's infrastructure needs during some years may exceed available funding, department staff must prioritize capital improvements projects. The CIP Review Committee meet numerous times to understand and rank projects. All projects are categorized as follows: 1. Annual Asset Maintenance: Reoccurring and annual needs that maintain existing assets. These projects are not ranked and automatically included in the baseline CIP recommendation. Annual funding amounts may be scaled to address community needs and organizational priorities. 2. Asset Replacement: Periodically reoccurring and/or annual needs that replace existing assets with similar new asset. 3. New Asset: Periodic needs to expand the number of assets that serve the community. In preparing the recommended CIP for 2021-23 the CIP Review Committee ranked Asset Replacement and New Asset projects using the following evaluation factors to set priorities: Does the project address a Measure positive impacts toward climate change goals (e.g- reductions in fossil fueVenergy consumption or increased carbon storage with tree plantings)? Does the project address pandemic response needs (safety, economic recovery)? ❑oes the project Does the project address enhance safety, core infrastructure commitments (e.g. previously approved by paused projects or consistent with adopted plans}? Does the project address diversity, equity, and or inclusion needs? able to see, touch, use, the improvement? The City Council recently adopted Resolution No. 11159 (2020 Series) establishing a goal of communitywide carbon neutrality by 2035 and municipal operations carbon neutrality by 2030. The City's CIP is a critical component in achieving these goals. Examples of projects or project components that are in alignment with those ambitious goals are: 1. Elimination or reduction of vehicle miles traveled (e.g., active transportation and transit improvements), 2. Elimination or reduction of fossil fueled appliances, vehicles, and equipment, 3. Reduced energy consumption (e.g., efficient mechanical equipment, efficient lighting, etc.) 4. Carbon storage through tree planting or landscape management, and 5. Solid waste/ green waste diversion. Criteria Used & Strategies Applied Asset -managing departments that operate, manage, or maintain assets —such as Public Utilities, Transportation, Storm Water, and Parks & Recreation —are responsible for identifying needed capital projects. 381 Page 19 Capital Improvement Program 21-23 Department staff generally identify needed CIP projects based on one or more of the following: 1. Policy direction from the City Council. 2. Legal requirements or mandates. 3. Plans that guide implementation of Citywide, regional, departmental, and/or community goals. 4. Formal assessments of the condition of assets, and systems that use this information to identify the best approach for addressing needs. 5. Department staff assessments of needs based on experience, repair and maintenance records, and observations. 6. City Council priorities. 7. Public input through City Councilmembers, planning or advisory committees, and/or budget hearing. Funds and Funding Sources The 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 expenditures are made up by a wide variety of funding sources. As noted, the Local Revenue Measure is the most significant contributors. But there are numerous other financial resources that are brought to bear in funding capital projects such as grants, statewide proposition dollars, and debt issuance. 1 Asset Replacement $31,318,163 $28,266,845 $13,930,000 $8,140,000 $70,087,000 Sum of 5 $151,742,008 2 Annual Asset Maintenance $16,041,993 $15,915,403 $16,054,024 $14,000,015 $12,931,180 $74,942,615 3 New Asset $13,062,000 $20,243,597 $46,902,000 $67,555,000 $6,250,000 $154,012,597 4 CIP Project Delivery Augmentation $500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $4,500,000 5 Grand Total $60,922,156 $65,425,845 $77,886,024 $90,695,015 $90,268,180 $385,197,220 Page 1 10 382 Funding Sources Capital Improvement Program 21-23 CAPITAL OUTLAY FUND This fund was established to account for all of the City's construction projects and capital purchases in excess of $25.000 with the exception of those funded through non -major capital project funds and Enterprise Funds. Financing is provided primarily through transfers in from the General Fund. and from State and Federal Grants. INFRASTRUCTURE INVESTMENT FUND This fund was established to provide financing to infrastructure projects that have a wide community benefit. Financing is primarily provided through operating transfers from the General Fund. INFORMATION TECHNOLOGY REPLACEMENT FUND This fund was established in FY 12-13 to account for the financing and replacement of information technology for all General Fund programs of the City. Financing is primarily provided through operating transfers from the General Fund as well as from interest earnings. FLEET REPLACEMENT FUND This fund was established to account for the financing and replacement of vehicles for all General Fund programs of the City. Financing is primarily provided through operating transfers from the General Fund as well as from interest earnings and sales of surplus property. 383 Capital Improvement Program 21-23 PARKLAND ❑EVELOPMENT IMPACT FEE FUND This fund was established to account for construction projects related to park acquisition and development that will be financed primarily with park in -lieu fees. AIRPORT AREA IMPACT FEE FUND This fund was established to account for interim annexation fees collected for the specific plan and related infrastructure master plans for annexing the airport area to the City. TRANSPORTATION IMPACT FEE FUND This fund was established t❑ account for construction projects that will be financed primarily with transportation impact fees. 384 Capital Improvement Program 21-23 4 SB1186 ASP CERTIFY FUND This fund has been established as Senate Bill 1186 (2012) requiring local agencies to collect an additional fee when issuing a permit for the purpose of increasing certified access specialist (CASp) services and compliance with construction -related accessibility requirements. The first priority is to spend the funds on the training and retention of CASps in order to meet the needs of the public in the jurisdiction. The funds may also be spent on activities or programs that facilitate accessibility compliance. PUBLIC ART FUND Public Art Fund financing is provided through developer fees and transfers from the General Fund per the Public Art Program Policy. Public contributions to the public art program are accounted for in this fund along with the expenditures for public art projects funded by this revenue source. SB1 ROAD REPAIR FUND This fund has been established to account for stable and ongoing funding for maintenance and improvements to transportation infrastructure as provided through Senate Bill 1 (2017). the Road Repair and Accountability Act. SB 1 provides approximately $1M per year for maintenance of streets, roads, and other transportation infrastructure. In this Financial Plan, The state requires an annual resolution adopting the project list for each budget year. The proposed actions For this Council Report include the appropriate resolution. Passage of this resolution enables the city to maintain eligibility to receive SB 1 funding. rkel:I=-J&-t11:7=Vqu14=1 CLEARANCE Established in 1973, Zone 9 provides flood control services for the area encompassing San Luis Obispo Creek and its tributaries. 385 Capital Improvement Program 21-23 PARKING FUND This fund accounts for activities related to the implementation of the Access and Parking Management Plan. including the operation of municipal parking lots, parking structures, parking meters and residential parking districts. All activities necessary to provide such services are accounted For in this fund. including, but not limited to, administration. operations. maintenance, capital improvements and debt service. TRANSIT FUND This Fund accounts for the operation and maintenance of the City's transit system. Although user fees are not the primary funding source for the operation of the system, the State of California and the Federal government, which provide the major funding sources for the system, require that local transit systems be accounted for on an enterprise fund basis. SEWER FUND This accounts for the provision of wastewater collection and treatment services to the residents of the City as well as some customers in the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations. maintenance, capital improvements and debt service. WATER FUND This fund accounts for the provision of water services to the residents of the City as well as some customers in the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration. operations, maintenance. capital improvements and debt service. WHALE ROCK FUND This fund was established to account For the financial activities of the Whale Rock Commission, a joint venture providing water service to the City. the California Polytechnic State University, and the California Men's Colony. 386 Capital Improvement Program 21-23 Key Role of Local Revenue Measure The Local Revenue Measure (LRM) is a 1.5 percent local sales tax approved by City voters in November 2020, was augmenting the previously 0.5 percent local sales tax approved by City voters in November 2006 and renewed in 2014. This measure will generate up to $24 million annually in locally controlled funding for priorities identified by the community. Measure G provides a local revenue source to ensure that even during challenging financial times the City can provide its residents with a high level of service. Measure G revenues will continue to be allocated to many of the community priorities that surfaced before and during the Measure G campaign and provides the City with the financial ability to address new priorities as they emerge. 387 Capital Improvement Program 21-23 Accountability for the Use of Measure G Revenues The proposed 2021-23 Local Revenue Measure (LRM) operating and capital expenditures were developed using input from the Community Forum, the Major City Goals established by the City Council, updated revenue projections, and the funding priorities developed from the ballot language. The Revenue Enhancement Oversight Commission (REOC) reviews, reports, and makes recommendations directly to the City Council regarding the revenue and expenditures of the City's general purpose, half - percent sales tax. The REOC consists of five members, who must be residents and registered voters of the City. Previous input from the community and REOC has been to prioritize Local Revenue Measure funds for CIP projects. In recent years, expenditures have been split approximately 70% to capital infrastructure and 30% to 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 to maintain and safeguard community programs and assets. 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 in order to meet the non -fair share requirements of the City's AB 1600 Development Impact Fee Program and keep up with maintenance. 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 community's 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 CIP. The split between CIP and operating costs for the 2021-23 Financial Plan are listed below: 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 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. 388 Capital Improvement Program 21-23 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 be eligible to compete for these grants. These unsecured discretionary grants are largely programmed into the City's transit program for bus replacement needs. State or Federal Grant Emerson Park Amenity Upgrades and Beautification Bus Replacements with EV Anholm Neighborhood Greenway Plan Implementation Transit Facility EV Charging Infrastructure Bus Shelter Replacements Bus Wash Replacement Transit SupervisorADA EV Van Parking Lot Maintenance - Bus Yard Vault Room Addition Design Study Unsecured State or Federal Grant Prado Road Bridge & Road Widening Prado Road Interchange USHA Grant Higuera St. Widening- Bridge to Elks Federal HBP Grant Prado Road Bridge & Road Widening SLOCOG Grant Prado Road Interchange Grand Total $7,339,225 $2,875,000 $2,055,000 $2,025,000 $2,175,000 $2,810,000 $0 $0 $0 $0 $1,854,000 $1,910,000 $1,965,000 $2,025,000 $2,085,000 $1, 705, 225 $715,000 $0 $0 $0 $0 $105,000 $0 $90,000 $0 $90,000 $75,000 $450,000 $0 $0 $0 $70,000 $0 $0 $0 $0 $5,000 $500,000 $0 $0 $0 $0 $15,000 $0 $0 $0 $5,542,320 $6,384,911 $0 $3,200,000 $0 $5,542,320 $4,540,000 $0 $0 $0 $0 $1,844,911 $0 $3,200,000 $0 $360,000 $360,000 $0 $6,000,000 $0 $0 $0 $0 $6,000,000 $0 $0 $0 $0 $0 $0 $6,000,000 $0 $0 $0 $0 $6,000,000 $0 $13,241,545 $15,259,911 $2,055,000 $11,225,000 $2,175,000 Debt issuance occurs with costly projects that have a longer -term useful life. The table below shows how the City might fund significant large-scale projects by issuing debt. The planned Prado Road Interchange and the Palm/Nipomo Parking structure are expected to be debt financed projects, as are major facility replacements for various building reconstruction and/or rehabilitation. Bonds, Infrastructure Loan (Debt) $0 $0 $37,052,000 $38,650,000 $52,000,000 $127,702,000 Palm - Nipomo Parking Structure $0 $0 $37,052,000 $0 $0 $37,052,000 Prado Road Interchange $0 $0 $0 $38,650,000 $0 $38,650,000 Major Facility Replacements $0 $0 $0 $0 $52,000,000 $52,000,000 Police Station Replacement $0 $0 $0 $0 $52,000,000 $52,000,000 Grand Total $0 $0 $37,052,000 $38,650,000 $52,000,000 $127,702,000 389 Capital Improvement Program 21-23 Linkage to Major City Goals The proposed uses of Local Revenue Measure revenues in 2021-23 are closely aligned with the top goals and objectives adopted by the City Council, and are summarized as follows: • Climate Action o 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. • Diversity, Equity, Inclusion (DEI) o 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. • Economic Recovery o 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 & Homelessness o 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. 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). ID Major City .. YearTotal 1 Climate Action, Open Space and $14,632,163 $14,424,258 $10,177,967 $9,952,014 $10,386,180 $59,572,582 Sustainable Transportation 2 Economic Recovery, Resiliency and $3,462,500 $8,089,500 $42,362,000 $725,000 $7,000,000 $61,639,000 Fiscal Sustainability 3 Housing and Homelessness $9,090,100 $25,105,817 $5,050,000 $63,735,000 $2,235,000 $105,215,917 4 Diversity, Equity, and Inclusion $345,000 $95,000 $20,000 $20,000 $20,000 $500,000 5 Other $33,392,393 $17,711,270 $20,276,057 $16,263,001 $70,627,000 $158,269,721 6 Grand Total $60,922,156 $65,425,845 $77,886,024 $90,695,015 $90,268,180 $385,197,220 390 Capital Improvement Program 21-23 Capital Investment in Major City Goals ■ Climate Action, Open Space, Sustainable Transportation ($2.9 million) Diversity, Equity, Inclusion ($440 thousand) Economic Recovery, Resiliency and Fiscal Sustainability ($11.6 million) Housing & Homelessness ($3.4 million) 4r Public Communication Strategy An important step following the adoption of the CIP is the engagement and information sharing with the community. It is crucial that the community is involved and aware of the development and construction phases of CIP projects, in order to provide transparency. The City's strategy to achieve this is through a variety of communication platforms, including digital and traditional media, PR articles, and signage. The digital platform provides information on all projects through an interactive map on the City's website. Residents can find out real-time information on projects that they may happen upon in the community. It will describe what phase the project is in, and information regarding funding sources. The communication shared through the City's social media platforms provides an opportunity for residents to learn more about a project through video clips, graphics, and photos of the project's phases. This platform highlights key projects that the community would want to know about. Press Releases provide a written, formal communication method to the community. This is a great way to highlight historical projects as anniversaries arise, and celebrate new projects as ground breakings occur. 391 Capital Improvement Program 21-23 The signage at CIP project sites is a key part in sharing direct information about the project, that would include an estimated start and completion date, funding source, and a QR code to link back to the digital platform map for more information. 392 Capital Improvement Program 21-23 CIP Long Term Forecast for General Fund Projects 1 Local Revenue Measure's $ Long Term 17,993,608 Forecast -Capital $ 18,928,949 $ 21,391,317 $ 21,595,191 $ 21,811,142 2 General Fund Contribution $ 7,177,916 $ 7,949,558 $ 3,237,912 $ 3,201,001 $ 3,145,779 3 GF + LRM Subtotal $ 25,171,524 $ 26,878,507 $ 24,619,289 $ 24,796,192 $ 24,956,921 4 SB1 Funding $ 914,731 $ 941,258 $ 977,967 $ 1,014,152 $ 1,062,831 5 TOTAL $ 26,086,255 $ 27,819,765 $ 25,597,256 $ 25,810,344 $ 26,019,752 * Includes annual allocation to capital reserve. Expenditures by Type of CIP— Asset Replacement, Maintenance and New FY 21/22 CIP by Project Type 1% ■ Asset Replacement ■ Annual Asset Maintenance ■ New Asset ■ CIP Project Delivery Augmentation 393 Capital Improvement Program 21-23 FY 22/23 CIP by Project Type z% ■ Asset Replacement ■ Annual Asset Maintenance ■ New Asset CIP Project Delivery Augmentation 394 Capital Improvement Program 21-23 CIP Expenditures by Category 1 Multimodal Transportation $17,584,100 $35,281,791 $45,179,000 $70,821,000 $8,027,000 $176,892,891 2 Environmental Protection $16,020,563 $531,625 $80,000 $80,000 $80,000 $16,792,188 3 Utility Services $8,509,500 $11,289,000 $11,354,000 $7,318,000 $9,055,000 $47,525,500 4 Neighborhood Wellness $5,640,000 $1,700,000 $3,934,693 $1,890,000 $8,435,000 $21,599,693 5 Roadway Infrastructure $4,728,163 $6,091,258 $4,877,967 $3,857,014 $3,866,180 $23,420,582 6 Recreational Services $1,915,000 $4,430,026 $5,270,000 $20,000 $20,000 $11,655,026 7 Stormwater $1,312,272 $1,325,000 $1,100,000 $950,000 $1,050,000 $5,737,272 8 Information Technology $1,112,558 $606,445 $559,864 $2,472,501 $1,582,500 $6,333,868 9 OpenSpace $1,090,000 $250,000 $925,000 $250,000 $925,000 $3,440,000 10 Facilities $1,072,500 $1,473,200 $2,705,500 $651,500 $55,537,500 $61,440,200 11 Cultural Services $642,500 $442,500 $240,000 $240,000 $240,000 $1,805,000 12 Staffing $500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $4,500,000 13 Fire Safety $300,000 $540,000 $315,000 $780,000 $0 $1,935,000 14 Governance $275,000 $230,000 $100,000 $100,000 $100,000 $805,000 15 Police Protection $220,000 $235,000 $245,000 $265,000 $350,000 $1,315,000 16 Grand Total $60,922,156 $65,425,845 $77,886,024 $90,695,015 $90,268,180 $385,197,220 The table below represents percentages of the category funding over Fiscal Year 2021-22 and 2022-23. Multimodal Transportation Environmental Protection Utility Services Neighborhood Wellness Roadway Infrastructure Recreational Services Stormwater Information Technology Open Space Facilities Cultural Services 29% 54% 1% 17% 3% 9% 26% 14% 9% 9% 3% 7% 2% 2% 2% 1% 2% 0% 2% 2% 1% 1% Staffing Fire Safety 1% 2% 0% 1% Governance 0% 0% Police Protection 0% 0% 395 Capital Improvement Program 21-23 CIP Expenditures by Fund -All Funds Fund with Contributing Funding Sources 1 Capital Outlay Fund FY 21/22 $22,509,496 FY 22/23 $26,376,457 FY 23/24 $24,509,972 FY 24/25 $64,970,449 IFY 25/26 $76,601,939 Sum of 2 Sum of 5 Year Total Year Total $48,935,953 $214,967,213 2 Local Revenue Measure $15,648,675 $18,370,550 $21,353,060 $18,868,620 $21,771,560 $34,069,225 $96,012,465 3 State or Federal Grant $4,515,225 $0 $0 $0 $0 $4,515,225 $4,515,225 4 General Capital outlay $1,630,596 $425,647 $3,010,912 $1,306,829 $2,685,279 $2,056,243 $9,059,263 5 USHA Grant $360,000 $360,000 $360,000 6 Zone 9 $310,000 $100,000 $100,o00 $100,o00 $100,000 $410,000 $710,000 7 Transportation Development Act TDA $45,000 $45,000 $45,000 $45,000 $45,000 $90,000 $225,000 8 San Luis Obispo County $0 $1,435,260 $0 $0 $0 $1,435,260 $1,435,260 9 SLOCOG Grant $0 $0 $0 $6,000,000 $0 $0 $6,000,000 10 Bonds, Infrastructure Loan (Debt) $0 $0 $0 $38,650,000 $52,000,000 $0 $90,650,000 11 Federal HBP Grant $0 $6,000,000 $0 $0 $0 $6,000,000 $6,000,000 12 Sewer Fund $20,923,401 $6,623,483 $9,602,492 $2,938,015 $4,050,745 $27,546,994 $44,138,126 13 Sewer Fund $20,923,401 $6,623,483 $9,602,482 $2,938,015 $4,050,745 $27,546,884 $44,138,126 14 Infrastructure Investment Fund $5,662,320 $7,099,911 $0 $3,200,000 $0 $12,762,231 $15,962,231 15 Unsecured State or Federal Grant $5,542,320 $6,384,911 $0 $3,200,000 $0 $11,927,231 $15,127,231 16 Local Revenue Measure $120,000 $0 $0 $0 $0 $120,000 $120,000 17 General Capital Outlay $0 $715,000 $0 $0 $0 $715,000 $715,000 18 Water Fund $2,943,998 $5,215,253 $1,991,000 $3,212,917 $5,160,322 $8,159,251 $18,413,490 19 Water Fund $2,943,998 $5,215,253 $1,881,000 $3,212,917 $5,160,322 $9,159,251 $18,413,490 20 Transit Fund $2,825,201 $2,978,157 $2,059,910 $2,045,704 $2,195,415 $5,703,359 $11,994,387 21 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 22 Transit Fund $1,201 $3,157 $4,910 $20,704 $10,415 $4,358 $40,387 23 Parking Fund $1,799,160 $6,731,279 $38,003,693 $376,091 $318,227 $8,530,439 $47,228,450 24 Parking Fund $1,799,160 $6,731,279 $951,693 $376,091 $318,227 $8,530,439 $10,176,450 25 Bonds, Infrastructure Loan (Debt) $0 $0 $37,052,000 $0 $0 $0 $37,052,000 26 OASP Park Fund $1,520,000 $220,000 $250,000 $0 $0 $1,740,000 $1,990,000 27 Parkland Development Impad Fees $1,520,000 $220,000 $250,000 $0 $0 $1,740,000 $1,990,000 28 SB1 $914,731 $941,259 $977,967 $1,014,152 $1,062,931 $1,855,989 $4,910,939 29 SB1 $914,731 $941,258 $977,967 $1,014,152 $1,062,831 $1,855,989 $4,910,939 30 Whale Rock Fund $885,888 $671,121 $75,000 $1,943,515 $129,301 $1,557,009 $3,703,925 31 Whale Rock Fund $885,888 $671,121 $75,000 $1,943,515 $128,301 $1,557,009 $3,703,825 32 Public Art Fund $442,500 $442,500 $240,000 $240,000 $240,000 $985,000 $1,605,000 33 Local Revenue Measure $392,500 $392,500 $240,000 $240,000 $240,000 $785,000 $1,505,000 34 General Capital Outlay $50,000 $50,000 $0 $0 $0 $100,000 $100,000 35 Citywide Transportation Impact Fee $310,000 $3,940,000 $60,000 $2,060,000 $60,000 $4,250,000 $6,430,000 36 Transportation Development Impact Fee $310,000 $3,940,000 $60,000 $2,060,000 $60,000 $4,25D,000 $6,430,000 37 Major Facility Replacement $100,000 $300,000 $10,000 $146,000 $190,000 $400,000 $746,000 38 General Capital Outlay $100,000 $300,000 $10,000 $146,000 $190,000 $400,000 $746,000 39 SB1186 CASP Certify Fund $95,461 $95,461 $85,461 40 SB1186 CASP Certify Fund $85,461 $85,461 $85,461 41 Info Tech Replacement $0 $o $62,000 $1,123,172 $145,500 $0 $1,330,672 42 General Capital Outlay $o $0 $62,000 $1,123,172 $145,500 $0 $1,330,672 43 Fleet Replacement Fund $0 $74,000 $155,000 $125,000 $125,000 $74,000 $479,000 44 General Capital outlay $0 $74,000 $155,000 $125,000 $125,000 $74,000 $479,000 45 Development Fee Fund $0 $79,000 $0 $7,300,000 $0 $78,000 $7,378,000 46 Developer Contribution $0 $78,000 $0 $7,300,000 $0 $78,000 $7,378,000 47 MASP Transportation Impact Fee Fund $0 $529,400 $0 $0 $0 $529,400 $529,400 48 MASP Transportation Impact Fee Fund $0 $529,400 $0 $0 $0 $529,400 $529,400 49 Park Improvement Impact Fee Fund $0 $300,000 $0 $0 $0 $300,000 $300,000 50 Parkland Development Impact Fees $0 $300,000 $0 $0 $0 $300,000 $300,000 51 AASP Impact Fee Fund $0 $130,000 $0 $0 $0 $130,000 $130,000 52 AASP Impact Fee Fund 1 $0 $130,000 $0 $0 $0 $130,000 $130,000 53 Quimby/Parkland-in-Lieu Fund $0 $2,975,026 $0 $0 $0 $2,975,026 $2,975,026 54 Parkland Development Impact Fees $0 $2,875,026 $0 $0 $0 $2,875,026 $2,875,026 55 Grand Total $60,922,156 $65,425,845 $77,996,024 $90,695,015I $90,26%180 $126,398,001 $385,197,220� 396 Capital Improvement Program 21-23 CIP Expenditures by Project Type r Annual Asset Maintenance , $16,041,993 , $15,915,403 . $16,054,024 ,2025-26 $14,000,015 $12,931,180 1 2 1 1000049 842 Palm Parking Structure Maintenance $400,000 $400,000 $400,000 $125,000 $125,000 3 2 1000050 871 Marsh Street Structure Maintenance $400,000 $400,000 $400,000 $125,000 $125,000 4 3 1000051 919 Palm Street Structure Maintenance $100,000 $100,000 $100,000 $50,000 $50,000 5 4 1000503 Annual Public Art Maintenance and Projects $142,500 $242,500 $40,000 $40,000 $40,000 6 Small Public Art Projects $102,500 $102,500 $0 $0 $0 7 Utility Box Beautify $20,000 $20,000 $20,000 $20,000 $20,000 8 Public Art Annual Asset Maintenance $20,000 $20,000 $20,000 $20,000 $20,000 9 1 5 1 10000291 Bridge Maintenance $0 $100,000 $100,000 $100,000 $150,000 101 6 1 1000052 Buchon-Santa Rosa Intersection Improvements $0 $400,000 $0 $0 $0 111 7 1 10005091 Corporation Yard Perimeter Fence Replacement $0 $0 $450,000 $0 $0 121 8 1 10005101 Downtown Public Art Installations $200,000 $0 $0 $0 $0 131 9 1 10000631 Fire Hydrants $40,000 $40,000 $40,000 $40,000 $40,000 141 10 1 10005551 Fleet Replacement: Admin $0 $0 $0 $250,000 so- 151 1 1 Downtown Cleaning Equipment $0 $0 $0 $125,000 $0 161 1 1 City Hall Generator(GEN-9712) $0 $0 $0 $125,000 $0 171 11 1 10005181 Fleet Replacement: CDD $0 $37,000 $0 $0 $0 181 1 1 Building&Safety SUV (#0129, <>Chevy Bolt EV) $0 $37,000 $0 $0 $0 191 12 1 10OD5541 Fleet Replacement: Fire $200,000 $465,000 $200,000 1 $0 so- 201 1 1 Fire Medium Duty Truck with Utility Bed $125,000 $0 $150,000 $0 $0 21 1 1 1 Fire 1/2 ton Truck $75,000 $0 $50,000 $0 $0 221 1 1 Fire Heavy Duty Truck (Type 3 Wildland) $0 $415,000 $0 $0 $0 23 1 1 1 Fire Compact Truck $0 $50,000 $0 $0 $0 241 13 1 10005191 Fleet Replacement: Parks and Recreation $139,000 $103,000 $0 $0 $125,000 25 1 1 1 Golf Course Mower (1201) $65,000 $0 $0 $0 $0 261 1 1 Masticator attached to Skid -Steer $35,000 $0 $0 $0 $0 271 1 1 Parks and Recreation Event Trailer $20,000 $0 $0 $0 $0 281 1 1 Golf Course Trailer (0506) $10,000 1 $0 $0 $0 $0 291 1 1 Dump Trailer $9,000 $0 $0 $0 $0 301 1 1 Golf Course Mower (1518) $0 $0 $0 $0 $60,000 311 1 1 Parks and Recreation Minivan(0802) $0 $48,000 $0 $0 $0 321 1 1 Parks and Rec RangerTruck, F350 HD Towing $0 $55,000 $0 $0 $0 33 1 1 1 Parks and RecAdmin Compact Pickup (1014) $0 $0 $0 $0 $65,000 341 14 1 1000553 1 Fleet Replacement: Police $220,000 $170,000 $245,000 $265,000 $350,000 351 1 1 Police Patrol Hybrid SUV (2Vehicles per Year)) $130,000 $130,000 $130,000 $130,000 $0 361 1 1 Police SNAP SUV Hybrid (0818) $50,000 $0 $0 $0 $0 37 Police Motorcycles $40,000 $40,000 $40,000 $40,000 $40,000 38 Police Investigations EnclosedTrailer(0115) $0 $0 $0 $20,000 $0 39 Police Patrol ElectricSUV (3Vehicles Total) $0 $0 $0 $0 $270,000 40 Police Investigations Sedan (1016) $0 $0 $0 $0 $40,000 41 Police Investigations Chevy 2wd 3/4Ton Suburban (0823) $0 $0 $75,000 $0 $0 42 Police Investigations Transport Van (0222) $0 $0 $0 $75,000 $0 43 15 1000520 Fleet Replacement: Public Works $565,000 $298,000 $1,152,000 $1,286,000 $377,000 44 Streets Maintenance FS50Truck with Hooklift Bed(0843) $150,000 $0 $0 $0 $0 451 1 1 Streets Maintenance F550Truck with Utility Bed and Crane(0842) $135,000 $0 $0 $0 $0 461 1 1 Fleet Maintenance (Corp Yard) Stationary Generator (200kw) $100,000 $0 $0 $0 $0 471 1 1 Park Maintenance Mower(1007) $75,000 $0 $0 $80,000 $0 481 1 1 Streets Maint Asphalt Zipper Safety Improvements (1802) $75,000 $0 $0 $0 $0 491 1 1 Streets Maint 2 Axle Kneeling trailer (0420) $30,000 $0 $0 $0 $0 50 1 1 Fleet Motor Pool Compact Pickup (1013) $0 $0 $0 $0 $60,000 51 Streets Maintenance Roller(1002) $0 $0 $0 $75,000 $0 52 Streets Maintenance Backhoe(0413) $0 $0 $140,000 $0 $0 53 Facilities Maintenance 3/4ton Pickup with Utility Bed (0612) $0 $60,000 1 $0 1 $0 $0 54 Parks Maintenance Trailer(9915) $0 $8,000 $0 $0 $0 55 Park Maintenance Tractor(0218) $0 $75,000 $0 $0 $0 397 Capital Improvement Program 21-23 56 Engineering Compact Pickup (0905) $0 $0 $0 ,.FY2025-26 $60,000 $0 57 Parking 1/2ton Pickup (0813) $0 $55,000 $0 $0 $0 58 Facilities Maintenance 3/4ton Pickup with Utility Bed (0831, 0829) $0 $0 $120,000 $0 $0 59 Parking Compact Pickup (0854) $0 $0 $37,000 $0 $0 60 Urban Forest Compact Pickup (0852) Escape Hyb AWD forArborist $0 $0 $0 $40,000 $0 61 Parking Scooters (1403,1404Go-4's) replcwith 1 LPR equipped vehicles $0 $75,000 $0 $0 $0 62 Parks Maintenance Trailers (0007, 9405) $0 $10,000 $0 $0 $10,000 63 Stormwater Compact Pickup (0850) $0 $0 $0 $65,000 $0 64 Stormwater Hydrocleaner(0859) $0 $0 $500,000 $0 $0 65 Streets Maint HD Air Brake Trailer (9711) $0 $0 $0 $55,000 $0 66 Streets Maint Compact Pickup (0223) $0 $0 $0 $75,000 $0 67 Streets Maint Paver (1001) $0 $0 $0 $185,000 $0 68 Parks Maint Mower (1611) $0 $0 $0 $0 $85,000 69 Streets Maint HD Roll -Off Truck (0830) $0 $0 $0 $175,000 $0 70 Parks Maint Refuse Truck (1015 F450) $0 $0 $0 $0 $200,000 71 Streets Maintenance 3/4ton Pickup (0820) F150electric/hybrid $0 $0 $65,000 $0 $0 72 Parks Maint Turf Tender (0609) $0 $0 $0 $0 $22,000 73 Engineering Compact Pickup (0904) $0 $0 $0 $60,000 $0 74 Streets Maintenance Compact Pickup - Replace w/ Van (0853) $0 $0 $0 $50,000 $0 75 Parks Maintenance 3/4ton Pickup(0828)(0803,0819,0827,0832)(0903) $0 $0 $0 $216,000 $0 76 Streets Maintenance Loader(0329) $0 $0 $255,000 $0 $0 77 Parks Maintenance Compact Pickup (0848) $0 $0 $0 $65,000 $0 78 Streets Maintenance Trailers (9231, 0006) $0 $0 $0 $20,000 $0 79 Parks Maintenance Compact Pickup (0949) $0 $0 $0 $65,000 $0 80 Engineering Compact Pickup (0722) $0 $0 $35,000 $0 $0 81 Parks Maintenance Trailer(0320) $0 $15,000 $0 $0 $0 82 16 1000521 Fleet Replacement: Utilities $170,000 $535,000 $115,000 $310,000 $250,000 83 WRRF F550 Flatbed with crane (0611-F550 Diesel) $80,000 $0 $0 $0 $0 84 WRRF Forklift (0622) $40,000 $0 $0 $0 $0 85 Water Resources - Chevy Bolt $35,000 $0 $0 $0 $0 861 Water Distribution Signboard (0613) $15,000 $0 $0 $0 $0 87 Whale Rock Utility Tractor (0415) $0 $0 $55,000 $0 $0 88 Whale Rock 1/2 ton Truck (1630) $0 $0 $0 $0 $75,000 89 Sewer WWCLTilt-Trailer (0616) $0 $30,000 $0 $0 $0 90 Water Distribution Compact Pickups (1011,1012 Dakota) $0 $0 $0 $0 $100,000 91 Whale Rock Trailer (0417) $0 $15,000 $0 $0 $0 92 WTP 1/2 ton Crew Cab 4X4 Pickup (1004-F150) $0 $0 $0 $0 $75,000 93 Sewer WWCL Portable Pump (0826) $0 $0 $60,000 $0 $0 94 Sewer WRRF Compact Pickup (0851) $0 $0 $0 $45,000 $0 95 Waste Water Collections Dump Truck (0840) $0 $0 $0 $115,000 $0 96 Water Distribution Valve turning trailer (1005) $0 $0 $0 $150,000 $0 97 Sewer Hydrocleaner(0718) $0 $475,000 $0 $0 $0 98 Water Distribution Trailer (0235) $0 $15,000 $0 $0 $0 99 17 1000059 Fredericks Paving $0 $0 $0 $0 $300,000 1001 18 91739 Inflow/Infiltration Reduction $200,000 $250,000 $250,000 $250,000 $0 101 19 91736 Infrastructure Renewal Strategy Report Update $0 $250,000 $100,000 $80,000 $0 102 Flow Study $0 $250,000 $100,000 $80,000 $0 103 20 1000074 ITReplacement $1,112,558 $606,445 $559,864 $2,472,501 $1,582,500 104 911 Phone System $250,000 $0 $0 $0 $0 105 Police CAD Hardware (Servers and Storage) $233,000 $117,000 $0 $0 $0 106 Audio Recording System Replacement $150,000 $0 $0 $0 $150,000 107 VMware Infrastructure Upgrade $131,250 $0 $0 $0 $242,000 108 Radio Handhelds & Mobiles $116,758 $0 $69,364 $0 $0 109 IT Pipes Inspection Software and Licenses $82,250 $0 $0 $0 $0 110 Public Safety Specialized Surveillance cameras (PODs) Replacement (9K ea, 14total) $63,000 $54,000 1 $45,000 $0 $63,000 398 Capital Improvement Program 21-23 Uninterruptible PowerSupplies (UPS's Servers and Storage) $51,000 $0 $0 ,. $51,001 $0 111 112 Asset Management (Cityworks - Utilities Integration) $35,300 $0 $0 $50,000 $0 113 Radios, Mobiles and stations not replaced - EF & PW Only $0 $0 $0 $200,000 $0 114 City SAN $0 $198,500 $0 $0 $0 115 Virtual Private Network Replace $0 $0 $0 $100,000 $0 116 Fire Station Alerting System $0 $0 $0 $275,000 $0 1171 Public Surveillance Citywide Cameras Storage add redundancy $0 $0 $0 $40,000 1 $0 1181 1 1 Firewall Replacement $0 $0 $0 $186,500 $0 1191 1 1 ECC Computers $0 $0 $0 $0 $150,000 1201 1 1 Body Worn Cameras, Video Storage and Interview Rooms $0 $0 $100,000 $0 $0 1211 1 1 ECC Equipment Replacement $0 $0 $0 $70,000 $0 1221 1 1 Motion ERP $0 $0 $100,000 $100,000 $100,000 1231 1 1 Public Surveillance Cameras -citywide 5year replace, 1/3 of cameras $0 $0 $40,000 $0 $51,000 1241 1 1 Network Security Upgrade $0 $0 $0 $125,000 $0- 1251 1 1 Dispatch Radio Consoles $0 $0 $150,000 $0 $0 1261 1 1 VoIP Telephone System $0 $0 $0 $300,000 $0 1271 1 1 Security Video System Replacement (Came ra&Software) $0 $0 $55,500 $0 $0 1281 1 1 Parks & Rec ActiveNet Software Replacement $0 $0 $0 $0 $50,000 1291 1 1 Utility Billing System $0 $0 $0 $150,000 $0 1301 1 1 PD SAN $0 $145,000 $0 $0 $0 1311 1 1 ECC Audio Visual System $0 $0 $0 $275,000 $0 1321 1 1 CAD/RIMS Study $0 $0 $0 $0 $83,500 1331 1 1 Public Safety MDC and In -Car Video Replacement $0 $0 $0 $0 $693,000 1341 1 1 Wireless System Citywide $0 $91,945 $0 $0 $0 1351 1 1 Network Switching Infrastructure Equipment $0 $0 $0 $550,000 $0 1361 21 1 10000301 Laguna Lake Golf Course Maintenance $20,000 $20,000 $20,000 $20,000 $20,000 1371 22 1 10000751 Major Facility Maintenance $772,500 $633,200 $710,500 $226,500 $505,500 1381 1 1 Fire Station #1Administration Bldg. Roof $270,000 $0 $0 $0 $0 1391 1 1 Jack House Roof and Widows Walk Railing $100,000 $0 $0 $0 $0 1401 1 1 Swim Center Therapy Pool Boiler $85,000 $0 $0 $0 $0 1411 1 1 Energy Management Controls Upgrade $75,000 $75,000 $0 $0 $0 1421 1 1 City Hall Landing Repair $60,000 $0 $0 $0 $0 1431 1 1 Fire Station 1 Campus Roof Access Ladders $50,000 $0 $0 $0 $0 144 Swim Center Pool Water Chemical Regulator $50,000 $0 $0 $0 $0 145 IT Room Heat Pump Replacements $20,000 $0 $0 $0 $0 146 Facility Roll Up Door Replacements - Various Locations $17,000 $15,000 $15,000 $0 $0 147 Hydration Stations $15,000 $15,000 $15,000 $15,000 $15,000 148 ADA Transition Plan Implementation $10,500 $10,500 $10,500 $10,500 $10,500 149 Swim Center Olympic Pool Thermal Blankets $5,000 $0 $0 $0 $0 150 Swim Center Bath House Ceiling $5,000 $0 $0 $0 $0 151 HVAC Air Handler at Parking Services $5,000 $25,000 $0 $0 $0 152 Police Evidence Storage Bldg. Roof $5,000 $22,200 $0 $0 $0 153 Therapy Pool Shade Structure Material Replacement $0 $0 $0 $15,000 $0 154 Swim Center Old Bath House Roof $0 $0 $0 $15,000 $60,000 155 Swim Center Deck Replacement $0 $0 $0 $0 $35,000 156 City/County Museum Carpet $0 $0 $0 $0 $35,000 157 Corp Yard Roof Coating $0 $0 $0 $8,000 $75,000 1581 1 1 Parks and Recreation Roofing Siding and Exterior Painting $0 $0 $10,000 $80,000 $0 1591 1 1 Fleet Lifts $0 $0 $0 $50,000 $0 1601 1 1 Police Department HVAC Package Unit Replacement $0 $0 $0 $15,000 $75,000 1611 1 1 Swim Center Furnaces (2 Furnaces) $0 $40,000 $0 $0 $0 162 Police Department Hydronic System Piping Replacement $0 $0 $0 $10,000 $85,000 163 Corp Yard Fuel Island Siding / Recoating of Fuel Island and Dispensers $0 $300,000 $0 $0 $0 164 Railroad Museum Roof $0 $0 $0 $8,000 $80,000 165 Fire Station #4 - Exterior Paint $0 $27,500 $0 $0 $0 166 Senior Center Roof $0 $0 $0 $0 $35,000 167 Swim Center Auto Vacuum $0 $18,000 $0 $0 $0 168 879 Morro - Roof $0 $15,000 $100,000 $0 $0 11691 1 Ludwick and Senior Center - Exterior Paint and Shell Rehab $0 $30,000 1 $260,000 $0 $0 399 Capital Improvement Program 21-23 170 Ludwick Community Center - Roof and Solar Replacement $0 $40,000 $300,000 $0 $0 171 23 1000021 Meadow Park Pathways $35 ,,000 $0 $0 $0 $0 172 24 91612 Neighborhood Traffic Improvements $75,000 $75,000 $75,000 $75,000 $75,000 173 25 1000524 Old Garden Creek Retaining Wall $50,000 $300,000 $0 174 26 91397 Open Space Maintenance $85,000 $105,000 $80,000 $80,000 880,000 175 General Open Space Maintenance $60,000 $80,000 $80,000 $80,000 $80,000 176 Open Space Fencing $25,000 $25,000 177 27 91385 Park Major Maintenance & Repairs $1,835,000 $160,000 $1,000,000 $690,000 $840,000 178 Sinsheimer Stadium Irrigation and Drainage Replacement $650,000 $0 $0 $0 $0 179 Railroad Bike path fencing $350,000 $0 $0 $0 $0 180 Cheng Park Revitalization $300,000 $0 $0 $0 $0 181 Poinsettia Creek Walk $215,000 $0 $0 $0 $0 182 Sinsheimer Hardscape Replacement $135,000 $0 $0 $0 $0 183 Mission Plaza Railing Upgrade $80,000 $0 $35,000 $35,000 $35,000 184 Parks Play Surfacing $30,000 $30,000 $30,000 $30,000 $30,000 185 Water Stations and Supply Lines $25,000 $25,000 $25,000 $25,000 $25,000 1861 1 ADA Transition Plan Implementation $20,000 $20,000 $20,000 $20,000 $20,000 187 Concrete Bench & Table Replacement Various Locations $15,000 $15,000 $15,000 $15,000 $15,000 188 Irrigation Mainline Leak Repair $15,000 $1.5,000 $15,000 $1.5,000 $15,000 189 Johnson Park Restroom Replacement $0 $0 $0 $75,000 $0 190 Santa Rosa Barbecue Replacements $0 $7,500 $30,000 $0 $0 191 Laguna Lake Log Barrier Replacement $0 $0 $150,000 $0 $0 192 Master Valve and Flow Sensing Installations $0 $0 $50,000 $0 $0 193 Santa Rosa Park Monument Sign $0 $0 $15,000 $50,000 $0 194 DeVaul Basketball Court Restriping $0 $0 $15,000 $0 $0 195 Sinsheimer Stadium Bleachers $0 $0 $25,000 $275,000 $200,000 196 Sinsheimer Stadium Lighting Addition $0 $0 $75,000 $0 $500,000 197 Laguna Lake Docks and Ramp $0 $0 $75,000 $0 $0 198 Landscape Controller System Upgrade to Calsense $0 $0 $0 $150,000 $0 199 Madonna Road Landscaping and Irrigation Replacement $0 $0 $175,000 $0 $0 200 Jack House Arbor $0 $7,500 $50,000 $0 $0 201 Meadow Park Exercise/Par Course Equipment Replacement $0 $40,000 $200,000 $0 $0 202 28 1000031 Parking Lot Maintenance $175,000 $255,000 $1,484,693 $250,000 $270,000 203 French Park $70,000 $0 $0 $0 $0 2041 Minor Repairof City Parking Lots $50,000 $25,000 $25,000 $25,000 $25,000 205 Fire Station 2 $45,000 $0 $0 $0 $0 206 1 Meadow Park $10,000 $130,000 $0 $0 $0 207 Ludwick Community Center $0 $10,000 $140,000 $0 $0 208 Throop Park $0 $0 $10,000 $65,000 $0 209 Santa Rosa Park $0 $20,000 $370,000 $0 $0 210 Islay Park $0 $35,000 $0 $0 $0 211 Mitchell Park and SLO Senior Citizens Center $0 $0 $5,000 $16,000 $0 212 Johnson Park $0 $0 $10,000 $30,000 $0 213 Sinsheimer Park $0 $0 $0 $10,000 $245,000 2141 1 1 Laguna Lake $0 $35,000 $914,693 $0 $0 215 Damon Garcia Sports Field Complex $0 $0 $0 $54,000 $0 216 Laguna Lake Golf Course $0 $0 $10,000 $50,000 $0 217 29 1000102 Parking Lot Maintenance -Bus Yard $5,000 $500,000 $0 $0 $0 218 30 1000032 Pedestrian and Bicycle Pathway Maintenance $20,000 $200,000 $150,000 $150,000 $150,000 219 Pedestrian and Bicycle Pathway Inventory and PCI Study $20,000 $0 $0 $0 $0 220 Railroad Safety Trail from Cal Poly to Taft Street $0 $50,000 $100,000 $0 $0 2211 Madonna Inn Frontage Bike Pathway (Madonna to Fernandez) $150,000 $0 $0 $0 222 Pathway Maintenance Various Locations $0 $50,000 $150,000 $150,000 223 31 1000035 Pismo/Johnson/SL Creek Bank Stabilization $92,272 $0 $300,000 $0 $0 224 32 10000331 Playground Equipment Replacement $110,000 $100,000 $700,000 $800,000 $1,175,000 225 DeVaul Ranch Playground $60,000 $375,000 $0 $0 226 Vista Lago Mini Park Playground $50,000 $250,000 $0 $0 227 Laguna Hills Playground $0 $0 $75,000 $0 $750,000 228 Mitchell Park Playground $0 $100,000 $0 $750,000 $0 229 Anholm Playground Equipment Replacement $0 $0 $0 $50,000 $350,000 230 French Park Playground Equipment Replacement $0 $0 $0 $0 $75,000 400 Capital Improvement Program 21-23 231 33 1000531 Recycled Water Annual UV Bulb Replacement $0 $0 $10,000 $10,000 $10,000 232 34 1000532 Roundabout Public Art Installations $300,000 $300,000 $200,000 $200,000 $200,000 233 35 1000084 Sewer Maintenance Hole Cover Adjustments $85,000 $25,000 $25,000 $25,000 $25,000 234 36 90849 Sidewalk Replacement and Installation $235,461 $250,000 $250,000 $250,000 $250,000 235 Curb Ramps and Sidewalks $135,461 $150,000 $150,000 $150,000 $150,000 236 Street Tree Sidewalks $100,000 $100,000 $100,000 $100,000 $100,000 237 37 1000046 Silt Removal $210,000 $100,000 $100,000 $100,000 $100,000 238 38 1000533 SLO Creek Improvements Behind Cheng Park $0 $0 $100,000 $0 $400,000 239 39 1000534 SLO Creek Walk Maintenance - Lighting, Signage, Irrigation, Plants $0 $0 $200,000 $0 $0 240 40 90742 Storm Drain System Replacement $910,000 $725,000 $550,000 $550,000 $550,000 241 Drainage Infrastructure Replacement $860,000 $675,000 $500,000 $500,000 $500,000 242 Trash Capture $50,000 $50,000 $50,000 $50,000 $50,000 243 41 91616 Street Lights - Annual Asset Maintenance $75,000 $75,000 $75,000 $75,000 $75,000 24411 Pathway Lighting Various Locations $75,000 $75,000 $75,000 $75,000 $75,000 245 42 90346 Street Reconstruction & Resurfacing $3,592,702 $4,266,258 $3,302,967 $3,382,014 $3,341,180 246 Pavement Management $3,592,702 $3,366,258 $2,602,967 $3,382,014 $3,341,180 247 Concrete Street - Palm - Pepper to Santa Rosa $0 $0 $500,000 $0 $0 248 Concrete Street - Monterey - CA to Santa Rosa $0 $900,000 $0 $0 $0 249 Concrete Street - Morro Mid -Block $0 $0 $200,000 $0 $0 250 43 1000150 Sustainable Groundwater Management Act GSP $150,000 $150,000 $150,000 $150,000 $150,000 251 44 90943 Traffic Signs & Striping Maintenance $25,000 $25,000 $25,000 $25,000 $25,000 252 45 1000073 Transportation Safety & Operations $50,000 $50,000 $50,000 $50,000 $50,000 253 46 1 99653 Treatment Major Facilities Maintenance $274,000 $109,000 $109,000 $180,000 $150,000 254 Ozone System Maintenance $125,000 $40,000 $40,000 $0 $0 255 WTP Roof Repair $80,000 $0 $0 $0 $0 256 Air Compressor and Dryer Maintenance $36,000 $36,000 $36,000 $0 $0 257 Chemical System Maintenance $33,000 $33,000 $33,000 $0 $0 258 WTP Major Maintenance $0 $0 $0 $180,000 $150,000 259 47 91740 Trench Repairs- Sewer $25,000 $25,000 $25,000 $25,000 $25,000 260 48 91147 Trench Repairs- Water $200,000 $200,000 $200,000 $200,000 $200,000 261 49 1000027 Urban Forest Maintenance $315,000 $175,000 $175,000 $175,000 $175,000 262 Urban Forest Maintenance $175,000 $175,000 $175,000 $175,000 $175,000 263 Urban Forest Master Plan $140,000 $0 $0 $0 $0 264 50 1000527 Wastewater Collections System - Point Repairs $50,000 $50,000 $0 $0 $0 265 51 1000540 Water Distribution System Hydraulic Model Update $100,000 $0 $0 $0 $0 266 52 1000062 Water Meters and Boxes $286,000 $330,000 $335,000 $343,000 $350,000 267 53 1000034 Water Storage Tank Maintenance $50,000 $1,355,000 $1,000,000 $0 $0 268 Wash water tank #1 $40,000 $325,000 $0 $0 $0 269 Reservoir 2 Cover Replacement $10,000 $950,000 $0 $0 $0 270 Edna Tank Recoating $0 $80,000 $1,000,000 $0 $0 271 54 1000542 Water Treatment Plant Major Facility Maintenance $50,000 $155,000 $0 $0 $25,000 272 Cityworks Integration (water) $50,000 $90,000 $0 $0 $0 273 Lab TOC Analyzer Replacement $0 $30,000 $0 $0 $0 274 Actiflo Poly Blend Units $0 $0 $0 $0 $25,000 275 Actiflo Train #2 Mixer Bearing/Gear $0 $35,000 $0 $0 $0 276 55 91149 Water Valve Cover Adjustments $50,000 $30,000 $30,000 $30,000 $30,000 277 56 1000065 Waterline Replacements - Point Repair $590,000 $0 $0 $0 $0 278 57 91335 Whale Rock Reservoir - Major Facility Maintenance $815,000 $145,000 $20,000 $120,000 $45,000 279 Spillway Drain Repairs $765,000 $0 $0 $0 $0 280 Stilling Basin $30,000 $90,000 $0 $0 $0 281 Reservoir Fencing $20,000 $20,000 $20,000 $20,000 $20,000 282 Replacement of Piezometers $0 $0 $0 $100,000 $0 283 Whale Rock Reroof of Shop and Residence $0 $35,000 $0 $0 $0 284 Evaporation/Weather Stations $0 $0 $0 $0 $25,000 285 58 91617 Whale Rock Transmission Pipeline $60,000 $510,000 $0 $0 $0 286 Transmission Pipeline Repairs $60,000 $510,000 $0 $0 $0 287 59 1000077 WRRF Major Maintenance $115,000 $520,000 $400,000 $125,000 $125,000 288 Cityworks Integration $50,000 $100,000 $0 $0 $0 401 Capital Improvement Program 21-23 289 Digester Portable Heaters $50,000 $0 $0 $0 $0 290 Coating Maintenance $15,000 $0 $0 $0 $0 291 Screenings Washer Auger $0 $0 $350,000 $0 $0 292 Rebuild Influent Storm Pumps $0 $0 $0 $75,000 $75,000 293 UV Bulb Replacement (annual replacement) $0 $0 $50,000 $50,000 $50,000 294 Headworks Grit Piping and Blowers $0 $95,000 $0 $0 $0 295 Headworks Grit Pump $0 $175,000 $0 $0 $0 296 Lab Improvements $0 $150,000 $0 $0 $0 297 Asset Replacement $31,318,163 $28,266,845 $13,930,000 $8,140,000 $70,087,000 298 60 1000505 Bus Replacements with EV $1,854,000 $1,910,000 $1,965,000 $2,025,000 $2,085,000 299 61 1000506 Bus Shelter Replacements $105,000 $0 $90,000 $0 $90,000 300 62 1000053 Bus Wash Replacement $75,000 $450,000 $0 $0 $0 301 63 91503 California & Taft Roundabout $300,000 $2,798,000 $0 $0 $0 302 64 1000055 Council Hearing Room TI $0 $130,000 $0 $0 $0 303 65 91320 Downtown Renewal $0 $0 $1,100,000 $0 $0 304 Broad Street - West Side - Higuera to Marsh $0 $0 $1,100,000 $0 $0 305 66 1000511 Downtown Safety Enhancements $400,000 $0 $0 $0 $0 306 67 1000515 Fire Station 1 Gym Space Covering $0 $0 $25,000 $0 $0 3071 68 1000516 1 Fire Station 3&4 Remodel Space Study and Design $25,000 $75,000 $0 $0 $0 308 69 1000517 Fire Station 4 Metal Building Gym Space $0 $0 $90,000 $0 $0 309 70 1000094 Foothill Sewer Siphon $0 $0 $0 $0 $200,000 310 71 91610 Higuera St. Widening - Bridge to Elks $510,000 $0 $0 $0 $0 311 72 1000060 Lighting Energy Efficiency Retrofits $15,000 $0 $0 $0 $0 312 73 1000522 Major Facility Replacements $200,000 $300,000 $1,400,000 $400,000 $55,007,000 313 Police Station Replacement $100,000 $300,000 $400,000 $400,000 $52,000,000 3141 Parks and Recreation Interior Office Rehabilitation $100,000 $0 $0 $0 $0 315 Corporation Yard TI $0 $0 $1,000,000 $0 $0 316 Debt Service - PD Replacement $0 $0 $0 $0 $3,007,000 317 74 90649 Mid-Higuera Bypass $100,000 $100,000 $0 $0 $0 318 75 91439 Mission Plaza Concept Plan Implementation $0 $1,035,000 $600,000 $0 $6,000,000 319 Phase 1- Restroom Replacement and Kiosk Cafe $0 $1,035,000 $0 $0 $0 320 Phase 3 - Broad Street Dog -Leg Improvements $0 $0 $150,000 $0 $0 3211 Phase 2 - Primary Plaza Area Improvements Between Chorro and Broad $0 $0 $450,000 $0 $6,000,000 322 76 91252 Prado Road Bridge & Road Widening $7,070,100 $14,972,220 $0 $0 $0 323 77 1000530 Recycled Water Tank $87,500 324 Tank Site Fencing $87,500 325 78 91368 Reservoir 2 Replacement $0 $0 $0 $780,000 $0 326 79 1000093 Serrano, Bressi, Dana Pipe Replacement $0 $0 $25,000 $1,275,000 $0 327 80 1000535 Transit Facility EV Charging Infrastructure $615,000 $0 $0 $0 $0 328 EV Infrastructure Upgrades Behind the Meter $615,000 $0 $0 $0 $0 329 81 1000536 Transit Supervisor ADA EV Van $70,000 $0 $0 $0 $0 330 82 1000538 Vault Room Addition Design Study $0 $15,000 $0 $0 $0 331 83 1000091 Verde, Luneta, Ramona Pipe Replacement $1,276,000 $0 $0 $0 $0 332 84 1000539 Wastewater Collections System Improvements $160,000 $3,860,000 $2,450,000 $135,000 $1,485,000 333 Morro, Mill, Santa Rosa $135,000 $1,485,000 $0 $0 $0 334 Islay, Henry, Sierra Way $25,000 $1,825,000 $0 $0 $0 3351 1 San Jose, Ramona, Monte Vista, California $0 1 $25,000 $1,225,000 $0 $0 336 Taft, Hathaway, Phillips, Buena Vista, Loomis $0 $25,000 $1,225,000 $0 $0 337 Broad, Murray, Chorro $0 $0 $0 $135,000 $1,485,000 338 Murray, Chorro, Meineke $0 $500,000 $0 $0 $0 339 85 91369 Wastewater Lift Station Rehabilitation: Airport Lift Station $2,020,000 $0 $0 $0 $0 340 86 1000082 Wastewater Lift Station Rehabilitation: Silver City Lift Station $0 $70,000 $100,000 $0 $1,980,000 341 87 1000542 Water Treatment Plant Major Facility Maintenance $225,000 $25,000 $50,000 $0 $0 3421 Facility Master Plan $150,000 $0 $0 $0 $0 343 Aluminum Bulk Tank #1 Replacement $50,000 $0 $0 $0 $0 344 Transfer Pump CLA-VAL Re -build $25,000 $0 $0 $0 $0 345 Package Thickener $0 $25,000 $50,000 $0 $0 346 88 1000545 Waterline Replacement: California Ave - Stafford to Mill $140,000 $1,650,000 $0 $0 $0 347 89 1000547 Waterline Replacement: Chorro - Highland to Meinecke $0 $0 $100,000 $1,100,000 $0 348 90 1000556 Waterline Replacement: Craig, Christina, Jaycee $0 $0 $0 $0 $880,000 13491 91 1000544 Waterline Replacement: Highland - Oakridge to Cuesta $0 $0 $0 $130,000 $1,430,000 402 Capital Improvement Program 21-23 11 350 92 1000546 Project Waterline Replacement: Highland at UPRR and Cal Poly $0 $0 $0 $0 $850,000 351 93 1000543 Waterline Replacement: Stenner Canyon $0 $0 $0 $0 $80,000 352 94 1000549 Whale Rock Pump Station Electrical Repairs (A and B) $0 $0 $0 $1,800,000 $0 353 95 1000552 WRRF - Demolish Old Effluent Structure $0 $0 $50,000 $495,000 $0 354 96 100551 WRRF - Digester Flare Upgrade $0 $100,000 $385,000 $0 $0 355 97 100550 WRRF And Wastewater Collection Shop $150,000 $350,000 $5,500,000 $0 $0 356 98 91219 WRRF Upgrade $15,920,563 $426,625 $0 $0 $0 3571 1 Construction $11,069,088 $22,335 $0 1 $O $0 3581 1 Construction Management $3,088,281 $257,357 $0 $0 $0 3591 1 Office Engineering $1,235,313 $102,943 $0 $0 $0 3601 1 Program Management $527,881 $43,990 $0 $0 $0 3611 1 New Asset $13,062,000 $20,243,597 $46,902,000 $67,555,000 $6,250,000 3621 99 100502 Active Transportation Plan Implementation $550,000 $550,000 $1,600,000 $2,600,000 $2,250,000 3631 Area Sealing Projects Complete Street Components $200,000 $200,000 $0 $0 $0 3641 Pedestrian Facility Improvements $100,000 $100,000 $100,000 $100,000 $100,000 3651 RRST (Tiburon to Orcutt) Preliminary Engineering & ROW $100,000 $0 $0 $0 $0 366 Bicycle Facility Improvements $100,000 $100,000 $100,000 $100,000 $100,000 367 Active Transpiration Plan Tier 1 Network Implementation $50,000 $150,000 $1,200,000 $2,200,000 $1,850,000 368 Bikeshare System Implementation $0 $0 $200,000 $200,000 $200,000 369 100 1000036 Anholm Neighborhood Greenway Plan Implementation $2,450,000 $0 $0 $0 $0 370 Phase II $2,450,000 1 $0 $0 $0 $0 371 101 1000157 Banner Arms, Bench Arm Rests, Signs $100,000 $25,000 $25,000 $25,000 $25,000 372 1021 1000501 Bob Jones Trail and RRST Solar Lighting $100,000 $1,350,000 $0 $0 $0 373 103 1 1000507 City Facility Energy Infrastructure Plan $100,000 $0 $0 $0 $0 374 1041 1000508 City Hall Lighting $0 $15,000 $120,000 $0 $0 375 105 1000056 Development Agreement - City Share - $120,000 $715,000 $0 $0 $0 376 Avila Ranch - Buckley Extension Class 1 $120,000 $0 $0 $0 $0 377 600Tank Farm $0 $715,000 $0 $0 $0 378 1061 1000057 Development Related Park Improvements $1,520,000 $4,210,026 $5,050,000 $0 $0 379 Orcutt Area -Neighborhood Park $1,200,000 $0 $4,800,000 $0 $0 380 Orcutt Area - Linear Park $200,000 $825,000 $0 $0 $0 381 Orcutt Area - Pocket Park $80,000 $350,000 $250,000 $0 $0 382 OrcuttArea - Trail Junction $40,000 $160,000 $0 $0 $0 383 1 Laguna Lake Improvements $0 1 $2,875,026 $0 $0 $0 384 107 1000512 Downtown Zig-Zag Lighting $250,000 $0 $0 $0 $0 385 108 1000513 Electric Vehicle Charging Station at Various Facilities $175,000 $100,000 $100,000 1 $100,000 $100,000 386 Utilities - 879 Morro $75,000 $0 $0 $0 $0 387 Corporation Yard $50,000 $0 $0 $0 $0 388 Parks and Recreation $50,000 $0 $0 $0 $0 389 Various City Facilities $0 $100,000 $100,000 $100,000 $100,000 390 109 1000514 Emerson Park Amenity Upgrades and Beautification $2,810,000 $0 $0 $0 $0 391 11 1000518 Fleet Replacement: CDD $0 $37,000 $0 $0 $0 392 Building & Safety SUV (NEW <> Chevy Bolt EV) $0 $37,000 $0 $0 $0 393 12 1000554 Fleet Replacement: Fire $75,000 $0 $0 $780,000 $0 394 Open Space Rescue 4x41/2 Ton Truck $75,000 $0 $0 $0 $0 395 Fire Pumper (Engine 4) $0 $0 $0 $780,000 $0 396 14 1000553 Fleet Replacement: Police $0 1 $65,000 $0 $0 1 $0 397 1 Police Investigations SUV $0 $65,000 $0 $0 $0 398 15 1000520 Fleet Replacement: Public Works $66,000 $0 $0 $0 $0 399 Engineering Pickup (2), 3 Yr Temp $66,000 $0 $0 $0 $0 400 1101 99110 Laguna Lake Dredging and Sediment Management Project Implementation $840,000 $0 $675,000 $0 $675,000 401 1 Dredging and Shoreline Restoration $840,000 $0 $675,000 $0 $675,000 402 111 91683 North Broad Street Neighborhood Park $175,000 $0 $0 $0 $0 403 112 1000155 Open SLO $200,000 $0 $0 $0 $0 404 Downtown Renewal - Supplemental funding for Curbside Parklets $200,000 $0 $0 $0 $0 405 113 99837 Open Space Acquisition $250,000 $250,000 $250,000 $250,000 $250,000 406 114 90435 Palm - Nipomo Parking Structure $850,000 $5,582,000 $39,042,000 $0 $0 407 PG&E Relocation $700,000 $0 $0 $0 $0 408 Adobe Removal $150,000 $0 $0 $0 $0 409 Site Clearing and Preparation $0 $5,432,000 1 $0 1 $0 1 $0 410 CM Services $0 $150,000 1 $2,550,000 1 $0 1 $0 403 Capital Improvement Program 21-23 411 Garage Construction $0 $0 $36,492,000 ,.2025-26 $0 $0 412 115 1000525 Parking Enforcement Equipment at Gate Entry $40,000 $90,000 $0 $0 $0 413 116 1000526 Parks and Rec General Plan Implementation $200,000 $200,000 $0 $0 $0 414 117 91613 Prado Road Interchange $500,000 $5,849,571 $0 $63,735,000 $2,235,000 415 PANED Phase $500,000 $0 $0 $0 416 Design Phase $0 $4,004,660 $0 $0 $0 417 Construction Phase $0 $1,844,911 $0 $61,500,000 $0 418 Debt Service - Prado Interchange $0 $0 $0 $2,235,000 $2,235,000 419 118 1000528 Recycled Water Broad Street -Tank Farm to Aerovista $45,000 $1,040,000 $0 $0 $0 420 119 1000529 Recycled Water Orcutt Street - Fernwood to Laurel $0 $0 $0 $25,000 $675,000 421 77 1000530 Recycled Water Tank $150,000 $50,000 $0 $0 $0 422 SH Line and Pump & Bioassay Test $150,000 $50,000 $0 $0 $0 423 120 1000037 South Street Median Landscaping $240,000 $0 $0 $0 $0 424 80 1000535 Transit Facility EV Charging Infrastructure $100,000 $0 $0 $0 $0 425 EV Charger Installations $100,000 $0 $0 $0 $0 426 121 1000537 Transportation Monitoring & Modeling Update $40,000 $115,000 $40,000 $40,000 $40,000 427 122 1000083 Wastewater Lift Station Rehabilitation: New Buckley Lift Station $396,000 $0 $0 $0 $0 428 123 1000541 Water Treatment Plant - Power Storage Units Tesla Battery Grant $30,000 $0 $0 $0 $0 429 124 1000126 Water Treatment Plant Emergency Power - PSPS $465,000 $0 $0 $0 $0 430 59 1000077 WRRF Major Maintenance $225,000 $0 $0 $0 $0 431 Chain Link Fence Extension $175,000 $0 $0 $0 $0 432 Security Lighting $50,000 $0 $0 $0 $0 433 CIP Project Delivery Augmentation $500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 434 125 1000500 CIP Project Delivery Augmentation $500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 435 Grand Total $60,922,156 $65,425,845 $77,886,024 $90,695,015 $90,268,180 404 Capital Improvement Program 21-23 How to Read Project Narrative Pages cIP# xx muwm% Unique identifier for each CIP project. .. t p00ps9 Pnf j�ct Cluailicabon CIP Pfepeet Furlceon 5t2 Ptrbt P>trky.g Strucn.re kti+ldtiare�r di/ iGl�lsr� D--rWbm . kMraatr,reaaa 3 TrarispeAaeert d ry fey _ Ecanonrc F—ft*a (7assifimtiorf ktforrrta6ore Paretershp Prates No Describes the projects functiori and �PurPuse classification, if it is tied to any other and*ryas ►�rrkO Ass ae WrNrera� CIP projects, the community priority, Need: and what type of project it is - Describes the /Irpasf and MOWI J projects to t _ fie C ry co ry+etea a Parkng S:tugra Cap" Asset kkanagenxnl Pran mat berry neurteery nvwftrhwx* pryxts OW ed repaar purpose, deiaertoea, ariP►vr3 aes0�eacs and rod�ld to LowU We o f each sanchre M2 PWM a Ore CR1/s oikkut prkey stuc7um and reads ay�pru ataaraaarrx Tres krdrg,w area relade &stag cobvig on the upper foor,< pmt- of wenor. and Fops" cancrase fps" befalls of andaedvtg project el ements a nd 2112SM T 7R�iJa 22WU need Cutrraei 5et•.,res i00.000 4t10,000 d00.OW 12S.000 125.0m 1.4+fO,t1" F,uad Zlitf,?Z 2� 3=344 2021-M il2i2f T4* a + t _ vark x} r c <WOM 400-OW 400.000 125.000 125.0t10 i-450A01 capital Improvers- ., rlar. Fund & Flffld� FvFxWgSCxrcf �!b?3 2922433 302344 21ail-n 2a25M Tam Soli�[e5: .�-•mg Pw,Q 41M000 -0o ow 400.000 125.000 125.000 i.45p00 Identifies the source(s) of prod,CJ funding Project Information The project detail pages include the following information: 1. Project Number — Each project is assigned a unique identifier. Fisfal Year3: Qutl in es the cost of the project aver the span of five years. 2. Project Classification Information — Describes the project's function and classification, if it is tied to any other CIP projects, the community priority, and what type of project it is. 3. Purpose and Need — Describes the project's purpose, details of the project elements and need for the project in the community. 4. Fiscal Years —Outlines the cost of the project over the span of five years and the total cost budget. 5. Fund & Funding Sources — Identifies the source(s) of project funding. 405 CIP#1 Capital Improvement Plan Project Number Project Name 1000049 842 Palm Parking Structure Maintenance Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Economic Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need In 2018, the City completed a Parking Structure Capital Asset Management Plan that identify necessary maintenance projects that will repair deficiencies, improve aesthetics and extend the useful life of each structure. 842 Palm is the City's oldest parking structure and needs significant maintenance. This funding will address vehicle safety cabling on the upper floors, painting of interior, and repairing concrete spalling and cracking. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 400,000 400,000 400,000 125,000 125,000 1,450,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 611 - Parking Fund 400,000 400,000 400,000 125,000 125,000 1,450,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Parking Fund 400,000 400,000 400,000 125,000 125,000 1,450,000 406 C I P#2 Capital Improvement Plan Project Number Project Name 1000050 871 Marsh Street Structure Maintenance Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Economic Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need In 2018, the City completed a Parking Structure Capital Asset Management Plan that identify necessary maintenance projects that will repair deficiencies, improve aesthetics and extend the useful life of each structure. 871 Marsh is the City's second oldest parking structure in the City and needs significant maintenance. This funding will support painting of interior walls and stairwells, painting and replacing fire sprinklers, repairing concrete spalling and cracking, and improving drainage systems. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 400,000 400,000 400,000 125,000 125,000 1,450,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 611 - Parking Fund 400,000 400,000 400,000 125,000 125,000 1,450,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Parking Fund 400,000 400,000 400,000 125,000 125,000 1,450,000 407 CIP#3 Capital Improvement Plan Project Number Project Name 1000051 919 Palm Street Structure Maintenance Project Classification Classification Description - CIP Project Function Infrastructure & TransportationI� # li n , I Community Priority Economic Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance• Purpose and Need In 2018, the City completed a Parking Structure Capital Asset Management Plan that identify necessary maintenance projects that will repair deficiencies, improve aesthetics, and extend the useful life of each structure. 919 Palm is the City's newest parking structure, but at 13 years old preventative maintenance work is necessary. This funding will support resealing expansion joints and decks, repairing concrete spalls, tighten loose barrier cables, sealing all windows, retrofitting elevator doors and rehabilitating automatic bollards. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 100,000 100,000 100,000 50,000 50,000 400,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 611 - Parking Fund 100,000 100,000 100,000 50,000 50,000 400,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Parking Fund 100,000 100,000 100,000 50,000 50,000 400,000 408 CIP#4 Capital Improvement Plan Project Number Project Name 1000503 Annual Public Art Maintenance and ProjectsFor 00 Project Classification Classification Description ..!_ CIP Project Function Culture & Recreation Community Priority Economic Partnership Project No IJ Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need This funding addresses maintenance needs of the public art program for the current collection of artwork. Addressing repairs is recommended annually during the next five years of the City's CIP to fund maintenance and repairs. In addition to maintenance projects, this funding will also allow for re -painting of Utility Box artwork and temporary public art pieces such as murals and wraps. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 142,500 142,500 40,000 40,000 40,000 405,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 207 - Public Art Private Sector Fund 142,500 142,500 40,000 40,000 40,000 405,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 50,000 50,000 0 0 0 100,000 Local Revenue Measure 92,500 92,500 40,000 40,000 40,000 305,000 409 CIP#5 Capital Improvement Plan Project Number Project Name 1000029 Bridge Maintenance Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance The City of San Luis Obispo has 38 vehicular bridges and 11 pedestrian bridge ranging in age from one to 100+ years old. In accordance with Title 23 of the Code of Federal Regulations (Federal Highway Act) and the National Bridge Inspection Standards, CalTrans provides bridge inspections on vehicular bridges over 20' in length every 2 to 4 years. If the service life has been exceeded or maintenance is not sufficient to correct deficiencies, then bridges are recommended for rehabilitation or replacement. The following bridges have been identified for maintenance: • 2022 — Murray St. Near Santa Rosa (49C-397) — Crack Sealing / Concrete Repairs • 2022 — Chorro St. near Monterey/Higuera (49C-405) — Crack Sealing / Concrete Repairs 2022 — Broad St. Culver near Capitolio Way — Crack Sealing / Concrete Repairs • 2023 — Marsh St. @ Hwy 101 on/off ramp (49C-415) — Crack Sealing / Concrete Repairs • 2024 & 2025 - Various Maintenance Repairs - Crack Sealing / Concrete Repairs - Bridge Locations by Caltrans Bridge Inspection Assessment Reports Cost Budget Contract Services Fund 401 - Capital Outlay Fund Funding Source Local Revenue Measure 2021-22 2022-23 0 100,000 2021-22 2022-23 0 100.000 2021-22 2022-23 0 100,000 2023-24 2024-25 100,000 100,000 2023-24 2024-25 100,000 100,000 2023-24 2024-25 100,000 100,000 2025-26 150,000 2025-26 150,000 2025-26 150,000 Total 450,000 Total 450,000 Total 450,000 410 CIP#6 Capital Improvement Plan Project Number Project Name 1000052 Buchon-Santa Rosa Intersection Improvements Project Classification Classification Description CIP Project Function Community Safety Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need The Intersection of Santa Rosa and Buchon has been flooding during rain events. This project will reduce flooding issues and improve pedestrian safety by updating the curb ramps and provide a high visibility crosswalk. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 400,000 0 0 0 400,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 0 250,000 0 0 0 250,000 601 - Water Fund 0 150,000 0 0 0 150,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 0 250,000 0 0 0 250,000 Water Fund 0 150,000 0 0 0 150,000 HE CIP#7 Capital Improvement Plan Project Number Project Name 1000509 Corporation Yard Permimeter Fence Replacement Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Public Facility Project Type Annual Asset Maintenance Purpose and Need The Corporation Yard campus has been subject to multiple break-ins over the last year. Due to the amount of City vehicles, equipment, industrial chemicals and materials stored at this location, the potential for theft of expensive items is elevated. This project would replace the original chainlink fence with a heavy-duty ornamental iron fence that is much more difficult to breach. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 0 450,000 0 0 450,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 0 0 450,000 0 0 450,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 0 0 450,000 0 0 450,000 412 CIP#8 Capital Improvement Plan Project Number Project Name 1000510 Downtown Public Art Installations - Project Classification Classification Description CIP Project Function Culture & Recreation Community Priority Economic Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need This project focuses on public art installations in the downtown and creative placemaking public art. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 200,000 0 0 0 0 200,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 200,000 0 0 0 0 200,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 200,000 0 0 0 0 200,000 413 CIP#9 Capital Improvement Plan Project Number Project Name 1000063 Fire Hydrants Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need This project funds the materials cost for City owned fire hydrant assemblies when they need to be replaced if defective, leaking, or corroded. This project protects public health and the City's water resources from waste. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 40,000 40,000 40,000 40,000 40,000 200,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 40,000 40,000 40,000 40,000 40,000 200,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 40,000 40,000 40,000 40,000 40,000 200,000 414 CIP#10 Capital Improvement Plan Project Number Project Name 1000555 Fleet Replacement: Admin Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Economic No Fleet Annual Asset Maintenance This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelies. Revised Fleet Replacement Guidelines include the evaluation of the following criteria: Emission Compliance, Engine hours, Mileage, Age, Known Manufacture Problems, Repair Cost History, Utilization, and Fleet System Analytics. Additionally, the age and mileage replacement targets have been extended for all vehicle and equipment categories within the Fleet. New vehicle and equipment replacements are selected with the cleanest emissions systems possible that can be fueled and/or charged locally while meeting the end users' operational needs. Cost Budget Contract Services Fund 402 - Fleet Repl Fund 2021-22 2022-23 0 0 2021-22 2022-23 0 0 2023-24 2024-25 0 250,000 2023-24 2024-25 0 250,000 2025-26 0 2025-26 0 Total 250,000 Total 250,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 0 0 0 125,000 0 125,000 Local Revenue Measure 0 0 0 125,000 0 125,000 415 CIP#11 Capital Improvement Plan Project Number Project Name 1000518 Fleet Replacement: CDD Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Housing No Fleet Annual Asset Maintenance,New Asset A This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelies. Revised Fleet Replacement Guidelines include the evaluation of the following criteria: Emission Compliance, Engine hours, Mileage, Age, Known Manufacture Problems, Repair Cost History, Utilization, and Fleet System Analytics. Additionally, the age and mileage replacement targets have been extended for all vehicle and equipment categories within the Fleet. New vehicle and equipment replacements are selected with the cleanest emissions systems possible that can be fueled and/or charged locally while meeting the end users' operational needs. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 74,000 0 0 0 74,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 402 - Fleet Repl Fund 0 74,000 0 0 0 74,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 0 74,000 0 0 0 74,000 416 CIP#12 Capital Improvement Plan Project Number Project Name 1000554 Fleet Replacement: Fire Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Community Safety Other No Fleet Annual Asset Maintenance,New Asset This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelies. Revised Fleet Replacement Guidelines include the evaluation of the following criteria: Emission Compliance, Engine hours, Mileage, Age, Known Manufacture Problems, Repair Cost History, Utilization, and Fleet System Analytics. Additionally, the age and mileage replacement targets have been extended for all vehicle and equipment categories within the Fleet. New vehicle and equipment replacements are selected with the cleanest emissions systems possible that can be fueled and/or charged locally while meeting the end users' operational needs. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 275,000 465,000 200,000 780,000 0 1,720,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 402 - Fleet Repl Fund 275,000 465,000 200,000 780,000 0 1,720,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 275,000 465,000 200,000 780,000 0 1,720,000 417 CIP#13 Capital Improvement Plan Project Number Project Name 1000519 Fleet Replacement: Parks and Recreation Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Fleet Annual Asset Maintenance This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelies. Revised Fleet Replacement Guidelines include the evaluation of the following criteria: Emission Compliance, Engine hours, Mileage, Age, Known Manufacture Problems, Repair Cost History, Utilization, and Fleet System Analytics. Additionally, the age and mileage replacement targets have been extended for all vehicle and equipment categories within the Fleet. New vehicle and equipment replacements are selected with the cleanest emissions systems possible that can be fueled and/or charged locally while meeting the end users' operational needs. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 139,000 103,000 0 0 125,000 367,000 Fund 402 - Fleet Repl Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 139,000 103,000 0 0 125,000 367,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 0 0 0 0 65,000 65,000 Local Revenue Measure 139,000 103,000 0 0 60,000 302,000 418 CIP#14 Capital Improvement Plan Project Number Project Name 1000553 Fleet Replacement: Police Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Community Safety Other No Fleet Annual Asset Maintenance,New Asset This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelies. Revised Fleet Replacement Guidelines include the evaluation of the following criteria: Emission Compliance, Engine hours, Mileage, Age, Known Manufacture Problems, Repair Cost History, Utilization, and Fleet System Analytics. Additionally, the age and mileage replacement targets have been extended for all vehicle and equipment categories within the Fleet. New vehicle and equipment replacements are selected with the cleanest emissions systems possible that can be fueled and/or charged locally while meeting the end users' operational needs. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 220,000 235,000 245,000 265,000 350,000 1,315,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 402 - Fleet Repl Fund 220,000 235,000 245,000 265,000 350,000 1,315,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 220,000 235,000 245,000 265,000 350,000 1,315,000 419 CIP#15 Capital Improvement Plan Project Number Project Name 1000520 Fleet Replacement: Public Works Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Fleet Annual Asset Maintenance,New Asset This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelies. Revised Fleet Replacement Guidelines include the evaluation of the following criteria: Emission Compliance, Engine hours, Mileage, Age, Known Manufacture Problems, Repair Cost History, Utilization, and Fleet System Analytics. Additionally, the age and mileage replacement targets have been extended for all vehicle and equipment categories within the Fleet. New vehicle and equipment replacements are selected with the cleanest emissions systems possible that can be fueled and/or charged locally while meeting the end users' operational needs. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 631,000 298,000 1,152,000 1,286,000 377,000 3,744,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 402 - Fleet Repl Fund 631,000 168,000 1,115,000 1,286,000 377,000 3,577,000 611 - Parking Fund 0 130,000 37,000 0 0 167,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 0 0 155,000 0 60,000 215,000 Local Revenue Measure 631,000 168,000 960,000 1,286,000 317,000 3,362,000 Parking Fund 0 130,000 37,000 0 0 167,000 420 CIP#16 Capital Improvement Plan Project Number Project Name 1000521 Fleet Replacement: Utilities Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Fleet Annual Asset Maintenance This funding replaces existing City vehicles in compliance with revised Fleet Replacement Guidelies. Revised Fleet Replacement Guidelines include the evaluation of the following criteria: Emission Compliance, Engine hours, Mileage, Age, Known Manufacture Problems, Repair Cost History, Utilization, and Fleet System Analytics. Additionally, the age and mileage replacement targets have been extended for all vehicle and equipment categories within the Fleet. New vehicle and equipment replacements are selected with the cleanest emissions systems possible that can be fueled and/or charged locally while meeting the end users' operational needs. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 170,000 535,000 115,000 310,000 250,000 1,380,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 50,000 15,000 0 207,500 175,000 447,500 602 - Sewer Fund 120,000 505,000 60,000 102,500 0 787,500 705 - Whale Rock Fund 0 15,000 55,000 0 75,000 145,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Sewer Fund 120,000 505,000 60,000 102,500 0 787,500 Water Fund 50,000 15,000 0 207,500 175,000 447,500 Whale Rock Fund 0 15,000 55,000 0 75,000 145,000 421 CIP#17 Capital Improvement Plan Project Number Project Name 1000059 Fredericks Paving Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need A segment of the pavement on Fredericks Street was replaced due to a waterline failure in 2018. The pavement replacement was intended to be a semi -permanent fix and since the entire scope of the pavement damage was not known. The replaced pavement is currently in good condition. This funding supports future rehabilitation of pavement on Fredericks Street to full City Standards. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 0 0 0 300,000 300,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 0 0 0 0 300,000 300,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 0 0 0 0 300,000 300,000 422 CIP#18 Capital Improvement Plan Project Number Project Name 91739 Inflow/Infiltration Reduction Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance Replacement of wastewater collection pipes, and related infrastructure is an ongoing program for a reliable sanitary sewer collection system. The program's inflow and infiltration program will conduct pipe integrity tests, video inspections of public sewers, smoke testing of service areas, and schedule point repairs to address existing deficiencies according to priority. The objective of the project is to explore opportunities to consolidate sewer collection systems that may run parallel along roadways, and construct new sewer lateral interconnections that can simplify maintenance operations, reduce illegal stormwater connections into the sewer, and rehabilitate fractures in clay pipes that may be experiencing groundwater infiltration due to soil settlements or root instructions. A decrease of infiltration flows will result in lower energy costs needed to treat sewer volumes at the wastewater treatment plant. The project efforts may include sewer lateral rebates, engineering reports, construction plans for point repairs, construction management services, sewer manhole re -coatings, sewer flow monitoring studies, and field testing of wastewater piping infrastructure. Cost Budget 2021-22 2022-23 Contract Services 200,000 250,000 Fund 2021-22 2022-23 602 - Sewer Fund 200,000 250,000 Funding Source 2021-22 2022-23 Sewer Fund 200,000 250,000 2023-24 2024-25 250,000 250,000 2023-24 2024-25 250,000 250,000 2023-24 2024-25 250,000 250,000 2025-26 0 2025-26 0 2025-26 0 Total 950,000 Total 950,000 Total 950,000 423 CIP#19 Capital Improvement Plan Project Number Project Name 91736 Infrastructure Renewal Strategy Report Update Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance The purpose of this project is to update the computer model of the wastewater collection system monitoring pipe capacities for existing and future flows. The model will use best available information from new developments and compare the projections against flow monitoring data. The flow monitoring efforts will be conducted over several years to record improvements in pipe integrity and reductions on groundwater infiltration. The information will be used to schedule priorities for new sewer pipe replacement projects, and identify where groundwater infiltration may be restricting the capacity of the wastewater collection system. This study will be particularly important for proper planning of new infill housing developments, hospital expansions, and possible projects by the university needing additional sewer capacity. Cost Budget 2021-22 2022-23 Contract Services 0 250,000 Fund 2021-22 2022-23 602 - Sewer Fund 0 250,000 Funding Source 2021-22 2022-23 Sewer Fund 0 250,000 2023-24 2024-25 100,000 80,000 2023-24 2024-25 100.000 80.000 2023-24 2024-25 100,000 80,000 2025-26 0 2025-26 0 2025-26 0 Total 430,000 Total 430,000 Total 430,000 424 CIP#20 Capital Improvement Plan Project Number Project Name 1000074 IT Replacement Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Classification Description Infrastructure & Transportation Other No IT Annual Asset Maintenance Purpose and Need These projects replace Information Technology assets based upon equipment lifespan, condition, and organizational requirements. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 1,112,558 606,445 559,864 2,472,501 1,582,500 6,333,868 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund _ 988,973 564,777 448,779 _ 746,087 1,333,990 4,082,606 403 - Info Tech Repl Fund 0 0 62,000 1,123,172 145,500 1,330,672 601 - Water Fund 24,498 13,753 14,500 228,917 30,322 311,990 602 - Sewer Fund 87,838 19,358 14,982 254,015 35,745 411,938 611 - Parking Fund 4,160 4,279 14,693 76,091 18,227 117,450 621 -Transit Fund 1,201 3,157 4,910 20,704 10,415 40,387 705 - Whale Rock Fund L 5,888 1,121 0 23,515 8,301 38,825 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 0 0 62,000 1,123,172 145,500 1,330,672 Local Revenue Measure 988,973 564,777 448,779 746,087 1,333,990 4,082,606 Parking Fund 4,160 4,279 14,693 76,091 18,227 117,450 Sewer Fund 87,838 19,358 14,982 254,015 35,745 411,938 Transit Fund 1,201 3,157 4,910 20,704 10,415 40,387 Water Fund 24,498 13,753 14,500 228,917 30,322 311,990 Whale Rock Fund 5,888 1,121 0 23,515 8,301 38,825 425 CIP#21 Capital Improvement Plan Project Number Project Name 1000030 Laguna Lake Golf Course Maintenance Project Classification Classification Description CIP Project Function Culture & Recreation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need This Annual Asset Maintenance Project for the Laguna Lake Golf Course provides funding for work activities such as replacement of the 40 year old irrigation system, increasing water efficiencies by reducing leaks, and increase playability and safety of the turf. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 20,000 20,000 20,000 20,000 20,000 100,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 20,000 20,000 20,000 20,000 20,000 100,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 20,000 20,000 20,000 20,000 20,000 100,000 426 CIP#22 Capital Improvement Plan Project Number Project Name 1000075 Major Facility Maintenance Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project No Project Classification Public Facility Project Type Annual Asset Maintenance Purpose and Need This project will maintain, upgrade, or replace City facilities that serve the community. Funding in this Financial Plan is intended to support the Parks and Recreation interior office space remodel, the Corp Yard Tenant Improvements, and further the Police Department Facility site assessment and programming needs. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 772,500 633,200 710,500 226,500 505,500 2,848,200 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 767,500 293,200 600,500 80,500 315,500 2,057,200 404 - Major Facility Repl Fund 0 300,000 10,000 146,000 190,000 646,000 601 - Water Fund 0 7,500 50,000 0 0 57,500 602 - Sewer Fund 0 7,500 50,000 0 0 57,500 611 - Parking Fund 5,000 25,000 0 0 0 30,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 0 300,000 10,000 146,000 190,000 646,000 Local Revenue Measure 767,500 293,200 600,500 80,500 315,500 2,057,200 Parking Fund 5,000 25,000 0 0 0 30,000 Sewer Fund 0 7,500 50,000 0 0 57,500 Water Fund 0 7,500 50,000 0 0 57,500 427 CIP#23 Capital Improvement Plan Project Number Project Name 1000021 Meadow Park Pathway Maintenance Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Climate Action No Maintenance Annual Asset Maintenance There are approximately 6.5 miles of asphalt concrete pathways and bike paths within the City. Examples of these paths are the Railroad Safety Trail, the Bob Jones Trail, and various pathways located within City Parks. These pathways are used by bicycles and pedestrians, along with occasional service vehicles. To maintain accessibility to these facilities and reduce the risk of accidents, regular maintenance of pathways is important. Identified projects are as follows: • 2021: Meadow Park Pathways Reconstruction, City Pathways Inventory and PCI Assessment 2022: Madonna Frontage Bike Pathway Maintenance • 2023: Railroad Safety Trail from Cal Poly to Taft Street • 2023 - 2025: Pathway Maintenance Various Locations, Location by PCI Assessment & Pavement Condition Cost Budget Contract Services Fund 401 - Capital Outlay Fund 2021-22 2022-23 350,000 0 2021-22 2022-23 350,000 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2025-26 0 2025-26 0 Total 350,000 Total 350,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 100,000 0 0 0 0 100,000 Local Revenue Measure 250,000 0 0 0 0 250,000 428 CIP#24 Capital Improvement Plan Project Number Project Name 91612 Neighborhood Traffic Improvements Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need This funding continues the efforts to improve traffic conditions in existing neighborhoods, including collector and arterial streets with fronting residential. Each year the City receives requests for solutions to speeding and cut -through traffic problems. This funding allows for implementation of small to moderately sized projects to correct traffic related problems. Occasionally, larger needs are scoped and developed into stand-alone projects and budgeted individually. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 75,000 75,000 75,000 75,000 75,000 375,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 75,000 75,000 75,000 75,000 75,000 375,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 75,000 75,000 75,000 75,000 75,000 375,000 429 CIP#25 Capital Improvement Plan Project Number Project Name 1000524 Old Garden Creek Retaining Wall s 5; Project Classification Classification Description =- CIP Project Function Environmental Health & Open Space' f Community Priority Other Partnership Project No Project Classification Maintenance : Project Type Annual Asset Maintenance Purpose and Need A portion of Old Garden Creek immediately upstream and west of Cuesta Drive contains a retaining wall that is failing. The wall is immediately adjacent to several trees which are destabilizing the wall as they grow and increase in size. The project will likely require the removal of trees and replacement the failing wall. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 0 50,000 300,000 0 350,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 0 0 50,000 300,000 0 350,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 0 0 50,000 300,000 0 350,000 430 CIP#26 Capital Improvement Plan Project Number Project Name 91397 Open Space Maintenance Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Environmental Health & Open Space Climate Action No Maintenance Annual Asset Maintenance i This project supports continued implementation of the City's adopted Open Space Maintenance Plan. The ongoing maintenance of all City Open Space is premised on the protection of natural resources, including plants, animals, geologic and historic features and the natural areas themselves. Maintenance includes: enhancement to existing trailheads, maintenance and construction of approved and sustainable trails and open space facilities for passive recreation purposes only, removal of illicit materials and non -authorized trails, improved user and natural resource safety, land restoration and stewardship projects, invasive species treatment and control, erosion control and stabilization, education of users via patrols and community outreach, and management of the wildland-urban interface. Additionally, funding helps establish new open space trails associated with recent acquisitions and planning for public use. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 85,000 105,000 80,000 80,000 80,000 430,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 85,000 105,000 80,000 80,000 80,000 430,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 85,000 105,000 80,000 80,000 80,000 430,000 431 CIP#27 Capital Improvement Plan Project Number Project Name 91385 Park Major Maintenance & Repairs Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Community & Neighborhood Livability Diversity No Maintenance Annual Asset Maintenance Parks require ongoing maintenance in order to continue to provide users a safe and quality experience. This Annual Asset Maintenance Account provides ongoing funding for the maintenance and replacement of a park infrastructure. This account provides funding annually for parks surfacing maintenance and water supply infrastructure including the installation of hydration stations. Larger maintenance projects include: • 2021: Mission Plaza Railing Replacement, Sinsheimer Stadium Irrigation and Drainage Replacement, Sinsheimer Hardscape Replacement • 2022: Cheng Park Rehabilitation, Railroad Bike Path Fencing • 2023: Jack House Arbor, Meadow Park Exercise Course Railroad Bike Path Fencing 2024: Santa Rosa Park Bleacher Replacements • 2025: Sinsheimer Stadium Lighting Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 1,835,000 160,000 1,000,000 690,000 840,000 4,525,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 1,835,000 160,000 1,000,000 690,000 840,000 4,525,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 0 0 200,000 0 0 200,000 Local Revenue Measure 1,835,000 160,000 800,000 690,000 840,000 4,325,000 432 CIP#28 Capital Improvement Plan Project Number Project Name 1000031 Parking Lot Maintenance Project Classification Classification Description CIP Project Function Community & Neighborhood Livability Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need The total area of City maintained parking lots is approximately 360,000 square feet or 8.3 acres. In order to increase the percentage of lot surfaces in good condition, regular maintenance needs to be completed. The following parking lots have been identified for maintenance and repair. Ongoing — Minor Repairs of City Parking Lots 2021 Construction - French Park Parking Lot - Pavement Area 3 2021 Construction - Fire Station 2 — Pavement Area 7 2021 Design / 2022 Construction — Islay Park — Pavement Area 3 2021 Design / 2022 Construction - Meadow Park — Pavement Area 4 2022 Design / 2023 Construction - Ludwick Community Center — Pavement Area 1 2022 Design / 2023 Construction - Laguna Lake — Pavement Area 5 2022 Design / 2023 Construction - Santa Rosa Park — Pavement Area 1 2023 Design / 2024 Construction - Laguna Lake - Pavement Area 6 2023 Design / 2024 Construction - Throop Park - Pavement Area 7 2023 Design / 2024 Construction - Mitchell Park - Pavement Area 4 2023 Design / 2024 Construction - Johnson Park - Pavement Area 2 2024 Construction - Damon Garcia Sports Field Complex - Pavement Area 3 2024 Design / 2025 Construction - Sinsheimer Park - Pavement Area 2 Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 175,000 255,000 1,484,693 250,000 270,000 2,434,693 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 175,000 255,000 1,484,693 250,000 270,000 2,434,693 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 0 0 135,912 0 0 135,912 Local Revenue Measure 175,000 255,000 1,348,781 250,000 270,000 2,298,781 433 CIP#29 Capital Improvement Plan Project Number Project Name �Y 1000102 Parking Lot Maintenance - Bus Yard I f. Project Classification Classification Description ' t CIP Project Function Infrastructure & Transportation } Community Priority Climate Action ? F Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance r �� Purpose and Need This project will rehabilitate the pavement at the Bus Yard facility parking lot and provide improved functional area for future electric vehicle and expanse of the fleet. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 5,000 500,000 0 0 0 505,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 621 - Transit Fund 5,000 500,000 0 0 0 505,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total State or Federal Grant 5,000 500,000 0 0 0 505,000 434 CIP#30 Capital Improvement Plan Project Number Project Name 1000032 Pedestrian and Bicycle Pathway Maintenance Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Climate Action No Maintenance Annual Asset Maintenance There are approximately 6.5 miles of asphalt concrete pathways and bike paths within the City. Examples of these paths are the Railroad Safety Trail, the Bob Jones Trail, and various pathways located within City parks. These pathways are used by bicycles and pedestrians, along with occasional service vehicles. To maintain accessibility to these facilities and reduce the risk of accidents, regular maintenance of pathways is important. Identified projects are as follows: 2021: City Pathways Inventory and PCI Assessment 2022: Madonna Frontage Bike Pathway Maintenance 2023: Railroad Safety Trail from Cal Poly to Taft Street 2023 - 2025: Pathway Maintenance Various Locations, Location by PCI Assessment & Pavement Condition Cost Budget Contract Services Fund 401 - Capital Outlay Fund Funding Source Local Revenue Measure 2021-22 2022-23 20,000 200,000 2021-22 2022-23 20,000 200,000 2021-22 2022-23 20,000 200,000 2023-24 2024-25 150,000 150,000 2023-24 2024-25 150,000 150,000 2023-24 2024-25 150,000 150,000 2025-26 150,000 2025-26 150,000 2025-26 150,000 Total 670,000 Total 670,000 Total 670,000 435 CIP#31 Capital Improvement Plan Project Number Project Name 1000035 Pismo/Johnson/SL Creek Bank Stabilization Project Classification Classification Description CIP Project Function Community Safety Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need San Luis Creek passes under Johnson Avenue near Pismo Street. The creek bank is starting to erode, and this project will stabilize the creek bank and protect Pismo Street. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 92,272 0 300,000 0 0 392,272 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 92,272 0 300,000 0 0 392,272 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 42,272 0 0 0 0 42,272 Local Revenue Measure 50,000 0 300,000 0 0 350,000 436 CIP#32 Capital Improvement Plan Project Number Project Name 1000033 Playground Equipment Replacement Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Community & Neighborhood Livability Other No Maintenance Annual Asset Maintenance In 2008, the State passed AB 1144 which mandates that all play equipment constructed between 1994 and 1999 be replaced or upgraded within 15 years of installation. 2021 Design / 2023 Construction - Vista Lago Mini Playground (Installed 2001) 2021 Design / 2023 Construction - DeVaul Ranch Playground (Installed 2002) 2022 Design / 2024 Construction - Mitchell Park Playground (Installed 2003) 2023 Design / 2025 Construction - Laguna Hills Playground (Installed 2004) 2024 Design / 2025 Construction - Anholm Playground (Installed 2006) 2025 Design - French Park Playground (Installed 2008) Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 110,000 100,000 700,000 800,000 1,175,000 2,885,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 110,000 100,000 700,000 800,000 1,175,000 2,885,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 110,000 100,000 700,000 800,000 1,175,000 2,885,000 437 CIP#33 Capital Improvement Plan Project Number Project Name 1000531 Reycled Water Annual UV Bulb Replacement Project Classification Classification Description CIP Project Function Infrastructure & Transportation - Community Priority Other ' Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need This project involves replacement of UV Bulbs for proper functioning of the City's Recycled Water System Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 0 10,000 10,000 10,000 30,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 0 0 10,000 10,000 10,000 30,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 0 0 10,000 10,000 10,000 30,000 438 CIP#34 Capital Improvement Plan Project Number Project Name 1000532 Roundabout Public Art Installations Project Classification Classification Description CIP Project Function Culture & Recreation Community Priority Economic Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance - Purpose and Need This project is to initiate planning for installation of public art in the center of current or planned City roundabouts. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 300,000 300,000 200,000 200,000 200,000 1,200,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 207 - Public Art Private Sector Fund 300,000 300,000 200,000 200,000 200,000 1,200,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 300,000 300,000 200,000 200,000 200,000 1,200,000 439 CIP#35 Capital Improvement Plan Project Number Project Name 1000084 Sewer Maintenance Hole Cover Adjustments Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance Purpose and Need This project funds the raising or lowering sewer maintenance covers when the City paves roadways. The objective of the project is to protect existing sewer maintenance cover frames and pipes from damage by paving machinery, and to efficiently complete paving operations within the roadway. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 85,000 25,000 25,000 25,000 25,000 185,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 602 - Sewer Fund 85,000 25,000 25,000 25,000 25,000 185,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Sewer Fund 85,000 25,000 25,000 25,000 25,000 185,000 440 CIP#36 Capital Improvement Plan Project Number Project Name 90849 Sidewalk Replacement and Installation Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance is Purpose and Need The City has an established system of streets with curbs, gutters, and sidewalks. The City's sidewalk system is comprised of 202 miles of sidewalk and 2436 points at intersections where pedestrians cross the street. New replacement installations of sidewalk and curb ramps are required to continue the City's program to provide a complete and accessible pedestrian path of travel. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 235,461 250,000 250,000 250,000 250,000 1,235,461 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 209 - SB1186 CASP Certify Fund 85,461 0 0 0 0 85,461 401 - Capital Outlay Fund 150,000 250,000 250,000 250,000 250,000 1,150,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 150,000 250,000 250,000 250,000 250,000 1,150,000 SB1186 CASP Certify Fund 85,461 0 0 0 0 85,461 OF CIP#37 Capital Improvement Plan Project Number Project Name 1000046 Silt Removal Project Classification Classification Description CIP Project Function Community Safety Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need Silt carried by storm water settles at points in the creek where the storm water's velocity decreases. This reduction in velocity allows solids suspended in the water to settle out. As these deposits build up, the capacity of the creek decreases and risk of flooding of the surrounding areas increases. The regular removal of silt restores channel capacity and reduces risk of flooding. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 210,000 100,000 100,000 100,000 100,000 610,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 210,000 100,000 100,000 100,000 100,000 610,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Zone 9 210,000 100,000 100,000 100,000 100,000 610,000 442 CIP#38 Capital Improvement Plan Project Number Project Name:.. 1000533 SLO Creek Improvements Behind Cheng Park x L L• Project Classification Classification Description ,; .,, .•; CIP Project Function Environmental Health & Open Space Community Priority Economic•`:' a Partnership Project Project Classification No, Maintenance ` Project Type Annual Asset Maintenancei�_a+ , Purpose and Need This project will remove silt accumulation and restore creek capacity and habitat between Marsh Street Bridge and Santa Rosa Street bridge in San Luis Obispo Creek. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 0 100,000 0 400,000 500,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 0 0 100,000 0 400,000 500,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 0 0 100,000 0 400,000 500,000 443 CIP#39 Capital Improvement Plan Project Number Project Name SLO Creek Walk Maintenance - Lighting, Signage, 1000534 Irrigation, Plants Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Economic Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need This project is intended to remove invasive weeds and plants in the creek channel area and intended to create a more inviting experience for community members and visitors of the Mission Plaza. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 0 200,000 0 0 200,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 0 0 200,000 0 0 200,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 0 0 200,000 0 0 200,000 444 CIP#40 Capital Improvement Plan Project Number Project Name 90742 Storm Drain System Replacement Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Community Safety Climate Action No Maintenance Annual Asset Maintenance This annual asset maintenance project addresses capital maintenance and replacement of pipe, culvert and constructed drainage channels to provide increased flood protection and reduced likelihood of loss of property. 2021 - Broad and Leff Culvert Repair 2021 — Funston and Lawton CMP Replacements 2021 - Woodbridge Groundwater Runoff Diversion Design 2022 — Rafael and Luneta CMP Replacements 2022 - Woodbridge Groundwater Runoff Diversion 2022 - Sacramento Culvert Repair 2023-2025 - Design and Construction of CMP Replacements per ongoing Priority Condition Assessments. Ongoing - Trash Capture Device Installations Cost Budget Contract Services Fund 401 - Capital Outlay Fund Funding Source Local Revenue Measure 2021-22 2022-23 910,000 725,000 2021-22 2022-23 910,000 725,000 2021-22 2022-23 910,000 725,000 2023-24 2024-25 550,000 550,000 2023-24 2024-25 550,000 550,000 2023-24 2024-25 550,000 550,000 2025-26 550,000 2025-26 550,000 2025-26 550,000 Total 3,285,000 Total 3,285,000 Total 3,285,000 445 C I P#41 Capital Improvement Plan Project Number Project Name 91616 Street Lights - Annual Asset Maintenance Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need This annual asset account supports the establishment of new street lights requested by the community. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 75,000 75,000 75,000 75,000 75,000 375,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 75,000 75,000 75,000 75,000 75,000 375,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 75,000 75,000 75,000 75,000 75,000 375,000 446 CIP#42 Capital Improvement Plan Project Number Project Name 90346 Street Reconstruction & Resurfacing Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Climate Action No Maintenance Annual Asset Maintenance Pavement maintenance is an ongoing need and provides increased roadway life and a smooth pavement surface. The City's Pavement Management Plan (PMP), adopted in 1998, established nine pavement maintenance zones within the City, and a plan in which each of these areas receved maintenance on an eight -year rotation. In 2009, the City Council approved a modified PMP that provided great priority for arterial strets while maintaining the eight -year rotation for maintenance work on local streets. The City maintains a total of 134 miles of roadways. Identified projects are as follows: 2021 - Marsh, Higuera, Johnson/Phillips/Pepper, and Nipomo Street 2022 - Pavement Areas 6 & 7 Local and Collector Streets, Monterey - California to Santa Rosa 2023 - Downtown Core Marsh & Higuera, Morro Mid -Block to Monterey, Palm - Pepper to Santa Rosa 2024 - Areas 8 & 9 Local and Collector Streets 2025 - Santa Barbara, Orcutt Road Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 3,592,702 4,266,258 3,302,967 3,382,014 3,341,180 17,885,121 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 211 - SB1 Road Repair 2017 914,731 941,258 977,967 1,014,152 1,062,831 4,910,939 401 - Capital Outlay Fund 2,677,971 3,325,000 2,325,000 2,367,862 2,278,349 12,974,182 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 273,324 0 0 1,306,829 835,279 2,415,432 Local Revenue Measure 2,404,647 3,325,000 2,325,000 1,061,033 1,443,070 10,558,750 SB1 914,731 941,258 977,967 1,014,152 1,062,831 4,910,939 447 CIP#43 Capital Improvement Plan Project Number Project Name 1000150 Sustainable Groundwater Management Act GSP Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Climate Action No Maintenance Annual Asset Maintenance The City of San Luis Obispo formed a Groundwater Sustainability Agency (GSA) in June of 2017 for management of the San Luis Valley Groundwater Basin (SLO Basin) in accordance with the Sustainable Groundwater Management Act (SGMA). This project will provide financial resources to collaborate with GSA stakeholders to effectively manage the groundwater basin in the city, which may include preparation of research studies, field investigations, legal documents, grant applications, and regional participation in the development of a groundwater sustainability plan. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 150,000 150,000 150,000 150,000 150,000 750,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 150,000 150,000 150,000 150,000 150,000 750,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 150,000 150,000 150,000 150,000 150,000 750,000 448 .ei�ll�E! Capital Improvement Plan Project Number Project Name 90943 Traffic Signs & Striping Maintenance Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project No b■ Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need The City is responsible for maintaining approximately 15,000 traffic signs and 134 miles of roadway striping. The Federal Highway Administration has adopted a mandate requiring public agencies to maintain minimum reflectivity standards to help ensure nighttime visibility. Specifically, this funding will be used to replace signs, lanes lines, stop bars, marked crosswalks and other roadway indicators enhancing safety for motorists, cyclist and pedestrians. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 25,000 25,000 25,000 25,000 25,000 125,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 25,000 25,000 25,000 25,000 25,000 125,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 25,000 25,000 25,000 25,000 25,000 125,000 449 CIP#45 Capital Improvement Plan Project Number Project Name 1000073 Transportation Safety & Operations Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need The City completes annual safety reports which identify changes that can be made to the City's roadways to enhance safety for all road users. This is consistent with the City's adopted Vision Zero goal to eliminate traffic -related fatalities and severe injuries citywide. This funding will be used to implement the highest priority safety and traffic operations improvements identified in the Traffic Safety Report and Traffic Operations Report. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 50,000 50,000 50,000 50,000 50,000 250,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 30,000 30,000 30,000 30,000 30,000 150,000 507 - Transportation Impact Fee Fund 20,000 20,000 20,000 20,000 20,000 100,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 30,000 30,000 30,000 30,000 30,000 150,000 Transportation Development Impact Fee 20,000 20,000 20,000 20,000 20,000 100,000 450 CIP#46 Capital Improvement Plan Project Number Project Name 99653 Treatment Major Facilities Maintenance Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance The City's Water Treatment Plant was originally constructed in 1961. In 1995, a significant upgrade to the plant was completed to meet changing water quality requirements. In April of 2008, another major upgrade project was completed that replaced older equipment, added additional treated water storage, and enhanced treatment processes. The ongoing maintenance of the facilities and equipment at the Water Treatment Plant is necessary in order to prolong the useful life of the facilities and ensure staff's ability to operate the plant and treat water to State and Federal standards. (Note — There could be cost savings if Ozone and Air Prep Systems are replaced as part of the proposed Water Treatment Plant Energy Efficiency Project). Cost Budget 2021-22 2022-23 Contract Services 274,000 109,000 Fund 2021-22 2022-23 601 - Water Fund 274,000 109,000 Funding Source 2021-22 2022-23 Water Fund 274,000 109,000 2023-24 2024-25 109,000 180,000 2023-24 2024-25 109.000 180.000 2023-24 2024-25 109,000 180,000 2025-26 150,000 2025-26 150,000 2025-26 150,000 Total 822,000 Total 822,000 Total 822,000 451 CIP#47 Capital Improvement Plan Project Number Project Name 91740 Trench Repairs- Sewer Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need This project includes repairs to paved areas by Job Order Contract (JOC) where wastewater collection staff addressed system failures, or potholing operations along the public sewer system. The objective of the project is to efficiently replace several temporary asphalt patches within the roadway that resulted from potholing operations with permanent pavement using bulk orders from the JOC. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 25,000 25,000 25,000 25,000 25,000 125,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 602 - Sewer Fund 25,000 25,000 25,000 25,000 25,000 125,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Sewer Fund 25,000 25,000 25,000 25,000 25,000 125,000 452 CIP#48 Capital Improvement Plan Project Number Project Name 91147 Trench Repairs- Water Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No wor Project Classification Maintenance c Project Type Annual Asset Maintenance Purpose and Need The project includes repairs to paved areas by Job Order Contract (JOC) where water distribution staff needs to remove, or repair service connections within the public water distribution system. The objective of the project is to remove city owned polybutylene service connections, cast iron fittings, deteriorated water pipes, and to efficiently replace several temporary asphalt patches with permanent pavement using bulk orders from the JOC. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 200,000 200,000 200,000 200,000 200,000 1,000,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 200,000 200,000 200,000 200,000 200,000 1,000,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 200,000 200,000 200,000 200,000 200,000 1,000,000 453 CIP#49 Capital Improvement Plan Project Number Project Name 1000027 Urban Forest Maintenance Project Classification Classification Description CIP Project Function Community & Neighborhood Livability Community Priority Climate Action Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need The City's Urban Forest is comprised of approximately 20,000 public trees. Regular tree pruning and related maintenance provides for an attractive, healthy, and safer urban forest. This funding will be used to provide annual tree pruning in neighborhoods and the downtown, including preparation of an Urban Forest Master Plan that will be used to guide long term maintenance and operations program efforts. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 315,000 175,000 175,000 175,000 175,000 1,015,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 315,000 175,000 175,000 175,000 175,000 1,015,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 315,000 175,000 175,000 175,000 175,000 1,015,000 454 CIP#50 Capital Improvement Plan Project Number Project Name 1000527 Wastewater Collections System - Point Repairs Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance Point repairs of sewer mains and related infrastructure is necessary for a reliable wastewater collection system. This point repair project will address existing deficiencies in a surgical manner and identify potential failures in the public wastewater collection system using video inspections of public mains. The objective of the point repair project is to explore opportunities to improve wastewater catchment areas in a surgical method with limited impacts to traffic circulation and paved roads. The project efforts may include engineering reports, video inspections, updates to the computer hydraulic model, construction plans for point repairs, construction management services, re -coatings of maintenance structures (MHs), research for grants programs, and field testing of the wastewater collection system. The following projects have been identified in this financial plan: elimination of sewer pipes along backyard easements, off -set joints along the pipe between maintenance structures, and computer modeling efforts of the proposed hydraulic modifications. Cost Budget 2021-22 2022-23 Contract Services 50,000 50,000 Fund 2021-22 2022-23 602 - Sewer Fund 50,000 50,000 Funding Source 2021-22 2022-23 Sewer Fund 50,000 50,000 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2025-26 0 2025-26 0 2025-26 0 Total 100,000 Total 100,000 Total 100,000 455 CIP#51 Capital Improvement Plan Project Number Project Name 1000540 Water Distribution System Hydraulic Model Update Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance The purpose of this project is to update the computer model of the water distribution system monitoring pipe capacities for existing and future flows. The model will use best available information from new developments and compare the projections against flow data obtained from the Supervisory Control and Data Acquisition (SCADA). The flow monitoring efforts will be conducted over several months to record improvements in pipe integrity and reductions on main breaks. The information will be used to schedule priorities for new water pipe replacement projects, and identify where water demands may be restricting the capacity of the water distribution system. This study will be particularly important for proper planning of new infill housing developments, hospital expansions, and possible projects by the university needing additional water capacities. Cost Budget 2021-22 2022-23 Contract Services 100,000 0 Fund 2021-22 2022-23 601 - Water Fund 100,000 0 Funding Source 2021-22 2022-23 Water Fund 100,000 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2025-26 0 2025-26 0 2025-26 0 Total 100,000 Total 100,000 Total 100,000 456 CIP#52 Capital Improvement Plan Project Number Project Name 1000062 Water Meters and Boxes Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance "7u� 0 °-9 • This project funds the material cost for water meters, meter appurtenances, and meter boxes where water distribution staff needs to remove or repair public water meters within the distribution system that are reported to be defective. The objective of the project is to increase accuracy and reliability of public water meters, and efficiently manage all water resources in a cost-effective manner. When leaks are suspected, water distribution staff will use best available technology to monitor the water service area (pressure zone) using: leak detection equipment, sound correlators, radio monitoring telemetry of water flows around a pressure zone, and pilot tests by the water distribution staff for a temporary district metering area. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 286,000 330,000 335,000 343,000 350,000 1,644,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 143,000 165,000 167,500 171,500 175,000 822,000 602 - Sewer Fund 143,000 165,000 167,500 171,500 175,000 822,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Sewer Fund 143,000 165,000 167,500 171,500 175,000 822,000 Water Fund 143,000 165,000 167,500 171,500 175,000 822,000 457 CIP#53 Capital Improvement Plan Project Number Project Name 1000034 Water Storage Tank Maintenance Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance I Storage capacity for treated potable water is an essential function of a water distribution system to provide adequate flows and pressures throughout the community. In addition to water storage tanks at the Water Treatment Plant, there are nine water storage tanks located within the City's distribution system, and a few have been in operation since the early 1940s. Maintenance of water storage facilities is necessary to prolong the useful life of these assets and ensures staff's ability to operate the water system to State and Federal standards. In 2012, a consultant was hired to inspect and produce a report regarding the interior and exterior of the City's water storage tanks. The report included recommendations, and preliminary cost estimates for future maintenance projects. Following the inspection of the tanks, staff worked with the consultant to assign a priority ranking for each future maintenance project. The proposed projects for funding include: 1) Wash Water Tank No. 1 is experiencing excessive corrosion on the inner roof area. To prevent the tank structure from deteriorating and to prolong the tank's Iifespan, new interior and exterior coatings are required and reconstruction of the roof's structural members is needed. 2) Reservoir 2, the City's largest treated potable water storage tank, needs a new floating cover and associated equipment. The existing floating cover has reached the end of its service life. Reservoir 2 is a concrete water storage tank. 3) Edna Tank, the City's largest steel potable water storage tank, is experiencing corrosion on the interior surfaces and requires new interior and exterior coatings to prevent the corrosion from spreading into the structural members. Coating projects are preventative maintenance and will prolong the life span of the tank and reduce the likelihood of future costly component failures. This project will be grouped with other coating projects to capitalize on potential savings from a larger construction project. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 50,000 1,355,000 1,000,000 0 0 2,405,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 50,000 1,355,000 1,000,000 0 0 2,405,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 50,000 1,355,000 1,000,000 0 0 2,405,000 458 CIP#54 Capital Improvement Plan Project Number Project Name 1000542 Water Treatment Plant Major Facility Maintenance Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance,Asset Replacement Purpose and Need The City's Water Treatment Plant was originally constructed in 1961. In 1995, a significant upgrade to the plant was completed to meet changing water quality requirements. In April of 2008, another major upgrade project was completed that replaced older equipment, added additional storage capacity for treated water, and enhanced treatment processes. The ongoing maintenance of the facilities and equipment at the Water Treatment Plant is necessary to prolong the useful life of the facilities and ensure staff's ability to operate the plant and treat water to State and Federal standards. The proposed maintenance projects include maintenance to ozone system, chemical storage system, air compressor, package thickener, aluminum bulk tank replacement, lab analyzer replacement, polymer mixing unit rehabilitation, rehabilitation of pump station pressure sustaining valves, facility roof repairs, and the development of a Facility Infrastructure Renewal Strategy. The renewal strategy will allow plant staff to prioritize Water Treatment Plant related capital improvement projects for the next decade. An asset management plan will also be developed to track infrastructure performance and maintenance cycles. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 275,000 180,000 50,000 0 25,000 530,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 270,000 180,000 50,000 0 25,000 525,000 705 - Whale Rock Fund 5,000 0 0 0 0 5,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 270,000 180,000 50,000 0 25,000 525,000 Whale Rock Fund 5,000 0 0 0 0 5,000 459 CIP#55 Capital Improvement Plan Project Number Project Name 91149 Water Valve Cover Adjustments Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need The project includes raising or lowering water valve covers when the City completes road pavement operations. The objective of the project is to protect existing water valves and access covers from damage by paving machinery, and to efficiently complete paving operations within the roadway. Water valves will be replaced with new decorative art covers that convey history and culture of the City. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 50,000 30,000 30,000 30,000 30,000 170,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 50,000 30,000 30,000 30,000 30,000 170,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 50,000 30,000 30,000 30,000 30,000 170,000 460 CIP#56 Capital Improvement Plan Project Number Project Name 1000065 Waterline Replacements - Point Repair Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need Replacement of water distribution pipes, mainlines, and related infrastructure is an ongoing program to provide a reliable water distribution network including fire protection. The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable water storage tanks, two reservoirs, five hydro -pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over 180 miles of pipe with diameters ranging in size from four inches to 30 inches. This project will replace critical infrastructure that has reached the end of its useful life, or has recently failed, or is ranked as a high priority for replacement by the water distribution's infrastructure renewal strategy. The objective of the project is to replace cast-iron pipe or failing materials with pipe meeting new standards by the American Water Works Association (AWWA) to provide resiliency in the distribution network against variations in pressure and flows. The point repair project will address existing deficiencies, and the potential for near -term failure according to priority. The objective of the project is to explore opportunities to consolidate water distribution service areas (pressure zones), and construct new pipe interconnections between pressure zones to simplify operations, improve water reuse operations, reduce pumping needs, and eliminate pump stations or tanks that would otherwise require replacement. The project efforts may include engineering reports, updates to the computer hydraulic model, construction plans for point repairs, construction management services, tank re -coatings, pump maintenance, updates to construction water filling stations, materials for point repairs, grant applications, and field testing of water distribution infrastructure. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 590,000 0 0 0 0 590,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 590,000 0 0 0 0 590,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 590,000 0 0 0 0 590,000 461 CIP#57 Capital Improvement Plan Project Number Project Name 91335 Whale Rock Reservoir - Major Facility Maintenance Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance Whale Rock Reservoir was originally constructed in 1961. In 2018, an assessment was completed to evaluate the condition of the Dam's spillway and related infrastructure per requirements set by the Division of Safety of Dams (DSOD). The recommendations by the assessment include capital improvement projects required to operate the facility in a safe and reliable manner per DSOD requirements. Additionally, the ongoing maintenance of the facility and associated infrastructure at the Whale Rock Reservoir are necessary to prolong the useful life of the facilities and ensure staff's ability to operate the dam and deliver water to the City. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 815,000 145,000 20,000 120,000 45,000 1,145,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 705 - Whale Rock Fund 815,000 145,000 20,000 120,000 45,000 1,145,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Whale Rock Fund 815,000 145,000 20,000 120,000 45,000 1,145,000 462 CIP#58 Capital Improvement Plan Project Number Project Name 91617 Whale Rock Transmission Pipeline Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance The 17.6 miles of pipeline conduit that transport water from the Whale Rock Reservoir (WRR) to the City of San Luis Obispo, Cal Poly, and California Men's Colony is 57 years old. Given the aging infrastructure, an assessment of the pipeline's condition has been completed to properly schedule repairs or replacement projects. Understanding the condition of the WRR pipeline has assisted in in planning for long term pipeline reliability and associated maintenance needs, minimizing pipeline failures and associated disruptions, cost, and water leaks. The following scheduled repairs will include point repairs or replacement of pipe segments that have experienced corrosion or have failed the structural integrity assessment. Cost Budget Contract Services Fund 705 - Whale Rock Fund Funding Source Whale Rock Fund 2021-22 2022-23 60,000 510,000 2021-22 2022-23 60.000 510.000 2021-22 2022-23 60,000 510,000 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2025-26 0 2025-26 0 2025-26 0 4 Total 570,000 Total 570,000 Total 570,000 463 CIP#59 Capital Improvement Plan Project Number Project Name 1000077 WRRF Major Maintenance Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance,New Asset Purpose and Need This project includes maintenance of key components at the Water Resource Recovery Facility WRRF to ensure proper operation and prolong the useful life of equipment and other facilities that are not included in the facility upgrade. The structures and equipment at the Water Resource Recovery Facility (WRRF) range in age from five to over 75 years. As part of the continued operation of the WRRF, existing processes and equipment require maintenance and periodic replacement to ensure proper function, prolong service life, and maintain high quality treatment processes. Preventive maintenance is a key component to reducing equipment failure and reducing risk associated with regulatory discharge limit violations. Construction and equipment replacement must occur in such a way as to not interfere with the City's ability to continue to provide wastewater treatment within a strict regulatory setting. Replacement of equipment and maintenance activities will be coordinated with the ongoing WRRF upgrade project, which include maintenance to the primary scum pit, screenings auger, grit pumps, grit blowers, influent storm pumps, laboratory fans, security lights, chain link fence, computerized maintenance management system (CMMS), digester flare, digester cleaning and digester portable heaters. Construction of these major equipment maintenance projects will be coordinated with facility's infrastructure renewal strategy and will allow plant staff to prioritize capital improvement projects for the next decade. An asset management plan will also be developed to track infrastructure performance and maintenance cycles using the City's available software. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 340,000 520,000 400,000 125,000 125,000 1,510,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 87,500 0 0 0 0 87,500 602 - Sewer Fund 252,500 520,000 400,000 125,000 125,000 1,422,500 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Sewer Fund 252,500 520,000 400,000 125,000 125,000 1,422,500 Water Fund 87,500 0 0 0 0 87,500 464 CIP#60 Capital Improvement Plan Project Number Project Name 1000505 Bus Replacements with EV Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project No Project Classification Transportation Project Type Asset Replacement Purpose and Need Several SLO Transit vehicles are near the end of their useful life as defined by the Federal Transit Administration as 12 years of consecutive service. These vehicles are showing their age and experiencing reliability issues and require additional costly maintenance. This project will replace end of useful life diesel transit vehicles with new electric transit vehicles which is essential for the City to move closer towards meeting its Climate Action Plan goals of being carbon neutral by 2030 and the California Air Resource Board Innovative Clean Transit Rule for 100% transition to electric transit vehicles by 2040. Funding for transit vehicle replacements is contingent upon receipt of discretionary grant dollars. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 1,854,000 1,910,000 1,965,000 2,025,000 2,085,000 9,839,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 621 -Transit Fund 1,854,000 1,910,000 1,965,000 2,025,000 2,085,000 9,839,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total State or Federal Grant 1,854,000 1,910,000 1,965,000 2,025,000 2,085,000 9,839,000 465 CIP#61 Capital Improvement Plan Project Number Project Name 1000506 Bus Shelter Replacements Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project No Project Classification Transportation Project Type Asset Replacement Purpose and Need This is an ongoing program to replace bus shelters as they reach the end of their useful life. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 105,000 0 90,000 0 90,000 285,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 621 - Transit Fund 105,000 0 90,000 0 90,000 285,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total State or Federal Grant 105,000 0 90,000 0 90,000 285,000 466 CIP#62 Capital Improvement Plan Project Number Project Name 1000053 Bus Wash Replacement Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Transportation Project Type Asset Replacement Purpose and Need The City's Bus Wash has met the end of its useful life and commonly fails. This project would replace the current system with a new Bus Wash system that is water conservation focused. This project is contingent upon receiving future discretionary grants for implementation. Concurrent with grant solicitation, the City will be reviewing whether shared infrastructure between RTA and the City would be of benefit. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 75,000 450,000 0 0 0 525,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 621 -Transit Fund 75,000 450,000 0 0 0 525,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total State or Federal Grant 75,000 450,000 0 0 0 525,000 467 CIP#63 Capital Improvement Plan Project Number Project Name 91503 California & Taft Roundabout Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project Yes Project Classification Transportation FM Project Type Asset Replacement """" """"""" ' � {'t.t'•`•..ttm iURI ::I ...... .. Purpose and Need This project includes Installation of a roundabout at the intersection of California & Taft, which improves traffic safety and congestion for all road users. This project also improves pedestrian and bicycle connectivity to the newly -constructed segment of the Railroad Safety Trail on the west side of California Boulevard. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 300,000 2,798,000 0 0 0 3,098,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total XXX — Developer Cont. Fund 0 78,000 0 0 0 78,000 401 - Capital Outlay Fund 300,000 2,720,000 0 0 0 3,020,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Developer Contribution 0 78,000 0 0 0 78,000 Local Revenue Measure 300,000 2,720,000 0 0 0 3,020,000 468 CIP#64 Capital Improvement Plan Project Number Project Name 1000055 Council Hearing Room TI Project Classification Classification Description CIP Project Function Priority Fiscal Health & Governance �P Community Other Partnership Project No .' Project Classification Public Facility Project Type Asset Replacement '- Purpose and Need The tenant improvement project will replace interior finishes and create a more functional space for public meetings. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 130,000 0 0 0 130,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 0 130,000 0 0 0 130,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 0 130,000 0 0 0 130,000 469 CIP#65 Capital Improvement Plan Project Number Project Name 91320 Downtown Renewal Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Economic Partnership Project No Project Classification Community Improvement Project Type Asset Replacement Purpose and Need This annual asset maintenance project continues to improve the aesthetic of the downtown core with sidewalk frontage improvements. The addition of pedestrian lighting and conduits to support tree lighting and other Downtown Association activities is incorporated. The proposed work plan is as follows 22/23 West side of Broad Street from Marsh to Higuera Street including adjacent intersection improvements. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 0 1,100,000 0 0 1,100,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 0 0 1,100,000 0 0 1,100,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 0 0 1,100,000 0 0 1,100,000 470 CIP#66 Capital Improvement Plan Project Number Project Name 1000511 Downtown Safety Enhancements Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Economic Partnership Project No Project Classification Community Improvement Project Type Asset Replacement Purpose and Need This funding will be used to purchase mobile barriers to better protect pedestrians from vehicle collisions, specifically for Farmer's Market, but may be used in different locations based upon community needs. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 400,000 0 0 0 0 400,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 400,000 0 0 0 0 400,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 400,000 0 0 0 0 400,000 471 CIP#67 Capital Improvement Plan Project Number Project Name 1000515 Fire Station 1 Gym Space Covering Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Community Safety Other No Public Facility Asset Replacement To support the Fire Department's continued effort in reducing workplace injuries, this project will improve the usable exercise space at Station 1 by providing an exterior covering to allow an increased number of personnel to train at one time, even during adverse weather conditions (heat, rain). Maintaining high levels of physical fitness is required to limit on the job injuries and accidents. The Department's Injury Prevention Program now includes an increased number of multi -company trainings and the current gym space is not large enough to accommodate more than one company at a time. The scope of the project includes the installation of an exterior, standalone covering approximately 24' x 24' in size adjacent to the gym room. Cost Budget Contract Services Fund 401 - Capital Outlay Fund Funding Source General Capital Outlay 2021-22 2022-23 0 0 2021-22 2022-23 0 0 2021-22 2022-23 0 0 2023-24 2024-25 25,000 0 2023-24 2024-25 25.000 0 2023-24 2024-25 25,000 0 2025-26 0 2025-26 0 2025-26 0 Total 25,000 Total 25.000 Total 25,000 472 CIP#68 Capital Improvement Plan Project Number Project Name 1000516 Fire Station 3&4 Remodel Space Study and Design Project Classification Classification Description CIP Project Function Community Safety Community Priority Other Partnership Project No Project Classification Public Facility Project Type Asset Replacement I Purpose and Need In an effort to make the Fire Department a more inclusive environment for all genders and to support the City Council's Major City Goal of Diversity, Equity and Inclusion, the Fire Department is seeking to remodel the living quarters for Fire Stations 3 and 4. Both Stations were designed with dorm -like sleeping quarters that lack the needed privacy for a multi-gendered staff. Station 4 will also need bathroom modifications in addition to the living quarters. This project will allow the fire department to conduct a space study and design, allowing staff to properly plan for the remodel scope and budget requirements. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 25,000 75,000 0 0 0 100,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 25,000 75,000 0 0 0 100,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 25,000 75,000 0 0 0 100,000 473 CIP#69 Capital Improvement Plan Project Number Project Name 1000517 Fire Station 4 Metal Building Gym Space Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Community Safety Other No Public Facility Asset Replacement To support the Fire Department's continued effort in reducing workplace injuries, the this project will improve the usable exercise space at Station 4 by providing a detached exterior structure to allow a single engine company to perform physical fitness training while out of the elements. Maintaining high levels of physical fitness is required to limit on the job injuries and accidents. Currently many of the station's exercise equipment sits outside, exposed to the elements resulting in excessive wear and deterioration. Additionally, the lack of an adequate exercise space reduces the station crews ability to conduct exercise during adverse weather. The scope of the project includes the installation of a detached concrete pad and an electrified steel frame structure approximately 24' x 24' in size. Cost Budget Contract Services Fund 401 - Capital Outlay Fund Funding Source General Capital Outlay 2021-22 2022-23 0 0 2021-22 2022-23 0 0 2021-22 2022-23 0 0 2023-24 2024-25 90,000 0 2023-24 2024-25 90.000 0 2023-24 2024-25 90,000 0 2025-26 0 2025-26 0 2025-26 0 Total 90,000 Total 90.000 Total 90,000 474 CIP#70 Capital Improvement Plan Project Number Project Name 1000094 Foothill Sewer Siphon Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need The City's wastewater collection system includes approximately 140 miles of sewer lines and related operational equipment. Some pipes are over 100 years old and are undersized. Maintenance needs and costs dramatically increase as pipeline and equipment approach the end of their useful life. The objective of this project is to replace sewer pipes in the northwest part of the City that have shown high inflow or infiltration flows based on recorded sewer spills, and high recorded flow rates during major storm events. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 0 0 0 200,000 200,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 602 - Sewer Fund 0 0 0 0 200,000 200,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Sewer Fund 0 0 0 0 200,000 200,000 475 CIP#71 Capital Improvement Plan Project Number Project Name 91610 Higuera St. Widening - Bridge to Elks Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project No Project Classification Transportation Project Type Asset Replacement Purpose and Need This funding supports the construction phase of a roadway safety improvement project to widen the segment of South Higuera Street between Bridge Street and Elks Lane to provide width for a center two-way left -turn lane. This project is partially funded through a Caltrans Highway Safety Improvement Program (HSIP) Grant and was recommended in the City's Traffic Safety Program to address a collision trend related to vehicle turns entering/exiting adjacent driveways along a street with no existing turn lanes. Street widening will also provide opportunity to improve on -street bikeways as recommended in the City's Active Transportation Plan. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 510,000 0 0 0 0 510,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 360,000 0 0 0 0 360,000 507 - Transportation Impact Fee Fund 150,000 0 0 0 0 150,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Transportation Development Impact Fee 150,000 0 0 0 0 150,000 USHA Grant 360,000 0 0 0 0 360,000 476 CIP#72 Capital Improvement Plan Project Number Project Name 1000060 Lighting Energy Efficiency Retrofits Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project No Project Classification Public Facility Project Type Asset Replacement Purpose and Need This project replaces the existing interior lighting in several City facilities with new energy efficient LED lighting. There is a small direct cost to the City for this lighting replacement and the remainder of the project cost will be incorporated into the City's existing energy billing. Decreased energy usage is estimated to offset the majority of the lighting retrofit costs. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 15,000 0 0 0 0 15,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 15,000 0 0 0 0 15,000 611 - Parking Fund 0 0 0 0 0 0 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 15,000 0 0 0 0 15,000 Parking Fund 0 0 0 0 0 0 477 CIP#73 Capital Improvement Plan Project Number Project Name 1000522 Major Facility Replacements Project Classification Classification Description ' CIP Project Function Infrastructure & Transportation i Community Priority Housing Partnership Project No Project Classification Public Facility Project Type Asset Replacement Purpose and Need This project will maintain, upgrade, or replace City facilities that serve the community. Funding in this Financial Plan is intended to support the Parks and Recreation interior office space remodel, the Corp Yard Tenant Improvements, and further the Police Department Facility site assessment and programming needs. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 200,000 300,000 1,400,000 400,000 55,007,000 57,307,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 200,000 300,000 1,400,000 400,000 55,007,000 57,307,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Bonds, Infrastructure Loan (Debt) 0 0 0 0 52,000,000 52,000,000 General Capital Outlay 100,000 0 1,000,000 0 0 1,100,000 Local Revenue Measure 100,000 300,000 400,000 400,000 3,007,000 4,207,000 478 CIP#74 Capital Improvement Plan Project Number Project Name 90649 Mid-Higuera Bypass Project Classification Classification Description CIP Project Function Community Safety Community Priority Climate Action Partnership Project No Project Classification Community Improvement Project Type Asset Replacement Purpose and Need Due to historical encroachment into the San Luis Obispo creek channel between Marsh Street and Madonna, the creek channel is unable to provide sufficient capacity for flood events. This results in frequent flood damage as flood waters rise out of the creek channel and flow down Higuera Street. This project would reduce the frequency of this flooding by addressing multiple pinch points along the project area and direct flood waters towards the creek channel. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 100,000 100,000 0 0 0 200,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 100,000 0 0 0 0 100,000 601 - Water Fund 0 100,000 0 0 0 100,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 0 100,000 0 0 0 100,000 Zone 9 100,000 0 0 0 0 100,000 479 CIP#75 Capital Improvement Plan Project Number Project Name 91439 Mission Plaza Concept Plan Implementation Project Classification Classification Description CIP Project Function Community & Neighborhood Livability Community Priority Economic Partnership Project No Project Classification Community Improvement Project Type Asset Replacement Purpose and Need The City of San Luis Obispo has completed and approved a Concept Plan for future improvements to the Mission Plaza. A major component of the Concept Plan is to replace the exisitng restroom and install a new cafe, this scope of work is currently being advanced as Phase #1 of the broader Mission Plaza Concept Plan implementaion. This project also support design and future construction of the primary plaza area between Chorro Street and Broad Street, identified as Phase #2, as well as design service for Phase #3, improvements to the Broad Street Dog -leg. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 1,035,000 600,000 0 6,000,000 7,635,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 0 1,035,000 600,000 0 6,000,000 7,635,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 0 1,035,000 600,000 0 6,000,000 7,635,000 480 CIP#76 Capital Improvement Plan Project Number Project Name 91252 Prado Road Bridge & Road Widening Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Housing Partnership Project Yes Project Classification Transportation Project Type Asset Replacement Purpose and Need The bridge over San Luis Obispo Creek at Prado Road is functionally obsolete and cannot accommodate future City needs. This project proposes to replace the bridge with a wider section while armoring San Luis Obispo Creek to maximize its hydraulic capacity. Additionally, the intersection at Prado and South Higuera will be widened to operate in conjunction with the widened bridge. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 7,070,100 14,972,220 0 0 0 22,042,320 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 1,527,780 6,557,220 0 0 0 8,085,000 405 - Infractructure Invest CIP Fund 5,542,320 4,540,000 0 0 0 10,082,320 507 - Transportation Impact Fee Fund 0 3,875,000 0 0 0 3,875,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Federal HBP Grant 0 6,000,000 0 0 0 6,000,000 General Capital Outlay 1,100,000 410,647 0 0 0 1,510,647 Local Revenue Measure 427,780 146,573 0 0 0 574,353 Transportation Development Impact Fee 0 3,875,000 0 0 0 3,875,000 Unsecured State or Federal Grant 5,542,320 4,540,000 0 0 0 10,082,320 481 CIP#77 Capital Improvement Plan Project Number Project Name 1000530 Recycled Water Tank Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Asset Replacement,New Asset _11 Purpose and Need The City operates and maintains the recycled water system that is currently comprised of one distribution zone, one booster -pump station, and a concrete tank located at the WRRF. This project will install critical infrastructure needed to reconstruct chemical dosing pumps and piping systems of the recycled water storage tank. The objective of the project is to improve the chemical dosing process, monitor the disinfection performance in the distribution system, and prepare engineering studies required by the Regional Board. The project also includes site fencing replacement. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 237,500 50,000 0 0 0 287,500 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 237,500 50,000 0 0 0 287,500 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 237,500 50,000 0 0 0 287,500 482 CIP#78 Capital Improvement Plan Project Number Project Name 91368 Reservoir 2 Replacement Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need The City currently operates two potable reservoirs (#1 and #2) that are estimated to be 60 years old. Reservoir #2 is a 7.44 million gallon (MG) reservoir equipped with floating covers that had previously been identified to be replaced in 2015. This reservoir supplies about half of the City's potable water needs. Because the reservoir is one big basin, the entire storage volume must be taken out -of -service for reservoir maintenance. The recently completed water distribution system hydraulic modeling identified opportunities to consolidate water distribution zones to improve operations, reduce pumping needs, eliminate tanks and pump stations that would otherwise require replacement, improve fire flow, and improve available fire storage. Replacement of Reservoir #2 will include construction of two new 2.5 MG above -ground tanks at the existing reservoir site. This will provide critical redundancy and allow for tank maintenance without service interruption. It will also be designed to increase water mixing in the reservoir, which will in turn lessen the overall age of water. Older water age contributes to disinfection by-products, a regulated substance which may be harmful to human health. The study phase will research constructability and identify project components such as whether electrical upgrades are necessary to the transfer pump station to ensure system reliability during construction. (This project will include a loan from the State Revolving Fund) Cost Budget 2021-22 2022-23 Contract Services 0 0 Fund 2021-22 2022-23 601 - Water Fund 0 0 Funding Source 2021-22 2022-23 Water Fund 0 0 2023-24 2024-25 0 780,000 2023-24 2024-25 0 780,000 2023-24 2024-25 0 780,000 2025-26 0 2025-26 0 2025-26 0 Total 780,000 Total 780,000 Total 780,000 483 CIP#79 Capital Improvement Plan Project Number Project Name 1000093 Serrano, Bressi, Dana Pipe Replacement Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need The City's wastewater collection system includes approximately 140 miles of sewer lines and related operational equipment. Some pipes are over 100 years old and are undersized. Maintenance needs and costs dramatically increase as pipeline and equipment approach the end of their useful life. The objective of this project is to replace sewer pipes in areas that have shown high inflow or infiltration flows based on recorded sewer spills, and high recorded flow rates during major storm events. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 0 25,000 1,275,000 0 1,300,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 602 - Sewer Fund 0 0 25,000 1,275,000 0 1,300,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Sewer Fund 0 0 25,000 1,275,000 0 1,300,000 484 CIP#80 Capital Improvement Plan Project Number Project Name 1000535 Transit Facility EV Charging Infrastructure Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project No Project Classification Transportation Project Type Asset Replacement,New Asset Purpose and Need The State of California's Innovative Clean Fleet Rule requires transit agencies to convert to zero emission vehicles. This project is to build in the electric vehicle infrasture needed to support the City's acquisition of electric transit buses. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 715,000 0 0 0 0 715,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 621 - Transit Fund 715,000 0 0 0 0 715,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total State or Federal Grant 715,000 0 0 0 0 715,000 485 CIP#81 Capital Improvement Plan Project Number Project Name 1000536 Transit Supervisor ADA EV Van Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Fleet Project Type Asset Replacement Purpose and Need One existing SLO Transit van has met the end of its useful life after 8 years of consecutive service. Replacement with an electric version is being recommended to comply with Ca ICT and City CAP goals. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 70,000 0 0 0 0 70,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 621 - Transit Fund 70,000 0 0 0 0 70,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total State or Federal Grant 70,000 0 0 0 0 70,000 486 CIP#82 Capital Improvement Plan Project Number Project Name 1000538 Vault Room Addition Design Study Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Transportation Project Type Asset Replacement Purpose and Need Based upon recent Transit audits, one finding recommended that the Transit program better secure the farebox vault. This project will pay for the design study phase this project. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 15,000 0 0 0 15,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 621 - Transit Fund 0 15,000 0 0 0 15,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total State or Federal Grant 0 15,000 0 0 0 15,000 487 CIP#83 Capital Improvement Plan Project Number Project Name 1000091 Verde, Luneta, Ramona Pipe Replacement Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need The City's wastewater collection system includes approximately 140 miles of sewer lines and related operational equipment. Some pipes are over 100 years old and are undersized. Maintenance needs and costs dramatically increase as pipeline and equipment approach the end of their useful life. The objective of this project is to replace sewer pipes in areas that have shown high inflow or infiltration flows based on recorded sewer spills, and high recorded flow rates during major storm events. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 1,276,000 0 0 0 0 1,276,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 602 - Sewer Fund 1,276,000 0 0 0 0 1,276,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Sewer Fund 1,276,000 0 0 0 0 1,276,000 488 CIP#84 Capital Improvement Plan Project Number Project Name 1000539 Wastewater Collections System Improvements Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Asset Replacement The City's wastewater collection system includes approximately 140 miles of sewer lines and related operational equipment. Some pipes are over 100 years old, and are undersized. Maintenance requirements increase dramatically as pipeline and equipment approach the end of their useful life. Pipeline and operational equipment require ongoing maintenance and condition assessment to prioritize periodic replacement, ensure proper function, and prolong service life. The objective of this project is to replace sewer pipes in areas that have shown high inflow or infiltration flows based on recorded sewer spills, and high recorded flow rates during major storm events. Pipeline assessments have prioritized sewerline replacements along the street segments indicated below, by construction year: 2022 - Murray, Chorro, Meineke 2022 - Islay, Henry, Sierra Way 2022 - Morro, Mill, Santa Rosa 2023 - Taft, Hathaway, Phillips, Buena Vista, Loomis 2023 - San Jose, Ramona, Monte Vista, California 2025 - Broad, Murray, Chorro. Cost Budget 2021-22 2022-23 2023-24 Contract Services 160,000 3,860,000 2,450,000 Fund 2021-22 2022-23 2023-24 602 - Sewer Fund 160,000 3,860,000 2,450,000 Funding Source 2021-22 2022-23 2023-24 Sewer Fund 160,000 3,860,000 2,450,000 2024-25 2025-26 135,000 1,485,000 2024-25 2025-26 135,000 1,485,000 2024-25 2025-26 135,000 1,485,000 Total 8,090,000 Total 8,090,000 Total 8,090,000 489 CIP#85 Capital Improvement Plan Project Number Project Name Wastewater Lift Station Rehabilitation: Airport Lift 91369 Station Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance The Airport Lift Station is located on Broad Street near the intersection of Fiero Lane. This station is a Smith and Loveless dry/wet well design. It operates with two-240 gpm, 5 horsepower pumps and 840 feet of existing eight -inch force main and was originally constructed by San Luis Obispo County in 1968; the City took over its operation and maintenance in 2000. Due to age, poor structural conditions, and exterior corrosion the station is operating beyond its life expectancy. The replacement lift station will be sited to accommodate future development of the Airport Area Specific Plan, which will include additional gravity sewers and a new sewer force main. Efforts will be made to look for alternative solutions to eliminate the need of a longer forcemain, which may require additional gravity systems, easement and property acquisitions through the recent Fiero Annexation completed in 2021. Cost Budget 2021-22 2022-23 Contract Services 2,020,000 0 Fund 2021-22 2022-23 602 - Sewer Fund 2,020,000 0 Funding Source 2021-22 2022-23 Sewer Fund 2,020,000 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2025-26 0 2025-26 0 2025-26 0 Total 2,020,000 Total 2,020,000 Total 2,020,000 490 CIP#86 Capital Improvement Plan Project Number Project Name Wastewater Lift Station Rehabilitation: Silver City Lift 1000082 Station Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Asset Replacement The Silver City Lift Station is a Smith and Loveless dry/wet well design, and was put in to service in 1971. The existing six-inch asbestos concrete force main pumps under San Luis Obispo Creek (it is encased under the creek) approximately 765 feet to a manhole upstream of the Laguna Lift Station. The Silver City lift station operates with two 450 gpm, 18.5 horse power pumps. The station replacement will be located in the same current location proximity. An additional property acquisition and easements will be required to relocate both the new lift station and force main. In addition to the force main replacement it will require the pipe to be encased in the San Luis creek crossing. The replacement lift station will accommodate a portion of the future development anticipated in the Margarita Area Specific Plan. Cost Budget 2021-22 2022-23 Contract Services 0 70,000 Fund 2021-22 2022-23 602 - Sewer Fund 0 70,000 Funding Source 2021-22 2022-23 Sewer Fund 0 70,000 2023-24 2024-25 100,000 0 2023-24 2024-25 100,000 0 2023-24 2024-25 100,000 0 2025-26 1,980,000 2025-26 1,980,000 2025-26 1,980,000 Total 2,150,000 Total 2,150,000 Total 2,150,000 491 CIP#87 Capital Improvement Plan Project Number Project Name 1000542 Water Treatment Plant Major Facility Maintenance Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance,Asset Replacement Purpose and Need The City's Water Treatment Plant was originally constructed in 1961. In 1995, a significant upgrade to the plant was completed to meet changing water quality requirements. In April of 2008, another major upgrade project was completed that replaced older equipment, added additional storage capacity for treated water, and enhanced treatment processes. The ongoing maintenance of the facilities and equipment at the Water Treatment Plant is necessary to prolong the useful life of the facilities and ensure staff's ability to operate the plant and treat water to State and Federal standards. The proposed maintenance projects include maintenance to ozone system, chemical storage system, air compressor, package thickener, aluminum bulk tank replacement, lab analyzer replacement, polymer mixing unit rehabilitation, rehabilitation of pump station pressure sustaining valves, facility roof repairs, and the development of a Facility Infrastructure Renewal Strategy. The renewal strategy will allow plant staff to prioritize Water Treatment Plant related capital improvement projects for the next decade. An asset management plan will also be developed to track infrastructure performance and maintenance cycles. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 275,000 180,000 50,000 0 25,000 530,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 270,000 180,000 50,000 0 25,000 525,000 705 - Whale Rock Fund 5,000 0 0 0 0 5,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 270,000 180,000 50,000 0 25,000 525,000 Whale Rock Fund 5,000 0 0 0 0 5,000 492 Capital Improvement Plan Project Number Project Name Waterline Replacements : California Ave - Stafford 1000545 to Mill Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable water storage tanks, two reservoirs, five hydro -pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over 180 miles of pipe with diameters ranging in size from four inches to 30 inches. This project will replace critical infrastructure that has reached the end of its useful life, experienced water main breaks, and is ranked as a high priority for replacement. The objective of the project is to replace a critical transmission main crossing Highway 101 with new pipe meeting new standards by the American Water Works Association (AWWA), and provide resiliency in the distribution network against variations in pressure and flows. Cost Budget 2021-22 2022-23 Contract Services 140,000 1,650,000 Fund 2021-22 2022-23 601 - Water Fund 140,000 1,650,000 Funding Source 2021-22 2022-23 Water Fund 140,000 1,650,000 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2025-26 0 2025-26 0 2025-26 0 Total 1,790,000 Total 1,790,000 Total 1,790,000 493 CIP#89 Capital Improvement Plan Project Number Project Name Waterline Replacements: Chorro - Highland to 1000547 Meinecke Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance Y.: 1 X. Replacement of water distribution pipes, mainlines, and related infrastructure is an ongoing program for reliable water distribution and fire protection. The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable water storage tanks, two reservoirs, five hydro -pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over 180 miles of pipe with diameters ranging in size from four inches to 30 inches. This project will replace critical infrastructure that has reached the end of its useful life, experienced water main breaks, and is ranked as a high priority for replacement by the water distribution's infrastructure renewal strategy. The objective of the project is to replace cast-iron pipe or failing materials with pipe meeting new standards by the American Water Works Association (AWWA) to provide resiliency in the distribution network against variations in pressure and flows. Cost Budget 2021-22 2022-23 Contract Services 0 0 Fund 2021-22 2022-23 601 - Water Fund 0 0 Funding Source 2021-22 2022-23 Water Fund 0 0 2023-24 2024-25 100,000 1,100,000 2023-24 2024-25 100,000 1,100,000 2023-24 2024-25 100,000 1,100,000 2025-26 0 2025-26 0 2025-26 0 Total 1,200,000 Total 1,200,000 Total 1,200,000 494 CIP#90 Capital Improvement Plan Project Number Project Name 1000556 Waterline Replacements Craig, Christina, Jaycee Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance Replacement of water distribution pipes, mainlines, and related infrastructure is an ongoing program for reliable water distribution and fire protection. The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable water storage tanks, two reservoirs, five hydro -pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over 180 miles of pipe with diameters ranging in size from four inches to 30 inches. This project will replace critical infrastructure that has reached the end of its useful life, experienced water main breaks, and is ranked as a high priority for replacement by the water distribution's infrastructure renewal strategy. The objective of the project is to replace cast-iron pipe or failing materials with pipe meeting new standards by the American Water Works Association (AWWA) to provide resiliency in the distribution network against variations in pressure and flows. Cost Budget 2021-22 2022-23 Contract Services 0 0 Fund 2021-22 2022-23 601 - Water Fund 0 0 Funding Source 2021-22 2022-23 Water Fund 0 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2025-26 880,000 2025-26 880,000 2025-26 880,000 Total 880,000 Total 880,000 Total 880,000 495 CIP#91 Capital Improvement Plan Project Number Project Name Waterline Replacement: Highland - Oakridge to 1000544 Cuesta Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance Replacement of water distribution pipes, mainlines, and related infrastructure is an ongoing program for reliable water distribution and fire protection. The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable water storage tanks, two reservoirs, five hydro -pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over 180 miles of pipe with diameters ranging in size from four inches to 30 inches. This project will replace critical infrastructure that has reached the end of its useful life, experienced water main breaks, and is ranked as a high priority for replacement by the water distribution's infrastructure renewal strategy. The objective of the project is to replace cast-iron pipe or failing materials with pipe meeting new standards by the American Water Works Association (AWWA) to provide resiliency in the distribution network against variations in pressure and flows. Cost Budget 2021-22 2022-23 Contract Services 0 0 Fund 2021-22 2022-23 601 - Water Fund 0 0 Funding Source 2021-22 2022-23 Water Fund 0 0 2023-24 2024-25 0 130,000 2023-24 2024-25 0 130,000 2023-24 2024-25 0 130,000 2025-26 1,430,000 2025-26 1,430,000 2025-26 1,430,000 Total 1,560,000 Total 1,560,000 Total 1,560,000 496 CIP#92 Capital Improvement Plan Project Number Project Name Waterline Replacements - Highland at UPRR and 1000546 Cal Poly Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Annual Asset Maintenance Replacement of water distribution pipes, mainlines, and related infrastructure is an ongoing program for reliable water distribution and fire protection. The City operates a complex potable water distribution system that is comprised of 15 distribution zones, nine potable water storage tanks, two reservoirs, five hydro -pneumatic tanks, seven pump stations, 21 pressure reducing valves (PRVs) and over 180 miles of pipe with diameters ranging in size from four inches to 30 inches. This project will replace critical infrastructure that has reached the end of its useful life, experienced water main breaks, and is ranked as a high priority for replacement by the water distribution's infrastructure renewal strategy. The objective of the project is to replace cast-iron pipe or failing materials with pipe meeting new standards by the American Water Works Association (AWWA) to provide resiliency in the distribution network against variations in pressure and flows. Cost Budget 2021-22 2022-23 Contract Services 0 0 Fund 2021-22 2022-23 601 - Water Fund 0 0 Funding Source 2021-22 2022-23 Water Fund 0 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2025-26 850,000 2025-26 850,000 2025-26 850,000 Total 850,000 Total 850,000 Total 850,000 497 CIP#93 Capital Improvement Plan Project Number Project Name 1000543 Waterline Replacement: Stenner Canyon Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need The 17.6 miles of pipeline conduit that transport water from the Whale Rock Reservoir (WRR) to the City of San Luis Obispo, Cal Poly, and California Men's Colony is 57 years old. Given the aging infrastructure, this project will include point repairs or replacement of pipe segments that have experienced corrosion or have failed the structural integrity assessment in the older transmission system along Stenner Creek and northeast of the Water Treatment Plant. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 0 0 0 80,000 80,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 0 0 0 0 80,000 80,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 0 0 0 0 80,000 80,000 498 CIP#94 Capital Improvement Plan Project Number Project Name Whale Rock Pump Station Electrical Repairs (A and 1000549 B) Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Annual Asset Maintenance Purpose and Need The project involves rehabilitation of the Whale Rock Pump Station Facility. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 0 0 1,800,000 0 1,800,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 705 - Whale Rock Fund 0 0 0 1,800,000 0 1,800,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Whale Rock Fund 0 0 0 1,800,000 0 1,800,000 499 CIP#95 Capital Improvement Plan Project Number Project Name 1000552 WRRF - Demolish Old Effluent Structure Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type Asset Replacement Purpose and Need This project will demolish the old effluent structure at the Water Resource Recovery Facility. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 0 50,000 495,000 0 545,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 602 - Sewer Fund 0 0 50,000 495,000 0 545,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Sewer Fund 0 0 50,000 495,000 0 545,000 500 CIP#96 Capital Improvement Plan Project Number Project Name 1000551 WRRF - Digester Flare Upgrade Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Other No Maintenance Asset Replacement The City's Water Resource Recovery Facility (WRRF) upgrade will comply with stricter discharge limits required by the Central Coast Water Board (CCWB), increase wastewater treatment capacity to serve the community, and to replace aging infrastructure that has reached the end of their service life. The 2015 WRRF Facilities Plan identified the need for the WRRF upgrade and other infrastructure needs based on priority. One of those priority projects, is the expansion of the biogas production and emissions control upgrades per regulatory requirements. This project will study the increase of bio-gas production using field measurements of the new digester system, and develop a plan to upgrade the emission treatment system per regulatory requirements. This project will be coordinate with the California Resiliency Challenge and the Department of Energy's models to consider alternatives for sustainable power solutions. Cost Budget 2021-22 2022-23 Contract Services 0 100,000 Fund 2021-22 2022-23 602 - Sewer Fund 0 100,000 Funding Source 2021-22 2022-23 Sewer Fund 0 100,000 2023-24 2024-25 385,000 0 2023-24 2024-25 385,000 0 2023-24 2024-25 385,000 0 2025-26 0 2025-26 0 2025-26 0 Total 485,000 Total 485,000 Total 485,000 501 CIP#97 Capital Improvement Plan Project Number Project Name 1000550 WRRF And Wastewater Collection Shop Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Public Facility Project Type Asset Replacement Purpose and Need The City's Water Resource Recovery Facility (WRRF) and Wastewater Collection's maintenance shops are located near the intersection of Prado Road and Elks Lane. In 2017 the need to design and construct an overcrossing on Highway 101 was presented to Caltrans with anticipation of developing a work plan to complete environmental clearances, design, and construction. Since 2017, iterations of the overcrossing objectives and design requirements have required the footprint of the overcrossing to encroach into the sewer fund's property. The encroachment will require demolition of the existing wastewater collection's shop and re-routing of the Prado Road entrance. This project will look for opportunities to re -purpose existing building areas or develop new objectives for the design of a new maintenance shop. The project will be broken up into a study, design and environmental clearance, and construction phase. Additionally, the WRRF demolished the existing maintenance welding shop and storage facility to make room for the new digester and pumping facilities. The WRRF will need a maintenance shop with adequate storage and amenities to service the new facility in the next three years, and eliminate the steel storage bins currently being used.. This project will evaluate opportunities to merge the two maintenance shops under one footprint, and review the section's objectives to create efficiencies with one construction project to promote section efficiencies, enhance security to the WRRF, and improve circulation based on the intersection realignments proposed by the Highway 101overcrossing project. Cost Budget 2021-22 2022-23 Contract Services 150,000 350,000 Fund 2021-22 2022-23 602 - Sewer Fund 150,000 350,000 Funding Source 2021-22 2022-23 Sewer Fund 150,000 350,000 2023-24 2024-25 5,500,000 0 2023-24 2024-25 5,500,000 0 2023-24 2024-25 5,500,000 0 2025-26 0 2025-26 0 2025-26 0 Total 6,000,000 Total 6,000,000 Total 6,000,000 502 CIP#98 Capital Improvement Plan Project Number Project Name 91219 WRRF Upgrade Project Classification Classification Description CIP Project Function Environmental Health & Open Space Community Priority Other Partnership Project No Project Classification Public Facility Project Type Asset Replacement Purpose and Need The City's Water Resource Recovery Facility (WRRF) must be upgraded to comply with stricter discharge limits required by the Central Coast Water Board (CCWB), to increase capacity to serve the City's population at General Plan build out, and to replace existing aged facilities that have reached the end of their service life. The draft 2015 WRRF Facilities Plan identifies the related upgrades and associated costs. Study of these improvements began in 2014-15, with design and environmental permitting beginning in 2015-16 and 2016- 17. Stricter discharge limits will require new treatment processes as well as changes to current processes at the WRRF to remove nutrients and disinfection by-products prior to releasing environmental water to San Luis Obispo Creek; these limits are required to meet the CCWB's Basin Plan for inland waterbodies. The Regional Water Quality Control Board adopted a revised National Pollutant Discharge Elimination System Permit with stricter discharge requirements that went into effect December 1, 2014 and requires the City to meet these new standards by November 2019. The WRRF's capacity will be increased from its current 5.1 million gallons per day (MGD) to approximately 5.4 MGD to meet the projected growth for the next 20 years while several aged or obsolete processes will require upgrades or removal. This project will also maximize recycled water production and include much needed upgrades to buildings and communication infrastructure to assist in the optimal operation and maintenance of the facility. All aspects of the upgrade will consider a triple bottom line approach to ensure the facility becomes a valuable community asset. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 15,920,563 426,625 0 0 0 16,347,188 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 602 - Sewer Fund 15,920,563 426,625 0 0 0 16,347,188 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Sewer Fund 15,920,563 426,625 0 0 0 16,347,188 503 CIP#99 Capital Improvement Plan Project Number Project Name _ 1 Y 1000502 Active Transportation Plan Implementation f Y R Project Classification Classification Description �- { CIP Project Function Infrastructure & Transportation Fit Community Priority Climate Action , a 3 Partnership Project No - Project Classification Transportation Project Type New Asset Purpose and Need In February of 2021, the City adopted its first Active Transportation Plan (ATP), which identifies policies, programs and projects needed to support a high -quality, safe and efficient citywide bicycle and pedestrian transportation system. Elements of the Active Transportation Plan are implemented through private development as well as City -led programs and capital improvement projects. This larger capital project encompasses planning, design and construction of several smaller sub -projects to support implementation of the Active Transportation Plan. Individual sub -projects are summarized as follows: • 2021-22: Pedestrian Facility Improvements - Minor Projects (i.e., Ped Signals, Flashing Beacons, Crosswalks, etc.) 2021-22: Bicycle Facility Improvements - Minor Projects (i.e. New Drain Grates, Bike Lane Signing/Striping, etc.) • 2021: Roadway Sealing Complete Street Components - Active Transportation Improvements within 2021 Sealing Areas 2022: Roadway Sealing Complete Street Components - Active Transportation Improvements within 2022 Sealing Areas 2021-22: ATP Tier1 Network Implementation - Planning, Design and Construction of ATP Tier1 Bike/Ped Network • 2021: Railroad Safety Trail (Tiburon to Orcutt) - Prelim. Engineering & Right -of -Way for Development -Led Project • 2021-22: Bikeshare System Implementation - Monitor & Continue to Evaluate Potential for Future City Bikeshare System Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 550,000 550,000 1,600,000 2,600,000 2,250,000 7,550,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 450,000 550,000 1,600,000 2,600,000 2,250,000 7,450,000 507 - Transportation Impact Fee Fund 100,000 0 0 0 0 100,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 0 0 0 0 1,850,000 1,850,000 Local Revenue Measure 405,000 505,000 1,555,000 2,555,000 355,000 5,375,000 Transportation Development Act TDA 45,000 45,000 45,000 45,000 45,000 225,000 Transportation Development Impact Fee 100,000 0 0 0 0 100,000 504 CIP#100 Capital Improvement Plan Project Number Project Name Anholm Neighborhood Greenway Plan 1000036 Implementation Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Climate Action No Transportation New Asset This project includes final design and construction of the Anholm Neighborhood Greenway, completing a priority route for bicyclists and pedestrians connecting Downtown San Luis Obispo north to Foothill Boulevard. This funding allows the City to proceed with implementation of Phase 1 B (Foothill to Ramona) and Phase 2 (Ramona to Downtown) of the Anholm Neighborhood Greenway Plan, which includes installation of ADA curb ramps, enhanced pedestrian crosswalks, physically -protected bikeways, safety lighting and public artwork at the US 101/Chorro Street undercrossing, landscaping and wayfinding signage/markings along the 1.2-mile route. This route connects with the existing pedestrian/bicycle crossing at the intersection of Foothill & Ferrini (Phase 1A of the Anholm Plan) and is part of the City's Tier 1 Active Transportation Network. Tier 1 projects are the highest priority bicycle and pedestrian projects recommended in the City's Active Transportation Plan. Cost Budget Contract Services Fund 401 - Capital Outlay Fund 2021-22 2022-23 2,450,000 0 2021-22 2022-23 2,450,000 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2025-26 0 2025-26 0 Total 2,450,000 Total 2,450,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 744,775 0 0 0 0 744,775 State or Federal Grant 1,705,225 0 0 0 0 1,705,225 505 CIP#101 Capital Improvement Plan Project Number Project Name 1000157 Banner Arms, Bench Arm Rests, Signs Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Economic Partnership Project No Project Classification Community Improvement Project Type New Asset Purpose and Need Project provides banner arms, banners, arm rests and signs in the downtown. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 100,000 25,000 25,000 25,000 25,000 200,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 100,000 25,000 25,000 25,000 25,000 200,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 100,000 25,000 25,000 25,000 25,000 200,000 506 CIP#102 Capital Improvement Plan Project Number Project Name 1000501 Bob Jones Trail and RRST Solar Lighting Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project No Project Classification Maintenance Project Type New Asset Purpose and Need This project includes installation of solar path lighting along the Bob Jones Trail between Prado Road and Los Osos Valley Road, and along the Railroad Safety Trail between Orcutt Road and the Jennifer Street Bridge. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 100,000 1,350,000 0 0 0 1,450,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 100,000 1,350,000 0 0 0 1,450,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 100,000 1,350,000 0 0 0 1,450,000 507 CIP#103 Capital Improvement Plan Project Number Project Name 1000507 City Facility Energy Infrastructure Plan Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project No Project Classification Public Facility Project Type New Asset Purpose and Need This project provides a strategic infrastructure plan to support energy efficiency, renewable energy generation, energy storage, electric transportation, and decarbonization objectives consistent with Council's adopted goals of carbon neutral municipal operations by 2030. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 100,000 0 0 0 0 100,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 404 - Major Facility Repl Fund 100,000 0 0 0 0 100,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 100,000 0 0 0 0 100,000 508 CIP#104 Capital Improvement Plan Project Number Project Name 1000508 City Hall Lighting Project Classification Classification Description CIP Project Function Community & Neighborhood Livability Community Priority Economic Partnership Project No Project Classification Public Facility Project Type New Asset Purpose and Need This project install safety and accent lighting for the exterior of City Hall. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 0 15,000 120,000 0 0 135,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 0 15,000 120,000 0 0 135,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 0 15,000 120,000 0 0 135,000 509 CIP#105 Capital Improvement Plan Project Number Project Name 1000056 Development Agreement - City Share - Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action Partnership Project Yes Project Classification Transportation Project Type New Asset Purpose and Need This funding supports the City's proportional share of infrastructure constructed by the Avila Ranch development, which includes construction of Class I Shared -Use Path along Buckley Road Extension between Vachell and S. Higuera Street. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 120,000 715,000 0 0 0 835,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 405 - Infrastructure Invest CIP Fund 120,000 715,000 0 0 0 835,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total General Capital Outlay 0 715,000 0 0 0 715,000 Local Revenue Measure 120,000 0 0 0 0 120,000 510 CIP#106 Capital Improvement Plan Project Number Project Name 1000057 Development Related Park Improvements Project Classification Classification Description CIP Project Function Culture & Recreation Community Priority Housing Partnership Project Yes Project Classification Community Improvement Project Type New Asset Purpose and Need With the dedication of parkland and park fees collected from developments within the Orcutt Area Specific Plan (GASP), the City will be developing the 4 parks as provided in the OASP development plans. Parks include a neighborhood park, linear park, pocket park and trail junction park with recreation amenities such as pickleball and tennis courts, playground, restrooms, soccer fields, dog park, basketball court, bbq pavilion, fitness station, and pump track. Initial conceptual designs were approved by the Parks and Recreation Commission in 2016, but additional public input will be gathered surrounding park design and scope. This project will also utilize Parkland -in -lieu fees paid by San Luis Ranch per the development agreement to construct park amenity enhancements at Laguna Lake Park. Enhancements will be guided by the new Parks and Recreation Blueprint for the Future. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 1,520,000 4,210,026 5,050,000 0 0 10,780,026 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 0 815,000 4,800,000 0 0 5,615,000 501 - Parkland Development Fund 0 2,875,026 0 0 0 2,875,026 511 - OASP Park Fund 1,520,000 220,000 250,000 0 0 1,990,000 519 - Park Improvement Impact Fee Fund - Citywide 0 300,000 0 0 0 300,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 0 815,000 4,800,000 0 0 5,615,000 Parkland Development Impact Fees 1,520,000 3,395,026 250,000 0 0 5,165,026 511 CIP#107 Capital Improvement Plan Project Number Project Name 1000512 Downtown Zig-Zag Lighting Project Classification Classification Description CIP Project Function Community & Neighborhood Livability Community Priority Economic Partnership Project No Project Classification Community Improvement Project Type New Asset Purpose and Need Upgrade the downtown overhead "zig-zag" lighting, originally installed as a temporary pilot project, to a permanent installation, including expansion to additional streets within the downtown where feasible. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 250,000 0 0 0 0 250,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 250,000 0 0 0 0 250,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 250,000 0 0 0 0 250,000 512 CIP#108 Capital Improvement Plan Project Number Project Name 1000513 Electric Vehicle Charging Station at Various Facilities o �- Project Classification Classification Description ��U CIP Project Function Infrastructure & Transportation► Community Priority Climate Action Partnership Project No ` Project Classification Public Facility Project Type New Asset L L. Purpose and Need This project provides electric vehicle charging stations to support the City's transition to electric fleet vehicles. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 175,000 100,000 100,000 100,000 100,000 575,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 100,000 100,000 100,000 100,000 100,000 500,000 601 - Water Fund 37,500 0 0 0 0 37,500 602 - Sewer Fund 37,500 0 0 0 0 37,500 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 100,000 100,000 100,000 100,000 100,000 500,000 Sewer Fund 37,500 0 0 0 0 37,500 Water Fund 37,500 0 0 0 0 37,500 513 CIP#109 Capital Improvement Plan Project Number Project Name 1000514 Emerson Park Amenity Upgrades and Beautification Project Classification Classification Description CIP Project Function Community & Neighborhood Livability Community Priority Other Partnership Project No Project Classification Community Improvement Project Type New Asset Purpose and Need This project is contingent on Prop. 68 grant award. Staff submitted a grant application for amenity upgrades and park beautification at Emerson Park. Park upgrades include construction of restrooms, creation of a small fenced dog park, installation of an educational garden and amenity upgrades and expansion of the basketball court, playground, perimeter fencing, and addition of safety lighting. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 2,810,000 0 0 0 0 2,810,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 2,810,000 0 0 0 0 2,810,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total State or Federal Grant 2,810,000 0 0 0 0 2,810,000 514 CIP#110 Capital Improvement Plan Project Number Project Name Laguna Lake Dredging and Sediment Management 99110 Project Implementation Project Classification Classification Description CIP Project Function Environmental Health & Open Space Community Priority Climate Action Partnership Project No Project Classification Community Improvement Project Type New Asset Purpose and Need The Laguna Lake Nature Reserve, including Laguna Lake, is 344-acres of City owned land. Laguna Lake is a naturally occurring water body although the lake and surrounding watershed have been modified including the rerouting of Prefumo Creek into Laguna Lake. This rerouting of Prefumo Creek has increased sediment deposits into the lake. This is a pilot project to ascertain if dredging is a viable solution for Laguna Lake and could become a routine maintenance activity. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 840,000 0 675,000 0 675,000 2,190,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 840,000 0 675,000 0 675,000 2,190,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 840,000 0 675,000 0 675,000 2,190,000 515 CIP#111 Capital Improvement Plan Project Number Project Name 91683 North Broad Street Neighborhood Park Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Culture & Recreation Other No Community Improvement New Asset Implementation of a new neighborhood park in the North Broad Street area was prioritized by Council during the 2017-19 Financial Plan adoption and design funding was provided in the 2018-19 Financial Plan Supplement. Staff is currently designing a park at 533 Broad Street, the location of the existing community gardens, to fill this need. Conceptual plans have been approved by the Parks and Recreation Commission (PRC), Planning Commission (PC) and City Council during the re -zoning of the city owned property. The proposed new neighborhood park includes fifteen garden planter boxes (3 ADA accessible), open turf space, playground equipment, a water fountain/water filling station, picnic tables, shade structures, benches, trash receptacles, and an accessible walking path with pathway lighting around the perimeter of the park. The project also includes many improvements within the City public right-of-way at the intersection of Broad and Lincoln Street including accessible curb ramps and high -visibility crosswalks. Construction is planned for the 2021-22 Fiscal Year. $783,000 has already been appropriated for the project, but additional funding is needed due to design and construction cost increases and additional scope to the project from PC and Council recommendations. Cost Budget Contract Services Fund 401 - Capital Outlay Fund Funding Source Local Revenue Measure 2021-22 2022-23 175,000 0 2021-22 2022-23 175,000 0 2021-22 2022-23 175,000 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2023-24 2024-25 0 0 2025-26 0 2025-26 0 2025-26 0 Total 175,000 Total 175,000 Total 175,000 516 CIP#112 Capital Improvement Plan Project Number Project Name 1000155 Open SLO Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Economic Partnership Project No Project Classification Community Improvement Project Type New Asset Purpose and Need This funding will support ongoing tasks as part of the Open SLO program, which includes various strategies to utilize the public right-of-way to support public health and economic recovery through the duration of the COVID-19 pandemic. Open SLO activities include installation and removal of parklets and sidewalk dining areas, activation of Mission Plaza for outdoor take out dining, and temporary street modifications to support physical distancing and safety for all road users. This funding will be used for semi -permanent parklet installations. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 200,000 0 0 0 0 200,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 200,000 0 0 0 0 200,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 200,000 0 0 0 0 200,000 517 CIP#113 Capital Improvement Plan Project Number Project Name 99837 Open Space Acquisition Project Classification Classification Description CIP Project Function Environmental Health & Open Space Community Priority Climate Action Partnership Project No Project Classification Community Improvement Project Type New Asset Purpose and Need The City continues to actively pursue land purchases and conservation easements to enhance the greenbelt around the City which protects watersheds and maintains habitat connectivity. This funding is largely levered by grant funding to implement open space acquisition. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 250,000 250,000 250,000 250,000 250,000 1,250,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 250,000 250,000 250,000 250,000 250,000 1,250,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 250,000 250,000 250,000 250,000 250,000 1,250,000 518 CIP#114 Capital Improvement Plan Project Number Project Name 90435 Palm - Nipomo Parking Structure Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Economic Partnership Project No Project Classification Transportation Project Type New Asset Purpose and Need The project will install a new parking structure at the Palm/Nipomo intersection that will have 400 parking spaces, two elevators, electric vehicle charging stations, solar panels and other amenities. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 850,000 5,582,000 39,042,000 0 0 45,474,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 0 0 1,990,000 0 0 1,990,000 611 - Parking Fund 850,000 5,582,000 37,052,000 0 0 43,484,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Bonds, Infrastructure Loan (Debt) 0 0 37,052,000 0 0 37,052,000 General Capital Outlay 0 0 990,000 0 0 990,000 Local Revenue Measure 0 0 1,000,000 0 0 1,000,000 Parking Fund 850,000 5,582,000 0 0 0 6,432,000 519 CIP#115 Capital Improvement Plan Project Number Project Name 1000525 Parking Enforcement Equipment at Gate Entry Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Economic No Maintenance New Asset Gateless parking lots The current parking garage payment and gating equipment installed several years ago, already requires daily maintenance and troubleshooting by Parking Services staff. This garage equipment does not integrate with new enforcement technology nor does it integrate with the recently installed on -street multi -space pay stations. This project will replace the existing payment and gating equipment with a gateless system that uses pay stations and mobile payment technology to provide a seamless, integrated experience for our customers. The new equipment will allow Parking Services staff to enforce paid parking in the garages more efficiently. The new equipment will also save staff time from troubleshooting hardware issues and reduce customers' frustrations when parking downtown. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 40,000 90,000 0 0 0 130,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 611 - Parking Fund 40,000 90,000 0 0 0 130,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Parking Fund 40,000 90,000 0 0 0 130,000 520 CIP#116 Capital Improvement Plan Project Number Project Name 1000526 Parks and Rec General Plan Implementation Project Classification Classification Description CIP Project Function Culture & Recreation Community Priority Other Partnership Project No Project Classification Community Improvement Project Type New Asset Purpose and Need With the anticipated Summer 2021 adoption of the Parks and Recreation Blueprint for the Future, funding is allocated to conduct focus groups and to begin the project plan and scope for the numerous mini park master plans and develop a schedule for prioritized new recreational features and amenity upgrades/replacements. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 200,000 200,000 0 0 0 400,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 200,000 200,000 0 0 0 400,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 200,000 200,000 0 0 0 400,000 521 CIP#117 Capital Improvement Plan Project Number Project Name 91613 Prado Road Interchange Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Housing Partnership Project Yes Project Classification Transportation Project Type New Asset Purpose and Need The existing interchange at Prado Road is at grade and cannot accomdate future development needs within the City and region. Prado road will be extended across Hwy 101, and the North Bound on and off ramps will also be added to this raised interchange. Elks lane will be re- routed and form a new intersection with the WRRF driveway. Corp Yard assets will be re -organized to allow the interchange to be constructed. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 500,000 5,849,571 0 63,735,000 2,235,000 72,319,571 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total XXX — Developer Cont. Fund 0 529,400 0 0 0 529,400 401 - Capital Outlay Fund 500,000 3,345,260 0 51,235,000 2,235,000 57,315,260 405 - Infractructure Invest CIP Fund 0 1,844,911 0 3,200,000 0 5,044,911 503 - Airport Area Impact Fee Fund 0 130,000 0 0 0 130,000 507 - Transportation Impact Fee Fund 0 0 0 2,000,000 0 2,000,000 514 - SLR Transportation Impact Fee Fund 0 0 0 7,300,000 0 7,300,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total AASP Impact Fee Fund 0 130,000 0 0 0 130,000 Bonds, Infrastructure Loan (Debt) 0 0 0 38,650,000 0 38,650,000 Developer Contribution 0 0 0 7,300,000 0 7,300,000 Local Revenue Measure 500,000 1,910,000 0 6,585,000 2,235,000 11,230,000 MASP Transportation Impact Fee Fund 0 529,400 0 0 0 529,400 San Luis Obispo County 0 1,435,260 0 0 0 1,435,260 SLOCOG Grant 0 0 0 6,000,000 0 6,000,000 Transportation Development Impact Fee 0 0 0 2,000,000 0 2,000,000 Unsecured State or Federal Grant 0 1,844,911 0 3,200,000 0 5,044,911 522 CIP#118 Capital Improvement Plan Project Number Project Name Recycled Water Broad Street - Tank Farm to 1000528 Aerovista Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type New Asset Purpose and Need The City continues to expand the recycled water system that is currently comprised of one distribution zone, one booster -pump station, and one tank located at the WRRF. This project will install critical infrastructure needed to serve the East Airport Annexation completed in 2021. The objective of the project is to expand the distribution system in anticipation of the WRRF upgrade, and meet the increased demands on recycled water for irrigation. The new pipe system will meet standards by the American Water Works Association (AWWA) and regulatory requirements. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 45,000 1,040,000 0 0 0 1,085,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 45,000 1,040,000 0 0 0 1,085,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 45,000 1,040,000 0 0 0 1,085,000 523 CIP#119 Capital Improvement Plan Y. Project Number Project Name 114 1000529 Recycled Water Orcutt Street - Fernwood to Laurel Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other) Partnership Project No Project Classification Maintenance Project Type New Asset Purpose and Need The City continues to expand the recycled water system that is currently comprised of one distribution zone, one booster -pump station, and one tank located at the WRRF. This project will install critical infrastructure on Orcutt Street. The objective of the project is to expand the distribution system in anticipation of the WRRF upgrade, and meet the increased demands on recycled water for irrigation. The new pipe system will meet standards by the American Water Works Association (AWWA) and regulatory requirements. Cost Budget 2021-22 2022-23 2023-24 Contract Services 0 0 0 Fund 2021-22 2022-23 2023-24 601 - Water Fund 0 0 0 Funding Source 2021-22 2022-23 2023-24 Water Fund 0 0 0 2024-25 2025-26 Total 25,000 675,000 700,000 2024-25 2025-26 Total 25,000 675,000 700,000 2024-25 2025-26 Total 25,000 675,000 700,000 524 CIP#120 Capital Improvement Plan Project Number Project Name iVFJ 1000037 South Street Median Landscaping -� Project Classification Classification Description CIP Project Function Community & Neighborhood Livability Community Priority Other Partnership Project No Project Classification Community Improvement "= = ,;;.<:F •�=� �a '' ` Project Type New Asset y zf _� Purpose and Need Caltrans and the City collaboratively installed medians in South Street as part of a traffic safety improvement project. This traffic safety project established all necessary infrastructure to support planted medians in South Street except for irrigation. This project will install an irrigation system to support future landscape plantings in the medians on South Street. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 240,000 0 0 0 0 240,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 240,000 0 0 0 0 240,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 240,000 0 0 0 0 240,000 525 CIP#121 Capital Improvement Plan Project Number Project Name 1000537 Transportation Monitoring & Modeling Update Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Transportation Project Type New Asset Purpose and Need As required under the General Plan Circulation Element (Policy 7.7), the City conducts auto/bicycle/pedestrian traffic volume counts citywide every other year to monitor mode shift changes and traffic patterns resulting from land use projects, circulation improvements, and changes in travel behavior. Up-to-date traffic counts help support a variety of ongoing projects and programs, including tracking progress towards adopted mode shift targets, supporting traffic studies prepared for develoment entitlement review and local circulation studies, programing traffic signal timing, guiding future roadway improvements, and facilitating the City's Traffic Safety, Operations, and Neighborhood Traffic Management Programs. This funding also supports ongoing minor updates to the City's Travel Demand Forecasting Model, which are necessary for preparing future traffic volume forecasts and vehicle miles traveled (VMT) projections for development review and internal planning and monitoring. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 40,000 115,000 40,000 40,000 40,000 275,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 401 - Capital Outlay Fund 0 70,000 0 0 0 70,000 507 - Transportation Impact Fee Fund 40,000 45,000 40,000 40,000 40,000 205,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Local Revenue Measure 0 70,000 0 0 0 70,000 Transportation Development Impact Fee 40,000 45,000 40,000 40,000 40,000 205,000 526 CIP#122 Capital Improvement Plan Project Number Project Name Wastewater Lift Station Rehabilitation: New Buckley 1000083 Lift Station Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification Maintenance Project Type New Asset Purpose and Need The Buckley Lift Station is a new city asset within the Avila Ranch development that will serve the southwest portion of the Airport Specific Area. The construction will include capacities for all phased construction of the Avila Ranch Development, and will have the ability to expand as future discharge flows increase consistent with the Land Use and Circulation Element (LUCE). The Lift Station is partly funded by the developer and citywide sewer impact fees in accordance with the 2017 Development Agreement and conditions of approval. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 396,000 0 0 0 0 396,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 602 - Sewer Fund 396,000 0 0 0 0 396,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Sewer Fund 396,000 0 0 0 0 396,000 527 CIP#123 Capital Improvement Plan Project Number Project Name Water Treatment Plant - Power Storage Units Tesla 1 �� 1000541 Battery Grant Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Climate Action F Partnership Project No ;il&,�; Project Classification Maintenance •N Project Type New Asset Purpose and Need To protect communities from wildfire, Pacific Gas & Electric (PG&E) has notified its municipal and private customers of its plans to implement precautionary measures during fire season. If extreme fire danger conditions threaten a portion of the PG&E electrical system, high -risk transmission lines may be turned off, resulting in widespread power outages to San Luis Obispo County. PG&E refers to this as a Public Safety Power Shutoff (PSPS). According to PG&E, a PSPS may be necessitated by strong winds, low humidity levels, and critically dry vegetation. These outages will not be localized; and regional solutions will be limited (one city may not be able to borrow from another neighboring city necessary equipment and/or resources). The proposed project will seek grant funding for construction of power storage units through Tesla's licensing agreement with the Department of Energy. The power storage units will allow the Utilities Department to store up to 11-hrs of emergency power at the Water Treatment Plant that can augment the diesel emergency generator scheduled with a future project. When emergency power is not required for plant operations, the power storage units will allow plant staff to shift power needs during electrical time of use periods having lower electrical rates, and lower carbon emissions associated with the transmission of electrical power. The control module operating the power storage units will also monitor and track energy efficiencies of existing pumps and the plant's treatment units. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 30,000 0 0 0 0 30,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 30,000 0 0 0 0 30,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 30,000 0 0 0 0 30,000 528 CIP#124 Capital Improvement Plan Project Number Project Name 1000126 Water Treatment Plant Emergency Power - PSPS Project Classification CIP Project Function Community Priority Partnership Project Project Classification Project Type Purpose and Need Classification Description Infrastructure & Transportation Climate Action No Maintenance New Asset In an effort to protect communities from wildfire, Pacific Gas & Electric (PG&E) has notified its municipal and private customers of its plans to implement precautionary measures during fire season. If extreme fire danger conditions threaten a portion of the PG&E electrical system, high - risk transmission lines may be turned off, resulting in widespread power outages to San Luis Obispo County. PG&E refers to this as a Public Safety Power Shutoff (PSPS). According to PG&E, a PSPS may be necessitated by strong winds, low humidity levels, and critically dry vegetation. These outages will not be localized; and regional solutions will be limited (one city may not be able to borrow from another neighboring city needed equipment and/or resources). The proposed project will acquire additional temporary or permanent emergency generators the Water Treatment Plan, Whale Rock Reservoir, and other water pump stations. This project will fund the engineering design, inspection, and construction services. These efforts are intended to make the City's water services the most resilient they can be. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 465,000 0 0 0 0 465,000 Fund 2021-22 2022-23 2023-24 2024-25 2025-26 Total 601 - Water Fund 465,000 0 0 0 0 465,000 Funding Source 2021-22 2022-23 2023-24 2024-25 2025-26 Total Water Fund 465,000 0 0 0 0 465,000 529 CIP#125 Capital Improvement Plan Project Number Project Name 1000500 CIP Project Delivery Augmentation Project Classification Classification Description CIP Project Function Infrastructure & Transportation Community Priority Other Partnership Project No Project Classification CIP Project Delivery Augmentation Project Type CIP Project Delivery Augmentation Purpose and Need This funding will support delivery of the City's substantially larger Capital Improvement Plan. Currently, delivery needs are being assessed and this funding may be used for either staffing or consultant service to expedite delivery of the City's Capital Improvement Plan. Cost Budget 2021-22 2022-23 2023-24 2024-25 2025-26 Total Contract Services 500,000 1,000,000 1,000,000 1,000,000 1,000,000 4,500,000 Fund 2021-22 2022-23 2023-24 401 - Capital Outlay Fund 500,000 1,000,000 1,000,000 Funding Source 2021-22 2022-23 2023-24 Local Revenue Measure 500,000 1,000,000 1,000,000 2024-25 2025-26 Total 1,000,000 1,000,000 4,500,000 2024-25 2025-26 Total 1,000,000 1,000,000 4,500,000 530 REFERENCE MATERIAL Aro ; klq4.. Iry QMA m- --% • 531 PENSION OBLIGATION TRENDS CaIPERS Pension Obligations Background About CaIPERS. Along with 3,000 other cities and local agencies, the City of San Luis Obispo contracts with the California Public Employees Retirement System (CaIPERS) for its "defined benefit" retirement plan, which covers all regular employees (and temporary employees when required by State law). In 2012, the City proactively negotiated a lower second tier retirement benefit for employees hired after CaIPERS contracts were amended. In addition, the Public Employee Pension Reform Act (PEPRA - AB 340) became effective in January 2013 and created the third, and even lower tier and retirement benefit. Under this program, employees who are considered new to the CaIPERS retirement program are enrolled under PEPRA. Currently, 63% of all participating City employees are enrolled in the lower retirement tiers. Benefit Tiers Employee Sworn Public Safety 3% at age 50 Non -Sworn Employees 2.7% at age 55 MEMO" I Police — 2% at age 50 Fire — 3 % at age 55 2% at age 60 2.7 % at age 57 2% at age 62 CaIPERS establishes the annual employer contribution rate that is charged against the City's payroll costs for eligible employees. The annual contribution rate is comprised of the following components: 1. Normal Cost, which is the amount needed to fund benefits earned by active employees in the upcoming year. Unfunded liability required contribution, which is the amount charged to pay down the pool's unfunded liability. Each October, CaIPERS provides an actuarial valuation report for each benefit plan that updates certain values to reflect changes in plan activity since the previous valuation. These changes include but are not limited to: ✓ The difference between the expected rate of return and the actual rate realized. ✓ Changes in the number of plan members who retire each year. ✓ Changes in the number of new plan members. ✓ Changes in the annual payroll provided to existing members of the plan. The actuarial valuations also provide new information on the variables associated with maintaining the plan, such as the amount of the unfunded liability and the annual Employer Contribution rate, which represents the amount that the City is required to pay for every dollar of eligible payroll, beginning the following fiscal year. The information used for this report is taken from the latest valuation report that was issued for the year ending June 30, 2019. CaIPERS is a separate and distinct legal entity from the City and serves as an independent fiduciary in managing the City's retirement plan assets. 532 PENSION OBLIGATION TRENDS CALPERS EMPLOYER CONTRIBUTIONS CalPERS Employer Cost Trends The following summarizes CAPERS employer contributions since 2007-08. Employer Fiscal Year Safety Non -Safety Total 2009-10 $3,993,600 $3,514,100 $7,507,700 2010-11 $3,940,000 $3,521,100 $7,461,100 2011-12 $4,202,200 $4,226,700 $8,428,900 2012-13 $4,418,518 $4,347,255 $8,765,773 2013-14 $4,152,103 $4,528,325 $8,680,428 2014-15 $4,607,331 $5,027,328 $9,634,659 2015-16 $5,885,722 $5,824,217 $11,709,939 2016-17 $6,299,915 $6,776,945 $13,076,860 2017-18 $5,910,345 $6,698,266 $12,608,611 2018-19* $9,354,287 $8,348,780 $17,703,067 2019-20 $7,709,918 $7,167,638 $14,877,556 *2018-19 reflects an additional one-time payment towards unfunded liability. Due to significant stock market losses in 2008 and actuarial changes in life expectancy, the CaIPERS' Retirement and Health Benefit Program Committee approved changes to the employer rate assumptions that limit the period used to allocate plan losses (smoothing) and reflect the changes occurring to the original benefit plan programs' membership as a result of the lower retirement benefit tiers. In addition, the actuarial assumptions for pooled plans were changed to create a fixed annual charge to pay down the unfunded liability with the amortization period fixed to 30 years starting with the 2014-15 valuation. In December of 2016, the CalPERS Committee further voted to lower the discount rate (rate of return) from 7.5% to 7% over a period of three years, reaching 7% with the 2019-20 valuation. This will result in significant increases for the unfunded liability. The impacts to the plan's funding status due to these changes in discount rate will be amortized over 30 years with a ramp -up in required contribution payments over a five-year period after each adjustment takes place resulting in significant increases in required contributions over the next several years. Current CalPERS Employer Contribution Rates CalPERS has published the employer rates for 2021-22 as well as projected rates for the following year, as shown below. While CAPERS has been able to create separate rates for each of the Safety Plan Benefit Tiers, they have chosen to create a blended rate for all three Miscellaneous retirement benefit tiers. The table below is based on June 30, 2019 valuation date, which is the latest available valuation. EmployerPIERS Retirement Tier 2021-22 2022-23 Projection Miscellaneous 9.95% 9.6% Safety Tier 1 25.59% 25.6% Safety Police Tier 11 19.88% 19.9% Safety Police Tier 111 13.98% 14.0% Safety Fire Tier 11 22.47% 22.5% Safety Fire Tier III 13.98% 14.0% 533 PENSION OBLIGATION TRENDS In addition to the rate for the normal cost, CalPERS requires a fixed annual amount to pay down the unfunded liability. The June 30, 2019 valuation provides the amount for 2021-22 and a projection for 2022-23 as shown below. Employer Payment 2021-22 2022-23 Projection Miscellaneous $ 6,819,439 $ 7,376,000 Safety $ 6,113,436 $ 6,636,000 Employee Contribution Rates Employees are making contributions to CalPERS along with employer contribution rates. Employee contribution rates vary, depending on retirement tier. Beginning in January 2014, the Police Officers Association agreed to contribute an additional 3% of pay to offset the employer's share of the retirement contribution. In 2018, the Fire, Unrepresented Management, and Confidential employee groups agreed to contribute an additional 3.0% of pay to offset the employer's share of the retirement contribution. Miscellaneous Public Safety Sworn 7% to 11% 9% to 15% 534 PENSION OBLIGATION TRENDS CalPERS Plan Funding Levels The following shows CalPERS funding levels for the City's Miscellaneous Plan and Safety Pool for the actuarial valuations from June 30, 2010 through June 30, 2019. This is the most recent actual information that is available from CAPERS. 7�Actuarial Valuation Date Ending June 30 Asset Value 1 .. 7'- Entry Age Actuarial Assets Accrued Liability Actuarial Liability Tier I Safety Employee Plan Over (Under) 7, Accrued Funded� Ratio 20102 $ 8,470,235 $ 10,165,475 $ (1,695,240) 83.3% 2011 $ W 94,068 $ 143,482 $ (49,414) 65.6% 2012 $ 92,264 $ 149,615 $ (57,351) 61.7% 2013 $ 100,910 $ 154,746 $ (53,836) 65.2% 2014 $ 113,884 $ 165,802 $ (51,918) 68.7% 2015 $ 111,864 $ 170,942 $ (59,078) 65.4% 2016 $ 109,934 $ 178,704 $ (68,770) 61.5% 2017 $ 118,917 $ 188,177 $ (69,260) 63.2% 2018 $ 123,952 $ 200,729 $ (76,777) 61.8% 2019 $ 127,661 $ 205,097 $ (77,436) 62.2% Miscellaneous Employee Plan 2010 $ 97,282 $ 138,627 $ (41,345) 70.2% 2011 $ 103,392 $ 150,651 $ (47,259) 68.6% 2012 $ 108,926 $ 157,223 $ (48,297) 69.3% 2013 $ 101,989 $ 163,765 $ (61,776) 62.3% 2014 $ 117,762 $ 178,138 $ (60,376) 66.1% 2015 $ 118,043 $ 185,020 $ (66,977) 63.8% 2016 $ 116,863 $ 196,413 $ (79,550) 59.5% 2017 $ 128,186 $ 208,025 $ (79,839) 61.6% 2018 $ 136,587 $ 225,101 $ (88,514) 60.7% 2019 $ 144,624 $ 234,600 $ (89,976) 61.6% All numbers presented in Thousands of Dollars Beginning in 2006, the Safety Plan is a member of a CalPERS safety pool. ' Before 2013, CalPERS used the Actuarial Value of Assets. Starting in 2013 Market Value of Assets is used. For 2008 through 2010, CalPERS reported on statewide safety pool funding status; beginning with 2011, CAPERS reports on the City's share of the pool liability and assets. 535 Reference Material Appropriation Limit Appropriation Limit The City's appropriation limit is based on the Gann Spending Limit Initiative, a State constitutional amendment adopted by the voters on June 6, 1979 and amended in 1990 with Proposition 111. It is anchored in the State Constitution under Article X11113. The limit restricts appropriations from tax revenues by State and local governments. Under its provisions, no local agency can appropriate proceeds of taxes in excess of its "appropriation limit". Excess funds may be carried over into the next year. However, any excess funds remaining after the second year must be returned to taxpayers by reducing tax rates or fees; a majority of the voters may approve an override to increase the limit. The City's appropriation limit is calculated by considering population growth and cost of living as allowed under Proposition 111. Since FY 2013-14, the City has chosen to use the percentage increase in new non- residential construction as the cost -of -living factor. .. ..PMFIM Factors Ratio Formula A )Prior Year Appropriation Limit $73,373,410 B) Adjustment Factors 1. Population Change' 0.31% 0.0031 2. Cost of Living Increase 5.11% 1.0511 3. Combined Factor 5.44% 1.0544 B1*B2 Adjusted Limit $79,470,489 A*133 The following summarizes changes in the City's appropriation limit and appropriations subject to the limit for the past ten years as well as the appropriation limit for 2021-22. Fiscal Year 2011-12 Limit Base 47,719,200 Cost of Living Factor 2.51% Population Factor 0.83% Appropriation Limit 49,323,000 Appropriations Subject to Limit 34,229,700 Variance 15,093,300 2012-13 49,323,000 3.77% 0.47% 51,423,500 44,178,300 7,245,200 2013-14 51,423,500 5.12% 0.52% 54,337,500 40,104,100 14,233,400 2014-15 54,337,500 8.69% 0.09% 59,112,600 36,642,900 22,469,700 2015-16 59,112,600 4.97% 0.78% 62,534,500 46,067,700 16,466,800 2016-17 62,534,500 5.63% 0.60% 66,451,500 49,397,200 17,054,300 2017-18 66,451,500 1.20% 0.92% 67,867,633 50,036,391 17,831,242 2018-19 67,867,633 1.88% 0.35% 69,383,546 51,142,315 18,241,231 2019-20 69,383,546 6.37% 0.24% 73,981,290 50,127,692 23,853,598 2020-21 73,981,290 1.92% -0.04% 75,373,410 48,342,410 27,031,416 2021-22 75,373,410 5.11% 0.31% 79,470,489 52,362,031 27,108,458 1 State of California Department of Finance https://dof.ca.gov/Forecasting/Demographics/Estimates/ z San Luis Obispo County Assessor 2020/21 Secured Tax Rolls, provided by HDL, Coren & Cone 536 Fiscal Policies Section 1. GENERAL REVENUE MANAGEMENT A. Diversified and Stable Base. The City will seek to maintain a diversified and stable revenue base to protect it from short-term fluctuations in any one revenue source. B. Long -Range Focus. To emphasize and facilitate long-range financial planning, the City will maintain current projections of revenues for the succeeding five years. C. Current Revenues for Current Uses. The City will make all current expenditures with current revenues, avoiding procedures that balance current budgets by postponing needed expenditures, accruing future revenues, or rolling over short-term debt. D. Interfund Transfers and Loans. In order to achieve important public policy goals, the City has established various special revenue, capital project, debt service and enterprise funds to account for revenues whose use should be restricted to certain activities. Accordingly, each fund exists as a separate financing entity from other funds, with its own revenue sources, expenditures and fund equity. Any transfers between funds for operating purposes are clearly set forth in the Financial Plan, and can only be made by the Finance Director in accordance with the adopted budget. These operating transfers, under which financial resources are transferred from one fund to another, are distinctly different from interfund borrowings, which are usually made for temporary cash flow reasons, and are not intended to result in a transfer of financial resources by the end of the fiscal year. In summary, interfund transfers result in a change in fund equity; interfund borrowings do not, as the intent is to repay the loan in the near term. From time to time, interfund borrowings may be appropriate; however, these are subject to the following criteria in ensuring that the fiduciary purpose of the fund is met: 1. The Finance Director is authorized to approve temporary interfund borrowings for cash flow purposes whenever the cash shortfall is expected to be resolved within 45 days. The most common use of interfund borrowing under this circumstance is for grant programs like the Community Development Block Grant, where costs are incurred before drawdowns are initiated and received. However, receipt of funds is typically received shortly after the request for funds has been made. 2. Any other interfund borrowings for cash flow or other purposes require case -by -case approval by the Council. 3. Any transfers between funds where reimbursement is not expected within one fiscal year shall not be recorded as interfund borrowings; they shall be recorded as interfund operating transfers that affect equity by moving financial resources from one fund to another. 537 Fiscal Policies Section 2. USER FEE COST RECOVERY GOALS A. Ongoing Review Fees will be reviewed and updated on an ongoing basis to ensure that they keep pace with changes in the cost -of -living as well as changes in methods or levels of service delivery. In implementing this goal, a comprehensive analysis of City costs and fees should be made at least every five years. In the interim, fees will be adjusted by annual changes in the Consumer Price Index. Fees may be adjusted during this interim period based on supplemental analysis whenever there have been significant changes in the method, level or cost of service delivery. B. User Fee Cost Recovery Levels In setting user fees and cost recovery levels, the following factors will be considered: 1. Community -Wide Versus Special Benefit. The level of user fee cost recovery should consider the community -wide versus special service nature of the program or activity. The use of general-purpose revenues is appropriate for community -wide services, while user fees are appropriate for services that are of special benefit to easily identified individuals or groups. 2. Service Recipient Versus Service Driver. After considering community -wide versus special benefit of the service, the concept of service recipient versus service driver should also be considered. For example, it could be argued that the applicant is not the beneficiary of the City's development review efforts: the community is the primary beneficiary. However, the applicant is the driver of development review costs, and as such, cost recovery from the applicant is appropriate. 3. Effect of Pricing on the Demand for Services. The level of cost recovery and related pricing of services can significantly affect the demand and subsequent level of services provided. At full cost recovery, this has the specific advantage of ensuring that the City is providing services for which there is genuinely a market that is not overly -stimulated by artificially low prices. Conversely, high levels of cost recovery will negatively impact the delivery of services to lower income groups. This negative feature is especially pronounced, and works against public policy, if the services are specifically targeted to low income groups. 4. Feasibility of Collection and Recovery. Although it may be determined that a high level of cost recovery may be appropriate for specific services, it may be impractical or too costly to establish a system to identify and charge the user. Accordingly, the feasibility of assessing and collecting charges should also be considered in developing user fees, especially if significant program costs are intended to be financed from that source. 538 Fiscal Policies C. Factors Favoring Low Cost Recovery Levels Very low-cost recovery levels are appropriate under the following circumstances: 1. There is no intended relationship between the amount paid and the benefit received. Almost all "social service" programs fall into this category as it is expected that one group will subsidize another. 2. Collecting fees is not cost-effective or will significantly impact the efficient delivery of the service. 3. There is no intent to limit the use of (or entitlement to) the service. Again, most "social service" programs fit into this category as well as many public safety (police and fire) emergency response services. Historically, access to neighborhood and community parks would also fit into this category. 4. The service is non -recurring, generally delivered on a "peak demand" or emergency basis, cannot reasonably be planned for on an individual basis, and is not readily availablefrom a private sectorsource. Many public safety services also fall into this category. 5. Collecting fees would discourage compliance with regulatory requirements and adherence is primarily self -identified, and as such, failure to comply would not be readily detected by the City. Many small-scale licenses and permits might fall into this category. Cl. Factors Favoring High Cost Recovery Levels The use of service charges as a major source of funding service levels is especially appropriate under the following circumstances: 1. The service is similar to services provided through the private sector. 2. Other private or public sector alternatives could or do exist for the delivery of the service. 3. For equity or demand management purposes, it is intended that there be a direct relationship between the amount paid and the level and cost of the service received. 4. The use of the service is specifically discouraged. Police responses to disturbances or false alarms might fall into this category. 5. The service is regulatory in nature and voluntary compliance is not expected to be the primary method of detecting failure to meet regulatory requirements. Building permit, plan checks, and subdivision review fees for large projects would fall into this category. CI L General Concepts Regarding the Use of Service Charges The following general concepts will be used in developing and implementing service charges: 1. Revenues should not exceed the reasonable cost of providing the service. 539 Fiscal Policies 2. Cost recovery goals should be based on the total cost of delivering the service, including direct costs, departmental administration costs and organization -wide support costs such as accounting, personnel, information technology, legal services, fleet maintenance and insurance. 3. The method of assessing and collecting fees should be as simple as possible in order to reduce the administrative cost of collection. 4. Rate structures should be sensitive to the "market" for similar services as well as to smaller, infrequent users of the service. 5. A unified approach should be used in determining cost recovery levels for various programs based on the factors discussed above. F. Low Cost -Recovery Services Based on the criteria discussed above, the following types of services should have very low-cost recovery goals. In selected circumstances, there may be specific activities within the broad scope of services provided that should have user charges associated with them. However, the primary source of funding for the operation as a whole should be general-purpose revenues, not user fees. 1. Delivering public safety emergency response services such as police patrol services and fire suppression. 2. Maintaining and developing public facilities that are provided on a uniform, community -wide basis such as streets, parks and general-purpose buildings. 3. Providing social service programs and economic development activities. G. Recreation Programs The following cost recovery policies apply to the City's recreation programs: 1. Cost recovery for activities directed to adults should be relatively high. 2. Cost recovery for activities directed to youth and seniors should be relatively low. In those circumstances where services are similar to those provided in the private sector, cost recovery levels should be higher. Although ability to pay may not be a concern for all youth and senior participants, these are desired program activities, and the cost of determining need may be greater than the cost of providing a uniform service fee structure to all participants. Further, there is a community -wide benefit in encouraging high -levels of participation in youth and senior recreation activities regardless of financial status. 540 Fiscal Policies 3. Cost recovery goals for recreation activities are set as follows: High -Range Cost Recovery Activities - (60% to 100%) a. Adult athletics b. Banner permit applications c. Child care services d. Facility rentals (indoor and outdoor; excludes use of facilities for internal City uses) Mid -Range Cost Recovery Activities - (30% to 60%) e. Triathlon f. Golf g. Summer and Spring Break Camps h. Classes i. Major commercial film permit applications Low -Range Cost Recovery Activities- (0 to 30%) j. Aquatics k. Community gardens 1. Junior Ranger camp m. Minor commercial film permit applications n. Skate park o. Parks and Recreation sponsored events (except for Triathlon) p. Youth sports q. Teen services r. Senior/boomer services 4. For cost recovery activities of less than 100%, there should be a differential in rates between residents and non-residents. However, the Director of Parks and Recreation is authorized to reduce or eliminate non-resident fee differentials when it can be demonstrated that: a. The fee is reducing attendance. b. And there are no appreciable expenditure savings from the reduced attendance. 5. Charges will be assessed for use of rooms, pools, gymnasiums, ball fields, special -use areas, and recreation equipment for activities not sponsored or co -sponsored by the City. Such charges will generally conform to the fee guidelines described above. However, the Director of Parks and Recreation is authorized to charge fees that are closer to full cost recovery for facilities that are heavily used at peak times and include a majority of non-resident users. 6. A vendor charge of at least 10 percent of gross income will be assessed from individuals or organizations using City facilities for moneymaking activities. 541 Fiscal Policies 7. Director of Parks and Recreation is authorized to offer reduced fees such as introductory rates, family discounts and coupon discounts on a pilot basis (not to exceed 18 months) to promote new recreation programs or resurrect existing ones. 8. The Parks and Recreation Department will consider waiving fees only when the City Manager determines in writing that an undue hardship exists. H. Development Review Programs The following cost recovery policies apply to the development review programs: 1. Services provided under this category include: a. Planning (planned development permits, tentative tract and parcel maps, re -zonings, general plan amendments, variances, use permits). b. Building and safety (building permits, structural plan checks, inspections). c. Engineering (public improvement plan checks, inspections, subdivision requirements, encroachments). d. Fire plan check. 2. Cost recovery for these services should generally be very high. In most instances, the City's cost recovery goal should be 100%. 3. However, in charging high cost recovery levels, the City needs to clearly establish and articulate standards for its performance in reviewing developer applications to ensure that there is "value for cost." 4. Building Permit Plan Check Services — The City of San Luis Obispo offers building permit plan check services through consultants at a set price, not to exceed 65% of the City's fee for the service. Building Permit Plan Check Services are offered by the City on a 100% cost -recovery basis, and the service is provided after the fee is paid in full. As a result, the Finance Director is authorized to make appropriations from the related revenue account to cover the cost of the services provided. I. Comparability with Other Communities In setting user fees, the City will consider fees charged by other agencies in accordance with the following criteria: 1. Surveying the comparability of the City's fees to other communities provides useful background information in setting fees for several reasons: a. They reflect the "market" for these fees and can assist in assessing the reasonableness of San Luis Obispo's fees. 542 Fiscal Policies b. If prudently analyzed, they can serve as a benchmark for how cost-effectively San Luis Obispo provides its services. 2. However, fee surveys should never be the sole or primary criteria in setting City fees as there are many factors that affect how and why other communities have set their fees at their levels. For example: a. What level of cost recovery is their fee intended to achieve compared with our cost recovery objectives? b. What costs have been considered in computing the fees? c. When was the last time that their fees were comprehensively evaluated? d. What level of service do they provide compared with our service or performance standards? e. Is their rate structure significantly different than ours and what is it intended to achieve? 3. These can be very difficult questions to address in fairly evaluating fees among different communities. As such, the comparability of our fees to other communities should be one factor among many that is considered in setting City fees. 543 Fiscal Policies Section 3. ENTERPRISE FUND FEES AND RATES A. Water, Sewer, and Parking. The City will set fees and rates at levels which fully cover the total direct and indirect costs —including operations, capital outlay, and debt service —of the following enterprise programs: water, sewer, and parking. For Water and Sewer, the rate setting process will be in accordance with Proposition 218 and its notification requirements. B. Transit. Based on targets set under the Transportation Development Act, the City will strive to cover at least twenty percent of transit operating costs with fare revenues. C. Ongoing Rate Review. The City will review and adjust enterprise fees and rate structures as required to ensure that they remain appropriate and equitable. D. Cost of Service Fees. The City will treat the water and sewer funds in the same manner as if they were privately owned and operated. This means assessing reasonable cost of service fees in fully recovering service costs. The purpose of the cost of service fee is reasonable cost recovery for the use of the City's services such as street rights -of -way and public safety. The appropriateness of charging the water and sewer fund a reasonable cost of service fee for the use of the City streets is further supported by the results of studies from Arizona, California, Ohio, and Vermont which concluded that the leading cause of street resurfacing and reconstruction is street cuts and trenching for Utilities. 544 Fiscal Policies Section 4. REVENUE DISTRIBUTION The Council recognizes that generally accepted accounting principles for state and local governments discourage the "earmarking" of General Fund revenues, and accordingly, the practice of designating General Fund revenues for specific programs should be minimized in the City's management of its fiscal affairs. Approval of the following revenue distribution policies does not prevent the Council from directing General Fund resources to other functions and programs as necessary. A. Property Taxes. With the passage of Proposition 13 on June 6, 1978, California cities no longer can set their own property tax rates. In addition to limiting annual increases in market value, placing a ceiling on voter -approved indebtedness, and redefining assessed valuations, Proposition 13 established a maximum county -wide levy for general revenue purposesof1 ofmarketvalue. Undersubsequent state legislation, which adopted formulas for the distribution of this countywide levy, the City now receives a percentage of total property tax revenues collected countywide as determined by the State and administered by the County Auditor -Controller. The City receives 14.9%of each dollar collected in property tax after allocations to school districts. Accordingly, while property revenues are often thought of as local revenue sources, in essence they are State revenue sources, since the State controls their use and allocation. With the adoption of a Charter revision in November 1996, which removed provisions that were in conflict with Proposition 13 relating to the setting of property tax revenues between various funds, all property tax revenues are now accounted for in the General Fund. B. Gasoline Tax Subventions. All gasoline tax revenues (which are restricted by the State for street -related purposes) will be used for maintenance activities. Since the City's total expenditures for gas tax eligible programs and projects are much greater than this revenue source, operating transfers will be made from the gas tax fund to the General Fund for this purpose. This approach significantly reduces the accounting efforts required to meet State reporting requirements. C. Transportation Development Act (TDA) Revenues. All TDA revenues will be allocated to alternative transportation programs, including regional and municipal transit systems, bikeway improvements, and other programs or projects designed to reduce automobile usage. Because TDA revenues will not be allocated for street purposes, it is expected that alternative transportation programs (in conjunction with other state or federal grants for this purpose) will be self-supporting from TDA revenues. D. Parking Fines. All parking fine revenues will be allocated to the parking fund, except for those collected by Police staff (who are funded by the General Fund) in implementing neighborhood wellness programs. 545 Fiscal Policies Section 5. INVESTMENTS A. Responsibility. Investments and cash management are the responsibility of the City Treasurer or designee. It is the City's policy to appoint the Finance Director as the City's Treasurer. B. Investment Objective. The City's primary investment objective is to achieve a reasonable rate of return while minimizing the potential for capital losses arising from market changes or issuer default. Accordingly, the following factors will be considered in priority order in determining individual investment placements: 1. Safety 2. Liquidity 3. Yield C. Tax and Revenue Anticipation Notes: Not for Investment Purposes. There is an appropriate role for tax and revenue anticipation notes (TRANS) in meeting legitimate short-term cash needs within the fiscal year. However, many agencies issue TRANS as a routine business practice, not solely for cash flow purposes, but to capitalize on the favorable difference between the interest cost of issuing TRANS as a tax -preferred security and the interest yields on them if re -invested at full market rates. As part of its cash flow management and investment strategy, the City will only issue TRANS or other forms of short-term debt if necessary to meet demonstrated cash flow needs; TRANS or any other form of short-term debt financing will not be issued for investment purposes. As long as the City maintains its current policy of maintaining fund/working capital balances that are 20% of operating expenditures, it is unlikely that the City would need to issue TRANS for cash flow purposes except in very unusual circumstances. D. Selecting Maturity Dates. The City will strive to keep all idle cash balances fully invested through daily projections of cash flow requirements. To avoid forced liquidations and losses of investment earnings, cash flow and future requirements will be the primary consideration when selecting maturities. E. Diversification. As the market and the City's investment portfolio change, care will be taken to maintain a healthy balance of investment types and maturities. F. Authorized Investments. The City will invest only in those instruments authorized by the California Government Code Section 53601. The City will not invest in stock, will not speculate and will not deal in futures or options. The investment market is highly volatile and continually offers new and creative opportunities for enhancing interest earnings. Accordingly, the City will thoroughly investigate any new investment vehicles before committing City funds to them. 546 Fiscal Policies G. Authorized Institutions. Current financial statements will be maintained for each institution in which cash is invested. Investments will be limited to 20 percent of the total net worth of any institution and may be reduced further or refused altogether if an institution's financial situation becomes unhealthy. H. Consolidated Portfolio. In order to maximize yields from its overall portfolio, the City will consolidate cash balances from all funds for investment purposes and will allocate investment earnings to each fund in accordance with generally accepted accounting principles. Safekeeping. Ownership of the City's investment securities will be protected through third -party custodial safekeeping. J. Investment Management Plan. The City Treasurer will develop and maintain an Investment Management Plan that addresses the City's administration of its portfolio, including investment strategies, practices and procedures. K. Investment Oversight Committee. As set forth in the Investment Management Plan, this committee is responsible for reviewing the City's portfolio on an ongoing basis to determine compliance with the City's investment policies and for making recommendations to the City Treasurer (Finance Director regarding investment management practices. Members include the City Manager, Assistant City Manager, Finance Director/City Treasurer, Accounting Manager, the City's independent auditor, one City Council member, and one member of the public. The member of the public shall be appointed by the City Council in accordance with the City's process for appointing advisory body members. L. Reporting. The City Treasurer will develop and maintain a comprehensive, well -documented investment reporting system, which will comply with Government Code Section 53607. This reporting system will provide the Council and the Investment Oversight Committee with appropriate investment performance information. 547 Fiscal Policies Section 6. APPROPRIATIONS LIMITATION A. The Council will annually adopt a resolution establishing the City's appropriations limit calculated in accordance with Article XIII-B of the Constitution of the State of California, Section 7900 of the State of California Government Code, and any other voter approved amendments or state legislation that affect the City's appropriations limit. B. The supporting documentation used in calculating the City's appropriations limit and projected appropriations subject to the limit will be available for public and Council review at least 10 days before Council consideration of a resolution to adopt an appropriations limit. The Council will generally consider this resolution in connection with final approval of the budget. C. The City will strive to develop revenue sources, both new and existing, which are considered non -tax proceeds in calculating its appropriations subject to limitation. D. The City will annually review user fees and charges and report to the Council the amount of program subsidy, if any, that is being provided by the General or Enterprise Funds. E. The City will actively support legislation or initiatives sponsored or approved by League of California Cities which would modify Article XIII-B of the Constitution in a manner which would allow the City to retain projected tax revenues resulting from growth in the local economy for use as determined by the Council. F. The City will seek voter approval to amend its appropriation limit at such time that tax proceeds are in excess of allowable limits. 548 Fiscal Policies Section 7. FUND BALANCE AND RESERVES A. Minimum Fund and Working Capital Balances. The City will maintain a minimum fund balance of at least 20% of operating expenditures in the General Fund and a minimum working capital balance of 20% of operating expenditures in the water, sewer and parking enterprise funds. This is considered the minimum level necessary to maintain the City's credit worthiness and to adequately provide for: 1. Economic uncertainties, local disasters, and other financial hardships or downturns in the local or national economy. 2. Contingencies for unseen operating or capital needs. 3. Cash flow requirements. B. Fleet Replacement. For the General Fund fleet, the City will establish and maintain a Fleet Replacement Fund to provide for the timely replacement of vehicles and related equipment with an individual replacement cost of $15,000 or more. The minimum committed fund balance in the Fleet Replacement Fund is set at $500,000 for the emergency replacement of vehicles that are damaged beyond repair, and are either not covered under the City's property insurance program or the vehicle has a high replacement cost and insurance proceeds will be inadequate to provide for the vehicle's replacement (fire engine). Above this contingency level, the amount retained in this fund, coupled with the annual contributions received by it from any source, shall be adequate to fully fund the equipment replacements approved in the Financial Plan. If in any given year, the minimum fund balance is depleted for above mentioned uses and as approved by the City Council, it shall be replenished over the next two-year Financial Plan period. Interest earnings and the proceeds from the sales of surplus equipment as well as any related damage and insurance recoveries will be credited to the Fleet Replacement Fund. B. Information Technology (IT) Replacement Fund. The City will establish an IT Replacement Fund for the General Fund to provide for the timely replacement of information technology, both hardware and software, with an individual replacement cost of $25,000 or more. The minimum committed fund balance in this fund is set at $400,000 for the emergency replacement of equipment that is damaged beyond repair and not covered under the City's property insurance program. If in any given year, the minimum fund balance is depleted for above mentioned uses and as approved by the City Council, it shall be replenished over the next two-year Financial Plan period. Interest earnings and the proceeds from the sale of surplus equipment as well as any related damage and insurance recoveries will be credited to the fund. D. Major Facility Replacement Fund. The City will maintain a reserve within this fund for the purpose of funding the cost of improvements having a cost of $25,000 or more to city -owned, general government building and structures. The amount retained in this fund, coupled with annual contributions received by it from any source, to adequately fund maintenance and replacement of City facilities. E. Infrastructure Investment Fund. The City will maintain a reserve within this fund for the purpose of 549 Fiscal Policies funding infrastructure projects that contribute to improved economic development and enhanced quality of life in the City of San Luis Obispo. The following evaluation criteria shall be applied to project eligibility: 1. The use of City funds shall not offset any cost that would be expected to be paid to meet the fair share obligation of any developer. 2. The use of City funds shall not offset a project specific cost identified through the environmental review process or under existing regulations or policies. 3. The use of funds shall support a project that would not otherwise be feasible due to economic, timing or other issues outside control of the project proponents or the City. 4. The project shall provide public benefit by contributing to economic development and quality of life within the City. F. Insurance Fund. The City shall maintain an Insurance Fund to manage payments for liability, workers' compensation, crime, pollution, special events, property, and volunteer insurance. Within the Insurance Fund, a self -insured retention (SIR) will be set aside to cover expenses associated with claims from the Excess Liability Insurance Program. The SIR will be funded based on 150% (75%confidence level) of the previous five-year average claims experience (claims paid, reserves for known claims, and administrative expenses). The Insurance Fund will maintain a reserve sufficient to guard against substantial claims which will be determined based on annual actuarial report information. If required due to depletion of fund balance, sufficient annual appropriations will be transferred to the Insurance Fund from the General Fund in the amount needed to ensure the 150% funding status. G. Water and Sewer Rate Stabilization Reserves. The City will maintain a reserve for the purposes of offsetting unanticipated fluctuations in Water Fund or Sewer Fund revenues to provide financial stability, including the stability of revenues and the rates and charges related to each Enterprise. The funding target for the Rate Stabilization Reserve will be 10% of sales revenue in the Water Fund and 5% of sales revenue in the Sewer Fund. Conditions for utilization and plan for replenishment of the reserve will be brought to Council for its consideration during the preparation and approval of the Financial Plan or as may become necessary during any fiscal year. H. Future Capital Project Designations. The Council may designate specific fund balance levels for future development of capital projects that it has determined to be in the best long-term interests of the City. For example, replacement of critical information technology infrastructure or other projects. I. Other Designations and Reserves. In addition to the designations noted above, fund balance levels will be sufficient to meet funding requirements for projects approved in prioryears which are carried forward into the new year; debt service reserve requirements; reserves for encumbrances; and other reserves or designations required by contractual obligations, state law, or generally accepted accounting principles. 550 Fiscal Policies J. General Fund Revenue Stabilization Fund. The City will maintain a reserve for the purpose of offsetting unanticipated fluctuations in general fund revenues to provide financial stability. The funding target for the Revenue Stabilization Reserve will be $1,000,000 during the term of the adopted Fiscal Health Response Plan. Use and allocations of funds of the Revenue Stabilization Fund will be made upon Council approvals of the Financial Plan or as becomes necessary during any fiscal year. K. Essential Safety Equipment Funding. The City will carry forward year-end project balance designated for essential safety equipment indefinitely. L. Capital Projects Reserve Fund. The City will maintain a restricted reserve for the purposes of offsetting unanticipated cost increases, unforeseen conditions, and urgent unanticipated projects to provide continued investment in infrastructure maintenance and enhancement. Use and allocations of funds from the Capital Projects Reserve Fund will be made to Capital Projects including Major Facility Replacement upon Council approvals as necessary during any fiscal year. 551 Fiscal Policies Section 8. CAPITAL IMPROVEMENT MANAGEMENT A. CIP Projects: $25,000 or More. Construction projects and equipment purchases which cost $25,000 or more will be included in the CIP and are accounted for in the Capital Outlay Fund. Minor capital outlays of less than $25,000 will be included with the operating program budgets. B. CIP Purpose. The purpose of the CIP is to systematically plan, schedule, and finance capital projects to ensure cost-effectiveness as well as conformance with established policies. The CIP is a five-year plan organized into the same functional groupings used for the operating programs. The CIP will reflect a balance between capital replacement projects that repair, replace or enhance existing facilities, equipment or infrastructure; and capital facility projects that significantly expand or add to the City's existing fixed assets. C. Project Manager. Every CIP project will have a project manager who will prepare the project proposal, ensure that required phases are completed on schedule, authorize all project expenditures, ensure that all regulations and laws are observed, and periodically report project status. D. CIP Review Committee. Headed by the City Manager or designee, this Committee will review project proposals, determine project phasing, recommend project managers, review and evaluate the draft CIP budget document, and report CIP project progress on an ongoing basis. E. CIP Phases. The CIP will emphasize project planning, with projects progressing through at least two and up to ten of the following phases: 1. Designate. Appropriates funds based on projects designated for funding by the Council through adoption of the Financial Plan. 2. Study. Concept design, site selection, feasibility analysis, schematic design, environmental determination, property appraisals, scheduling, grant application, grant approval, specification preparation for equipment purchases. 3. Environmental Review. EIR preparation, other environmental studies 4. Real Property Acquisitions. Property acquisition for projects, if necessary. 5. Site Preparation. Demolition, hazardous materials abatements, other pre -construction work. 6. Design. Final design, plan and specification preparation and construction cost estimation. 7. Construction. Construction contracts. 8. Construction Management. Contract project management and inspection, soils and material tests, other support services during construction. 552 Fiscal Policies 9. Equipment Acquisitions. Vehicles, heavy machinery, computers, office furnishings, other equipment items acquired and installed independently from construction contracts. 10. Debt Service. Installment payments of principal and interest for completed projects funded through debt financings. Expenditures for this project phase are included in the Debt Service section of the Financial Plan. Generally, it will become more difficult for a project to move from one phase to the next. As such, more projects will be studied than will be designed, and more projects will be designed than will be constructed or purchased during the term of the CIP. F. CIP Appropriation. The City's annual CIP appropriation for study, design, acquisition and/or construction is based on the projects designated by the Council through adoption of the Financial Plan. Adoption of the Financial Plan CIP appropriation does not automatically authorize funding for specific project phases. This authorization generally occurs only after the preceding project phase has been completed and approved by the Council and costs for the succeeding phases have been fully developed. Accordingly, project appropriations are generally made when contracts are awarded. If project costs at the time of bid award are less than the budgeted amount, the balance will be unappropriated and returned to fund balance or allocated to another project. If project costs at the time of bid award are greater than budget amounts, five basic options are available: 1. Eliminate the project. 2. Defer the project for consideration to the next Financial Plan period. 3. Rescope or change the phasing of the project to meet the existing budget. 4. Transfer funding from another specified, lower priority project. 5. Appropriate additional resources as necessary from fund balance. G. CIP Budget Carryover. Appropriations for CIP projects lapse three years after budget adoption. Projects which lapse from lack of project account appropriations may be resubmitted for inclusion in a subsequent CIP. Project accounts, which have been appropriated, will not lapse until completion of the project phase. H. Program Objectives. Project phases will be listed as objectives in the program narratives of the programs, which manage the projects. I. Public Art. CIP projects will be evaluated during the budget process and prior to each phase for conformance with the City's public art policy, which generally requires that 1% of eligible project construction costs be set aside for public art. Excluded from this requirement are underground projects, utility infrastructure projects, funding from outside agencies, and costs other than 553 Fiscal Policies construction such as study, environmental review, design, site preparation, land acquisition and equipment purchases. It is generally preferred that public art be incorporated directly into the project, but this is not practical or desirable for all projects; in this case, an in -lieu contribution to public art will be made. To ensure that funds are adequately budgeted for this purpose regardless of whether public art will be directly incorporated into the project, funds for public art will be identified separately in the CIP. J. General Plan Consistency Review. The Planning Commission will review the Preliminary CIP for consistency with the General Plan and provide is findings to the Council prior to adoption. K. Climate Action Plan Implementation. Council adopted Resolution No. 11159 (2020 Series) establishes a goal of community -wide carbon neutrality by 2035 and municipal operations carbon neutrality by 2030. The City's Capital Improvement Program is a critical implementation tool, and every CIP will be evaluated for alignment with these climate goals. Examples of ways projects or project components can align the with goals include (but are not limited to): 1. Elimination or reduction of vehicle miles traveled (e.g., active transportation and transit improvements), 2. Elimination or reduction of fossil fueled appliances, vehicles, and equipment, 3. Reduced energy consumption (e.g., efficient mechanical equipment, efficient lighting, etc.) 4. Carbon storage through tree planting or landscape management, and 5. Solid waste/ green waste diversion 554 Fiscal Policies Section 9. CAPITAL FINANCING AND DEBT MANAGEMENT A. Capital Financing 1. The City will consider the use of debt financing only for one-time capital improvement projects and only under the following circumstances: a. When the project's useful life will exceed the term of the financing. b. When project revenues or specific resources will be sufficient to service the long-term debt. 2. Debt financing will not be considered appropriate for any recurring purpose such as current operating and maintenance expenditures. The issuance of short-term instruments such as revenue, tax or bond anticipation notes is excluded from this limitation. (See Investment Policy) 3. Capital improvements will be financed primarily through user fees, service charges, assessments, special taxes or developer agreements when benefits can be specifically attributed to users of the facility. Accordingly, development impact fees should be created and implemented at levels sufficient to ensure that new development pays its fair share of the cost of constructing necessary community facilities. For Community Facilities Districts please see section E. 4. Transportation impact fees are a major funding source in financing transportation system improvements. However, revenues from these fees are subject to significant fluctuation based on the rate of new development. Accordingly, the following guidelines will be followed in designing and building projects funded with transportation impact fees: a. The availability of transportation impact fees in funding a specific project will be analyzed on a case - by -case basis as plans and specification or contract awards are submitted for City Manager or Council approval. b. If adequate funds are not available at that time, the Council will make one of two determinations: • Defer the project until funds are available. • Based on the high -priority of the project, advance funds from the General Fund, which will be reimbursed as soon as impact fee funds become available. Repayment of General Fund advances will be the first use of transportation impact fee funds when they become available. 5. The City will use the following criteria to evaluate pay-as-you-go versus long-term financing in funding capital improvements: a. Factors Favoring Pay -As -You -Go Financing 555 Fiscal Policies 1. Current revenues and adequate fund balances are available, or project phasing can be accomplished. 2. Existing debt levels adversely affect the City's credit rating. 3. Market conditions are unstable or present difficulties in marketing. b. Factors Favoring Long Term Financing 1. Revenues available for debt service are deemed sufficient and reliable so that long-term financings can be marketed with investment grade credit ratings. 2. The project securing the financing is of the type which will support an investment grade credit rating. 3. Market conditions present favorable interest rates and demand for City financings. 4. A project is mandated by state or federal requirements, and resources are insufficient or unavailable. 5. The project is immediately required to meet or relieve capacity needs and current resources are insufficient or unavailable. 6. The life of the project or asset to be financed is 10 years or longer. 7. Vehicle leasing when market conditions and operational circumstances present favorable opportunities. B. Debt Management 1. The City will not obligate the General Fund to secure long-term financings except when marketability can be significantly enhanced. 2. An internal feasibility analysis will be prepared for each long-term financing which analyzes the impact on current and future budgets for debt service and operations. This analysis will also address the reliability of revenues to support debt service. 3. The City will generally conduct financings on a competitive basis. However, negotiated financings may be used due to market volatility or the use of an unusual or complex financing or security structure. 4. The City will seek an investment grade rating (Baa/BBB or greater) on any direct debt and will seek credit enhancements such as letters of credit or insurance when necessary for marketing purposes, availability and cost-effectiveness. 5. The City will monitor all forms of debt annually coincident with the City's Financial Plan preparation and review process and report concerns and remedies, if needed, to the Council. 556 Fiscal Policies 6. The City will diligently monitor its compliance with bond covenants and ensure its adherence to federal arbitrage regulations. 7. The City will maintain good, ongoing communications with bond rating agencies about its financial condition. The City will follow a policy of full disclosure on every financial report and bond prospectus (Official Statement). C. Debt Capacity 1. General Purpose Debt Capacity. The City will carefully monitor its levels of general-purpose debt. Because the City's general-purpose debt capacity is limited, it is important that the City only use general purpose debt financing for high -priority projects where we cannot reasonably use other financing methods for two key reasons: a. Funds borrowed for a project today are not available to fund other projects tomorrow. b. Funds committed for debt repayment today are not available to fund operations in the future. In evaluating debt capacity, general-purpose annual debt service payments should generally not exceed 10% of General Fund revenues; and in no case should they exceed 15%. Further, direct debt will not exceed 2% of assessed valuation; and no more than 60% of capital improvement outlays will be funded from long-term financings. 2. Enterprise Fund Debt Capacity. The City will set enterprise fund rates at levels needed to fully cover debt service requirements as well as operations, maintenance, administration and capital improvement costs. The ability to afford new debt for enterprise operations will be evaluated as an integral part of the City's rate review and setting process. D. Independent Disclosure Counsel The following criteria will be used on a case -by -case basis in determining whether the City should retain the services of an independent disclosure counsel in conjunction with specific project financings: 1. The City will generally not retain the services of an independent disclosure counsel when all of the following circumstances are present: a. The revenue source for repayment is under the management or control of the City, such as general obligation bonds, revenue bonds, lease -revenue bonds or certificates of participation. b. The bonds will be rated or insured. 2. The City will consider retaining the services of an independent disclosure counsel when one or more of following circumstances are present: 557 Fiscal Policies a. The financing will be negotiated, and the underwriter has not separately engaged an underwriter's counsel for disclosure purposes. b. The revenue source for repayment is not under the management or control of the City, such as land - based assessment districts, tax allocation bonds or conduit financings. c. The bonds will not be rated or insured. d. The City's financial advisor, bond counsel or underwriter recommends that the City retain an independent disclosure counsel based on the circumstances of the financing. E. Land -Based Financings 1. Public Purpose. There will be a clearly articulated public purpose in forming an assessment or special tax district in financing public infrastructure improvements. This should include a finding by the Council as to why this form of financing is preferred over other funding options such as impact fees, reimbursement agreements or direct developer responsibility for the improvements. New development should generally be expected to "pay its own way," (i.e., provide funding through one mechanism or another that funds its "proportional share" of public improvement and infrastructure costs and ongoing operations and maintenance costs). (1) The City will consider the use of city -based funding sources to fund public facility and infrastructure improvements that provide for the health, safety and welfare of existing and future residents and/or provide measurable economic development and fiscal benefits. In evaluating whether the City will use city -based funding sources, the following evaluation criteria should be considered: (a) Significant public benefit, demonstrated by compliance with and furtherance of General Plan goals, policies, and programs (b) Alignment with the Major City Goals and other important objectives in place at the time of the application (c) Head of Household Job Creation (d) Housing Creation (e) Circulation/Connectivity Improvements (f) Net General Fund fiscal impact (2) The City generally will not fund or offer public financing for infrastructure improvements that confer only private benefit to individual property owners or development projects. 558 Fiscal Policies (3) The City shall seek continuity (or improvements to) existing levels of municipal service by assuring adequate funding for the City's operation, maintenance and infrastructure replacement costs." 2. Eligible Improvements. Except as otherwise determined by the Council when proceedings for district formation are commenced, preference in financing public improvements through a special tax district shall be given for those public improvements that help achieve clearly identified community facility and infrastructure goals in accordance with adopted facility and infrastructure plans as set forth in key policy documents such as the General Plan, Specific Plan, Facility or Infrastructure Master Plans, or Capital Improvement Plan. Such improvements include study, design, construction and/or acquisition of: a. Public safety facilities. b. Water supply, distribution and treatment systems. c. Waste collection and treatment systems. d. Major transportation system improvements, such as freeway interchanges; bridges; intersection improvements; construction of new or widened arterial or collector streets (including related landscaping and lighting); sidewalks and other pedestrian paths; transit facilities; and bike paths. e. Storm drainage, creek protection and flood protection improvements. f. Parks, trails, community centers and other recreational facilities. g. Open space. h. Cultural and social service facilities. i. Other governmental facilities and improvements such as offices, information technology systems and telecommunication systems. School facilities will not be financed except under appropriate joint community facilities agreements or joint exercise of powers agreements between the City and school districts. 3. Active Role. Even though land -based financings may be a limited obligation of the City, we will play an active role in managing the district. This means that the City will select and retain the financing team, including the financial advisor, bond counsel, trustee, appraiser, disclosure counsel, assessment engineer and underwriter. Any costs incurred by the City in retaining these services will generally be the responsibility of the property owners or developer and will be advanced via a deposit when an application is filed; or will be paid on a contingency fee basis from the proceeds from the bonds. 559 Fiscal Policies 4. Credit Quality. When a developer requests a district, the City will carefully evaluate the applicant's financial plan and ability to carry the project, including the payment of assessments and special taxes during build -out. This may include detailed background, credit and lender checks, and the preparation of independent appraisal reports and market absorption studies. For districts where one property owner accounts for more than 25% of the annual debt service obligation, a letter of credit further securing the financing may be required. 5. Reserve Fund. A reserve fund should be established in the lesser amount of: the maximum annual debt service; 125% of the annual average debt service; or 10% of the bond proceeds. 6. Value -to -Debt Ratios. The minimum value -to -debt ratio should generally be 4:1. This means the value of the property in the district, with the public improvements, should be at least four times the amount of the assessment or special tax debt. In special circumstances, after conferring and receiving the concurrence of the City's financial advisor and bond counsel that a lower value -to -debt ratio is financially prudent under the circumstances, the City may consider allowing a value -to -debt ratio of 3:1. The Council should make special findings in this case. 7. Appraisal Methodology. Determination of value of property in the district shall be based upon the full cash value as shown on the ad valorem assessment roll or upon an appraisal by an independent Member Appraisal Institute (MAI). The definitions, standards and assumptions to be used for appraisals shall be determined by the City on a case -by -case basis, with input from City consultants and district applicants, and by reference to relevant materials and information promulgated by the State of California, including the Appraisal Standards for Land -Secured Financings prepared by the California Debt and Investment Advisory Commission. 8. Capitalized Interest During Construction. Decisions to capitalize interest will be made on case -by -case basis, with the intent that if allowed, it should improve the credit quality of the bonds and reduce borrowing costs, benefiting both current and future property owners. 9. Maximum Burden. Annual assessments (or special taxes in the case of Mello -Roos or similar districts) should generally not exceed 1% of the sales price of the property; and total property taxes, special assessments and special taxes payments collected on the tax roll should generally not exceed 2%. 10. Benefit Apportionment. Assessments and special taxes will be apportioned according to a formula that is clear, understandable, equitable and reasonably related to the benefit received by —or burden attributed to —each parcel with respect to its financed improvement. Any annual escalation factor should generally not exceed 2%. F. Development Impact Fees Guidelines and Policies Development impact fees are one-time fees levied on new development, typically levied at the time building permits are issued, to fund a range of the City's public facilities and infrastructure. Such fees are levied both on a citywide basis as well as for specific areas (e.g., the Specific Plan Areas). The levy of development impact fees is regulated by the State's Mitigation Fee Act (Government Code Section 66000 et seq.). 560 Fiscal Policies 1. Development impact fees should be set, consistent with the statutory "nexus" analysis and findings, to fund new development's proportional share of public facility and infrastructure costs. 2. Improvements funded by development impact fees should be referenced generally in the appropriate planning documents (e.g., General Plan, Specific Plans, etc.) and reflected in the City's Capital Improvement Program. 3. An exception to this policy may be created by a development agreement between the City and a private developer. In this case public investments are offset by measurable public benefits. 4. The City's development impact fees can be "leveraged" through the use of fee credit and reimbursement agreements with developers and landowners. 5. The City's aggregate fee levels should not render new development that is otherwise consistent with City plans and regulations economically infeasible. Aggregate fee levels should be evaluated in terms of a reasonable standard, but not a strict limit (e.g., aggregate fee levels should not exceed an average of approximately 10 to 12 percent of the market value of the new development, either on a per -unit or per -square foot basis). 6. The City may consider reductions or waivers of its development impact fees in cases where a development project meets specific City planning or economic development policies such as affordable housing projects. In such cases the amount of funding foregone must be replaced with other funding sources available to the City. Special Tax District Administration. In the case of Mello -Roos or similar special tax districts, the total maximum annual tax should not exceed 110% of annual debt service. The rate and method of apportionment should include a back-up tax in the event of significant changes from the initial development plan and should include procedures for prepayments. a. Community Facilities Districts or Assessment Districts offer away to fund infrastructure, maintenance, or municipal services through special taxes or assessments levied on property owners benefiting from the thus -funded improvements or services. It can be used for both capital improvements and ongoing facility maintenance or services 561 Fiscal Policies b. The City will consider the formation of financing districts using the State's assessment law or the Mello -Roos Community Facilities Act for its newly developing areas on a case- by - case basis, consistent with technical analysis and City priorities (i.e., capital or ongoing funding). c. The City will consider the effect of the special tax on the City's ability to issue General Obligation bonds or other property -based tax measures. d. Such districts should fund infrastructure or services serving or otherwise providing benefit to the area subject to the assessment or special tax. e. Such districts can fund public facilities or infrastructure otherwise funded with the City's development impact fees or project -specific exactions. In such cases the area's development impact fee obligations will be adjusted proportionately. f. Within any such districts, property value -to -lien ratio should, consistent with typical underwriting standards, be at least 4.0:1 after calculating the value of the financed public improvements to be installed and considering any prior or pending special taxes or improvement liens. g. Consistent with underwriting standards and market considerations, and as a matter of policy, the City will limit the maximum amount of special taxes to be levied on any parcel of property within a Community Facilities District, in any given fiscal year, together with the general property taxes, general obligation bonds, and other special taxes and assessments levied on such parcel, shall not exceed an amount equal to one and eight- tenths percent (1.8 percent) of the projected assessed value of the parcel (and improvements if applicable). How the special tax capacity is allocated between capital and ongoing expenditures will depend upon the City's priorities. h. The City shall have discretion to allow a special tax in excess of the established limits for any lands within the CFD which are designated for commercial or industrial uses. i. As a part of such district formations, the City will retain a special tax consultant to prepare a report which recommends a special tax rate and method for the proposed CFD and evaluates the special tax proposed to determine its ability to adequately fund identified public facilities, City administrative costs, services (if applicable) and other related expenditures. 562 Fiscal Policies 2. Foreclosure Covenants. In managing administrative costs, the City will establish minimum delinquency amounts per owner, and for the district as a whole, on a case -by -case basis before initiating foreclosure proceedings. 3. Disclosure to Bondholders. In general, each property owner who accounts for more than 10% of the annual debt service or bonded indebtedness must provide ongoing disclosure information annually as described under SEC Rule 15(c)-12. 4. Disclosure to Prospective Purchasers. Full disclosure about outstanding balances and annual payments should be made by the seller to prospective buyers at the time that the buyer bids on the property. It should not be deferred to after the buyer has made the decision to purchase. When appropriate, applicants or property owners may be required to provide the City with a disclosure plan. G. Conduit Financings 1. The City will consider requests for conduit financing on a case -by -case basis using the following criteria: a. The City's bond counsel will review the terms of the financing and render an opinion that there will be no liability to the City in issuing the bonds on behalf of the applicant. b. There is a clearly articulated public purpose in providing the conduit financing. c. The applicant is capable of achieving this public purpose. 2. This means that the review of requests for conduit financing will generally be a two-step process: a. First asking the Council if they are interested in considering the request and establishing the ground rules for evaluating it. b. And then returning with the results of this evaluation and recommending approval of appropriate financing documents if warranted. This two-step approach ensures that the issues are clear for both the City and applicant, and that key policy questions are answered. 3. The work scope necessary to address these issues will vary from request to request and will have to be determined on a case -by -case basis. Additionally, the City should generally be fully reimbursed for our costs in evaluating the request; however, this should also be determined on a case - by -case basis. 563 Fiscal Policies B. Refinancing 1. General Guidelines. Periodic reviews of all outstanding debt will be undertaken to determine refinancing opportunities. Refinancing will be considered (within federal tax law constraints) under the following conditions: a. There is a net economic benefit. b. It is needed to modernize covenants that are adversely affecting the City's financial position or operations. c. The City wants to reduce the principal outstanding in order to achieve future debt service savings, and it has available working capital to do so from other sources. Standards for Economic Savings. In general, refinancing for economic savings will be undertaken whenever net present value savings of at least five percent (5%) of the refunded debt can be achieved. a. Refinancing that produce net present value savings of less than five percent will be considered on a case -by -case basis, provided that the present value savings are at least three percent (3%) of the refunded debt. b. Refinancing with savings of less than three percent (3%), or with negative savings, will not be considered unless there is a compelling public policy objective. C. Enhanced Infrastructure Financing District Guidelines and Policies a. EIFD financing should be considered for public facilities or infrastructure improvements that confer Citywide and/or regional benefits. This may include the "City share" of infrastructure included in the City's development impact fees. b. Unless there is a Development Agreement in place that provides otherwise, EIFDs should not be used to fund real estate projects' proportional share of infrastructure costs otherwise included in the City's development impact fees or charged as project -specific exactions (e.g., subdivision improvements). c. City should consider EIFDs when more than one local government jurisdiction is participating to produce maximum benefit. d. At the time of formation of the EIFD (or if changes to the EIFD are contemplated), the City should require a fiscal impact analysis to determine if an EIFD is fiscally prudent and analyze opportunity cost to the City's General Fund. 564 Fiscal Policies Section 10. HUMAN RESOURCE MANAGEMENT A. Regular Staffing 1. The budget will fully appropriate the resources needed for authorized regular staffing and will limit programs to the regular staffing authorized. 2. Regular employees will be the core work force and the preferred means of staffing ongoing, year-round program activities that should be performed by full-time City employees rather than independent contractors. The City will strive to provide competitive compensation and benefit schedules for its authorized regular work force. Each regular employee will: a. Fill an authorized regular position. b. Be assigned to an appropriate bargaining unit, unless designated as an unrepresented management or confidential classification. c. Receive salary and benefits consistent with labor agreements or other compensation plans. 3. To manage the growth of the regular work force and overall staffing costs, the City will follow these procedures: a. The Council will authorize all regular positions. b. The Human Resources Department will coordinate and approve the hiring of all regular and supplemental staff. c. All requests for additional regular positions will include evaluations of: • The necessity, term and expected results of the proposed activity. • Staffing and materials costs including salary, benefits, equipment, uniforms, clerical support and facilities. • The ability of private industry to provide the proposed service. • Additional revenues or cost savings, which may be realized. 4. Periodically, and before any request for additional regular positions, programs will be evaluated to determine if they can be accomplished with fewer regular employees. (See Productivity Review Policy) 5. Staffing and contract service cost ceilings will limit total expenditures for regular employees, supplemental staff, and independent contractors hired to provide operating and maintenance services. B. Supplemental Staff 1. The hiring of supplemental staff will not be used as an incremental method for expanding the City's regular work force. 565 Fiscal Policies 2. Supplemental staff include all employees other than regular employees, elected officials and volunteers. Supplemental staff include seasonal or occasional employees, employees with irregular schedules, limited benefit employees, temporary employees, contract employees, CaIPERS retired annuitants, and leased employees. Supplemental staff may work on a full-time or part-time basis and will generally augment regular City staffing. Supplemental staff may be used as extra -help during peak workloads, as coverage during extended absences of regular employees, seasonal workforce, as a means to assess ongoing staffing needs, or as the staffing method for program delivery that is most effectively staffed using part-time hours to ensure adequate coverage. 3. The City Manager and Department Heads will encourage the use of supplemental staff rather than regular employees to meet peak workload requirements, fill interim vacancies, and accomplish tasks where less than full-time, year-round staffing is required. Under this guideline, supplemental staff hours will generally not exceed 50% of a regular, full-time position (1,000 hours annually). There may be limited circumstances where the use of supplemental staff on an ongoing basis in excess of this target may be appropriate due to unique programming or staffing requirements. However, any such exceptions must be approved by the City Manager based on the review and recommendation of the Human Resources Director. 4. Contract employees are defined as supplemental staff with written contracts approved by Human Resources Director and City Attorney who may receive approved benefits. Contract employees will generally be used for medium -term (generally between six months and two years) projects, programs or activities requiring specialized or augmented levels of staffing for a specific period. 5. Leased employees are employed during short-term, peak workload assignments to be accomplished using personnel contracted through an outside employment agency (OEA). In this situation, it is anticipated that City staff will closely monitor the work of leased employees and minimal training will be required. However, they will always be considered the employees of the OEA and not the City. All placements through an OEA will be coordinated through the Human Resources Department and subject to the approval of the Human Resources Director. The services of contract employees will be discontinued upon completion of the assigned project, program or activity. Accordingly, contract employees will not be used for services that are anticipated to be delivered on an ongoing basis and as such, a determination as to the expected need will be made at the end of each contract term and prior to extending or renewing a contract. C. Overtime Management 1. Overtime should be used only when necessary and when other alternatives are not feasible or cost effective. All overtime must be pre -authorized by a department head or delegate unless it is assumed pre -approved by its nature. For example, overtime that results when an employee is assigned to standby and/or must respond to an emergency or complete an emergency response. 566 Fiscal Policies 3. Departmental operating budgets should reflect anticipated annual overtime costs and departments will regularly monitor overtime use and expenditures. 4. When considering the addition of regular or temporary staffing, the use of overtime as an alternative will be considered. The department will take into account: a. The duration that additional staff resources may be needed. b. The cost of overtime versus the cost of additional staff. c. The skills and abilities of current staff. d. Training costs associated with hiring additional staff. e. The impact of overtime on existing staff. D. Independent Contractors Independent contractors are not City employees. They are used in construction of public works projects and delivery of operating, maintenance or specialized professional services not routinely performed by City employees. Such services will be provided without close supervision by City staff, and the required methods, skills and equipment will generally be determined and provided by the contractor. Contract awards will be guided by the City's purchasing policies and procedures. (See Contracting for Services Policy) PRODUCTIVITY Ensuring the "delivery of service with value for cost" is one of the key concepts embodied in the City's Mission Statement (San Luis Obispo Style— Quality With Vision). To this end, the City will constantly monitor and review our methods of operation to ensure that services continue to be delivered in the most cost- effective manner possible. This review process encompasses a wide range of productivity issues, including: A. Analyzing systems and procedures to identify and remove unnecessary review requirements. B. Evaluating the ability of new technologies and related capital investments to improve productivity. C. Developing the skills and abilities of all City employees. D. Developing and implementing appropriate methods of recognizing and rewarding exceptional employee performance. E. Evaluating the ability of the private sector to perform the same level of service at a lower cost. F. Periodic formal reviews of operations on a systematic, ongoing basis. 567 Fiscal Policies G. Maintaining a decentralized approach in managing the City's support service functions. Although some level of centralization is necessary for review and control purposes, decentralization supports productivity by: 1. Encouraging accountability by delegating responsibility to the lowest possible level. 2. Stimulating creativity, innovation and individual initiative. 3. Reducing the administrative costs of operation by eliminating unnecessary review procedures. 4. Improving the organization's ability to respond to changing needs and identify and implement cost - saving programs. S. Assigning responsibility for effective operations and citizen responsiveness to the department. H. Maintaining City purchasing policies and procedures that are as efficient and effective as possible. 568 Fiscal Policies Section 11. CONTRACTING FOR SERVICES A. General Policy Guidelines 1. Contracting with the private sector for the delivery of services provides the City with a significant opportunity for cost containment and productivity enhancements. As such, the City is committed to using private sector resources in delivering municipal services as a key element in our continuing efforts to provide cost-effective programs. 2. Private sector contracting approaches under this policy include construction projects, professional services, outside employment agencies and ongoing operating and maintenance services. 3. In evaluating the costs of private sector contracts compared with in-house performance of the service, indirect, direct, and contract administration costs of the City will be identified and considered. 4. Whenever private sector providers are available and can meet established service levels, they will be seriously considered as viable service delivery alternatives using the evaluation criteria outlined below. 5. For programs and activities currently provided by City employees, conversions to contract services will generally be made through attrition, reassignment or absorption by the contractor. B. Evaluation Criteria Within the general policy guidelines stated above, the cost-effectiveness of contract services in meeting established service levels will be determined on a case -by -case basis using the following criteria: 1. Is a sufficient private sector market available to competitively deliver this service and assure a reasonable range of alternative service providers? 2. Can the contract be effectively and efficiently administered? 3. What are the consequences if the contractor fails to perform, and can the contract reasonably be written to compensate the City for any such damages? 4. Can a private sector contractor better respond to expansions, contractions or special requirements of the service? 5. Can the work scope be sufficiently defined to ensure that competing proposals can be fairly and fully evaluated, as well as the contractor's performance after bid award? 6. Does the use of contract services provide us with an opportunity to redefine service levels? 7. Will the contract limit our ability to deliver emergency or other high priority services? 8. Overall, can the City successfully delegate the performance of the service but still retain accountability and responsibility for its delivery? 569 Glossary U Abatement. A reduction in amount, degree, or intensity of something, such as a tax. Account. A separate financial reporting unit. All budgetary transactions are recorded in accounts. Accrual Basis. A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent. Actuarial. A person or methodology that makes determinations or required contributions to achieve future funding levels that address risk and time. Ad Valorem Tax. A tax levied on the assessed value of real estate and personal property. This tax is also known as property tax. Adopted Budget. The proposed budget as formally approved by the City Council. Appropriation. An authorization made by the City Council, which permits the City to incur obligations to make expenditures for specific purposes. Assessed Valuation. A value that is established for real and personal property for use as a basis for levying property taxes. Asset. Resources owned or held by a government that have monetary value. V Balanced Budget. A budget in which planned funds or revenues available are equal to planned fund expenditures. Bond. A written promise to pay a sum of money on a specific date at a specified interest rate. The interest payments and the repayment of the principal are detailed in a bond ordinance. The most common types of bonds are general obligation, revenue bonds, and Bond Rating. The City of San Luis Obispo uses both of the Nation's primary bond rating services - Moody's Investors Service and Standard & Poor's. These rating services perform credit analysis to determine the probability of an issuer of debt defaulting partially or fully. Bond Refinancing. The payoff and re issuance of bonds to obtain better interest rates and/or bond conditions 570 Budget. A plan of financial operation for a specified period of time (fiscal year. The Annual Budget authorizes and provides the basis for control of financial operations during the fiscal year. Budget Adjustment. A procedure to revise a budget appropriation either by City Council approval through the adoption of a supplemental appropriation ordinance for any interdepartmental or inter - fund adjustments or by City Manager authorization to adjust appropriations within a departmental budget. Budget Calendar. The schedule of key dates or milestones that the City follows in the preparation, adoption, and administration of the budget. Budget Document. The instrument used by the budget- making authority to present a comprehensive financial program to the City Council. Budget Team. A fun group of hard-working employees responsible for budget preparation, benchmarking, forecasting, and financial analysis. Budget Message. The opening section of the budget that provides the City Council and the public with a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, and recommendations regarding the financial policy for the upcoming period. Budgetary Basis. This refers to the form of accounting used throughout the budget process. These generally take one of three forms: GAAP, cash, modified accrual, or some type of statutory form. Budgetary Control. The control or management of a governmental unit or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of authorized appropriations and available revenues. C Capital Assets. Assets of long-term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture and other equipment. Capital Budget. The appropriation of bonds or operating revenue for improvements to facilities and other infrastructure. Capital Improvements. Expenditures related to the acquisition, expansion, or rehabilitation of an element of the government's physical plant, sometimes referred to as infrastructure. Capital Improvements Plan. A plan for capital expenditures to provide long-lasting physical improvements to be incurred over a fixed period of several future years. The City of San Luis Obispo's City Charter requires annual submission of a five-year capital program for City Council acceptance. 571 Capital Outlay. Expenditures that result in the acquisition of, or addition to, fixed assets. Cash Basis. A basis of accounting in which transactions are recognized only when cash is increased or decreased. Contingency. A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Core Service. A principal service or product delivered by a program or department that is necessary to the successful operation of the city. I Debt Service. The amount of interest and principal thata City must payeachyearon netdirectlong-term debt plus the interest it must pay on direct short-term debt. Deficit. The excess of an entity's liabilities over its assets or the excess of expenditures over revenues during a single accounting period. Department. A major administrative unit of the City that indicates overall management responsibility for an operation or a group of related operations within a functional area. Departments are comprised of divisions, programs, and/or sections. Depreciation. Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy, or obsolescence. Division. A functional unit within a department. E Encumbrance. The legal commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a future expenditure. ESG Investing. Environmental, Social, and Governance refers to the three central factors in measuring the sustainability and societal impact of an investment in accompany or business. The method rates company's environmental footprint, social behavior, and company governance such as labor practice, governing board composition, talent management, product safety, and data security to name a few. Estimated Revenue. The amount of projected revenue to be collected during the fiscal year. Expenditure/Expense. This term refers to the outflow of funds paid for an asset obtained or goods and services obtained. 572 F Financial Reserves. An unappropriated source of funding that can be utilized to meet unexpected budgetary needs. Fiscal Year. The time period designated by the City signifying the beginning and ending period for recording financial transactions. The City of San Luis Obispo has specified July 1 to June 30 as its fiscal year. Forfeiture. The automatic loss of property, including cash, as a penalty for breaking the law, or as compensation for losses resulting from illegal activities. Once property has been forfeited, the City may claim it, resulting in confiscation of the property. Full Faith and Credit. A pledge of a government's taxing power to repay debt obligations. Full -Time Employee. A full-time employee working 38-40 hours per week and receiving benefits. Fund. A set of inter -related accounts to record revenues and expenditures associated with a specific purpose. Fund structure presented below Governmental Funds Capital Projects Fund. Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds). Debt Service Fund. Debt Service Funds are set up to receive dedicated revenues used to make principal and interest payments on City debt. They are used to account for the accumulation of resources for, and the payment of, general obligation and special assessment debt principal, interest and related costs, except the debt service accounted for in the Special Revenue Funds and Enterprise Funds. General Fund. The General Fund is the general operating fund of the City. It is used to account for all activities of the City not accounted for in another fund. Special Revenue Fund. Special Revenue Funds are set up as accounts for Federal or State grants legally restricted to expenditures for specific purposes. 573 Proprietary Funds Enterprise Funds Enterprise Funds are used to account for operations including debt service (a) that are financed and operated in a manner similar to private businesses — where the intent of the government body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis is financed or recovered primarily through user charges; or (b) where the governing body has determined that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control accountability, or other purposes. Internal Service Funds Internal Service Funds are established to account for an entity that provides goods and services to other City entities and charges those entities for the goods and services provided. Fund Balance. The difference between revenues and expenditures. The beginning fund balance represents the residual funds brought forward from the previous year (ending balance) G Generally Accepted Accounting Principles. (GAAP) Uniform minimum standards for financial accounting and recording, encompassing the conventions, rules, and procedures that define accepted accounting principles. General Governmental Revenue. The revenues of a government other than those derived from and retained in an Enterprise Fund. General Governmental revenues include those from the General, Debt Service, and Special Revenue Funds. General Obligation Bonds. Bonds that finance a variety of public projects such as streets, buildings, and improvements; the repayment of these bonds is usually made from secondary property taxes, and these bonds are backed by the full faith and credit of the issuing government. Goal. A statement of direction based on identified strategic priorities. Should be measurable and able to be achieved in 3 to 5 years. Grant. A contribution by the State or Federal government or other organization to support a particular function. Grants may be classified as either categorical or block depending upon the amount of discretion allowed the grantee. Indirect Cost. A cost necessary for the functioning of the organization as a whole, but which cannot be directly assigned, such as administrative support, facility maintenance or custodial services. Inflation. A rise in price levels caused by an increase in available funds beyond the proportion of available goods. 574 Infrastructure. Public domain fixed assets including roads, curbs, gutters, sidewalks, drainage systems, lighting systems, and other items that have value only to the City. Interest Income. Revenue associated with the city cash management activities of investing fund balances. Intergovernmental Resources. Funds received from federal, state, and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes. Inter -fund Transfer. The movement of monies between funds of the same governmental entity. Inter -local Agreement. A contractual agreement between two or more governmental entities. Internal Services Charges. The charges to user departments for internal services provided by another government agency, such as data processing, equipment maintenance and communications. L Levy. To impose taxes for the support of government activities. Long -Term Debt. Debt with a maturity of more than one year after the date of issuance. M Major Fund. Funds whose revenues, expenditures/ expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds. These represent the City's most important funds and include the General Fund. Mandate. A requirement from a higher level of government that a lower level of government perform a task in a particular way or standard. Mission Statement. The statement that identifies the particular purpose and function of an entity. Modified Accrual Basis. The basis of accounting under which revenues are recognized when measurable and available to pay liabilities. Expenditures are recognized when the liability is incurred except for interest on long-term debt which is recognized when due, and the noncurrent portion of accrued vacation and sick leave, which is recorded in general long-term debt. Municipal Code. A collection of laws, rules, and regulations that apply to the City and its citizens. 575 Neighborhood Services. A program developed to promote and strengthen the stability, development, revitalization, and preservation of neighborhoods through community -based problem solving. Net Position. Governmental financial statement reporting for proprietary funds where assets plus deferred outflows of resources, less liabilities, less deferred inflows of resources, equals net position program. n Objective. A specific measurable and observable result of an organization's activity, which advances the organization toward its goal. Ombudsman. One that investigates reported complaints, reports findings, and helps to achieve equitable settlements. OPEB. Other post -employment benefits are benefits that an employee will begin to receive at the start of retirement such as health care and deferred -compensation arrangements. Operating Budget. The portion of the budget that pertains to daily operations that provide basic governmental services. The operating budget contains appropriations for expenditures such as personnel, supplies, utilities, materials, travel, and fuel. Operating Expenses. The cost for personnel, materials, and equipment required for a department to function. Operating Revenue. Funds that the government receives as income to pay for ongoing operations, including such items as taxes, user fees, interest earnings, and grant revenues. Operating revenues are used to pay for day -to- day services. I Pay -As -You -Go Financing. A term used to describe a financial policy by which the capital program is financed from current revenues rather than through borrowing. Per Capita. A measurement of the proportion of some statistic to an individual resident determined by dividing the statistic by the current population. Performance Budget. A budget that focuses upon departmental goals and objectives rather than line items, programs, or funds. Workload and unit cost data are collected in order to assess the effectiveness and efficiency of services. Typical measures collected might include average emergency response time for fire. 576 REFERENCE MATERIAL - GLOSSARY Performance Measure. Data collected to determine how effective and/or efficient a program is in achieving its objectives. Policy. A plan, course of action or guiding principle designed to set parameters for decisions and actions. Prior Year Encumbrances. Obligations from previous years in the form of purchase orders or contracts that are chargeable to an appropriation, and for which a part of the appropriation is reserved. They cease to be encumbrances when the obligations are paid or otherwise terminated. Potable Water. Water that is fit to drink. Program. Group activity, operations, or organizational units directed to attaining specific objectives and achievements and budgeted as sub -units of a department. Program Budget. A budget that allocates money to the functions or activities of a government rather than to specific items of cost or to specific departments. Property Tax. A levy upon the assessed valuation of the property within the City of San Luis Obispo upon each $100 of assessment. 9 Retained Earnings. An equity account reflecting the accumulated earnings of an enterprise or internal service fund. Revenue. Funds that the government receives as income. It includes such items as tax payments, fees from specific services, receipts from other governments, fines, forfeitures, grants, shared revenues, and interest income. Revenue Bonds. Bonds usually sold for constructing a project that will produce revenue for the government. That revenue is pledged to pay the principal and interest of the bond. Reserve. An account used to indicate that a portion of a fund's assets are legally restricted for a specific purpose and is, therefore, not available for general appropriation. Resolution. A special or temporary order of a legislative body requiring less legal formality than an ordinance or statute. Resources. Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances. Risk Management. An organized attempt to protect a government's assets against accidental loss in the most economical method 577 REFERENCE MATERIAL - GLOSSARY S Sales Tax. Tax imposed on the taxable sales of all final goods. Source of Revenue. Revenues are classified according to their source or point of origin. Special Assessment. A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties. Strategic Plan. A document outlining long-term goals, critical issues, and action plans that will increase the organization's effectiveness in attaining its vision, priorities, mission, goals and objectives. System Development Charge. That portion of the connection charge that is determined to be the customer's proportionate share of the cost of providing transmission, pumping, and storage facilities required to serve the various distribution areas or zones within the system. T Tax Levy. The resultant product when the tax rate per $100 is multiplied by the tax base. Taxes. Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people. This term does not include specific charges made against particular persons or property for current or permanent benefit, such as special assessments. Transfers In/Out. Amounts transferred from one fund to another to assist in financing the services for the recipient fund. U Undesignated Fund Balance. The portion of a fund's balance that is not legally restricted for a specific purpose and is available for general appropriation. Unencumbered Balance. The amount of an appropriation that is neither expended nor encumbered. It is essentially the amount of money still available for future purposes. Unfunded Pension Liability. The difference between assets in a pension fund and the amount of benefits the fund is required to pay out in the long-term. 578 REFERENCE MATERIAL - GLOSSARY Unreserved Fund Balance. The portion of a fund's balance that is not restricted for a specific purpose and is available for general appropriation. Useful Life. The period of time that a fixed asset is able to be used. This can refer to a budget period of time for an equipment class or the actual amount of time for a particular item. User Charges. The payment of a fee for direct receipt of a public service by the party who benefits from the service. in Workload Measure. A unit of work to be done (e.g., number of permit applications received). 579 RESOLUTION NO. A RESOLUTION OF THE COUNCIL OBISPO, CALIFORNIA, APPROVING AND FISCAL YEAR 2021-22 BUDGET. (2021 SERIES) OF THE CITY OF SAN LUIS THE 2021-23 FINANCIAL PLAN WHEREAS, in accordance with San Luis Obispo Charter Section 802, the City Manager has submitted the 2021-23 Financial Plan to the Council for review and consideration consistent with established budget and fiscal policies; and WHEREAS, the preparation of the 2021-23 Financial Plan was based on extensive public outreach, comment, and input and the City Council's strategic vision as discussed during public hearing for strategic budget direction on April 20, 2021; and WHEREAS, the Planning Commission reviewed the City's Capital Improvement Plan for the 2021-23 Financial Plan on April 28, 2021, and confirmed the plan's conformity with the City's General Plan. WHEREAS, the City of San Luis Obispo received an Active Transportation Grant just prior to the release of Strategic Budget Direction and ample time was not available to integrate the grant funding into the financial plan or evaluate or integrate new projects; WHEREAS, the City Council held a public hearing on June 1, 2021 to consider the preliminary 2021-23 Financial Plan and Fiscal Year 2021-22 budget appropriations for the General Fund, the Parking Fund, and the Transit Fund. WHEREAS, the City entered into a loan agreement with the State Revolving Fund for the upgrade of the Water Resource Recovery Facility, which requires the City to set aside one full loan payment as a reserve fund and to restrict the funds for the duration of the loan and the City will restrict the funds with the 2021-22 fiscal year. WHEREAS, the City has been awarded $8.9 million in American Rescue Plan Act (ARPA) funding, which is restricted for use for certain purposes and cannot be allocated to payments towards pension liabilities. NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo as follows: SECTION 1. The 2021-23 Financial Plan and Fiscal Year 2021-22 budget with appropriations consistent with the proposed capital improvement plan for the General Fund, the Parking Fund and the Transit Fund are herewith adopted and official copies of the financial plan, budget, and the capital improvement plan for all funds, as adopted, shall be maintained on file with the City Clerk along with this Resolution. 0 Resolution No. (2021 Series) Page 2 SECTION 2. The Water and Sewer Fund Fiscal Year 2021-22 budget appropriation is deferred to June 15, 2021, when the Council will hold a public hearing consistent with the applicable requirements of Proposition 218 for recommended water and sewer fee increases. SECTION 3. Staff is directed to return to the Council with project recommendations and appropriation requests to further implement Tier 1 Active Transportation Plan projects as result of Urban Greening Grant Funding for the Anholm Greenway Project. SECTION 4. Fund balances and reserve levels will be applied in accordance with GASB 54 and the City's Fund Balance and Reserve Policy — Resolution XXXX (2021 Series). SECTION 5. ARPA funding received by the City and expenditures thereof will be separately tracked and accounted for to ensure allocation in accordance with the requirements and limitations on expenditures of those funds as required by the Act. SECTION 5. In compliance with the terms of the City's loan agreement for the State Revolving Fund loan for the upgrade of the Water Resource Recovery Facility, the Finance Director is directed to restrict in a State Revolving Fund Loan reserve account the amount of $5,902,953 from the Sewer Fund working capital and to maintain that restricted reserve amount in the reserve fund account for the duration of the State Revolving Fund loan to the City. SECTION 6. The City Manager is hereby delegated authority to approve budget adjustments consistent with the adopted budget appropriations to maintain budgetary flexibility for the organization. SECTION 7. The City Manager is hereby delegated the authority to approve format and typographical changes found within the 2021-23 Financial Plan as needed. 91 Resolution No. (2021 Series) Page 3 SECTION 8. The City Council approves the appropriation limit as set forth on page 536 of the 2021-23 Financial Plan and 2021-22 Budget. On motion of seconded by and on the following vote: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted on 2021. Mayor Heidi Harmon ATTEST: Teresa Purrington, City Clerk APPROVED: J. Christine Dietrick, City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on Teresa Purrington, City Clerk 91 RESOLUTION NO. (2021 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ESTABLISHING PARKING RATES FOR THE CITY'S PARKING STRUCTURES WHEREAS, the City of San Luis Obispo wishes to maintain effective usage of its three parking structures; and WHEREAS, the City wishes to provide secure and user friendly parking for all users of the parking structures; and WHEREAS, the parking program needs to continue to be self-sufficient for its financial commitments; and WHEREAS, the Council considered the parking revenue enhancement strategies presented as part of the 2021-23 Financial Plan staff report and held a public meeting on the proposed changes to the parking structure rates; and WHEREAS, the Comprehensive Fee Schedule will be updated to reflect all new and updated fees becoming effective July 1, 2021. NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Effective July 1, 2021, all hourly parking structure rates shall increase to $1.50 an hour, including Sundays, with the first sixty minutes free. SECTION 2. Effective July 1, 2021, the maximum daily parking structure rate shall be $6.00 per day. Daily parking is considered any entry after 12:00 AM and corresponding exit by the same vehicle before 12.00 AM within the same day. SECTION 3. Effective July 1, 2021, the lost ticket parking structure rate shall be $6.00 per ticket, including Sundays. SECTION 4. Effective July 1, 2021, the overnight parking structure rate shall be $15.00 per day. Overnight parking is considered any entry before 12:00 AM by a vehicle on a given day and a corresponding exit after 5:00 AM by the same vehicle on a different given day. SECTION 5. Effective July 1, 2021, the hourly validation program parking structure rate shall be $1.00 per hour. SECTION 6. Effective July 1, 2022, the first sixty minutes free in the parking structures shall be eliminated. A fifteen minute grace period shall be provided upon entry into all parking structures before the hourly parking structure rates apply. 0 Resolution No. (2021 Series) Page 2 SECTION 7. No environmental review is required because the establishment of parking structures rates and fees do not constitute a "Project" under CEQA Guidelines Sec. 15378. Upon motion of and on the following vote: AYES: NOES: ABSENT: seconded by The foregoing resolution was passed and adopted this day of )2021. Mayor Heidi Harmon ATTEST: Teresa Purrington, City Clerk APPROVED AS TO FORM: J. Christine Dietrick, City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this on Teresa Purrington, City Clerk 0 RESOLUTION NO. (2021 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING MODIFICATIONS TO THE PARKING CITATION PENALTY SCHEDULE WHEREAS, State law provides, in Vehicle Code Section 40203.5, that cities establish the amount of parking penalties, fees, and surcharges; and WHEREAS, State law authorizes the City to recover administrative fees, parking penalties, fees and collection costs related to civil debt collection, late payment penalties, and other related charges; and WHEREAS, the City wishes to provide safe, secure, and convenient parking for all users of the City's parking facilities; and WHEREAS, the parking program needs to continue to be self-sufficient for its financial commitments; and WHEREAS, the Council considered the parking revenue enhancement strategies presented as part of the 2021-23 Financial Plan staff report and held a public meeting on the proposed changes to the parking structure rates. NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Effective July 1, 2021, parking citation fines shall be modified (see Exhibit A) as follows: 1. Increase no stopping or standing in parkways violation (SLOMC 10.36.020) from $33 to $40; 2. Increase no parking zones violation (SLOMC Section 10.36.040) from $53 to $60; 3. Increase no backing into spaces violation (SLOMC 10.40.020) from $28 to $40; 4. Increase parking space markings violation (SLOMC 10.40.060) from $40 to $45; 5. Increase no stopping, standing, parking within an intersection violation (CVC 22500(a)) from $33 to $40 6. Increase no stopping, standing, parking on a crosswalk violation (CVC 22500(b)) from $33 to $60 Resolution No. (2021 Series) Page 2 7. Increase no stopping, standing, parking between a safety zone violation (CVC 22500(c)) from $33 to $60 8. Increase no stopping, standing, parking within 15 feet of firehouse entrance violation (CVC 22500(d)) from $33 to $60 9. Increase no stopping, standing, parking in front of public or private driveway violation (CVC 22500(e)) from $33 to $40 10.Increase no stopping, standing, parking on sidewalk violation (CVC 22500(f)) from $33 to $40 11.Increase improper parking in bus zone violation (CVC 22500(i)) from $263 to $288 12. Increase improper parking in wheelchair access area violation (CVC 22500(I)) from $263 to $288 13. Increase no stopping, standing, parking in a fire lane violation (CVC 22500.1) from $116 to $120 14.Increase no parking with right wheels more than 18 inches from the curb violation (CVC 22502(a)) from $33 to $40 15. Increase no parking the opposite direction of traffic violation (CVC 22502(b)(2)) from $33 to $40 16. Increase no parking with left wheels more than 18 inches from the curb violation (CVC 22502(e)) from $33 to $40 17. Increase fire hydrant violation (CVC 22514) from $63 to $70 0 Resolution No. (2021 Series) Page 3 SECTION 2. No environmental review is required because the establishment of parking violation penalties does not constitute a "Project" under CEQA Guidelines Sec. 15378. Upon motion of and on the following vote: AYES: NOES: ABSENT: seconded by The foregoing resolution was passed and adopted this ATTEST: Teresa Purrington, City Clerk APPROVED AS TO FORM: J. Christine Dietrick, City Attorney day of Mayor Heidi Harmon 2021. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on Teresa Purrington, City Clerk 0 Resolution No. (2021 Series) Page 4 CITY OF SAN LUIS OBISPO PENALTY SCHEDULE EFFECTIVE JULY 1, 2021 PENALTY & CODE &SECTION DESCRIPTION PENALTY LATE FEE SLMC 10.12.050 INTERFERENCE WITH POLICE/AUTHORIZED OFFICER 93 123 SLMC 10.14.030 OBEDIENCE TO TRAFFIC CONTROL DEVICES 58 88 SLMC 10.14.090 UNAUTHORIZED PAINTING ON CURBS 58 88 SLMC 10.34.020 OVERNIGHT CAMPING (10pm - 6 am) 100 130 SLMC 10.36.020 STOPPING OR STANDING IN PARKWAYS PROHIBITED 40 70 SLMC 10.36.030 STOP/STAND/PARK IN VIOLATION OF CHAPTER 33 63 SLMC 10.36.040 NO PARKING ZONE - PROHIBITED PARKING - Also Taxi Zone (d) 60 90 SLMC 10.36.050 USE OF STREETS FOR STORAGE OF VEHICLES PROHIBITED 33 63 SLMC 10.36.070 REPAIRING OR GREASING VEHICLE ON PUBLIC STREET 23 53 SLMC 10.36.080 WASHING OR POLISHING VEHICLES 23 53 SLMC 10.36.090 PARKING ADJACENT TO SCHOOLS 23 53 SLMC 10.36.100 PARKING PROHIBITED ON NARROW STREETS 23 53 SLMC 10.36.110 PARKING ON GRADES 23 53 SLMC 10.36.120 UNLAWFUL PARKING - PEDDLERS, VENDORS 23 53 SLMC 10.36.130 EMERGENCY PARKING SIGNS 23 53 SLMC 10.36.140 LARGE/COMMERCIAL VEHICLE PARKING NEAR INTERSECTION 23 53 SLMC 10.36.150 NIGHTTIME PARKING OF LARGE VEHICLES 33 63 SLMC 10.36.160 NIGHT TIME PARKING OF VEH/OPERATING AIR/REFRGERATION 23 53 SLMC 10.36.200 PARKING IN A RESIDENTIAL PERMIT PARKING AREA 40 70 SLMC 10.36.230 PERMITS - DISPLAY OF PERMITS 28 58 SLMC 10.36.235 NO PERMIT LOT 45 75 SLMC 10.40.010 TIMED PARKING 10 MINUTES TO 10 HOURS (Overtime Parking) 50 80 SLMC 10.40.020 BACKING INTO PARKING SPACE PROHIBITED 40 70 SLMC 10.40.040 PARKING PARALLEL ON ONE-WAY STREETS 21 51 SLMC 10.40.050 DIAGONAL PARKING 21 51 SLMC 10.40.060 PARKING SPACE MARKINGS 45 75 SLMC 10.40.070 NO STOPPING ZONE 21 51 SLMC 10.40.080 ALL NIGHT PARKING PROHIBITED (3-5am) 38 68 SLMC 10.44.020 CURB MARKINGS TO INDICATE NO STOPPING 23 53 SLMC 10.44.030 EFFECT OF PERMISSION TO LOAD/UNLOAD IN YELLOW ZONE 53 83 SLMC 10.44.040 EFFECT OF PERMISSION TO LOAD/UNLOAD IN WHITE ZONE 40 70 SLMC 10.44.050 STANDING IN ANY ALLEY 33 63 SLMC 10.44.070 DISABLED PARKING 338 368 SLMC 10.48.010 CERTAIN VEHICLES PROHIBITED IN CENTRAL DISTRICT 58 88 SLMC 10.48.020 ADVERTISING VEHICLES 33 63 SLMC 10.48.030 ANIMAL DRAWN VEHICLES 33 63 SLMC 10.48.040 TRUCK ROUTES 88 118 SLMC 10.48.050 COMM VEHICLES PROHIBITED FROM USING CERTAIN STREETS 88 118 SLMC 10.48.060 MAX.GROSS WT LIMITS OF VEHICLES ON CERTAIN STREETS 88 118 SLMC 10.52.040 PARKING METER -OPERATIONAL PROCEDURES 23 53 SLMC 10.52.050 UNLAWFUL TO PARK AFTER METER TIME HAS EXPIRED 40 70 SLMC 10.52.070 IMPROPER USE OF METER 15 45 SLMC 10.52.080 PARKING METERS/STANDARDS PROPER USE 15 45 SLMC 10.52.110 MOTORCYCLE SPACES 15 45 CVC 21113(a) VEHICLE OR ANIMAL ON PUBLIC GROUNDS -MOVING 116 146 CVC 21113(b) VEHICLE OR ANIMAL ON PUBLIC GROUNDS -PARKING 33 63 CVC 21113(c) DRIVEWAYS, PATHS, PARKING FACILITIES ON GROUNDS 33 63 CVC 21211(a) STOPPING/STANDING/PARKING CLASS I BIKE PATH 60 90 CVC 21211(b) STOPPING/STANDING/PARKING CLASS II BIKE PATH 60 90 CVC 22500(a) STOPPING/STANDING/PARKING: WITHIN INTERSECTION 40 70 CVC 22500(b) STOPPING/STANDING/PARKING: ON A CROSSWALK 60 90 CVC22500(c) STOPPING/STANDING/PARKING: BETWEEN SAFETY ZONE 60 90 R Resolution No. (2021 Series) Page 5 CITY OF SAN LUIS OBISPO PENALTY SCHEDULE EFFECTIVE JULY 1, 2021 PENALTY & CODE & SECTION DESCRIPTION PENALTY LATE FEE CVC 22500(d) STOPPING/STANDING/PARKING: W/IN 15' FIREHOUSE ENTRANCE 60 90 CVC 22500(e) STOPPING/STANDING/PARKING: PUBLIC/PRIVATE DRIVEWAY 40 70 CVC 22500(f) STOPPING/STANDING/PARKING: ON SIDEWALK 40 70 CVC 22500(g) STOPPING/STANDIN/PARKING: ALONG OPPOSITE OBSTRUCT 33 63 CVC 22500(h) STOPPING/STANDIN/PARKING: ON ROADWAY SIDE OF VEHICLE 33 63 CVC 22500(i) IMPROPER PARKING IN BUS ZONE 288 318 CVC 22500(j) STOPPING/STANDIN/PARKING: IN TUBE OR TUNNEL 33 63 CVC 22500(k) STOPPING/STANDIN/PARKING: UPON BRIDGE EXCEPT AUTH 33 63 CVC 22500(I) IMPROPER PARKING IN WHEELCHAIR ACCESS 288 318 CVC 22500.1 STOPPING/STANDING/PARKING: FIRE LANE 120 150 CVC 22502(a) CURB PARKING -RIGHT WHEELS MORE THAN 18 INCHES FROM CURB 40 70 CVC 22502(b)(2) PARKING OPPOSITE DIRECTION OF TRAFFIC 40 70 CVC 22502(e) CURB PARKING -LEFT WHEELS MORE THAN 18 INCHES FROM CURB 40 70 CVC 22504(a) UNINCORPORATED AREA PARKING 33 63 CVC 22505(a) PARKING ON HIGHWAY WHERE SIGN POSTED 33 63 CVC 22505(b) POSTED NO PARKING - STATE HIGHWAY 33 63 CVC 22507 UNLAWFUL PARKING 33 63 CVC 22507.8 (a) PARKING IN SPACE FOR DISABLED 338 368 CVC 22507.8 (b) PARKING IN SPACE FOR DISABLED - OBSTRUCT/BLOCK 338 368 CVC 22507.8 (c)(1) PARKING IN SPACE FOR DISABLED - ON LINES MARKED 338 368 CVC 22507.8 (c)(2) PARKING IN SPACE FOR DISABLED - CROSSHATCHED LINES 338 368 CVC 22511.1 (a) UNLAWFULL TO PARK UNLESS EV CHARGING 45 75 CVC 22511.7 DISABLED ZONE 338 368 CVC 22512 VEHICLED UNATTENDED 116 146 CVC 22513 TOW CARS -PARKING FREEWAY 33 63 CVC 22514 FIRE HYDRANTS 70 100 CVC 22515(a) UNATTENDED VEHICLES -SET BRAKE 33 63 CVC 22515(b) UNATTENDED VEHICLES -SET BRAKE MOVING 33 63 CVC 22516 LOCKED VEHICLE 116 146 CVC 22517 OPENING AND CLOSING DOORS 116 146 CVC 22520.5 VENDING ON FREEWAY RIGHT OF WAY 116 146 CVC 22520.5(a) VENDING ON FREEWAY RIGHT OF WAY 116 146 CVC 22521 ILLEGAL TO PARK ON RR TRACKS 33 63 CVC 22522 PARKING NEAR SIDEWALK ACCESS RAMPS 288 318 CVC 22523(a) VEHICLE ABANDONMENT- On Highway 283 313 CVC 22523(b) VEHICLE ABANDONMENT 283 313 CVC 22650 UNLAWFUL REMOVAL OF UNATTENDED VEHICLE 116 146 CVC 40225* PROCESSING OTHER VEHICLES *10 CVC 40226* FAILURE TO DISPLAY DISABLED PLACARD ADMIN FEE *25 CVC 5204(a)* CURRENT TAB IMPROPERLY ATTACHED *25 LATE PAYMENT PENALTY 30 * Fine or fee amounts are set by the Uniform Bail & Penalty Schedule or by specific CVC section All other fine amounts set by City Council pursuant to CVC 40203.5 0 ORDINANCE NO. (2021 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 10 CHAPTER 52 (PARKING METERS) OF THE SAN LUIS OBISPO MUNICIPAL CODE WHEREAS, California State law provides, in Vehicle Code Section 22508, that cities must establish parking meter rates by ordinance; and WHEREAS, the parking program needs to continue to be self-sufficient for its financial commitments; and WHEREAS, the City needs to continue to financially support the operation and debt service of the next City parking structure; and WHEREAS, the Council considered the parking revenue enhancement strategies presented as part of the 2021-23 Financial Plan staff report and held a public meeting on the proposed changes to the parking structure rates. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Chapter 10.52 (Parking Meters) of the San Luis Obispo Municipal Code is hereby amended as follows: Chapter 10.52 PARKING METERS AND PARKING PAYMENT CENTERS SECTION 2. Section 10.52.010 (Parking meter zone - Rates) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.52.010 Paid Parking meter zone —Rates. A. Within the area ,e�nnclosed bey, a solid line on the parking rate zone map (Exhibit A) and area neRGlesed by the shaded lino en SIoGk Street pa iRg meter ZOnc man (Exhibit B) (more nortiG derby decoribed as: the north side of Hathway Avenue adjaGeRt tO Cal DnIy te I r�view Co�eI n� the side of Street fr t i Hathway vene te-SIaEk�eet, +tite northe-oof STaGk Street from I nn � Lane te Grand AveRue, andthe oo th side of SIoGkStreett adjac Rt to their Coastal Unified Cnhool D!StFiGt paFGel ffFGFn the midbinnk point of S!aGk C�a� (betweefl o�ewl one and Grand Avenue) to Grand Avenue), the parking of vehicles on streets or in municipal parking lots may be controlled and regulated with the aid of parking meters as defined in section 10.04.110 and/or parking payment centers as defined in section 10.04.120. Ordinance No. (2021 Series) Page 2 B. Within the dotted area desianated on the Darkina rate zones map (Exhibit A the base rate for parking � '„G established-ethep�aelow, the palm' parking mo+n,�e on streets or in municipal parking lots in the lower rate zone shall be one dollar and twenty-five cents per hour effective jaRwary 1, July 1, 2021. C. Within the cross -hatched area designated on the parking rate zones map (Exhibit A) the base rate for parking meters on streets or in municipal parking lots shall be one dollar and seventy-five f+fy cents per hour effective jaRuary 1,z July 1, 2021. D. Within the grey -shaded area designated on the parking rate zones map (Exhibit A), the base rate for parking meters on streets or in municipal lots shall be eRe two dollars seventy five Gents per hour effective Jane�, 2018 July 1, 2021. E. The tier -based parking rates, which allow a customer to extend their parking session beyond the posted number of hours, are as follows: 1. Tier 1: The base hourly rate per rate zone 2. Tier 2: The Tier 2 rate is effective for one additional hour beyond the Tier 1 time and is 50% above the Tier 1 rate rounded up or down to the nearest twenty- five cent increment whichever is closer. 3. Tier 3: The Tier 3 rate is effective after expiration of the Tier 2 hour(s) and is 50% above the Tier 2 rate rounded uD or down to the nearest twentv-five cent increment whichever is closer. F. Signage for the tier -based parking rates reflects the number of hours a vehicle may park at the base hourly parking rate (Tier 1) before subsequent tiered rates take effect. 1. 1 + parking rate: Parking up to one hour at the base hourly parking rate before 2. Tier 2 is in effect. 2+ parking rate: Parking up to two hours at the base hourly parking rate before 3. Tier 2 is in effect. 3+ parking rate: Parking up to three hours at the base hourly parking rate before 4. Tier 2 is in effect. 4+ parking rate: Parking up to four hours at the base hour) pig rate before Tier 2 is in effect. G. The Public Works Director may Deriodicallv adiust the hourly Darkina rates on any block or set of blocks within the areas designated on the parking rate zones map (Exhibit A) during the time of operation as detailed in section 10.52.020 up to and including 120% of the effective hourly rate based on the observed occupancy. Hourly parking rates shall be adjusted not more than every 30 days. Ordinance No. (2021 Series) Page 3 (Ord. 1683 § 1 (Exhs. A, B), 2020: Ord. 1635 § 1 (Exhs. A, 1 (Exh. A), 2015; Ord. 1568 § 1, 2011: Ord. 1552 § 2, 2010 Ord. 1492 § 1, 2006: Ord. 1233 § 1, 1993: Ord. 1194 § 1, 1987: prior code § 3213) B), 2017: Ord. 1620 § Ord. 1532 § 2, 2009; 1991: Ord. 1099 § 1, SECTION 3. Section 10.52.020 (Installation) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.52.020 Installation. A. The Public Works Director or their designee(s) may cause parking meters, parking payment centers, and/or mobile payment methods to be installed and maintained in all parking rate mete zones. B. Parking meters shall be installed upon the curb or sidewalk area immediately adjacent to each parking space. Each meter shall be placed in such manner as to show or display by a sign or signal that the parking space adjacent thereto is or is not legally in use. C. Each parking meter shall be set to display, after the operational procedure has been completed, a sign or signal indicating legal parking for that period of time conforming to the limit of parking time for the zone in which the parking meter is installed, and shall continue to operate from the time of the completion of the operational procedure until the expiration of the time fixed as the parking limit or a portion thereof for the part of the street upon which the meter is placed. Each meter shall also be so arranged that upon the expiration of the legal parking time, it will indicate by a mechanical operation and by proper signal that the lawful parking period has expired. (Ord. 1628 § 37, 2016; prior code § 3213.1) D. Parking payment centers shall be installed upon the sidewalk area within reasonable distance to the paid parking spaces to which the payment center manages. E. Each parking payment center shall be set to display the applicable parking rates and instructions on use of the pavment center. SECTION 4. Section 10.52.030 (Time of operation) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.52.030 Time of operation. The provisions of this chapter relating to the operation of parking meters, parking payment centers, and/or mobile payment methods shall be effective between the hours of nine a.m. and &�x nine p.m. every Monday to Saturday and one p.m. to s+x nine p.m. every Sunday; provided, that for good cause and upon a finding that such action will not jeopardize met parking revenues as a necessary source of revenue for payment of outstanding bonded indebtedness, the council by Ordinance No. (2021 Series) Page 4 resolution may temporarily suspend the parking meter and parking payment center operating provisions of this chapter for any or all of the city's parking rate zones meters. (Ord. 1566 § 1, 2011: Ord. 1099 § 2, 1987: prior code § 3213.2) SECTION 5. Section 10.52.040 (Operational procedure to be followed) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.52.040 Operational procedure to be followed. A. No person shall cause, allow or permit any vehicle, occupied or unoccupied, to remain stopped or parked in any metered parking space unless a sign or signal indicating that meter fees have been paid is displayed by the adjacent parking meter. (Ord. 1655 § 10, 2018: prior code § 3213.4) B. No person shall cause, allow or permit any vehicle, occupied or unoccupied, to remain stopped or parked in any space within a parking rate zone unless an active parking session is recorded and available for verification by City staff using the license plate number of the motor vehicle as entered into the Davment center upon initiation of a parking session. SECTION 6. Section 10.52.050 (Unlawful to allow vehicle to remain parked after expiration of time) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.52.050 Unlawful to allow vehicle to remain parked after expiration of time. No operator of any motor vehicle shall permit the vehicle to remain parked in any paid parking space during any time that the meter is showing a sign or signal indicating that such space is illegally in use or during any time that an active parking session is not recorded and available for verification by city staff other than such time immediately after the original occupancy as is necessary to register a payment op,&Fa e +ho mo+or to show legal parking or as is necessary to operate the payment center to record an active parking session. (Ord. 1655 § 11, 2018: prior code § 3213.4) SECTION 7. Section 10.52.060 (Unlawful to increase or extend parking time) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.52.060 Unlawful to increase or extend parking time. No person shall follow the operational procedure or any part of the operational procedure for the purpose of increasing or extending the parking time of any vehicle beyond the legal parking time which has been established for the parking rate zone in which the motor vehicle is standing or parked space adjacent to who the parking meter is planed. This section does not apply to areas where tier -based parking rates have been established. (Prior code § 3213.5) SECTION 8. Section 10.52.070 (Deposit of slugs —Tampering with or injury of) of the San Luis Obispo Municipal Code is hereby amended as follows: Ordinance No. (2021 Series) Page 5 10.52.070 Deposit of slugs —Tampering with or injury of. No person shall deposit or cause to be deposited in any parking meter or parking payment center any defaced or bent coin, or any slug, device or metallic substitute for a coin of the United States, or deface, injure, tamper with, open or willfully break, destroy or impair the usefulness of any parking meter or parking payment center. (Prior code § 3213.6) SECTION 9. Section 10.52.080 (Use of for certain purposes prohibited) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.52.080 Use of for certain purposes prohibited. No person shall attach any unauthorized thing to or allow a bicycle, news -rack or any other article or thing to lean against a parking meter, or a parking meter standard, or parking payment center. (Prior code § 3213.7) SECTION 10. Section 10.52.090 (Rule of evidence) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.52.090 Rule of evidence. The parking or standing of any motor vehicle in a parking space, at which space the parking meter displays the sign or signal indicating illegal parking or at which space no active parking session can be verified by City staff using the license plate number of the vehicle, shall constitute a prima facie presumption that the vehicle has been parked or allowed to stand in such space for a period longer than permitted by this chapter. (Prior code § 3213.8) SECTION 11. Section 10.52.110 (Motorcycle spaces) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.52.110 Motorcycle spaces. The Public Works Director or their designee(s) may designate and cause to be installed and maintained parking spaces for the exclusive use of motorcycles, motorized bicycles and motor driven cycles. Pa mete;rates for these spa shall he one-half the rote established by SeGtinn 10.52�g) (Ord. 1628 § 38, anon--pc—vr� ac—c�c�rrn-r�ca--�v crvrrr�z. 2016: Ord. 936 § 1, 1982: prior code § 3213.11) SECTION 12. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or any other provisions of the city' s rules and regulations. It is the city' s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. SECTION 13. These amendments to Title 10 Chapter 52 of the City of San Luis Obispo Municipal Code do not constitute a "Project" under CEQA Guidelines Sec. 15378. Ordinance No. (2021 Series) Page 6 SECTION 14. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the day of , 2021, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the day of , 2021, on the following vote: AYES: NOES: ABSENT: Mayor Heidi Harmon ATTEST: Teresa Purrington, City Clerk APPROVED AS TO FORM: J. Christine Dietrick, City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on Teresa Purrington, City Clerk Ordinance No. (2021 Series) Page 7 Exhibit A O i m = z a LI , �. a c 'Mo. D N N QMQ i n = � m m s m WOdl11 OFYOdIN W O r ; UVOSS OVONG -m N90WVV _ i]kYkl4H0 ovuomo q p � 1 owbovi oaaoar x_ 9090 C 2 � O � � t vsom vsoaLl diilMS t V1NVS z 47 t Z, m � m D (A � � m � 0 � tp aaoi 1 iOct 0 V3 — 10i ORDINANCE NO. (2021 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 10 CHAPTER 04 (DEFINITIONS) OF THE SAN LUIS OBISPO MUNICIPAL CODE WHEREAS, Title 10 Chapter 4 of the City's Municipal Code provides definitions of words and phrases used throughout Title 10; and WHEREAS, the City Council of the City of San Luis Obispo recently approved the purchase and installation of parking payment centers throughout the downtown area; and WHEREAS, the parking payment centers are a new technology for the City of San Luis Obispo that need to be defined within the City's Municipal Code to ensure that it is consistent with the State of California's Vehicle Code. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 10.04.120 (Parkway) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.04.120 Parma Parking payment center. "Parkway" means that Portion of a street ether than a roadway or a sidewalk. (Drier Gode § 3200 (part)) "Parking payment center" means an electronic parking meter or pay station serving one or more parking spaces SECTION 2. Section 10.04.130 (Passenger loading zone) of the San Luis Obispo Municipal Code is hereby amended as follows: !z+=ng zone Parkway, zone""Passenger loading ,I--- adjaGent to a GUrb reserved for the - portion of other than a roadway or a sidewalk. (Prior code 3200 (part)) SECTION 3. Section 10.04.140 (Pedestrian) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.04.140 Pedestrian Passenger loading zone. `Tedes}ria�meanS a�nerSen afeet or whe is using a means OfrGen�i�TGc propelled by human power other than a hinYnle (Prior Eqde § 3200 "Passenger loading zone" means the space adjacent to a curb reserved for the exclusive use of vehicles durina the loadina or unloadina of Dassenaers. (Prior code 3200 (part)) Ordinance No. (2021 Series) Page 2 SECTION 4. Section 10.04.150 (Police department employee) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.04.150 PGIi^^ department employee Pedestrian. "PGliGG emnleyee" means persons than nolinGee GfffiGers who are ai itheri�erl rr traip�G_G FGe traffin r rinr node § `2 (part) "Pedestrian" aii�n� �T�i c . �c�-vz means any person afoot or who is using a means of conveyance propelled by human power other than a bicycle. (Prior code § 3200 (part)) SECTION 5. Section 10.04.160 (Police officer) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.04.160 P^loGe „ffi^er Police department employee. "Dnline nffin " �i r�i effiner of the peline d artment of this Gity er aR y �-vrrcc-vnTcee�5-every--vrrrc c�ae�urcrrTcrrr-vrzrrr� y-yr-any employee authorized to rdireGt or regulate traffin or to make arrests far violation of trafm f�r ati�(Prier E z2gg(part)) "Police employee" means persons other than police officers who are authorized and trained to enforce traffic regulations. (Prior code § 3200 (part)) SECTION 6. Section 10.04.170 (Skateboard) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.04.170 Skateboard Police officer. "Skateboard" means a wheeled ehient as defined in Sentien 10.76.010. (Drier nnrle § 3200 (pa" "Police officer" means every officer of the police department of this city or any employee authorized to direct or regulate traffic or to make arrests for violation of traffic regulations. (Prior code 3200 (part)) SECTION 7. Section 10.04.180 (Stop) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.04.180 Stop Skateboard. " wheee.%J.i,.d, maaRs Gempicre—Gesssn'tien arty mvveemre pt. (Drier Gede §200 (part)) "Skateboard" means a wheeled object as defined in Section 10.76.010. (Prior code 3200 (part)) SECTION 8. Section 10.04.190 (Stop or stand) of the San Luis Obispo Municipal Code is hereby amended as follows: 0- •0 Stop or st Stop - "Stop cessationdeViGe. (Prier Gede § 3200 (p "Stop," when required, means complete of • -ment. (Prior code .3200 •. Ordinance No. (2021 Series) Page 3 SECTION 9. Section 10.04.200 (Vehicle code) of the San Luis Obispo Municipal Code is hereby amended as follows: 10.04.200 Vehicle Go StoD or stand. § 3200 (pa#� "Stop or stand," when prohibited, means any stopping or standing of a vehicle, whether occupied or not, except when necessary to avoid conflict with other traffic or in compliance with the directions of a police officer or official traffic - control device. (Prior code � 3200 (Dart)) SECTION 10. Section 10.04.210 (Vehicle code) of the San Luis Obispo Municipal Code is hereby established as follows: 10.04.210 Vehicle code. "Vehicle Code" means the Vehicle Code of the state of California. (Prior code $ 3200 (part)) SECTION 11. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or any other provisions of the city' s rules and regulations. It is the city' s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. SECTION 12. These amendments to Title 10 Chapter 04 of the City of San Luis Obispo Municipal Code do not constitute a "Project" under CEQA Guidelines Sec. 15378. Ordinance No. (2021 Series) Page 4 SECTION 13. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the day of , 2021, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the day of , 2021, on the following vote: AYES: NOES: ABSENT: Mayor Heidi Harmon ATTEST: Teresa Purrington, City Clerk APPROVED AS TO FORM: J. Christine Dietrick, City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on Teresa Purrington, City Clerk Ordinance No. (2021 Series) Page 5 Exhibit A O i m = z a LI , �. a c 'Mo. D N N QMQ i n = � m m s m WOdl11 OFYOdIN W O r ; UVOSS OVONG -m N90WVV _ i]kYkl4H0 ovuomo q p � 1 owbovi oaaoar x_ 9090 C 2 � O � � t vsom vsoaLl diilMS t V1NVS z 47 t Z, m � m D (A � � m � 0 � tp aaoi 1 iOct 0 V3 — 10i RESOLUTION NO. (2021 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE WATER AND SEWER RATE ASSISTANCE PROGRAM FOR RESIDENTIAL RATE PAYERS WHEREAS, in 1992, the City Council adopted Resolution 8073 to implement a low-income water and sewer rate assistance program for City residents; and WHEREAS, in 1996, the State of California passed Proposition 218, now Article XIII C and D of the California Constitution, which requires rate proportionality amongst customers; and WHEREAS, in 2006, the California Supreme Court determined that water and sewer utilities are subject to the requirements of Proposition 218; and WHEREAS, the rate assistance program is currently subsidized by the general fund to comply with Proposition 218; and WHEREAS, customers who do not pay their bill on -time are assessed a late fee; and WHEREAS, late fees are not subject to Proposition 218 because they are not rates for service and they are not a required property related fee; and WHEREAS, the City Council desires to expand eligibility for the rate assistance program while remaining compliant with Proposition 218. NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo as follows: SECTION 1. A program to assist low-income customers who receive specific State or Federal aid or whose income is less than twice the federal poverty rate as set forth in Exhibit "A" shall be established. 0 Resolution No. (2021 Series) Page 2 SECTION 2. The low-income rate assistance program shall be funded by water and sewer late fees in an amount not to exceed $100,000 from water late fees; and not to exceed $100,000 from sewer late fees. No property related service fees shall be used to fund the program in a manner that would result in those fees exceeding the reasonable costs of providing the service for which they are charged. Upon motion of Council Member seconded by Council Member , and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of , 2021. Mayor Heidi Harmon ATTEST: Teresa Purrington, City Clerk APPROVED: J. Christine Dietrick, City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on Teresa Purrington, City Clerk 0 Resolution No. (2021 Series) Page 3 Exhibit A The City's Rate Assistance Program is a 15% discount off of the monthly water and sewer bill of eligible customers. A customer is eligible to receive rate assistance if: 1. The bill is in their name; and 2. The bill is for an individually metered residence; and 3. The applicant resides at the service address; and 4. The customer receives one or more of the following government subsidies at their current address: a) CalWorks; or b) CalFresh (food stamps); or c) Supplemental Social Security and/or State Supplemental Payment; or d) Medi-Cal. 5. Or, the customer declares their household income to be less than twice the federal poverty rate, as defined by the United States Department of Health & Human Services. In order to apply for rate assistance, an application form must be completed and returned together with proof of eligibility to the City of San Luis Obispo Utilities Department. After verification of eligibility, a 15% rate reduction will be applied to the utility account for all future billings. The discount is effective for one year. Customers will be required to renew eligibility for the rate assistance program every year in November. 0 �PLO _7 "2d21-22 Budget June 1, 2021 GkT Y 0A '° CITY 4F SqIl LUIS OBISPO LEIS 0 anciai elaF] City Manager Budget Message • Art of the Longview • Accomplishments • Into the Future with Focus and Determination • Strategic Plan & Major City Goals • Community Programs & Services • Measure G-20 and Capital Improvement Projects • The Long -Term Outlook • The Path Ahead Rs* 1AE,4hvs rgv1yh & ambition. I 0 Racal Heath Eoonomio Oren 51-0 oeveFCP-qM P�omution oP M-�ori!y owned Busineasea mil® end S.jpportforUrrdemervedl Pedeahom Underrepresented Mcbjay ti Community Bde!9ea-.sea High impact ■ d9 C#ante averaity, Equityand lncluaion Strategic Plan tnfr92tuctura Financing Carton Neutrsli7y Moderate Gommun1Y Preda Pooed income ViLEMY htwdkw�G$ Housing Affordable Housing Mobile G i3A Unit Pilot Homeleaanesa Ac. _ -, El2-9-rt Strategic Plan mh � -e-d3tior GAT Y O.h COD OF 5!01I1 DELIS OBISPO L�rs o� E Recommendations 1. Adopt a Resolution approving the 2021-23 Financial Plan; and 2. Defer budget adoption of the Water and Sewer Funds until June 15, 2021 contingent on the Prop. 218 protest hearing and adoption of the water and sewer rate increases; and 3. Adopt a Resolution establishing new parking structure rates; and 4. Adopt a Resolution modifying the parking citation penalty schedule; and 5. Introduce an Ordinance amending Title 10 Chapter 52 of the Municipal Code to modify parking meter rates and add language referencing the new pay stations; and 6. Introduce an Ordinance amending Title 10 Chapter 4 of the Municipal to add a definition of parking payment center; and 7. Adopt a Resolution amending the water and sewer Rate Assistance Program for residential customers 1 Focus on long-term fiscal health, aligned with Fiscal and Budget Policies and Financial Responsibility and Sustainability Philosophy. 4 Invest in the future and fund maintenance of existing infrastructure and invest in the capital improvement program. 2 Align budget resources with Council adopted Major City Goal strategies. 5 Address both required and "pre" payments to unfunded liabilities. GAT Y O.h CITY of sHI1 LUIS OBISPO Overview r Lars o� 3 Meet the minimum fund balance and working capital policy requirements. 6 Implement Local Revenue Measure priorities. Budgetary Allocations —All Funds General Fund ■ $98 Million © Water Fund Sewer Fund ■ $33 million 2021-22 Parking Fund ■ $7 million Transit Fund $8 million \.ISpecial Revenue ■ TBID - $1.4M ■ DBID - $245K General Fund ■ $103 Million IWater Fund ■ $28 million © Sewer Fund ■ $24 million 2022-23 Parking Fund ■ $11 million Transit Fund ■ $5 million \M Special Revenue ■ TBID - $1.5M ■ DBID - $260K Changes per Council Strategic Budget Direction Task Major City Goal Amount Economic Recovery, Community Workforce Resiliency and Fiscal $50,000 Sustainabilit Feasibility Study for Multi -Cultural Diversity, Equity, Inclusion $40,000 Center Support Development of "Micro Climate Action, Open Community Collaborative" initiative Space, and Sustainable $20,000 with the SLO Climate Coalition Transportation Total $110, 000 Additional Changes Increase Amount for Community Workforce Agreement Study • General Fund $ 55,000 (additional) Water Fund $ 26,250 Sewer Fund $ 26,250 • Parking Fund $ 17,500 Analysis of Infrastructure Sharing with RTA �._•' 7. Transit Fund $50,000 Additional Funding for Public Outreach — Utilities v7• Water & Sewer Fund $172,000 Total = $125,000 Iftilmom General Fund Forecast Financial Forecast t 4 Assumption of return to "normal" through 2021 calendar year into 2022 Balanced Most revenues to return to pre-covid levels with modest long-term growth budget based Right -size operating budgets with modest growth on current assumptions. One-time allocation of resources to advance Major City Goals Forecasting longer -term assumptions are difficult and subject to change. $8.9 million in American Rescue Plan Act Funding over a two-year period. $120,000 $100,000 $80,000 c 0 $60,000 c $40,000 $20,000 no General Fund Five Year Forecast Revenue over $1,036 $127 Expenditures (thousands) $887 $253 $178 Local Sales ' Tax Measure , 1 Actual FY20 Budget FY21 Budget FY22 Budget FY23 Projected FY Projected FY Projected FY 24 25 26 OpEx* Capital Total Revenue *including debt & transfers 9 Financial Plan Pg. 91 Major City Goals Major City Goals *T . A& Economic Recovery, Resiliency & Fiscal Sustainability Total Investment 404* Diversity, Equity, Inclusion (DEI) Total Investment ^db Housing and Homelessness Total Investment Climate Action, Open Space & Sustainable Transportation Total Investment $12.7 $16.3 $1.1 $921,097 $11.4 $27.3 $15.4 $15.0 million million million million million million million Financial Plan Pg. 37 Intro/ General Community Local Enterprise Overview Fund Services Revenue Capital Funds Forecast Measure General Fund Community Services Operating Budgets 21-22 78% Base Operating Budget 12% Enhancements 10% Local Revenue Measure Base Operating* IJ Enhancements Local Revenue Measure $ 6.2 million Total Operating Budget $76.3 million * not accounting for cost allocation and transfers al Local Intro/ GenerMajor City Enterprise Overview Fund Goals Revenue Capital Funds Forecast Measure Community Services — Operating Budgets ministrati 011116..$7,628,273 Jd $7,697,781 $9,737,859 $9,805,467 © City Attorney $1,000,636 $778,167 $1,185,571 $1,043,797 © Finance "Mm A $2,395,353 =$2,998,891W $2,921,186 N $4,453,272* Fire $12,542,326 $12,615,778 $13,997,547 $14,441,480 ©�esources �26,188 =$1,350,58i$1,700,849 $1,683,223' Police $17,632,020 $17,802,862 $19,141,343 $20,051,371 -community Services Group: Community Services Group Admin. $9,593 $404,998 $665,501 $575,391 nity Developmen- 7,704 $5,325,811„ $6,981-L $6,84= Parks and Recreation $3,799,632 $4,274,301 $5,126,817 $5,336,170 m Public Works $12,660,147 $13,196,459 $14,675,638 = $15,156,0411 m Solid Waste $90,336 $159,318 $199,699 $176,280 `illlllllllllllllllf-OTAL GENERAL FUND $64,662,208 $66,604,959 , $76,333,171 $79 564,479 Ind. citywide contingency 'IF General Local Intro/ Major City Enterprise Overview Fund Goals Revenue Capital Funds Forecast Measure :)cal Revenue Measure GAT Y O.h CITY OF SHill DELIS OBISPO L�rs o� Local Revenue Measure Uses Street Maintenance & Community Safety & Emergency Youth/Senior Services Transportation Preparedness 14% 35% 14% Economic Development Creek & Flood Other Services 8% Protection & Projects 7% 6% Open Space/Natural Areas Preservation & Maintenance Safe & Clean Address 8% Public Spaces 4% Homelessness 3% Capital to Operating Split is approximately 75/25 during 2021-23 with ramp up to 85/15 split in outer years. Financial Plan Pg. 63 Intro/ General Major City Community Local Enterprise Overview Forecast Goals Services Capital Funds Capital Improvement Program 4-1 U PROJECT IDENTIFICATION AND BUDGETING S.X>VCIFICATIONS Cevefoprd Cemlled llnformation Geo-technical Pavement deflections and caring Hazardous or contaminated materlais Coordinate Studies and test) ng with Third Party Utilities ■ Preliminary Work Retain €onsultant ■ Scope Project Design Services Prole€t ■ Gather information, input, Layout and andconductsitevisits Follow the City i"faRRiC� ■ Ipu rchaslrtg polley 50% Plan Design Review 90% Plan Review/design Review Draft plans Meetings and input Design Supervisor, Construction Supervisor, Traffic Engineer Revlew Prepare summary of plan review comments and any Im pacts far project scope schedule Revise and budget and furnish to team Public Input Advisory Body Review Additional Public Input Project Communications PERMITS Initial contact er qurt Permit applications with propertyFrn €icy Building Permit owners O Army Corp of Engineers (ACCIE) Submit plans to the Bullding Department Fish & VAIdllfe (F&VV) Bullding Department reMews Environmental Inform Public Reglonal Water Quality Control Board (RWQCB) Address Building Department comments Review Unlon Pacific Railroad (LIPRR) Resubmit Ptans, Speclficntlons and of CIP Engage Puhllc Air Pollution Control District (APCD) Fstlmates to Building Department Caltrans Encroachment Building Department Issues permit Design Complete 100% Plan Review Advertise Project for Pu Wit Bid Award CIP Constructirrt on Coract Y00% Plans, Estimate and Special Provisions Prepare report and route for approval Award Report Advertise project to Construction Industry Execute contracts and i nsura rice Build Ing, Perm It Issued and Encroachment Bid opening �;qqll�Al Em "'L"anY ro COI4SzIt"C" Begin Public Information Campaign FINISH! -<-- Project Complete KE Ribbon cutting Public outreach Notlee cf completion project closeout CONS'xP-�30,- Capital Improvement Program Asset Maintenance Asset Replacements 1111 ' 1 � New Assets _ Intro/ —V General I I I Local I I Major City Community Enterprise Overview Fund Goals Services Revenue Funds Forecast Measure Major City Goals — Capital Investment 16 Economic Recovery, Resiliency & Fiscal Sustainability Total Investment $11.6 million Diversity, Equity, Inclusion (DEI) Total Investment $440,000 Housing and Homelessness Total Investment $34 million on 22 Climate Action, Open Space & Sustainable Transportation Total Investment $29 million Intro/ General I Major City I CommunI Local I I ity Enterprise Overview Fund Goals Services Revenue Funds Forecast Measure Capital Improvement Plan — Calendar Year 2021 Projects 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 Rehabili $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 Intro/ General Major CitIServices munity Local Overview Fund Goals Revenue Forecast Measure E Enterprise Funds on 25 Water Fund Forecast $60,000 $50,000 $40,000 c $30,000 0 c $20,000 $10, 000 Financial Plan Years Actual 2019-20 Budget 2020-21 I Budget 2021-22 Forecast 2022-23 1Forecast 2023-24 Forecast 2024-25 Forecast 2025-26 OpEx* Capital � Unreserved Working Capital - Year End Revenue * Revenue and expenditures include debt service payments & proceeds Detailed forecast on Financial Plan Pg. 283 Water Fund FY91-22 Operating Budget Water Resources Water Admin/Engineering 3% 6% Water Distribution 11% Water Treatment 18% Source of Supply 62% -------------------------------------, Total: $16.85 Million Significant Operating Budget Changes cial Plan Pg. 288-291 Sewer Fund Forecast $120, 000 $100, 000 $80,000 U) c cu $60,000 0 c $40,000 $20,000 Actual 2019-20 Financial Plan Years Budget 2020-21 on 27 Forecast 2023-24 Forecast 2024-25 Forecast 2025-26 OpEx* Capital � Unreserved Working Capital - Year End Revenue * Revenue and expenditures include debt service payments & proceeds [a Financial Plan Pg. 307 Sewer Fund FY 21-22 Operating Budget Utilities Revenue 7% Environmental Programs 3% Wastewater Collection 15% u ib Wastewater Admin/Engineers 16% -------------------------------------, Total: $7.92 Million L------------------------------------- Significant Operating Budget Changes $83,767 $11,365 $302,381 $463,087 Financial Plan Pg. 312-315 Utility Rates • Utility rates determined by operational costs and necessary reserve levels to keep the funds healthy • Proposed rate increases scheduled for public hearing on June 15, 2021 • Latest rate confirmation study shows lower than previously recommended rate increases Water Rate Increases 2021-22 2022-23 Original Forecast Proposed 5.5% 5.5% 3.5% 3.5 Sewer Rate Increases 2021-22 2022-23 Original Forecast Proposed C73.5% 6.5% 6.5% 3.5% Financial Plan Pg. 286 & 310 Customer Assistance Program I I 15% Water and Sewer Bill Discount www.slocity.org/ub 9U, Eligibility Requirements A. Single Family Residences B. Customer Occupied C. Meets Income Requirements: 1. CalWorks 2. CalFresh (food stamps) 3. Medi-Cal 4. Supplemental Security Income/State Supplementary Payment Program 5. Household income at the service address below 200 % of the Federal Poverty line Council Agenda Report Pg. 7 0 /. WRRF Project N Airport Gravity Sewer Reservoir 2 Cover I Recycled Water Replacement Expansion Project GYCY O� CITY OF SHn Luls OBISI'O Leis o4 Mainline Replacements Water Treatment Plant Infrastructure Renewal Strategy Inflow and Infiltration California (Stafford to Mill) Waterline Project Enterprise Funds w no Parking — Long Term Forecast 32 $50,000 With Proposed Revenue Strategy and Budget Changes $45,000 Palm-Nipomo --Do- $40,000 $35,000 $30,000 $25,000 $20,000 Re -balancing fund to healthy level $15,000 $10,000 � f $5,000 Actual 2019-20 Budget 2020-21 Budget 2021-22 Forecast 2022-23 Forecast 2023-24 Forecast 2024-25 Forecast 2025-26 Revenue* Expenditure — — Unreserved Working Capital - No changes Unreserved Working Capital w/ Enhancements Includes debt proceeds in FY 23-24 R Detailed forecast on Financial Plan Pg. 337 Parking — Operating Budget OPERATING EXPENDITURES BY TYPE 21-22 BUDGET Significant Operating Budget Changes .: One-time Community Workforce Agreement Study $ 17,500 Ongoing Parking Enforcement (3 FTE Additions) $ 220,927 $ 230,947 Parking Maintenance (2 FTE Additions) $ 69,375 $ 144,392 Contract Services Reduction $ (240,500) $ (327,000) Revenue Offset $ (317,100) $ (317,100) Financial Plan Pg. 338 Parking — CIP Parking Fund 5-Year CIP Why are these projects are important? • New garage will bring efficiencies with SLOREP • Activation of downtown • Balance supply and demand • New technologies allow for convenience and additional time via mobile apps on 34 R Financial Plan Pg. 346 Recommendation: Adopt a Resolution Establishing New Parking Structure Rates Garages: 1. Rate Increase (Effective July 1, 2021) 2. Reduction of Max Daily Rate 3. Phase Out 1 St 60 Mins. Free • Implement a rate increase (Approved for July 2020 but deferred due to the COVI D pandemic); • Reduce the maximum daily rate from $12.50 to $6.00 to incentivize long-term parking; • Establish an overnight parking rate of $15; and • Phase out the 1 st 60 minutes free program effective July 1, 2022. 4 Recommendation: Adopt a Resolution Modifying the Parking Citation Penalty Schedule Enforcement: 1. Increase Penalty Schedule Fine Amounts for Safety Violations Increase fine amounts for safety related parking citations including but not limited to the following: • Fire Lane violation • Blocking wheelchair access • Parking in a bus zone • Red curb violation • Parking in an intersection • Blocking driveway access • Blocking sidewalk access ON Recommendation: Introduce Two Ordinances 37 Amending Title 10 Chapters 4 & 52 of the Municipal Code Implement a rate increase (Approved for July 2020 but deferred due to the COVID pandemic); Expand enforcement hours from 6 p.m. to 9 p.m.; On -Street & 0 Establish Tier -based pricing (Allows customers to Lots: park beyond the posted hours at a higher hourly 1. Expansion of rate); Enforcement Hours (6p-9p) 0 Authorizes the Public Works Director to periodically Rate Increase ( adjust rates based on occupancy; and (Approved for July � 2020) 3. Establish Tier- ' Add language referencing the installation and Based Pricing operation of the new multi -space pay stations. 4. Add Language For New Pay Stations Transit Fund • Maintains balanced budget thanks to support from federal funding and conservative spending • Approximately $2.3 million in working capital • Proposed rate increases are needed to fund service and help achieve 20% local revenue requirements. Originally scheduled for July 2020 — postponed by Covid • Transportation Development Act (TDA) and American Rescue Plan (ARP) Expend itu re Type* Staffing 1 1 $357,718 I f $327,181 12022-23 $358,181 $372,314 Contract Services $2,562,826 $2,849,033 $2,949,033 $2,895,950 Other Operating Costs $561,239 6661800 $6761600 $6841100 Cast Allocation $276,806 $321,727 $226,183 $230,707 Contribution to RTA' $580,000 $690,993 $633,596 $711,723 Total $4,338,589 $4,855,735 $4,843,593 $4,894,793 *Operating costs only, does not Include capitol or depreciation (as shown in the long -berm forecast). 'This funding is directly provided by SLOCOG to RTA from the City's apportionment of State funding. While the financial Plan P 352 City does rot receive this revenue or the associated expense, this shows the value of services provided by RTA and g the City's share of that cost. on 39 Transit Fund - Capital • Capital Projects are highly reliant on future discretionary grant funding but must be approved by Council before applying for funding. ImprovementCapital 1 Bus Shelter Replacement F Bus Replacement with Electric Vehicles 3 Bus Yard Parking Lot Maintenance a EV Bus Infrastructure sl Bus Wash Replacement 61 vault Room Addition Study 3 Replace Supervisor ADA Van with EV s V M Infrastructure Upgrade (Transit Portion of Project) 9 Uninterruptible Power Supplies (Transit Portion of Project) 10 City SAN (Transit Portion of Project) 11 Wireless Infrastructure Upgrade (Transit Portion of Project) 12 $ 105, 000 - 1,854,000 $1,910,000 $ 5,000 $500,000 715, 000 - $ 75,000 $450,000 $ - $ 15,OD0 $ 70,000 $ - $955 246 $1,121, $2 036 TOTAL 2,82-5,201 2,578,157 I R Financial Plan Pg. 356 Next Steps ■ Continued 2021-23 Financial Plan (if needed) 6/15 ■ Water &Sewer Rates —Proposition 218 Hearing 6/15 ■ Review &Adoption of 2021-23 Financial Plan 6/29 (If needed) 41 Recommendations 1. Adopt a Resolution approving the 2021-23 Financial Plan; and 2. Defer budget adoption of the Water and Sewer Funds until June 15, 2021 contingent on the Prop. 218 protest hearing and adoption of the water and sewer rate increases; and 3. Adopt a Resolution establishing new parking structure rates; and 4. Adopt a Resolution modifying the parking citation penalty schedule; and 5. Introduce an Ordinance amending Title 10 Chapter 52 of the Municipal Code to modify parking meter rates and add language referencing the new pay stations; and 6. Introduce an Ordinance amending Title 10 Chapter 4 of the Municipal to add a definition of parking payment center; and 7. Adopt a Resolution amending the water and sewer Rate Assistance Program for residential customers Pique fil Il Parking Garages M 1.3. Parking Garages 1, Eliminate 1st How & Free Parking in Parking Garages _ 4, Upper Montr rcy Paid Perking 2, Implement Deferred Rate lncmase in Parking Garages (Approved 5. Ranlroad Square Paid Parfono for 3,ily 20M) 3, RCdLMC Perking Onrege Max Daily Rate - 6-9. On Sheri # Lot Parking On -Street& Lot Parking 10. Citywide 4, Implorr, v Paid Parkin � in Upper Morph cy Area - 11. New Re.Owbal Parking Distrmt . 5, YMIen gnt Paln Parkh.l in Ra"d Square Q L2. Did Torun Parking District 6. YhpldrrLvll DOl Trod Retc MC94m&e frsr On-5trett anKi Lot Parking (approved for jur, 2uzD) 7, Etrpand Enfwetwit Houm Frpm own to Spit, Fpr On.5treet and Lot Parking L TIrmuluon to Tier -Based Pricing forUo-Street and Lot Parking Enforcement 9. Expand Entorcernew lmurs from dpm to 9pm 10. Lrvease Penalty Schedule for Safety Vnoktun Fine Amour" - City-wide, nat shown on mp. 11. Implement and Establish Reslden[lal Parking Pemnit Drstrict In CM Tmm and Upper Monterey Area Districts 12. Enforcement of the Old Town Parking District New Homeless Response Manager City Council approved the hiring of a full-time contract Homeless Response Manager to coordinate the City's participation in regional efforts dedicated to addressing homelessness including defining a larger strategy focused on achieving measurable outcomes for the community. Short term objectives include developing a Homelessness Strategic Plan for the City that is supported by regional efforts and builds upon existing partnerships with the County, cities, and other regional nonprofit partners to maximize services available. Existing General Fund Resources Police Department $747,285 2020-21 budget for staffing for Downtown/Homeless outreach W Z A 4 CAT (Community Downtown Bicycle Action Team) Officers Officers 29.448 total calls for police service 6 people dedicated In the Downtown: 4 bicycle officers. t sergeant, 1 non sworn field technician 25% I J 7,457 calls Involved a homeless Individual 4.122 calls in the Downtown area for police service 34% 1,432 calls Involved a homeless Individual U1 Community Impacts 2020 as a result of City's Direct Support to Homelessness COMMUNITY IMPACTS Since opening: 2 044 maple recenred services = 340/o from the C ofSLO RY A 159 children helped n 45 Homelessness: City of San Luis Obispo Partnerships Human Relation Commission's Grants -in -Aid $150,000 annually Fiscal Years 2019-20 and 2020-21 Community Action Partnership of San Luis Obispo County $157,000 annually Fiscal Years 2019-20 and 2020-21 Proposed 25% expansion of beds at 40 Prado - $63,826 City contribution annually to support Ambassador program $59K clean and safe pilot program extension - $29K additional ambassador hours - $20K Dedicated Caseworker - $10K Social enterprise initiative 46 Homelessness: Priority Issue of Concern = MCG The City's Community Priorities Survey conducted for the 2021-2023 Financial Plan identified Homelessness as the top priority. The City Council set Housing and Homelessness as a Major City Goal at their January 2021 Community Forum. April 20th, 2021 Strategic Budget Direction - consider and discuss added resources. Existing and MCG Proposed Resources Community Action Team (CAT) Developed by the Police Dept. with two officers Added a Social Worker from TH MA MCG Proposing an I T 0 additional Social Worker Homelessness Response Manager (Contract) • $300k contract staff and resources start April 2021 • Communications, Data Collection, Research Models, Internal and External Coordination including Strategic Plan w/County and Partners Safe Parking Program • Expand existing program at 40 Prado Homeless Service Center • Pilot Program @ Railroad �0 Square for duration of the Covid-19 Pandemic Mobile Crises Unit (MCU) • MCG Proposed by the Fire Department • Pair a social services worker with a City EMT to provide non - emergency response and care him RESPON D+SU PPORT+ASSIST CAT Success to Date Deliverables: September 2018 — January 2021 1. Total Clients Contacted 1,018 2. Treated for Mental Health or Substance Abuse 258 3. Individuals Housed 151 4. Family Reunifications 103 5. In -Home Family Interventions 67 6. Inmate Assistance at County Jail 48 7. Bicycles Provided to 40 Prado, Sunny Acres 137 8. Presentations/Trainings 27 9. Cal Poly Internships 4 10.Non-Perishable Food Sacks Provided 1,500+ 11.Clothing/Bedding Provided As donated Affordable Housing Production ■ Performance Standard ■ 50 Units in 21-22 ■ 50 Units in 22-23 ■ Based on Entitled Projects (21- 22) ■ 40 - Broad St. Place ■ 2 - South Morros ■ 1 - Connect ■ 1 -SLR ■ 1 -Yard ■ 1 - Terraza ■ 3 - Twin Creeks ■ Many More Units in Pipeline Pipeline 100% affordable projects NOT entitled 40 in Maxine Lewis-HASLO 94 in Bridge St.-HASLO +33 in Victoria M U-HASLO 167 units Pipeline Major Inclusionary Units 67 in Avila 68 in SLR 9 in Jones +8 in South Morros Multi-Fam 152 units ■ Inclusionary Housing Ordinance Update (Summer 2022) ■ Housing Element implementation will result in more affordable housing in the future Historic Resource Inventory Update ■ Initial City-wide survey of pre-1941 buildings was in 1983 ■ Contributing and Master list properties added over time through district/area surveys and property owner -initiated processes ■ Last significant district/area survey was in 1991 — 400 properties evaluated ■ Historic properties list has never been comprehensively reviewed or updated for qualification based on current standards ■ Currently there are 759 properties on City's historic lists (567 Contributing and 192 Master list) ■ Various options to complete project in stages: ■ Start with existing lists (contributing and master) remove properties that do not demonstrate qualification ■ Identify properties not currently listed that meet criteria (buildings constructed into 1970's) ■ Update Ordinance and Guidelines to accurately describe appropriate treatments for each resource type based on guidance from the Certified Local Government Program ■ Receive direction from CHC and Council to arrive at scope of effort ■ Develop project plan Major trade-offs include progress on: 1. Housing Element Implementation support, including IHO & Objective Design Standards; 2. Subdivision Regulations Update to provide small lot subdivision options to support a variety of housing types (missing middle); PID Replacement ■ Existing Building ■ located at 1042 Walnut Street ■ 52 years old ■ Originally 12,000 SF expanded to 15,600 in 1983 ■ Building reached maximum capacity in 1995 ■ Replacement Recommended not Rehabilitation ■ Not enough space ■ Does not meet code requirements for seismic safety, ADA or energy efficiency ■ Building is beyond is its useful life and requires substantial investment in HVAC, Electric and Technology ■ Project cost estimated at $53.2M with construction starting in FY 2025-26 Anholm Greenway ■ April 14, 2021 the California Natural Resource Agency (CNRA) awarded $1.7 million to the Anholm Neighborhood Greenway. ■ Great news — Bad timing ■ CIP Review Committee had made recommendations to the City Manager ■ City Manager and REOC had made recommendations of Council ■ Council was to provide Strategic Budget Guidance on 4/20/2021 ■ Planning Commission was to provide General Plan Conformance guidance on 4/28/2021 ■ Not adequate time to develop recommendations and get them into the budget with ATC, REOC and Council Approval. ■ Delivery bandwidth ■ Needs to be increased in order to deliver the projects ■ Management study currently ongoing ■ Council Resolution ■ The language was developed to document the City's intent to program this funding for ATP implementation. SECTION 3. Staff is directed to return to the Council with project recommendations and appropriation requests to further implement Tier 1 Active Transportation Plan projects as result of Urban Greening Grant Funding for the Anholm Greenway Project. I PRUNING PROGRAM ANALYSIS r PHYSICAL WORK TO PRUNE TREES CONSULTANT TO DETERMINE SCOPE OF ACTIVITIES, STAFFING STRUCTURE AND ` -Completing a Request ORGANIZATIONAL PLACEMENT for Proposal (RFP) before -RFP posted on May 26, and of Fiscal Year, closing June 14. Selected Consultant to Begin Analysis by end of June. TREE INVENTORY OPERATIONAL PLAN CURRENT HEALTH AND TREE RECOMMENDATIONS COMPREHENSIVE ACTION PLAN - Beginning a RFP July 1 to - The concurrent work of � complete a comprehensive the these three RFPs will tree inventory for the City. help support the efforts towards beginning the Urban Forest Operational Plan next Fiscal Year. +. .�..t .;y: GAT Y O a ti CITY OF Sfln Luls OBISI'O Lars oo 54