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HomeMy WebLinkAbout10-28-2021 REOC Agenda PacketCity of San Luis Obispo, Agenda, Planning Commission Agenda REVENUE ENHANCEMENT OVERSIGHT COMMISSION Thursday, October 28, 2021 Pursuant to Executive Orders N-60-20 and N-08-21 executed by the Governor of California, and subsequently Assembly Bill 361, enacted in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.), members of the public, Citizens Revenue Enhancement Oversight Commissioners (REOC), City Staff, and City Consultants may participate in this regular meeting by teleconference. Using the most rapid means of communication available at this time, members of the public are encouraged to participate in REOC meetings in the following ways: 1.Remote Viewing - Members of the public who wish to watch the meeting can: Join the Webinar: URL: https://slocity- org.zoom.us/j/87470618249?pwd=UHNhaCtpb0diaUZ0bTZLSDdQUmlwUT09 Webinar ID: 874 7061 8249 Telephone Attendee: +1 (669) 900-6833 Webinar ID: 874 7061 8249; Passcode: 450575 Note: The City utilizes Zoom Webinar for REOC Meetings. All attendees will enter the meeting muted. An Attendee tutorial is available on YouTube; test your audio settings. 2.Public Comment - Public comment can be submitted in the following ways: Mail or Email Public Comment Received by 3:00 PM on the day of meeting - Can be submitted via email to advisorybodies@slocity.org or U.S. Mail to City Clerk at 990 Palm St. San Luis Obispo, CA 93401. All emails will be archived/distributed to councilmembers, however, submissions after 3:00 p.m. on the day of the meeting may not be archived/distributed until the following day. Emails will not be read aloud during the meeting. 3.Verbal Public Comment In Advance of the Meeting – Call (805) 781-7164; state and spell your name, the agenda item number you are calling about and leave your comment. The verbal comments must be limited to 3 minutes. All voicemails will be forwarded to the REOC Members and saved as Agenda Correspondence. Voicemails will not be played during the meeting. During the meeting – Join the webinar (instructions above). Once public comment for the item you would like to speak on is called, please raise your virtual hand, your name will be called, and your microphone will be unmuted. If you have questions, contact the office of the City Clerk at cityclerk@slocity.org or (805) 781-7100. 1 Revenue Enhancement Oversight Commission Agenda for October 28, 2021 5:30 p.m. REGULAR MEETING Teleconference CALL TO ORDER Chair Jeanette McClure ROLL CALL: Commissioners Christopher Ellwood, Matt Quaglino, Tony Skapinsky, and Vice-Chair Jim Hamari PUBLIC COMMENT: At this time, people may address the Committee about items not on the agenda. Persons wishing to speak should come forward and state their name and address. Comments are limited to three minutes per person. Items raised at this time are generally referred to staff and, if action by the Committee is necessary, may be scheduled for a future meeting. CONSIDERATION OF MINUTES 1.Minutes of the Revenue Enhancement Oversight Commission of March 21, 2021 BUSINESS ITEMS 2.Review Purpose of the Revenue Enhancement Oversight Commission and Elect Officers (Natalie Harnett) Recommendation: Review the purpose and scope of the Revenue Enhancement Oversight Commission (REOC); and Elect a Chairperson and Vice-Chairperson to serve for a one-year term. 3.Unaudited FY 2020-21 Year End Local Revenue Measure Review (Natalie Harnett) Recommendation: Receive a report and review unaudited operating and capital expenditures of the Local Revenue Measure sales tax revenue for the last fiscal year. 4.FY 2021-22 First Quarter Local Revenue Measure Review (Natalie Harnett) Recommendation: Review an update on Local Revenue Measure (LRM) actuals and trends as of the first quarter of Fiscal Year 2021-22 in addition to any updates on current or ongoing LRM funded capital projects and programmatic efforts. 2 Revenue Enhancement Oversight Commission Agenda for October 28, 2021 5. 2020-21 Annual Community Report and Citizen Oversight Meeting (Natalie Harnett) Recommendation: 1) Discuss concepts and provide direction for the 2020-21 Annual Community Report 2) Appoint two Commissioners to serve on a subcommittee to assist in the development of the report 3) Discuss the 2021-22 Annual Citizen Oversight Meeting. PRESENTATIONS 6. Capital Improvement Plan Project Timelines and the Bidding Process (Brian Nelson/Matt Horn) COMMENT AND DISCUSSION ADJOURNMENT The next Regular Meeting of the Revenue Enhancement Oversight Commission is scheduled for February 24, 2022. The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7107. Meeting audio recordings can be found at the following web address: http://opengov.slocity.org/weblink/1/fol/61028/Row1.aspx 3 City of San Luis Obispo, Agenda, Planning Commission REVENUE ENHANCEMENT OVERSIGHT COMMISION Minutes - DRAFT Wednesday, March 31, 2021 Regular Meeting of the Revenue Enhancement Oversight Commission CALL TO ORDER A Regular Meeting of the San Luis Obispo Revenue Enhancement Oversight Commission was called to order on Wednesday March 31, 2021 at 5:31 p.m., by Chair McClure, via teleconference. ROLL CALL Present: Commissioners Matt Quaglino, Tony Skapinsky, Vice-Chair Jim Hamari and Chair McClure Absent: Commissioner Christopher Ellwood Staff: Greg Hermann Deputy City Manager and Victoria Tonikian, Interim Assistant to the City Manager and Teresa Purrington, City Clerk. PUBLIC COMMENT ITEMS NOT ON THE AGENDA None. --End of Public Comment-- APPROVAL OF MINUTES 1. Consideration of Minutes of the Regular Revenue Enhancement Oversight Commission Meeting of February 18, 2021. ACTION: UPON MOTION BY COMMISSIONER SKAPINSKY SECONDED BY COMMISSIONER QUAGLINO, CARRIED 4-0-1 (COMMISSIONER ELLWOOD ABSENT) to approve the Minutes of the February 18, 2021, as presented. BUSINESS ITEMS 2. FY 2019-20 Annual Community Report and Citizen Oversight Meeting. Greg Hermann, Deputy City Manager provided a PowerPoint presentation and responded to Commissioner inquiries. 4 Public Comment Gary Havas --End of Public Comment-- ACTION: No action taken. 3. Proposed 2021-23 Local Revenue Measure Expenditures Commissioner Quaglino indicated he would be recusing himself from Projects 22, 23 and 98 due to a financial interest in a business involved in those projects. Greg Hermann, Deputy City Manager provided a PowerPoint presentation and responded to Commissioner inquiries. Public Comment None --End of Public Comment-- ACTION: UPON MOTION BY COMMITTEE MEMBER QUAGLINO, SECONDED BY COMMISSIONER HAMARI, CARRIED 5-0 to recommend to the City Council the use of Local Revenue Measure funds for all projects except 22, 23 and 98 as referenced in the staff report. Commissioner Quaglino turned off his camera and muted his microphone at 7:12 PM. ACTION: UPON MOTION BY COMMITTEE MEMBER HAMARI, SECONDED BY COMMISSIONER SKAPINSKI, CARRIED 4-0-0 (WITH COMMISSIONER QUAGLINO RECUSED) to recommend to the City Council the use of Local Revenue Measure funds for projects 22, 23 and 98 as referenced in the staff report. Commissioner Quaglino returned to the meeting at 7:14 PM. COMMENT AND DISCUSSION 4. Staff Updates Greg Hermann, Deputy City Manager provided staff updates. 5. Commission Communications ADJOURNMENT The meeting was adjourned at 7:17 p.m. The next Regular Revenue Enhancement Oversight Commission meeting is scheduled for Fall of 2021. APPROVED BY THE REVENUE ENHANCEMENT OVERSIGHT COMMISSION: XX/XX/2021 5 Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 10/28/21 Item Number: 2 DATE: October 28, 2021 FROM: Brigitte Elke, Finance Director Prepared By: Natalie Harnett, Principal Budget Analyst SUBJECT: REVIEW PURPOSE OF THE REVENUE ENHANCEMENT OVERSIGHT COMMISSION AND ELECT OFFICERS RECOMMENDATIONS 1.Review the purpose and scope of the Revenue Enhancement Oversight Commission (REOC); and 2.Elect a Chairperson and Vice-Chairperson to serve for a one-year term. DISCUSSION Background The Citizens’ Revenue Enhancement Oversight Commission (REOC) role is to review the 1.5 percent local transaction tax revenues and applicable uses, report on the City’s stewardship of this general- purpose tax and provide recommendations directly to the City Council regarding uses of these tax revenues as an integral part of the budget process. The voter approved Ballot Measure G-20 that was approved in November 2020 stated: To protect City of San Luis Obispo’ s financial stability; maintain fire/community safety, health emergency/disaster preparedness; protect creeks from pollution; address homelessness; keep public areas clean/ safe; retain local businesses; maintain youth/senior services, streets, open space/natural areas, and other general services, by extending voter- approved funding at a 1.5¢ rate, providing approximately $21,600,000 annually until ended by voters; requiring audits/ all funds used locally. Purpose and Scope of the REOC The REOC is to consist of five members who must be residents of the City. The REOC is an advisory body to the Council that will provide important citizen oversight of local transaction tax revenues and expenditures. The REOC will not be making final decisions on City spending. REOC meetings will be open to the public and serve as a venue for citizen engagement on revenue measure related expenditures. The REOC will also aid in community education and outreach about how much local transaction tax is received and the programs and projects the revenue is being expended. Chapter 2.14 of the Municipal Code provides the full language of the commission’s purpose, appointment process, and assignments. REOC Bylaws The REOC bylaws contain the Commission’s purpose, and policies on conduct, membership, terms, officers, meetings, attendance, quorum, voting, subcommittees, public records and other rules and procedures (Attachment 1). These bylaws state that the REOC shall select a Chairperson and Vice- Chairperson from among its members to serve for a one-year term. 6 D.Citizens' Revenue Enhancement Oversight Commission Bylaws (T/SP) MEMBERSHIP The Citizens’ Revenue Enhancement Oversight Commission (REOC) has five members. Members must be residents and registered voters of the City. When recruiting members, the City seeks members that have experience with finance, budgeting, or municipal accounting, though this is not a requirement of membership. PURPOSE REOC was established to provide transparency and maximize city accountability, as part of the passage of a ballot measure approving a general use tax to protect and maintain essential services and facilities—such as open space preservation; bike lanes, sidewalks and other traffic congestion relief projects; public safety; neighborhood street paving and code enforcement; flood protection; senior citizen programs including services and facilities; and other vital general purpose services and capital improvement projects. REOC is responsible for reviewing and making budget recommendations directly to the City Council regarding expenditures from the essential services transactions (sales) and use tax, and reporting annually to the community on the City’s use of these tax revenues. (San Luis Obispo Municipal Code §3.15.020) ARTICLE 1. MEETINGS 1.The REOC shall meet a minimum of four times per year to conduct its business. 2.REOC regular meetings will follow the diagram on the next page and be integrated into the City’s budget processes for the two-year financial plan, fiscal year-end, and financial plan supplement. Meeting dates may change from year to year according to the actual budget schedule. REOC Agenda Item #2 Attachment 1 7 3.Agenda items shall be completed by 9:00 p.m. unless a majority of Commissioners agree to extend the meeting. 4.Regular meetings shall be held in the Council Hearing Room, City Hall, 990 Palm Street, San Luis Obispo, California. 5.Special meetings may be called by a majority of the REOC, or by City staff in consultation with the Chairperson, if additional meetings are necessary to accomplish the purpose and duties of the Commission. 6.In the event that the REOC desires to hold all or any portion of a regular meeting at a place other than the Council Hearing Room, then the place of such meeting shall be posted on at the doors of the Council Hearing Room prior to the time designated for the meeting in accordance with law. REOC Agenda Item #2 Attachment 1 8 ARTICLE 2. ELECTION OF OFFICERS 1.The Commission shall select a Chairperson and Vice-Chairperson from among its members to serve for a one-year term beginning with the first meeting following the start of each fiscal year (July 1). 2.Commissioners shall serve as Chairperson or Vice-Chairperson at the discretion of the Commission. 3.The Chairperson shall preside at all meetings of the Commission. The Vice-Chairperson is Chairperson in the absence of the Chairperson or in case of inability of the Chairperson to act. ARTICLE 3. CONDUCT OF MEETINGS 1.Commissioners should address questions through the Chairperson. 2.Members of the audience should address Commissioners or other persons present through the Chairperson. 3.Procedure for reviewing public hearing items: After roll call the Chairperson shall announce to the public the procedures to be followed to consider the items listed on the agenda and then proceed as follows: a.The Chairperson shall introduce the items and ask for oral staff reports, as appropriate. b.The staff report previously submitted to the REOC shall be placed into the record with all communications received regarding the item. Staff reports shall be submitted for all public hearing items in a form acceptable to the Commission. c.Members of the public wishing to speak on the topic of the agenda item shall be invited to make a presentation. Public comment shall be accepted for agenda items that are listed as presentations, business items, or public hearings. d.Following public testimony on an agenda item, the public hearing or public testimony portion of the meeting shall be closed to the public and discussion confined to members of the Commission; provided that the Commission may reopen the public hearing or invite additional testimony at any time prior to a decision on an item on an affirmative vote of the majority of those members present. e.The Commission, upon formal motion, shall take action on the item or recommendation. REOC Agenda Item #2 Attachment 1 9 ARTICLE 4. QUORUM 1.A quorum is the majority of the total number of established members of the commission. 2.No action of the Commission shall become effective without receiving the affirmative vote of a majority of the members present. ARTICLE 5. VOTING 1.Except as otherwise provided in the San Luis Obispo Municipal Code and state law, no motion or any other action shall be passed or become effective without receiving the affirmative vote of at least a majority of members present. 2.Failure to receive such an affirmative vote shall result in failure or denial, as appropriate, of the motion or other action. 3.Except as allowed under the Political Reform Action of 1974, any member abstaining due to a declared conflict of interest shall not participate in the discussion of the items or otherwise influence or attempt to influence in any manner the decision on the item. 4.All members, when present, must vote except when refraining from participating due to actual or potential conflict of interest. 5.Commissioners not supporting a motion for action shall summarize the reason for their vote. ARTICLE 6. PUBLIC RECORDS 1.Records of all public hearings shall be made available to the public in the office of the City Clerk. 2.Secretary Duties: The secretary shall be a representative of the City Clerk’s Office, and shall keep minutes of each meeting and shall record the official actions taken. The records of all proceedings shall be available to the Council and to the public. ARTICLE 7. ATTENDANCE 1.Any member of the REOC who fails, for any reason, to attend three regular, adjourned regular, or specially-scheduled meetings, within any 12 month period, shall be reviewed by the Chairperson for possible referral to the City Council. ARTICLE 8. TERM LIMITS, FILLING VACANCIES AND REMOVAL OF MEMBERS 1.Terms are for three years. 2.Vacancies shall be filled for unexpired terms. The Council, by majority action, may remove any Commissioner as provided in the City Charter. REOC Agenda Item #2 Attachment 1 10 ARTICLE 9. RULES, REGULATIONS AND PROCEDURES 1.The Commission may adopt rules, regulations and procedures as required for the transaction of its business. These rules shall become effective upon approval of the Council. REOC Agenda Item #2 Attachment 1 11     Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 10/28/2021 Item Number: 3 DATE: October 28, 2021 FROM: Brigitte Elke, Finance Director Prepared By: Natalie Harnett, Principal Budget Analyst SUBJECT: 2020-21 LOCAL REVENUE MEASURE UNAUDITED YEAR-END EXPENDITURES RECOMMENDATION 1. Receive a report and review unaudited operating and capital expenditures of the Local Revenue Measure sales tax revenue for the last fiscal year. DISCUSSION Background Fiscal Year 2020-21 (FY21) was like no other in recent history. It saw unprecedented measures in response to the worldwide Covid-19 pandemic from which the City was not immune. The City entered the year with its Fiscal Health Contingency Plan in place to continue the austerity measures needed due to uncertain economic impacts and their effects on the City’s main revenue sources. It necessitated a very close monitoring of the City’s revenue and expenditures and several reviews by the City Council to adjust as more information and trends became known during the fiscal year. However, FY21 also saw the first quarter of revenue from the November 2020 voter approved local transaction (sales) tax measure that replaced the previous measure and increased the tax to 1.5 cents from 0.5 cents. The tax became effective on April 1, 2021 and yielded three months of revenue at triple the previous rate. At the time of the FY 20-21 Budget Adoption, the forecasted revenue projection for the Local Revenue Measure (LRM) was about $7.2 million. This was about 10% lower than the pre-pandemic forecast. In light of the reduced revenue forecast, all LRM-funded capital projects were evaluated and prioritized based on how they supported delivering essential services to the community and aided economic recovery. These projects are identified in more detail in Section 7 of the FY 20-21 Supplemental Budget. 12 City of San Luis Obispo, Title, Subtitle  Item #3 2020‐21 LRM Unaudited Year End Financials       The largest portion of LRM for capital expenditures is allocated to Neighborhood Street paving. Other projects include playground equipment replacement, park major maintenance and repairs and pedestrian and bicycle pathway maintenance. The largest use of the LRM operating portion supports public safety. Other examples include staffing expenditures for neighborhood street paving, flood control, and code enforcement. Year-End Results LRM Capital Investments 20-21 Project Budget* 20-21 Total Consumption Remaining Project Budget LRM Capital Expenditures $9,855,656 $7,238,284 $2,617,372 *Includes project carryover budget LRM Operating Expenditures Table 1: Local Revenue Measure Categories FTE 2020-21 1. Open Space Preservation (Ranger Staffing) 2 $152,922 2. Bicycles and Pedestrian Improvements (Engineer, Active Transportation Manager) 1.6 $215,023 3. Traffic Congestion Relief (Signal and Light Maintenance (Technician) 1 $112,237 4. Public Safety (Downtown Officers, Sergeant) 4 $663,940 5. Neighborhood Street Paving (Project Engineer & Maintenance Worker) 2 $189,527 6. Code Enforcement (Code Enforcement Technicians and Officer) 3 $302,046 7. Flood Protection (Collection Operators) 6 $667,282 8. Parks and Recreation/Senior Programs and Facilities (Maintenance Worker) 1 $66,954 9. Other Vital Services and Capital Projects - - TOTAL 20.6 $2,369,931 New Revenue: Allocation of April-June Measure G20 Funding The City began collecting an additional one-cent transaction tax (G20) on April 1, 2021. Since the voter approval did not happen until November 2020, this revenue augmentation was not initially programmed into the adopted supplemental budget, but staff returned to Council with an updated revenue forecast at mid-year budget review on February 2, 2021 (2-02-2021 Item #7). Operating 32% Capital 68% LRM INVESTMENT FOR FY 20‐21 13 City of San Luis Obispo, Title, Subtitle  Item #3 2020‐21 LRM Unaudited Year End Financials       Table 2: Adopted LRM Revenue Forecast (June 2020) $7,218,000 Updated Forecast after Adoption of Measure G20 (February 2021) $11,392,000 Projected increase in revenue from Measure G20 $4,147,000 At the time Measure G20 passed, there was an immediate need to invest in additional economic recovery efforts to support businesses and homeless services to assist the community’s most vulnerable. On December 3, 2020, staff brought to the REOC a recommendation to allocate $3,425,000 from the anticipated first quarter revenue from the augmented local transaction and use tax for the following economic recovery and community assistance efforts (12-03-2021 Item #2). Council subsequently approved the recommended budget adjustment (R-11203) on December 8, 2020. Table 3: Approved Investment of LRM Funding in Economic Development Efforts and Homeless Services 1 Create Grant Funding Opportunities for Tenant Improvements (TIs) $2,000,0001 2 Expand the SLO City Small Business Relief Grant Program $500,000 3 Increase Efforts to Support Downtown Vitality $425,000 4 Implement an Economic Development Shop Local Incentive $200,000 5 Homeless Service Support & Coordination $300,000 TOTAL $3,425,000 Actual FY 20-21 Revenue Actual revenue for the Local Sales Tax Measure exceeded projections by about $1.4 million. This is consistent with trends across the state. At the end of the third quarter, revenue was tracking only slightly higher than projected but the fourth quarter of the year experienced a huge spike in consumer spending. This coincided with increasing vaccination rates and the lifting of state-wide restrictions. While good news for the City’s economy, this is likely a temporary escalation due to pent-up demand and a re- opening economy which is also reflected in the Transient Occupancy Tax that experienced a similar fourth quarter return. Table 4: a. Forecast Revenue b. Actual Revenue Variance (a-b) c. Approved Budget Allocations (expenditures) Unallocated Revenue (b-c) $11,392,000 $12,779,713 $1,387,713 $10,643,000 $2,136,713   1 This amount was to be invested locally and investment proceeds used for the TIs. Due to the continuing low-interest environment, no banks bid on the request for proposals and the funding will remain in LRM fund balance and is invested with the City’s pooled assets under its current investment strategy. 14 City of San Luis Obispo, Title, Subtitle  Item #3 2020‐21 LRM Unaudited Year End Financials       Looking Forward It is important to note that the actual revenue numbers remain unaudited. Audited financials will be presented to the Council and the Revenue Enhancement Oversight Committee (REOC) in January 2022 at which time decisions on allocations of remaining fund balance can be re-visited. As required by the City’s Municipal Code, the City’s audited financial statements include a separate audit of the LRM which will include the remaining available balance for appropriation. Staff will also provide an updated long- term forecast with the FY 21-22 Mid-Year Review. 2021-22 Key Changes LRM Split between Capital and Operating: 75% Capital / 25% Operating Allocation to a Capital Reserve within the Capital Outlay Fund (NEW): $3.4 million 15     Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 10/28/21 Item Number: 4 DATE: October 28, 2021 FROM: Brigitte Elke, Finance Director Prepared By: Natalie Harnett, Principal Budget Analyst SUBJECT: 2021-22 FIRST QUARTER LOCAL REVENUE MEASURE UPDATE RECOMMENDATION Review an update on Local Revenue Measure (LRM) actuals and trends as of the first quarter of Fiscal Year 2021-22 in addition to any updates on current or ongoing LRM funded capital projects and programmatic efforts. DISCUSSION Background The purpose of the quarterly LRM reports is to enhance transparency and provide the Citizens’ Revenue Enhancement Oversight Commission (REOC) with regular updates on actual revenue received from the essential services transactions(sales) and use tax as well actual expenditures on projects and programs that are funded by the measure. The reports will help bring the REOC along through the year and better prepare the commission to make budget recommendations to the City Council. The development of the LRM budget for the 2021-23 Financial Plan was guided by the City’s commitment to advancing its’ Major City Goals and Long-term Community Services and Investment Priorities. Some of the budget assumptions and highlights include:  Revenue projections reflect bounce back to pre-pandemic levels that is aligned with trends in other revenue sources for the City and statewide.  The “tripling” of revenues from the previously approved local transaction tax measure means that the Local Revenue Measure becomes the City’s largest General Fund revenue stream. It also means that the capital improvement projects which can now be funded may be larger in scale 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.  Committed a capital reserve using LRM fund balance to offset unanticipated cost increases, unforeseen conditions, and unexpected urgent projects which are becoming more common. The reserve amount reflects 20% of budgeted capital expenditures and will be adjusted annually with the adopted budget amounts. 16 City of San Luis Obispo, Title, Subtitle  City of San Luis Obispo, Title, Subtitle  Item #4 2021‐22 First Quarter Local Revenue Measure Update         Revenue Trends Producing the two-year financial plan during a pandemic was a challenging endeavor. Over the past 18 months, staff provided updates to revenue forecasts in response to the changing economy. With the gradual reopening and removal of restrictions, the spike in tourism and consumer spending in the fourth quarter of FY 2020-21 has continued into the first two months of the current fiscal year. While it is unknown how long and to what extent this pent-up demand will last and how it will impact overall revenue, the City is currently on track to meet or exceed its sales tax forecasts for 2021-22. Staff will provide an updated forecast to Council with its mid-year review on February 15, 2022 and to the REOC on February 24, 2022. Table 2: Year-to-date Measure G-20 Revenue (Compared to prior years) Adjusted for G20 Comparison (x3) Q1 Revenue Received   Fiscal Year Total Revenue July August September Total Q1 % of annual 2018-19 $8,325,230 $625,439 $853,581 $792,497 $2,271,517 27.3% 2018-19 Adj $24,975,690 $1,876,317 $2,560,743 $2,377,491 $6,814,551 2019-20 $7,554,774 $742,948 $928,169 $424,109 $2,095,227 27.7% 2019-20 Adj $22,664,322 $2,228,844 $2,784,507 $1,272,327 $6,285,679 2020-21 $8,279,713 $741,587 $939,943 $465,007 $2,146,537 25.9% 2020-21 Adj $24,839,139 $2,224,761 $2,819,829 $1,395,021 $6,439,611 2021-22 $24,279,000 $2,068,550 $2,703,212 $2,400,000 $7,171,762 29.5% Estimates   Expenditures Overview Investment into Operations This was the first quarter that the City, based on the REOC’s recommendations, was able to utilize the increased funding to support its operating programs. In addition to expanding some of its essential services, the City was able to invest in one-time efforts that provided immediate assistance to help the community and local economy recover from Covid-19. Some highlights from the first quarter include: Sales Tax Forecasting Considerations:   Trickle‐down effect of federal economic relief packages   Economic Trend Forecasts   Supply Shortages   Inflation and other economic indicators   Possible Covid‐19 wave during holiday season   Consumer travel and purchasing behavior during holiday  season   Overall recovery from the health crisis  17 City of San Luis Obispo, Title, Subtitle  City of San Luis Obispo, Title, Subtitle  Item #4 2021‐22 First Quarter Local Revenue Measure Update          Hired one new Ranger Maintenance worker and converted five temporary positions into full-time regular positions in order to maintain the City’s level of service standard for Open Space as one Ranger per 1,000 acres.  Transitioned the Business Ambassador program from a Covid-19 response action to an ongoing program.  Activated the downtown core with efforts such as enhanced downtown cleaning and the “Light up Downtown” program.  Funded a 25% expansion of beds at 40 Prado and supported homelessness response efforts with the help of the new Homelessness Response Manager.  Purchased the Mobile Crisis Unit (MCU) van and completed the RFP for a Mental Health Clinician. The full activation of the MCU is scheduled for next quarter.  Started negotiations with Transitions Mental Health Association (TMHA) on hiring an additional social worker for the Community Action Team (CAT). To see the full list of LRM funded expenditures, please visit slocity.org/budget. Table 3: 2021-22 Local Revenue Measure Investment by type (MCG = Major City Goal) Operating Budget* Capital Budget MCG: Climate Action $ 1,243,175 $ 6,095,000 MCG: Diversity, Equity, Inclusion $ 67,091 $ 345,000 MCG: Economic Recovery $ 2,777,517 $ 1,622,500 MCG: Housing & Homelessness $ 706,014 $ 927,780 Other Community Services and Essential Infrastructure $ 1,491,596 $ 8,876,120 Total $ 6,285,392 $ 17,866,400 % of Total 26% 74% *Operating budget is transferred into the General Fund at the beginning of the fiscal year Investment into Capital There are currently 50 active LRM funded capital projects which include projects budgeted for in previous fiscal years. Of the 46 LRM funded capital projects budgeted with this fiscal year 33 are active and 13 are scheduled to become active in the latter part of the fiscal year. In March of this year the City executed an agreement with Management Partners to provide an assessment and set of recommendations to adjust the CIP process and staffing structure in response to the passage of Measure G20. Management Partners has since completed its review and provided a set of recommendations that include staff additions to CIP Engineering. While the department goes through the process of adopting these recommendations, LRM funds allocated for CIP Project Delivery Augmentation are being utilized for CIP project management services. Management Partners is providing project management support for 15 capital projects. Additionally, RRM is providing project management services for design of the new Public Safety Center and Mission Plaza downtown concept plan. Staff anticipates having the recommended staffing structure changes implemented by next fiscal year. 18 City of San Luis Obispo, Title, Subtitle  City of San Luis Obispo, Title, Subtitle  Item #4 2021‐22 First Quarter Local Revenue Measure Update         Project Updates Despite a competitive construction climate and supply shortages, the City has seen favorable bids for several LRM-funded projects. This along with conservative budgeting has enabled staff to deliver capital projects within budget. Laguna Lake Dredging: This project is entirely LRM funded, $840,000 was budgeted for this fiscal year, however the actual project cost is $715,000. The project began mid-September and completion is estimated for November of this year. The dredging has been completed, and the dewatering process is underway. This step will be followed by hauling away the sediment and site demobilization. Ongoing maintenance at Laguna Lake is intended to restore water quality over time. Orcutt Tank Roundabout: The total amount budgeted for this project is $5 million, $1 million of which is LRM funding. Bids were opened in July of this year and the actual project cost is estimated at $4.6 million, construction started in July and is projected to be completed in Spring 2022. The roundabout will reduce vehicle congestion (and related emissions), reduce the potential for severe traffic collisions, and improve pedestrian and bicycle connectivity to Islay Park  2021 Downtown Pavement Improvements: The total budget for this project is $4 million, $2.7 million of which is LRM funding. Bids were opened in July and construction began in August of this year; the initial project cost was estimated at $3.9 million. During construction a waterline broke on Johnson Ave. Additionally, it was determined that new fire hydrants needed to be installed, resulting in an updated total project cost of $4 million. Staff anticipates that the project will be complete before the end of the calendar year. Sinsheimer Park Irrigation and Drainage: This project is entirely LRM funded, $650,000 was budgeted for this fiscal year. Bids were opened in June; the actual construction cost is $507,440. The project is expected to be completed this Fall. This project is a part of ongoing maintenance of City parks. Meadow Park Pathways: The total budget for this project is $442,124, $250,000 of which is LRM funding. Bids were opened in June of this year; the actual project cost is $380,128. Staff anticipates that this project will be completed in November of this year. Capital Reserve Balance In June 2021 and based on the REOC’s recommendation, the City Council adopted a comprehensive Fund Balance and Reserve Policy (R-11250). The policy states that the City will maintain a committed reserve of 20% of the capital improvement plan budget from the Local Revenue Measure for unanticipated costs. Use of funds from the Capital Projects Reserve Fund can be made upon Council approval as necessary during any fiscal year. The chart below shows the current balance of the reserve. Table 4: 2021-22 Capital Projects Reserve Fund Beginning Balance (21‐23 Financial Plan) $ 3,426,208  Support completion of Fire Station #1 Roof Replacement after  discovering significant water damage during HVAC  replacement (7/6/2021 Council Agenda Report)  $ 200,000  Ending Balance of Capital Reserve as of 10/1/2021 $ 3,226,208  19 Item #4 – Attachment 1 – Local Revenue Measure CIP Projects      Local Revenue Measure CIP Projects  As of the first quarter of FY 2021‐22, all LRM funded CIP projects are on schedule.    Active or Ongoing Project  Total Project  Budget *   Actual  Expenditures   Available  Balance  2015 Traffic Safety Report Improvements (91607)30,000$                ‐$                    30,000$                 2020 Neighborhood Greenways Public Art 24,250$                13,034$              11,216$                 2021 Downtown Pavement Improvements Project 2,771,214$          2,069,705$        701,509$               405 FOOTHILL STORM DRAIN REPAIR 65,907$                65,907$              ‐$                       Active Transportation Plan Implementation 205,000$              45,588$              159,412$               Anholm Neighborhood Greenway Plan ‐ Phase 1 59,669$                59,669$              ‐$                       Anholm Neighborhood Greenway Plan ‐ Phase 2 744,775$              264,865$           479,910$               Annual Public Art Maintenance and Projects 92,500$                60,000$              32,500$                 Banner Arm ‐ Bench Rests ‐ Signs 100,000$              20,878$              79,122$                 Bicycle Facility Improvements ‐ Annual Asset Maintenance Account 92,154$                38,841$              53,312$                 Bike and Pedestrian Quick Build Projects 57,919$                57,919$              ‐$                       Bob Jones Trail and RRST Solar Lighting 100,000$              ‐$                    100,000$               Broad Street Corridor Access Improvements 55,000$                5,402$                49,598$                 Bullock Lane CMP Replacement 352,146$              348,025$           4,121$                   California Taft Roundabout 300,000$              ‐$                    300,000$               CIP Project Delivery Augmentation 278,280$              ‐$                    278,280$               City Facilities HVAC Replacements 99,005$                98,804$              201$                      City Hall Breaker Replacement 30,000$                ‐$                    30,000$                 Community Safety Emergency Response Communication Equipment 675,170$              603,122$           72,048$                 Corp Yard Fuel Island Siding (91632)14,750$                14,549$              201$                      Development Agreements 120,000$              ‐$                    120,000$               Downtown Cleaning Equipment 150,000$              129,033$           20,967$                 Downtown Public Art Installations 200,000$              22,778$              177,222$               Downtown Safety Enhancements 400,000$              175,267$           224,733$               Downtown Zig‐Zag Lighting 250,000$              ‐$                    250,000$               ECC Equipment Replacement (91690)35,000$                25,443$              9,557$                   EDC DataAire Replacement 140,591$              140,591$           (0)$                         Electric Vehicle Charging Station at Various Facilities 100,000$              ‐$                    100,000$               Emergency Repair ‐ 54 Highland 14,770$                14,770$              ‐$                       Facility Maintenace ‐ Annual Asset Maintenance Account 44,369$                2,520$                41,849$                 Facility Parking Lot Maintenance (91310)109,000$              24,417$              84,583$                 Fire Station 1 HVAC (91647)196,300$              168,070$           28,230$                 Fire Station 3 Sewer Lateral Replacement (91687)18,000$                ‐$                    18,000$                 Fire Station 3&4 Remodel Space Study and Design 25,000$                ‐$                    25,000$                 Fire Station Rollup Door (91581)9,500$                  9,110$                390$                      Fleet Replacement: Fire 275,000$              121,696$           153,304$               Fleet Replacement: Parks and Recreation 139,000$              ‐$                    139,000$               Fleet Replacement: Police 220,000$              ‐$                    220,000$               Fleet Replacement: Public Works 631,000$              9,289$                621,711$               Fleet Replacements ‐ Annual Asset Maintenance 387,359$              280,832$           106,527$               Fleet Services Vehicle Lift 78,000$                69,145$              8,855$                   Higuera Street Paving 174,999$              150,365$           24,634$                 IT Replacements ‐ Annual Asset Maintenance Account 2,201,323$          991,120$           1,210,203$           KVEC Tower 165,250$              165,250$           ‐$                       Laguna Lake Dredging (99110)840,000$              548,437$           291,563$               * Includes carryover budget from prior years j 20 Item #4 – Attachment 1 – Local Revenue Measure CIP Projects        Active or Ongoing Project  Total Project  Budget *   Actual  Expenditures   Available  Balance  Laguna Lake Dredging and Sediment Management Project Implementation 1,194,204$           41,106$               1,153,097$           Laguna Lake Golf Course ‐ Annual Asset Maintenance Account 50,000$                 30,000$               20,000$                 Major Facilities Maintenance ‐ Annual Asset Maintenance Account 1,030,970$           160,060$            870,910$               Major Facility Replacements 170,000$               70,000$               100,000$               Marsh at Santa Rosa Replacement 2016 (90480) 725,089$               663,900$            61,189$                 Meadow Park Pathways Maintenance 263,540$               225,739$            37,801$                 Meadow Park Pedestrian Bridges Replacement Project 237,227$               237,227$            ‐$                       Mission Plaza Restroom Replacements and Enhancements 366,770$               350,376$            16,394$                 Multisite Energy Management (91574) 132,600$               115,270$            17,330$                 Multi‐space On‐Street Pay Stations 17,000$                 17,000$               ‐$                       Neighborhood Traffic Improvements 241,819$               72,726$               169,094$               North Broad Street Neighborhood Park 175,000$               ‐$                     175,000$               Open SLO 200,000$               30,082$               169,918$               Open Space ‐ Annual Asset Maintenance Account 273,254$               132,947$            140,307$               Open Space Acquisition 840,283$               579,286$            260,997$               Orcutt/Tank Roundabout Construction 1,072,048$           990,148$            81,900$                 Parking Lot Maintenance ‐ Annual Asset Maintenance Account 195,000$               ‐$                     195,000$               Parks & Recreation HVAC 2017 (91572) 17,806$                 15,278$               2,529$                   Parks and Rec General Plan Implementation 200,000$               ‐$                     200,000$               Parks Hydrate Station (91681) 15,000$                 ‐$                     15,000$                 Parks Major Maintenance ‐ Annual Asset Maintenance Account 1,997,424$           547,574$            1,449,850$           Patrol Sedan (91697) 51,000$                 51,000$               0$                           Patrol SUV (91699) 51,000$                 51,000$               0$                           Ped & Bike Path Maintenance ‐ Annual Asset Maintenance Account 14,006$                 14,006$               (0)$                         Pedestrian and Bicycle Pathway ‐ Annual Asset Maintenance Account 20,000$                14,225$              5,775$                   Pedestrian Crossing Improvements 40,000$                32,092$              7,908$                   Pedestrian Crosswalk Beacon on Ramona 50,000$                15,000$              35,000$                 Pedestrian Safety Improvements on Monterey at Buena Vista 30,000$                10,848$              19,152$                 Pest Control (91578)17,500$                7,120$                10,380$                 Pismo/Johnson/SL Creek Bank Stabilization 60,000$                46,823$              13,177$                 Playground Equipment Replacement ‐ Annual Asset Maintenance Account 157,145$              ‐$                    157,145$               Police Patrol Replacement ‐ 1536 75,000$                13,344$              61,656$                 Police Patrol SUV ‐ 1507 65,000$                940$                   64,060$                 Police Patrol SUV ‐ 1511 65,000$                940$                   64,060$                 Police Station Replacement 190,685$              187,210$           3,475$                   Prado Road Bridge Widening 427,780$              427,780$           ‐$                       Prado Road Interchange 500,000$              ‐$                    500,000$               Radio Handhelds (91583)87,619$                ‐$                    87,619$                 Railroad District Boardwalk Replacement 1,214$                  1,165$                49$                        Roadway Sealing 2020 1,110,630$          1,110,513$        117$                      Roundabout Public Art Installations 300,000$              ‐$                    300,000$               Sidewalk Annual Asset Maintenance Account 491,268$              170,655$           320,613$               South Broad Street Improvements 1,229,562$          1,229,562$        ‐$                       South Street Median Landscaping 255,000$              34,475$              220,525$               Storm Drains Annual Asset Maintenance Account 1,124,314$          130,138$           994,176$               Street Lights ‐ Annual Asset Maintenance Account 217,500$              72,238$              145,262$               Street Reconstruction and Resurfacing ‐ Annual Asset Maintenance Accoun 4,707,310$           420,287$            4,287,023$           Swim Center Co‐generation Plant (91653) 85,000$                 1,501$                 83,500$                 Traffic Safety Implementation 164,467$               14,998$               149,469$               Traffic Signs and Striping Maintenance 77,066$                 1,191$                 75,875$                 Transportation Safety and Operations 65,000$                 44,320$               20,680$                 Urban Forest ‐ Annual Asset Maintenance Account Cap‐X 665,797$               350,797$            315,000$               Water Distribution Fire Hydrants 40,000$                 ‐$                     40,000$                 TOTAL 34,923,096$       15,547,327$     19,375,769$       * Includes carryover budget from prior years 21     Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 10/28/2021 Item Number: 5 DATE: October 28, 2021 FROM: Brigitte Elke, Finance Director Prepared By: Natalie Harnett, Principal Budget Analyst SUBJECT: 2020-21 ANNUAL COMMUNITY REPORT AND CITIZEN OVERSIGHT MEETING RECOMMENDATIONS 1. Discuss concepts and provide direction for the 2020-21 Annual Community Report; and 2. Appoint two Commissioners to serve on a subcommittee to assist in the development of the report; 3. Discuss the 2021-22 Annual Citizen Oversight Meeting. DISCUSSION Chapter 3.15 of the Municipal Code (Essential Services Transactions [Sales] and Use Tax) includes specific citizen oversight and fiscal accountability provisions. These provisions include an annual community report and annual citizen oversight meeting: Annual Community Report. A written report shall be reviewed at a public hearing by the Revenue Enhancement Oversight Commission, and a summary will be provided annually to every household in the community detailing how much revenue is being generated by the measure and how funds are being spent (MC 3.15.040.E). Annual Citizen Oversight Meeting. An invitation will be extended each year to the entire community inviting them to participate in a forum to review and discuss the use of the revenue generated by this measure. City staff will also be available to meet with any group that requests a specific briefing with their members to discuss and answer questions about the revenues generated by the measure and their uses (MC 3.15.040.F). Annual Community Report The annual community report is produced based on revenues and expenditures from the previous fiscal year. The most recent report was published for Fiscal Year 2019-20 (Attachment 1). This report included: 1. An update regarding the economic impacts of the COVID-19 pandemic. 2. Background of the sales tax measure 3. Local Revenue Measure Ballot Language (Measure G) 4. Revenue overview including historic data 5. How Local Revenue Measure funds were used including Project Spotlight descriptions and photography 6. Planned Local Revenue Measure uses for the following year 7. Detailed Local Revenue Measure project and services along with expenditures 22 City of San Luis Obispo, Title, Subtitle  City of San Luis Obispo, Title, Subtitle  Item #5 2020‐21 Annual Community Report and Citizen Oversight Meeting        8. REOC members The REOC could consider concepts and provide any direction on ways to enhance this report for the public. Some previous improvements included: 1. Adding more storytelling spotlights including project photography 2. Replacing some of the narrative with infographics 3. Revising the look and feel to align with City style guide standards 4. Switching to a landscape format to allow for easy reading on a computer. Recommendations for the 2020-21 report are: 1. Include a section on the ongoing economic impacts of the COVID-19 pandemic. 2. Maintain the style from the new & improved 2019-20 report – easy to read, in line with City branding, will help develop consistency, received positive feedback 3. Include timeline of initiatives/projects pipeline – add dates, additional projects 4. Photos and names of REOC members The City will be using a professional designer to design the report. The Annual Community Report-in- Brief will be included in City utility bills after it is presented at the Annual Citizen Oversight Meeting in April 2022. Annual Citizen Oversight Meeting The Annual Citizen Oversight Meeting is intended to provide an opportunity for the public to learn about how funds generated from the Local Revenue Measure were spent and provide feedback and input. The meeting satisfies the obligations identified in City’s Municipal Code related to the Local Revenue Measure (MC 3.15.040.F). When the Annual Citizen Oversight Meeting occurs in the same year as the development of the City’s two-year financial plan, the meeting is included as a part of the biennial Community Forum, a joint meeting with the City Council, and is associated with the financial plan development process. The 2020- 21 Annual Community Report preparation falls during the first year of the 2021-23 Financial Plan; therefore the Annual Citizen Oversight Meeting will be held as a standalone meeting in April 2022.   23 LOCAL REVENUE MEASURE ANNUAL COMMUNITY REPORT Fiscal Year 2019–20 CITY OF SAN LUIS OBISPO HOW DID WE SPEND REVENUES? PAGE 6 Read about how Local Revenue Measure funds were spent in 2019-2020. SOUTH BROAD STREET IMPROVEMENTS PAGE 8 Learn about our project that included asphalt replacement, new curb ramps, striping and bicycle safety improvements. 1 PROJECT SPOTLIGHT Islay Hill Park The Local Revenue Measure funded the replacement of the playground equipment and pathways at Islay Hill Park. The project also included new shade structures over the play areas, picnic tables and a hydration station. 24 2 This report highlights the revenue and uses of the Local Revenue Measure for the time frame beginning July 2019 and ending June 2020. Due to the economic impacts of the COVID-19 pandemic, Local Revenue Measure revenues were lower than originally projected. To offset the loss in revenues, the City reduced and deferred non-essential services and non-critical infrastructure projects while prioritizing essential City services such as public safety and emergency response. The Revenue Enhancement Oversight Commission (REOC) will continue its oversight role on the use of the Local Revenue Measure to support accountability and public engagement efforts. The Local Revenue Measure continues to be a vital resource to deliver the community’s highest priorities and support San Luis Obispo’s economic stability, recovery and resiliency. Community members can learn more about the Local Revenue Measure by visiting www.slocity.org/localrevenue. ANNUAL COMMUNITY REPORT: COVID-19 IMPACTS Local Revenue Measure funding was used for preliminary steps toward securing a conservation easement for the Miossi Brothers La Cuesta Ranch, which is the next phase of the project following the acquisition of the 266-acre Miossi Open Space in 2018-19. 25 3 The Local Revenue Measure – also known as Measure G – is a one- half percent local sales tax approved by City voters in November 2006. It protects and maintains essential services and facilities, such as open space preservation, bike lanes and sidewalks, public safety, neighborhood street paving and code enforcement, flood protection, senior programs, and other vital services and capital improvement projects. These community spending priorities help guide the Citizens’ Revenue Enhancement Oversight Commission (REOC) when making recommendations to the Council about Local Revenue Measure uses. The Council uses the REOC’s input, and additional public feedback, to prioritize use of the Local Revenue Measure funding as part of the City’s two-year financial planning process. The Local Revenue Measure (Measure G-20) was renewed and extended at a one and half-percent rate in November 2020. WHAT IS THE LOCAL REVENUE MEASURE? The Local Revenue Measure funded patrol officers and a Sergeant, including the Downtown Bicycle Officers. Downtown patrol has been instrumental in being a visual deterrent and enforcement option in the downtown core to keep residents, businesses and visitors safe. This image was taken following all health and safety guidelines to reduce the spread of COVID-19. 26 4 “To protect and maintain essential services and facilities – such as open space preservation; bike lanes and sidewalks; public safety; neighborhood street paving and code enforcement; flood protection; senior programs; and other vital services and capital improvement projects – shall the City’s Municipal Code be amended to extend the current one-half percent local sales tax for eight years, with independent annual audits, public goal setting and budgeting, and a Citizens’ Oversight Commission?” LOCAL REVENUE BALLOT MEASURE (MEASURE G) Sinsheimer Pool Upgrades: The project consisted of the removal and replacement of the therapy pool’s plaster interior and other minor improvements to current public pool standards. New tiling, depth markers, stainless steel grabrail steps, underwater lights and an ADA compliant lift were also added. 27 5 Local one-half percent sales tax revenue totaled $7.7 million in 2019-20, which added approximately 13 percent to the general fund. The Local Revenue Measure has generated more than $87.1 million since its original adoption in November 2006. REVENUES Open Space Rangers: The Local Revenue Measure funded two Ranger positions. The Rangers helped maintain over 4,000 acres of open space and 55 miles of trails. They also led open space hikes with community members. 0 $2M $4M $6M $8M $10M FISCAL YEAR (July 1-June 30) 2019–20 $7.7M $6.5M $6.8M $7.1M $7.2M $7.4M $7.5M $8.4M 2012–13 2013–14 2014–15 2015–16 2016–17 2017–18 2018–19 0 $2M $4M $6M $8M $10M FISCAL YEAR (July 1-June 30) 2019–20 $7.7M $6.5M $6.8M $7.1M $7.2M $7.4M $7.5M $8.4M 2012–13 2013–14 2014–15 2015–16 2016–17 2017–18 2018–19 28 24% PUBLIC SAFETY $1.7 million 6USES 2019–20 2019-20 Local Revenue Measure funds were used on the following Council-adopted priorities: 15% PARKS AND RECREATION/ SENIOR PROGRAMS AND FACILITIES $1 million 4% OPEN SPACE PRESERVATION $270,000 10% FLOOD PROTECTION $670,000 12% BICYCLE AND PEDESTRIAN IMPROVEMENTS $871,000 2% TRAFFIC CONGESTION RELIEF/SAFETY IMPROVEMENTS $160,000 4% CODE ENFORCEMENT $310,000 2% OTHER VITAL SERVICES AND CAPITAL PROJECTS $133,000 27% NEIGHBORHOOD STREET PAVING (INCLUDES IMPROVEMENTS TO BIKE LANES) $1.9 million Bob Jones Trail Sealing Project: As part of the 2020 Roadway Sealing Project, a section of the Trail received a slurry seal and new striping 29 7USES 2019-20 For every $1 of revenue generated by the Local Revenue Measure, approximately 70¢ is paid by visitors and 30¢ is paid by City residents (This information was based on 2019 data and may change in the current and future fiscal years due to the impacts of the COVID-19 pandemic on our community.) Operating Uses ($2.2M) // 32% Capital Uses ($4.8M) // 68% To fund positions that provide services Examples of these costs include funding for positions such as police officers, open space rangers and flood control staff. To fund construction and investment in equipment Examples of capital expenditures were the South Broad Street Improvements, a conservation easement for the Miossi Brothers La Cuesta Ranch, and the Islay Hill Park Playground. Local Revenue Measure uses fall into two categories: operating programs and capital programs. Bullock Lane storm drain: The project replaced a corrugated metal pipe culvert (CMP) crossing at Bullock Lane. The CMP culvert was at risk of imminent failure due to pipe corrosion. In addition to a new culvert pipe, the project included installation of a concrete headwall and rock slope protection features to guard against major storm events. 30 8PROJECT SPOTLIGHT As the main route to the San Luis Obispo County Airport, surrounding neighborhoods, shopping and the Damon Garcia Sports Fields, South Broad Street is used by pedestrians, bicyclists and vehicles. The project included the removal of failing asphalt pavement and replacement with a new asphalt section to meet the demands for a variety of modes of transportation using South Broad Street. The project also included the construction of six new curb ramps and substantial roadway striping changes to improve bicycle safety. South Broad Street Improvements Specific bicycle improvements included the installation of buffered bike lanes as well as the narrowing of vehicle travel lanes to increase bike lane widths. 31 9 The Local Revenue Measure is a critical revenue source for community investment and economic recovery due to the impacts of COVID-19. The City is committed to completing projects that maintain infrastructure and support the delivery of essential services to residents and businesses. PLANNED LOCAL REVENUE MEASURE USES 2020 ROADWAY SEALING (IMPROVEMENTS TO 82 ROADS SPANNING 19 MILES) COMPLETED OCTOBER 2020 PAVEMENT AND PEDESTRIAN SAFETY IMPROVEMENTS ON HIGUERA STREET MAY 2021 PEDESESTRIAN CROSSING IMPROVEMENTS SUMMER 2021 MIOSSI OPEN SPACE OPENS TO THE PUBLIC SPRING 2021 RAILROAD SAFETY TRAIL (TAFT TO PEPPER STREETS) SUMMER 2021 MARSH ST BRIDGE COMPLETED JANUARY 2021 Public Safety Radio Tower: The project consisted of the removal and replacement of the existing radio shelter, antenna poles and generator to power the facility in case of an emergency or loss of power. A new 100’ radio tower was built to boost signal reception for public safety personnel responding to calls for service. 32 10 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2019–20 (BUDGET) 2019–20 (ACTUAL) 2019–20 (BUDGET & CARRYOVER*) 2019–20 (ACTUAL) Urban Forest Maintenance 175,797 35,663 Laguna Lake Dredging and Sediment Management Project Implementation 19,977 14,316 Open Space - Annual Asset Maintenance Account 59,993 17,709 Open Space Acquisition 68,189 55,342 Ranger Services (Ranger Staffing: FTE= 2) 146,474 146,474 Subtotal 146,474 146,474 323,956 123,030 New Street Lights 76,101 26,079 Bicycle Facility Improvements 16,403 16,359 Railroad Safety Trail: Taft Street to Pepper Street 230,261 83,623 Sidewalk Replacement 169,707 142,836 Downtown Renewal 286,096 280,801 Active Transportation Plan 100,146 75,114 Anholm Neighborhood Greenway Plan - Phase 1 46,045 45,672 Transportation Planning and Engineering (Engineer, Active Transportation Manager: FTE=1.6) 200,678 200,678 Subtotal 200,678 200,678 924,759 670,484 OPEN SPACE PRESERVATION BICYCLE AND PEDESTRIAN IMPROVEMENTS CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2020 33 11CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2020 OPERATING PROGRAMS CAPITAL PROJECTS Transportation Safety & Operations Improvement 9,196 9,196 Traffic Safety Report Implementation 32,587 4,118 Neighborhood Traffic Improvements 94,094 37,079 Signal and Light Maintenance (Technician: FTE=1) 109,598 109,598 Subtotal 109,598 109,598 135,877 50,393 TRAFFIC CONGESTION RELIEF / SAFETY IMPROVEMENTS OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2019–20 (BUDGET) 2019–20 (ACTUAL) 2019–20 (BUDGET & CARRYOVER*) 2019–20 (ACTUAL) The Signal & Streetlight Technician operates and maintains traffic signals and streetlights on City streets to ensure safe and efficient traffic flow through intersections and provide well-lit streets and neighborhoods. 34 12CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2020 IT Public Safety Replacements & Improvements 442,287 116,087 Handheld and Vehicle Radio Replacement 203,000 City Firewall Replacement 154,863 154,856 Facility Parking Lot Maintenance 120,000 21,051 Police Station Replacement Study 160,310 47,022 Fire Station 4 Emergency Backup Generator 100,877 76,681 Emergency Dispatch Center DataAire Replacement 136,563 136,563 Community Safety Emergency Response Communication Equipment 516,855 237,059 Public Safety Surveillance Camera 3,435 3,435 Police Patrol Vehicle Replacements (5) 263,000 253,704 Police Station Building Maintenance and Improvements 17,500 9,310 Fire Stations Building Maintenance 101,100 12,390 Patrol Services (Officers, Sergeant: FTE = 4) 613,991 613,991 Subtotal 613,991 613,991 2,219,790 1,068,159 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2019–20 (BUDGET) 2019–20 (ACTUAL) 2019–20 (BUDGET & CARRYOVER*) 2019–20 (ACTUAL) PUBLIC SAFETY The Local Revenue Measure is used to replace aging vehicles and equipment, including five Police patrol vehicles. 35 South Broad Street Improvements 1,229,562 1,229,562 Street Reconstruction and Resurfacing - Annual Asset Maintenance Account 430,438 96,677 Marsh Street Bridge Replacement 725,089 357,964 Streets and Sidewalk Maintenance (Maintenance Worker, Project Engineer: FTE = 2) 178,017 178,017 Subtotal 178,017 178,017 2,385,089 1,684,203 13CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2020 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2019–20 (BUDGET) 2019–20 (ACTUAL) 2019–20 (BUDGET & CARRYOVER*) 2019–20 (ACTUAL) NEIGHBORHOOD STREET PAVING INCLUDES IMPROVEMENTS TO BIKE LANES CODE ENFORCEMENT Mission Plaza Railing Upgrades 19,836 19,836 (Code Enforcement Officers, Code Enforcement Techncian: FTE = 3) 289,863 289,863 Subtotal 289,863 289,863 19,836 19,836 The Local Revenue Measure funded two Code Enforcement Officer and one Code Enforcement Technician positions focused on promoting health and safety in neighborhoods and increasing awareness of City policies. Code enforcement staff investigate potential building code and land use violations and patrol for violations of property maintenance standards. 36 Storm Drain System Replacement 332,367 32,999 Creek and Flood Protection (Collection System Personnel: FTE = 6) 636,534 636,534 Subtotal 636,534 636,534 332,367 32,999 14CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2020 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2019–20 (BUDGET) 2019–20 (ACTUAL) 2019–20 (BUDGET & CARRYOVER*) 2019–20 (ACTUAL) FLOOD PROTECTION PARKS AND RECREATION / SENIOR PROGRAMS AND FACILITIES Meadow Park Pedestrian Bridges and Pathways 263,187 239,867 Laguna Lake Golf Course Annual Maintenance 10,000 10,000 Parks Major Maintenance & Repairs 398,626 13,817 Mission Plaza Restroom Replacements and Enhancements 101,486 17,294 Swim Center Co-generation Plant 85,000 1,500 Islay Hill Park Playground Equipment Replacement 518,058 435,563 Swim Center Re-plaster Therapy Pool 121,170 121,170 Swim Center Building Maintenance and Equipment Replacement 18,978 13,557 Jack House Building Maintenance 57,500 12,750 City County Library Major Maintenance 110,420 110,356 Parks and Landscape Maintenance (Maintenance Worker: FTE = 1) 62,834 62,834 Subtotal 62,834 62,834 1,684,425 975,875 37 15 City Facilities HVAC Replacements 99,005 66,779 Multisite Energy Management 32,600 7,770 Fleet Replacements - Annual Asset Maintenance 127,359 5,425 Facilities Annual Asset Maintenance Account 232,371 49,557 Undesignated Capital 3,455 3,455 Subtotal 494,790 132,986 TOTAL LOCAL REVENUE MEASURE USES 2,237,989 2,237,989 8,520,889 4,757,963 CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2020 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2019–20 (BUDGET) 2019–20 (ACTUAL) 2019–20 (BUDGET & CARRYOVER*) 2019–20 (ACTUAL) OTHER VITAL SERVICES AND CAPITAL PROJECTS *Budget & Carryover includes unspent funds for planned, but not yet completed projects. Funds will remain committed to those projects until completed. The project replaced a section of sidewalk in front of the businesses at 858 Higuera with new mission style sidewalk and underground structural supports due to the businesses’ basement underlying the sidewalk. 38 16 Open Space Preservation, Bicycle and Pedestrian Improvements, Traffic Congestion Relief/Safety Improvements, Public Safety, Neighborhood Street Paving, Code Enforcement, Flood Protection, Parks and Recreation/Senior Programs and Facilities, other Vital Services and Capital Projects. PRIORITIES SET BY THE CITY COUNCIL FOR FY 2019–20 INCLUDE: CITY OF SAN LUIS OBISPO For more information, please visit: www.slocity.org/budget Design: AMF Media Group Photography: Kelly Donohue Photography Owen Main Photography City of San Luis Obispo CITIZENS’ REVENUE ENHANCEMENT OVERSIGHT COMMISSION Volunteer Residents Serve on the Commission 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. Matt Quaglino Commissioner Jeannette McClure Chair Tony Skapinsky Commissioner Jim Hamari Vice Chair Christopher Ellwood Commissioner 39