HomeMy WebLinkAbout01-26-2022 REOC Agenda PacketCity of San Luis Obispo, Agenda, Planning Commission
Agenda
REVENUE ENHANCEMENT OVERSIGHT COMMISSION
Wednesday, January 26, 2022
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/82743146473?pwd=WTRmTkxYOEV6Ny9pVTl4NkIrOUR1Zz09
Webinar ID: 827 4314 6473
Telephone Attendee: +1 (669) 900-6833
Webinar ID: 827 4314 6473; Passcode: 821105
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.
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Revenue Enhancement Oversight Commission Agenda for January 26, 2022 Page 2
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 October 28, 2021
BUSINESS ITEMS
2. Annual Audit Review (FY 2020-21)
(Natalie Harnett/Debbie Malicoat)
Recommendation: Review the audited financial statements contained in the 2020-21 Annual
Comprehensive Financial Report for the Local Revenue Measure.
3. FY 2021-22 Second Quarter Local Revenue Measure Review
(Natalie Harnett)
Recommendation: Review an update on Local Revenue Measure (LRM) actuals and trends
as of the second quarter of Fiscal Year 2021-22 in addition to any updates on current or
ongoing LRM funded capital projects and programmatic efforts.
4. Proposed Local Revenue Measure Uses for Mid-year Budget Review
(Natalie Harnett)
Recommendation: As part of the 2021-22 Mid-year review, recommend the City Council the
use of Local Revenue Measure funds for the capital and operating expenditures as referenced
in the report.
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Revenue Enhancement Oversight Commission Agenda for January 26, 2022 Page 3
PRESENTATIONS
COMMENT AND DISCUSSION
ADJOURNMENT
The next Regular Meeting of the Revenue Enhancement Oversight Commission is scheduled
for March 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
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City of San Luis Obispo, Agenda, Planning Commission
REVENUE ENHANCEMENT OVERSIGHT COMMISION
Minutes - DRAFT
Thursday, October 28, 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 Thursday, October 28, 2021, at 5:30 pm by Chair McClure, via teleconferencing.
ROLL CALL
Present: Commissioners Quaglino, Skapinsky, Ellwood, Vice-Chair Hamari, and Chair
McClure
Absent: None
Staff: Natalie Harnett, Principal Budget Analyst
Brigitte Elke, Finance Director who also served as Recording Secretary
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 March 31, 2021.
ACTION: UPON MOTION BY COMMISSIONER SKAPINSKI SECONDED BY
COMMISSIONER QUAGLINO, CARRIED 5-0-0, the Revenue Enhancement Oversight
Commission approved the Minutes of the Regular Revenue Enhancement Oversight
Commission Meeting of March 31, 2021, as presented.
BUSINESS ITEMS
2. Review Purpose of the Revenue Enhancement Oversight Commission and Elect Officers
Staff presented the Municipal Code section pertaining to the Revenue Enhancement Oversight
Commission and the advisory body bylaws.
4
Commissioner Skapinski verified that the chair can serve more than one year. Staff confirmed
that the commission chair and vice-chair can serve for two consecutive years.
Public Comment
None
ACTION: UPON MOTION BY COMMISSIONER HAMARI SECONDED BY
COMMISSIONER ELLWOOD CARRIED 5-0-0, the commission nominated Jeannette
McClure to serve as commission chair.
ACTION: UPON MOTION BY COMMISSIONER SKAPINSKI SECONDED BY
COMMISSIONER QUAGLINO CARRIED 5-0-0, the commission nominated Jim Hamari
to serve as commission vice-chair.
3. Unaudited FY2020-21 Year-End Local Revenue Measure Review
The City’s Principal Budget Analyst, Natalie Harnett, provided a PowerPoint presentation and
responded to Commissioner inquiries. This was a receive and file item.
Public Comment
None
4. FY 2021-22 First quarter Local Revenue Measure Review
The City’s Principal Budget Analyst, Natalie Harnett, provided a PowerPoint presentation and
responded to Commissioner inquiries. This was a receive and file item.
Public Comment
None
5. 2020-21 Annual Community Report and Citizen Oversight Meeting
The City’s Principal Budget Analyst, Natalie Harnett, provided a review of last year’s report.
The commissioners asked that the format be retained with lots of photos that show people in
action and enjoying the amenities.
Commissioners Ellwood and Skapinski were elected by consensus to service as the sub-
committee members to develop the new community report.
Public Comment
None
COMMENT AND DISCUSSION
6. Staff Updates - none
7. Commission Communications - none
5
ADJOURNMENT
The meeting was adjourned at 6:33 p.m. The next Regular Revenue Enhancement Oversight
Commission meeting is scheduled for February 24, 2022, at 5:30 p.m., in the Council Hearing
Room, 990 Palm Street, San Luis Obispo, California.
APPROVED BY THE REVENUE ENHANCEMENT OVERSIGHT COMMISSION: 1/26/2022
6
Revenue Enhancement Oversight Commission
Agenda Report Meeting Date: 1/26/22
Item Number: 2
DATE: January 26, 2022
FROM: Brigitte Elke, Finance Director
Prepared By: Natalie Harnett, Principal Budget Analyst
SUBJECT: REVIEW OF AUDITED 2020-21 FINANCIALS
RECOMMENDATIONS
Review the audited financial statements contained in the Annual Comprehensive Financial Report
(ACFR) for the Local Revenue Measure.
DISCUSSION
Ordinance No. 1605, establishes the Citizens’ Revenue Enhancement Oversight Commission (REOC)
and includes specific citizen oversight and fiscal accountability provisions for the Local Revenue
Measure (LRM). These provisions include an annual review of the financial statements for the Local
Revenue Measure as included in the City’s ACFR:
2.14.040(C.) Annual Audit. The REOC shall meet annually to review the financial statements
contained in the Annual Comprehensive Financial Report for the Essential Services Measure.
On January 18, 2022, the City Council accepted the ACFR for fiscal year 2020-21. As required by the
City Charter, the financial statements for the City (including the Local Revenue Measure) were audited
by independent certified public accountants. The objective of a financial audit is to provide users of the
financial reports with reasonable assurance, from an independent source, that the reports and the
statements within are reliable. The auditor, Badawi and Associates, issued the financial statements with
a ‘clean opinion’ which means that they are presented fairly and in conformity with generally accepted
accounting principles. As a matter of clarification, LRM funds are a sub-fund of the General Fund and
as such the schedules on pages 121-123 contained in the ACFR are for informational purposes only.
The table below shows $1,964,773 available for future year appropriations in the Local Revenue
Measure fund at the end of fiscal year 2020-21. As with most California cities, the actual sales tax
revenues came in higher than initial projections especially in the fourth quarter of fiscal year 2021,
reflecting a spike in consumer spending as a result of pent-up demand and the easing on restrictions
brought about by the pandemic. At the end of fiscal year 2020-21, the Local Revenue Measure had a
fund balance of $9,299,971, of which $3,908,990 remains assigned for capital projects already approved
by the REOC and the City Council, and $3,426,208 is committed for the Capital Reserve.
An excerpt from the ACFR Transmittal Memorandum with a summary of the audited expenditures and
revenues is included below. The complete ACFR is available online at www.slocity.org.
7
City of San Luis Obispo, Title, Subtitle
Local Sales Tax Measure Expenditures: 2020-21 Operating
Programs
Capital
Projects* Total
Preservation of Essential Services
Open Space Preservation $ 152,922 $ 260,267 $ 413,189
Bicycle and Pedestrian Improvements 215,023 224,355 439,378
Traffic Congestion Relief 112,237 13,604 125,841
Public Safety 663,940 1,342,977 2,006,917
Neighborhood Street Paving 189,527 1,904,645 2,094,172
Code Enforcement 302,046 439,683 741,729
Creek and Flood Protection 667,282 275,608 942,890
Parks and Landscape Maintenance 66,954 3,840,704 3,907,658
Total $2,369,931 $8,301,843 $10,671,774
*Includes COVID-19 related Economic Recovery and Public Health and Safety investments
Half Percent Sale Tax Measure Revenues & Uses Summary Total
Revenues:
Sales and use tax - Measure G 1/2 Cent add-on tax 12,779,713
Use of money and property 1,333
Total Revenues $12,781,046
Uses:
Operating Programs (2,369,931)
Capital Projects (8,301,843)
Total Uses $(10,671,774)
Excess of revenues over expenditures 2,109,272
Prior Sales Tax Measure Balance 7,190,699
Encumbered or designated for carryover for future
year expenditures (3,908,990)
Available for future year appropriations $5,390,981
20% Capital Projects Reserve Fund (committed
effective July 1, 2021)1 (3,426,208)
Net available for future year appropriations $1,964,773
1 Resolution 11250 (June 1, 2021) The City will maintain a committed reserve of 20% of capital improvement plan budget
from the Local Revenue Measure for the purpose 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 approval as necessary during any fiscal year.
8
Revenue Enhancement Oversight Commission
Agenda Report Meeting Date: 1/26/2022
Item Number: 3
DATE: January 26, 2022
FROM: Brigitte Elke, Finance Director
Prepared By: Natalie Harnett, Principal Budget Analyst
SUBJECT: 2021-22 SECOND QUARTER LOCAL REVENUE MEASURE UPDATE
RECOMMENDATION
Review an update on Local Revenue Measure (LRM) audited fiscal year-end financials and revenue
trends as of the second quarter of Fiscal Year 2021-22 in addition to any updates on current or ongoing
LRM funded capital projects and operating program 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 LRM. The reports are designed to assist the REOC in preparing for upcoming
budget considerations and recommendations to the City Council.
Revenue Trends
Producing the two-year financial plan during a continuing pandemic was a challenging endeavor. Over
the past 18 months, staff provided updates to revenue forecasts in response to the changing economy and
pandemic related restrictions. 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
quarters of the current fiscal year. Based on consultant forecasts combined with staff’s own trend
analysis, the City is on track to exceed its current sales tax forecasts for 2021-22. The following tables
show year-to date revenue received and staff’s updated LRM forecasts which will be presented to
Council on February 15, 2022.
Table 1: Year-to-date Measure G-20 Revenue compared to prior three years (in thousands). FY 18-19
through FY 20-21 are adjusted for Measure G-20 comparison (multiplied by three).
9
City of San Luis Obispo, Title, Subtitle
City of San Luis Obispo, Title, Subtitle
Item #3 2021‐22 Second Quarter Local Revenue Measure Update
Table 2: Updated Revenue Forecast
in thousands Budget
2021‐22
Budget
2022‐23
Projected
2023‐24
Projected
2024‐25
Projected
2025‐26
Original Forecast $ 24,279 $ 25,202 $ 25,454 $ 25,709 $ 25,966
Mid‐year Revised Forecast $ 25,810 $ 26,507 $ 27,037 $ 27,767 $ 28,572
Increase/(decrease) $ 1,531 $ 1,305 $ 1,583 $ 2,058 $ 2,607
Expenditures Overview
Investment into Operations
This was the second 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 second quarter include:
Holiday Activation Support in Downtown for Lighting and festive decorations.
Continuation of the TIPP-FAST program to fast-track tenant improvement permits and provide
permit fee subsidies to support economic recovery.
Completing a Council Study session for Homelessness Strategic Plan.
Hiring a Fire Training and Safety Captain.
Hiring a contract Heavy Equipment Mechanic.
Additional investment into cleaning, trash pickup and landscape maintenance in public areas.
To see the full list of LRM funded expenditures, please visit slocity.org/budget.
Investment into Capital
The City’s Capital Improvement Program (CIP) has grown significantly in the current year due to an
increase in available funding to maintain, enhance, and expand City infrastructure. This is due to the
passage of Measure G-20 which will provide $18 million in annual funding for infrastructure. The
growth of the CIP has now exceeded the City’s existing organizational capacity to effectively deliver
capital projects. In March of 2021 the City executed an agreement with Management Partners to
perform an assessment of the City’s CIP. The assessment resulted in 53 recommendations covering all
aspects of the City’s CIP to improve project delivery, including staffing and organizational structure,
policy, work processes and responsibilities, finance and budget, staff training and onboarding, and
communication and reporting. In November 2021 the City hired a CIP Process Improvement Manager
reporting directly to the Assistant City Manager to lead the implementation of the recommendations.
With the mid-year budget update, staff will request the addition of 4.00 FTE new positions as
recommended by Management Partners, to manage the significant increase in CIP workload. Over the
coming year, the CIP Process Improvement Manager will coordinate efforts across the organization to
implement the additional recommendations to address the continuing evolution of the City’s CIP.
$500,000 of LRM funds were allocated in 2021-22 to fund the CIP Project Delivery Augmentation
project. The allocated funding has been utilized to fund: the Management Partners assessment, the cost
of the CIP Process Improvement Manager and RRM project management support for the Mission Plaza
downtown concept plan and Public Safety Center. Remaining LRM funds in the current year will cover
10
City of San Luis Obispo, Title, Subtitle
City of San Luis Obispo, Title, Subtitle
Item #3 2021‐22 Second Quarter Local Revenue Measure Update
Management Partners’ project management of some Parks and Recreation projects as well as any current
year costs for the new positions that will be recommended at mid-year to address CIP growth.
Project Updates
The City continues to make significant progress on Capital Projects made possible by the Local Revenue
Measure. The table below provides an update on some of the major projects. A full list of LRM-funded
projects can be found in Item #3 - Attachment A.
Table 3
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 construction was
completed in November of 2021. The project included dredging, and dewatering. Ongoing maintenance
at Laguna Lake is intended to restore water quality over time.
Orcutt Tank Farm Roundabout: The total amount budgeted for this project is $5 million, $1 million of
which is LRM funded. Bids were opened in July 2021 and the actual project cost is estimated
at $4.6 million, and completion of the project by 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 funded. Bids were opened in July and construction began in August of 2021; 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. Project construction is still underway, with completion expected
in the first quarter of 2022.
Sinsheimer Park Irrigation and Drainage: This project is entirely LRM funded, $650,000 was budgeted
for this fiscal year. Bids were opened in June 2021; the actual construction cost was $507,440. The
project was completed in November 2021. This project was 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. Construction was
completed in November 2021.
Mission Plaza Railing Upgrades: The total budget for this project was $80,000, the project is entirely
LRM funded. Bid were opened in August of 2021 and construction was completed in November of 2021.
Status
1 Fire Station 1 HVAC Replacement Completed in August 2021
2 Sinsheimer Irrigation and Stadium Drainage Completed in November 2021
3 Mission Plaza Railing Upgrades Completed in December 2021
4 Meadow Park Pathway Maintenance Completed in December 2021
5 Laguna Lake 2021 Maintenance Dredging Project Completed in December 2021
6 Meinecke Strom Drain Repair Completed in December 2021
7 Swim Center Therapy Pool Boiler Replacement 22‐Jan
12 Downtown Parking Meter Pole Removal 22‐Jan
14 2021 Downtown Pavement Improvement 22‐Jan
17 RRST Taft to Pepper 22‐Jan
19 Tank Farm Road and Orcutt Roundabout 22‐May
20 Parks and Recreation Office Rehabilitation 22‐Apr
Completed & Ongoing LRM Capital Projects for Q2 FY 2021‐22
11
City of San Luis Obispo, Title, Subtitle
City of San Luis Obispo, Title, Subtitle
Item #3 2021‐22 Second Quarter Local Revenue Measure Update
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.
This reserve is already proofing invaluable as cost increases and emerging priority projects need
additional funding. At mid-year, staff is therefore seeking to use reserve funding for several high-priority
maintenance projects that would otherwise be underfunded.
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 the completion of the Parks and Recreation Office
Rehabilitation Project. (12/7/2021 Council Action) ($150,000)
Ending Balance of Capital Reserve as of 10/1/20211 $ 3,276,208
1 Ending fund balance represents the actual balance of the fund. Council also approved the use of up to $200,000 (if
necessary) to support the completion of Fire Station #1 Roof Replacement after discovering significant damage during
HVAC replacement (7/6/21 Council Agenda Item). The use of the reserve for this project has not yet been needed.
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Item #3 – Attachment A – Local Revenue Measure CIP Projects
Active or Ongoing Project Total
Budget1
Total
Consumption
Available
Balance
1 2015 Traffic Safety Report Improvements (91607) 30,000 0 30,000
2 2020 Neighborhood Greenways Public Art 24,250 13,034 11,216
3 2021 Downtown Pavement Improvements Project 2,630,095 2,527,343 102,752
4 Active Transportation Plan Implementation 205,000 57,588 147,412
5 Cerro San Luis Neighborhood Greenway Plan ‐ Phase 2 744,775 264,865 479,910
6 Annual Public Art Maintenance and Projects 92,500 60,000 32,500
7 Banner Arm ‐ Bench Rests ‐ Signs 100,000 20,878 79,122
8 Bicycle Facility Improvements ‐ Annual Asset Maint 92,154 43,420 48,734
9 Bob Jones Trail and RRST Solar Lighting 100,000 0 100,000
10 Broad Street Corridor Access Improvements 55,000 5,402 49,598
11 Bullock Lane CMP Replacement 352,146 348,025 4,121
12 California Taft Roundabout 300,000 0 300,000
13 CIP Project Delivery Augmentation 157,072 0 157,072
14 City Facilities HVAC Replacements 99,005 98,804 201
15 City Hall Breaker Replacement 30,000 0 30,000
16 Emergency Response Communication Equipment 675,170 614,217 60,953
17 Corp Yard Fuel Island Siding (91632) 14,750 14,549 201
18 Development Agreements 120,000 0 120,000
19 Downtown Cleaning Equipment 150,000 129,033 20,967
20 Downtown Public Art Installations 200,000 120,032 79,968
21 Downtown Safety Enhancements 400,000 208,802 191,198
22 Downtown Zig‐Zag Lighting 250,000 0 250,000
23 ECC Equipment Replacement (91690) 35,000 25,443 9,557
24 Electric Vehicle Charging Station at Various Facilities 100,000 0 100,000
25 Facility Maintenance ‐ Annual Asset Maintenance 5,000 2,520 2,480
26 Facility Parking Lot Maintenance (91310) 109,000 24,417 84,583
27 Fire Station 1 HVAC (91647) 196,300 168,070 28,230
28 Fire Station 3 Sewer Lateral Replacement (91687) 18,000 0 18,000
29 Fire Station 3&4 Remodel Space Study and Design 25,000 0 25,000
30 Fire Station Rollup Door (91581) 9,500 9,110 390
31 Fleet Replacement: Fire 275,000 177,378 97,622
32 Fleet Replacement: Parks and Recreation 139,000 65,811 73,189
33 Fleet Replacement: Police 220,000 0 220,000
34 Fleet Replacement: Public Works 631,000 68,909 562,091
35 Fleet Replacements ‐ Annual Asset Maintenance 387,359 280,832 106,527
36 Fleet Services Vehicle Lift 78,000 77,235 765
37 Higuera Street Paving 174,999 150,365 24,634
38 IT Replacements ‐ Annual Asset Maintenance Account 2,201,323 1,010,712 1,190,611
39 Laguna Lake Dredging (99110) 840,000 623,154 216,846
40 Laguna Lake Sediment Management Project 44,770 41,106 3,663
41 Laguna Lake Golf Course ‐ Annual Asset Maintenance 50,000 30,000 20,000
42 Major Facilities Maintenance ‐ Annual Asset Maint 1,070,339 174,102 896,237
1 Includes carryover balances
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Item #3 – Attachment A – Local Revenue Measure CIP Projects
Active or Ongoing Project Total
Budget
Total
Consumption
Available
Balance
44 Major Facility Replacements 170,000 70,000 100,000
45 Marsh at Santa Rosa Replacement 2016 (90480) 725,089 666,930 58,159
46 Meadow Park Pathways Maintenance 263,540 235,585 27,955
47
Mission Plaza Restroom Replacements and
Enhancements 366,770 350,376 16,394
48 Multisite Energy Management (91574) 132,600 126,920 5,680
49 Neighborhood Traffic Improvements 241,819 72,726 169,094
50 North Broad Street Neighborhood Park 175,000 0 175,000
51 Open SLO 200,000 59,420 140,580
52 Open Space ‐ Annual Asset Maintenance Account 273,254 152,470 120,784
53 Open Space Acquisition 840,283 579,286 260,997
54 Orcutt/Tank Roundabout Construction 1,072,048 990,148 81,900
55
Parking Lot Maintenance ‐ Annual Asset Maintenance
Account 195,000 5,752 189,248
56 Parks & Recreation HVAC 2017 (91572) 17,806 15,278 2,529
57 Parks and Rec General Plan Implementation 200,000 0 200,000
58 Parks Hydrate Station (91681) 15,000 0 15,000
59
Parks Major Maintenance ‐ Annual Asset
Maintenance Account 1,997,424 793,138 1,204,286
60
Pedestrian and Bicycle Pathway ‐ Annual Asset
Maintenance Account 20,000 14,225 5,775
61 Pedestrian Crossing Improvements 40,000 39,282 718
62 Pedestrian Crosswalk Beacon on Ramona 50,000 15,000 35,000
63
Pedestrian Safety Improvements on Monterey at
Buena Vista 30,000 10,848 19,152
64 Pest Control (91578) 17,500 7,120 10,380
65 Pismo/Johnson/SL Creek Bank Stabilization 60,000 46,823 13,177
66
Playground Equipment Replacement ‐ Annual Asset
Maintenance Account 157,145 0 157,145
67 Police Patrol Replacement ‐ 1536 75,000 18,412 56,588
68 Police Patrol SUV ‐ 1507 65,000 9,405 55,596
69 Police Patrol SUV ‐ 1511 65,000 9,405 55,596
70 Police Station Replacement 190,685 187,210 3,475
71 Prado Road Interchange 500,000 0 500,000
72 Radio Handhelds (91583) 87,619 0 87,619
73 Railroad District Boardwalk Replacement 1,214 1,165 49
74 Railroad Safety Trail Taft to Pepper ‐ 2018 (91375) 350,261 229,122 121,139
75 Roadway Sealing 2020 1,103,317 1,103,200 117
76 Roundabout Public Art Installations 300,000 0 300,000
77 Sidewalk Annual Asset Maintenance Account 491,268 185,582 305,686
78 South Street Median Landscaping 255,000 34,475 220,525
79 Storm Drains Annual Asset Maintenance Account 1,124,314 187,819 936,495
80 Street Lights ‐ Annual Asset Maintenance Account 217,500 72,238 145,262
14
Item #3 – Attachment A – Local Revenue Measure CIP Projects
Active or Ongoing Project Total
Budget
Total
Consumption
Available
Balance
81
Street Reconstruction and Resurfacing ‐ Annual
Asset Maintenance Account 391,840 390,665 1,175
82 Swim Center Co‐generation Plant (91653) 85,000 1,501 83,500
83 Traffic Safety Implementation 164,467 14,998 149,469
84 Traffic Signs and Striping Maintenance 77,066 38,694 38,372
85 Transportation Safety and Operations 65,000 31,024 33,976
86
Urban Forest ‐ Annual Asset Maintenance Account
Cap‐X 665,797 525,797 140,000
87 Water Distribution Fire Hydrants 40,000 39,976 24
88 Total 27,007,132 14,787,168 12,219,964
15
Revenue Enhancement Oversight Commission
Agenda Report Meeting Date: 1/26/22
Item Number: 4
DATE: January 26, 2022
FROM: Brigitte Elke, Finance Director
Prepared By: Natalie Harnett, Principal Budget Analyst
SUBJECT: PROPOSED LOCAL REVENUE MEASURE USES FOR MID-YEAR BUDGET
REVIEW
RECOMMENDATION
As part of the 2021-22 Mid-year review, recommend the City Council the use of Local Revenue Measure funds
for the capital and operating expenditures as referenced in the report.
DISCUSSION
Background
In a normal year, the mid-year budget review is intended to present the City’s current financial position and
updated five-year forecast. It allows staff to alert Council of any emergent needs and recommend budget
adjustments (if needed). It is also an opportunity for Council to appropriate any unassigned fund balance from the
prior fiscal year. Unassigned fund balance is usually due to expenditure savings and/or revenues outperforming
expectations. The balance is considered “one-time” in nature and therefore can only be appropriated for one-time
use.
Because LRM is a sub-fund of the general fund, the entire LRM balance is set aside as “committed” in the general
fund balance and any unassigned funds remains available for appropriation at mid-year. The Revenue
Enhancement Oversight Committee usually makes recommendations for the unassigned LRM balance during the
following year’s budget development process.
Given the current economic turbulence, rises in costs, and immediate need for resources, staff recommend that
Council act on the LRM balance at mid-year. In addition to the one-time balance, updated revenue forecasts show
that additional ongoing revenue will be available for appropriation. The City’s highest priority needs right now
fall under the community’s priorities for Measure G-20 specifically addressing homelessness, creating safe and
clean public spaces, and community safety and emergency preparedness.
The next section includes a summary of the recommended budget changes categorized by the different available
funding sources (see Table 1 below). A detailed budget list is included in Item #4 - Attachment A.
Table 1: Available Funding Sources Pertaining to Local Revenue Measure
Description Amount
Ongoing LRM
funding
This is the estimated amount available for new ongoing budget allocations
based on updated revenue projects and long-term forecast. Revenue
projections are trued up on a bi-annual basis. (See Table 2)
$1.5 M
(ongoing)
LRM FY20-21
One-time Fund
Balance
This is the unallocated LRM fund balance per the audited financials.
Because the total sales tax revenue was higher than projected, no
expenditure budget was programmed for this amount. It is available for
appropriation for one-time efforts. (See Table 3)
$1.96 M
(one-time)
16
City of San Luis Obispo, Title, Subtitle
City of San Luis Obispo, Title, Subtitle
Item #4 Proposed Local Revenue Measure Uses for Mid‐Year Review
Re-allocation of
Cerro San Luis
Greenway Project
Budget1
The City received an Active Transportation Grant just prior to the release of
the budget and ample time was not available to integrate the grant funding
into the Financial Plan. The originally programmed LRM budget for the
Cerro San Luis Greenway Project was temporarily placed in the
Infrastructure Investment Fund and staff were directed to return to Council
with appropriation recommendations. (R-11251) (See Table 4)
$1.7 M
(one-time)
Summary of Budget Recommendations
ID Table 2: Ongoing Local Revenue Measure
Budget Request (all operating) FY 21‐22 FY 22‐23 Ongoing*
(if applicable)
Available Balance $ 1,531,000 $ 1,304,870 $ 1,582,987
1 CAPSLO Programming ‐ Railroad Square Safe Parking $ 64,633 $ ‐ $ ‐
2 Housing/Homelessness Contract Position $ 40,000 $ 80,000 $ ‐
3 Converting Contract Homelessness Response
Manager to FTE (1 FTE) $ ‐ $ ‐ $ 120,000
4 Centralized Resident Inquiry Platform $ 40,000 $ 40,000 $ 40,000
5 Emergency Manager (1 FTE) $ 38,627 $ 143,061 $ 159,141
6 Contract Volunteer Coordinator (1 FTE) $ 32,850 $ 101,508 $ ‐
7 Community Services Coordinator (1 FTE) $ ‐ $ 9,728 $ 10,621
8 Public Safety Customer Engagement $ 17,000 $ 12,000 $ 12,000
9 Facilities Additional Contract Funding $‐ $ 25,000 $ 25,000
10 Additional Pruning/Watering $ 200,000 $ 200,000 $ 200,000
11 Additional Streets Maintenance Staff (2 FTE) $ 60,750 $ 243,000 $ 243,000
12 Parks Maintenance Beautification Gardner (1 FTE) $ 48,600 $ 97,200 $ 100,116
13 Increase in Mission Plaza Maintenance $ 27,000 $ 27,000 $ 27,000
14 Additional Pressure Washing $ 25,000 $ 25,000 $ 25,000
15 Supplemental Overtime for Farmer's Market
Support $ 15,000 $ 15,000 $ 15,000
16 Parks Additional Contract Funding $ ‐ $ 40,000 $ 40,000
17 Mobile Data Computers $ 14,200 $ ‐ $ ‐
18 Accelerate New Streets Position $ ‐ $ ‐ $ ‐
19 Additional Supplies for Downtown Maintenance
Program $ ‐ $ 25,000 $ 25,000
20 Mobile Crisis Unit (MCU) (1 FTE) $ ‐ $ ‐ $ 300,000
Total $ 623,660 $ 1,083,497 $ 1,341,878
Remaining for allocation at later date $ 907,340 $ 221,373 $ 241,109
*estimated costs beginning in FY 23‐24
1 Previously known as the “Anholm” Greenway Project
17
City of San Luis Obispo, Title, Subtitle
City of San Luis Obispo, Title, Subtitle
Item #4 Proposed Local Revenue Measure Uses for Mid‐Year Review
ID Table 3: Local Revenue Measure FY21 one‐time Fund Balance
Budget Request FY 21‐22
Available Balance $ 1,964,773
21 Mission Plaza Landscape and Lighting Improvements Construction (CAPITAL) $ 275,000
22 Reimbursement Agreement for 600 Tank Farm (CAPITAL) $ 1,545,000
23 Golf Course Pro Shop Flood Damage Repairs (CAPITAL) $ 120,000
Total $ 1,940,000
Remaining for allocation at later date $ 24,773
ID Table 4: Reallocation of Cerro San Luis Greenway Project Budget
Budget Request FY 21‐22
Original Project Budget (LRM Portion) $ 1,705,225
24 Higuera Corridor Complete Street Design $ 250,000
25 Pedestrian Crossing Improvements $ 280,000
Total $ 530,000
Remaining for allocation at later date $ 1,170,000
Summary of Budget Recommendations by Priority
Table 5: Budget Request by Priority FY 21‐22 FY 22‐23 Ongoing
(if applicable)
Address Homelessness $104,633 $80,000 $420,000
Community Safety & Emergency preparedness $70,627 $170,061 $186,141
Economic Development & Business Retention $275,000 $0 $0
Open Space/Natural Areas Preservations & Maintenance $248,600 $337,200 $340,116
Other Services & Projects $40,000 $40,000 $40,000
Safe & Clean Public Areas $112,750 $345,000 $345,000
Street Maintenance & Transportation (incl. Bike/Ped) $2,075,000 $0 $0
Youth/Senior Services & Rec Facilities $152,850 $111,236 $10,621
Total $3,079,460 $1,083,497 $1,341,878
Updated Operating/Capital Split
In the 2021-23 Financial Plan, expenditures are budgeted at 75% capital and 25% operating costs, with an
expectation of an 85% capital and 15% operating costs split in subsequent years. The recommendations provided
in this report will shift the split to provide more operating services.
Original LRM Budget:
2021‐23 Financial Plan
Revised LRM Budget:
2021‐23 Financial Plan
Operating Capital Operating Capital
25% 75% 27% 73%
18
ITEM #4 – ATTACHMENT A: MID‐YEAR BUDGET RECOMMENDATIONS
ID# Budget Request
1 CAPSLO Programming ‐ Railroad Square Safe Parking
Adding funds to CAPSLO's contract for the continuation of the low barrier pilot parking program at
Railroad Square. Contract will be extended to June 30, 2022.
2 Housing/Homelessness Contract Position
2 year contract position to assist the Housing Policy and Programs division. Will directly report to
the Homelessness Response Manager and expire June 2023 (at the end of FY23). Budgeted at the
top of an Admin Assistant II to offer flexibility in hiring the ideal candidate
3 Converting Contract Homelessness Response Manager to FTE (1 FTE)
No fiscal impact as a result of this request ‐ Convert the contract Homelessness Response Manager
to a permanent position. Salary is currently in the contract services account and needs to be
moved to Regular salaries for the remainder of FY22 and for all of FY23. Ongoing salary to be put in
Regular salaries in the next Financial Plan.
4 Centralized Resident Inquiry Platform
This request is for a platform that would enhance the way issues are identified, responded to, and
tracked. By organizing these requests, this allows staff to respond to effectively and efficiently and
has tracking and metric capabilities. This will more easily provide data on incoming requests and
response rates. Having this data will help provide and improve performance measures and the
ability to update staff internally on progress. It would allow staff to in theory have more time to do
other tasks and assignments as once operational it should save time; allow for repeat use of
materials and provide long term operational efficiencies. An RFI was published, and bids were
received by seven vendors providing limited fiscal information. Two of the seven vendors supplied
potential costs that ranged from $6,500 to $30,000 annually. Next steps include demos and
internal stakeholder communication, thus the $40k is a conservative placeholder.
5 Emergency Manager (1 FTE)
To maintain the high level of community response and preparedness service in alignment with
Measure G‐20 priorities and to help meet the growing impacts of climate change including
increased risk to fire, flood, heat and drought related emergencies the department is a seeking a
full time 40‐hour Staff Emergency Manager. Staff attempted to fill some emergency manager
responsibilities utilizing contract services and continues to learn that a dedicated staff member is
needed to deliver on the work products necessary for an all‐inclusive Emergency Management
Program for the organization and community. A job description for this position is in draft status
and near complete after consultation with Human Resources. The position will be responsible for
directing City‐wide all‐hazards emergency/disaster worker training, preparedness, response,
mitigation, and recovery activities for natural, environmental, humanmade and other emergencies
impacting the City. Responsibilities will include mandatory management of the City’s Emergency
Plan (Comprehensive Disaster Leadership Plan (CDLP)), Local Hazard Mitigation Plan (LHMP) and
Community Wildfire Protection Plan (CWPP); conduct emergency preparedness training for City
employees (NIMS/SIMS/emergency worker prep); Serve as liaison with local, state and federal
agencies to ensure compliance; Assist the City Manager, acting as Emergency Services Director,
with development and presentation of critical incident updates to the Disaster Council; maintain
emergency operations center (EOC) preparedness and readiness; conduct community emergency
preparedness forums; assist in the administration of Fuel Reduction efforts. Presently the Fire
Chief is coordinating the Emergency Management Division work and has limited bandwidth to
increase and improve the program without increased resources as necessary to meet City Goals of
resiliency and disaster preparedness.
19
ITEM #4 – ATTACHMENT A: MID‐YEAR BUDGET RECOMMENDATIONS
6 Contract Volunteer Coordinator (1 FTE)
The City relies on community volunteers to support a variety of services within different
Departments (general community events, garden and trail maintenance, public art, internships).
Over the years, there has been a significant increase in request and inquiries for volunteer services
to support the community and City services. A centralized volunteer program would ensure
marketing, recruitment, tracking of hours, risk management, recognition events, and globalized
program area support would be achieved through coordinating with service groups, academic and
other community partners. It is recommended that P&R have direct oversight of the position as
the Department hosts a variety of volunteer opportunities and collaborates across City
departments. As the position and needs fulfilled by this position may evolve, it is recommended as
a contract position at which time reassessment of City‐wide needs can be determined. Per
Finance's guidance, since this request is for a contract position, the contract should only extend
through the end of the Financial Plan (June 2023). The fully loaded costs are estimated at $30,417
for March‐June of FY2022 ($67k base + COLA & benefits); and $93,989 (adjusting FY22 amount by
3% increase).
7 Community Services Coordinator (1 FTE)
The Local Revenue Measure G included funding to increase Senior programming for the
community. The SLO Senior Center has been operating under the guidance of a volunteer Senior
Executive Board with a Parks and Recreation staff member serving in a liaison role. The Senior
Board is requesting additional day‐to‐day staff support in managing the Senior Center which would
benefit both the City and the senior community. The coordinator position would provide an
anticipated 20‐25 hours per week of direct support to enhance programming, provide a sense of
security to the Senior Center members and rehabilitate the relationship and programming
opportunities with the Senior Center Board. The coordinator would also oversee the current 5
locations (and the pending addition of 2 additional locations) for the Community Gardens
program, manage the expanding Contract Class program, and support the Community Services
Division (global community events). The oversight of the Community Gardens and Contract
Classes, as well as community event support, have historically been managed by two Recreation
Specialists (part time, limited benefit temporary positions); however, these programs require a
more consistent level of professionalism, community outreach, safety and risk management,
contract oversight, and maintenance that exceeds the expectations of a part‐time position.
Combining two supplemental positions into one full‐time position will allow for consistent
management and appropriate support of the Senior Center programs and expanded and
innovative Contract Classes and Community Gardens programs. Funds would be transferred from
Temporary Salaries to Regular Salaries, as funding for this position will be covered (fully for FY 22 /
partially for FY 23) through the already two budgeted positions. Overage amount for FY 23 should
be supported through the LRM funds directed towards Senior Programming and there will be no
fiscal impact for FY 2022. For FY 2023, the fully loaded costs of this full‐time role is estimated at
$93,989, the merging of the two part‐time roles are estimated combined to be $84,981, total FY
2023 fiscal impact would be $9,007.
8 Public Safety Customer Engagement
Utilizing new technology, information can be sent via text to reporting parties that call 9‐1‐1.
Callers will receive information regarding their incident and provide updates on officer arrival
times or delays. This software can also gather feedback via surveys. This tool provides a direct
opportunity for the community to provide helpful feedback when dealing directly with public
safety.
9 Facilities Additional Contract Funding
20
ITEM #4 – ATTACHMENT A: MID‐YEAR BUDGET RECOMMENDATIONS
The additional contract funding will be used for rain getter cleaning and for technical repairs.
Gutter cleaning in time consuming and a high liability to the City and contracting out these services
will allow staff to be more responsive and limit liability. Also, as senior technicians leave the
program for various reasons, recruitment of qualified technicians has been challenging, which is
resulting in a higher use of contractors for some of the more complex mechanical systems.
10 Additional Pruning/Watering
This request is to supplement existing salary savings to keep contractor working full‐time through
the end of FY, as we are one full cycle behind. Currently we have 125K left which will get us
through February. The plan is to have two crews going at one time, area pruning by contractor to
get caught up in cycle.
11 Additional Streets Maintenance Staff (2 FTE)
Additional staff is needed to enhance downtown cleanliness and staffing for downtown events
including but not limited to the weekly farmer’s market. The activation of downtown has resulted
in a more proactive approach to keeping the downtown clean and safe. The department is
struggling to support these additional work efforts along with staff's original workload. This
request will cover a downtown maintenance coordinator who will plan and supervise the work of 1
full time downtown maintenance technician and 2 supplemental downtown maintenance
technicians.
12 Parks Maintenance Beautification Gardner (1 FTE)
This position will work in all Parks and City Facilities maintained by the Parks Maintenance
Program. This position will focus strictly on beatification by planting and maintaining ornamental
plantings.
13 Increase in Mission Plaza Maintenance
Request is for maintenance costs associated with landscaping, lighting and other aesthetic
improvements related to Mission Plaza improvements.
14 Additional Pressure Washing
This request is to expand coverage area in Downtown for pressure cleaning.
15 Supplemental Overtime for Farmer's Market Support
Want to keep deployment responsibility for Farmer's Market barricades with more experienced
full time staff.
16 Parks Additional Contract Funding
The additional contract service funding will be used to fund expanded landscaping request, along
with the installation and maintenance of landscaping along protected bike and pedestrian paths.
17 Mobile Data Computers
The police department was given approval to over hire two police officer positions. Two mobile
data computers are needed for these positions and staff is requesting to purchase two spares.
Total purchase would be for 4 MDCs.
18 Accelerate New Streets Position
No cost request to accelerate the addition of the Streets Maintenance Operator that is funded in
the 22‐23 fiscal year. Program salary savings will be used to fund the request.
19 Additional Supplies for Downtown Maintenance Program
As the downtown cleaning and maintenance program expands, these funds will be used for
operating material and supplies for the program.
20 Mobile Crisis Unit (MCU) (1 FTE)
21
ITEM #4 – ATTACHMENT A: MID‐YEAR BUDGET RECOMMENDATIONS
This was a previously approved one‐time budget addition for the 2021‐23 Financial Plan. This
request is to make the MCU ongoing and convert 1 contract EMT into an ongoing FTE.
21 Mission Plaza Landscape and Lighting Improvements Construction (CAPITAL)
Improvements to include up lighting for trees in the plaza, new light standards, and relandscaping.
22 Reimbursement Agreement for 600 Tank Farm (CAPITAL)
Reimbursement due to developer per reimbursement agreement for roundabout at Santa Fe and
Tank Farm
23 Golf Course Pro Shop Flood Damage Repairs (CAPITAL)
The recent storm (December 2021) caused flood damage to the Laguna Lake Golf Course Pro Shop.
Seeking one‐time emergency repair funding to restore the shop to its prior condition.
24 Higuera Corridor Complete Street Design (CAPITAL)
Appropriate a portion of the fund reserve from $1.7M Cerro San Luis Greenway Urban Greening
Grant to fund PS&E for a complete street project along the Higuera Corridor between Marsh St.
and LOVR. ATC ranked this as highest priority Tier 1 project in Active Transportation Plan. High‐
level concept design and feasibility analysis currently underway but need additional funding for
final design and construction. This request would fund final design and consultant support for
planned grant application with upcoming Caltrans Active Transportation Program (Cycle 6). Staff
plans to return at FY2022‐23 Budget Supplement to request construction funding.
25 Pedestrian Crossing Improvements (CAPITAL)
Additional funding needed to proceed with construction of Pedestrian Crossing Improvements
project in 2022. Project will provide enhanced ped/bike crossings with flashing beacons at several
high‐priority intersections identified in ATP, including Johnson/Sydney and South/King. Cost
estimates at 90% design have increased beyond initial funding resources due to (a) unanticipated
ADA improvements required, (b) increases in construction costs, (c) design revisions to
Johnson/Sydney Crossing due to community feedback, and (d) design direction from ATC.
22