HomeMy WebLinkAboutItem 6a. FY 2021-22 Mid-Year Budget ReviewCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: February 14, 2022
TO: Mayor and Council
FROM: Brigitte Elke, Finance Director
VIA: Derek Johnson, City Manager DJ
SUBJECT: Item 6a – FY 2021-22 Mid-Year Budget Review
Staff has received several questions regarding the mid -year report that the City Council
is reviewing under agenda Item 6a – FY 2021-22 Mid-Year Budget Review. This
correspondence aims to provide additional information accordingly.
1. Reimbursement to 600 Tank Farm
This action item will reimburse the developer of 600 Tank Farm for the construction
of crucial infrastructure on Tank Farm and Santa Fe beyond the developer’s fair
share toward the improvements.
2. Maintenance Position Vehicles (Budget Request ID #2)
The Mid-year budget request for Public Works includes $210,000 to purchase and
outfit vehicles for new maintenance positions. Please see the below table for
additional details on this request. Approximately $50,000 per vehicle and $10,000
for decals and safety flashers.
Position Vehicle Type
Beautification Gardener Electric Ford F-150
Maintenance Contract Coordinator Electric Ford F-150
Downtown Maintenance Worker Electric Ford F-150
Downtown Maintenance Worker Electric Ford F-150
3. General Fund – non-spendable fund balance
Non-spendable fund balance pertains to pre-paid items at year-end. For FY2020-
21, it contains the maintenance contract for the City’s cashier software and an
insurance premium for volunteer insurance since both policies begin July 1st.
4. Challenge Grant for SLO Rep Theater
Should the City Council choose to move forward with a challenge grant for the SLO
Rep Theater, staff will return to the Council this spring for approval of a funding
agreement. It is envisioned the agreement would be similar to previous grants
including the financial contribution provided by the City to CAPSLO for 40 Prado.
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FY 2021-22 Mid-Year Budget Review Page 2
Details to be contained in the funding agreement include fundraising, permitting
and construction milestones which will be contingent on the release of City funding.
This will ensure that steady and substantial progress on the project is being made
and that private dollars are maximized first.
With respect to the lease agreement, the details are still to be finalized, but the City
will continue to own the land and building with a long-term lease agreement for use
of the building for the sole purposes of the public benefit of arts and culture. The
final terms would include provisions if the building were not used as intended. Staff
will return to the City Council in closed session regarding the lease agreement as
it involves negotiations for real property.
5. Staffing Categories
There are three different categories we use for “type” of employee: regular,
supplemental (which includes contract employees), and Outside Agency “leased”
employees. Of course, we have policies which guide when to use each
category. Below is a high-level definition of each:
Regular Employees. Regular employees are the core work force and preferred
means of staffing ongoing, year-round program activities that should be performed
by full-time City employee rather than other types of employee.
Supplemental Employees. Supplemental employees include all employees other
than regular employees, elected officials, and volunteers. Supplemental
employees are intended to be “seasonal” or for positions that are varied in staffing
needs based on activity levels; traditionally these are the majority of our Parks and
Recreation staff who work as lifeguards, or childcare or summer camp workers for
basketball as a referee, etc. Supplemental contract employees are used for
medium term (generally between six months and two years) projects, programs,
or activities requiring specialized or augmented levels of staffing for a specific
period. The City has historically used contract employees to fill key vacancies that
need to be backfilled or when a department or program is trying to determine how
to best resource programs that are new “pilot” programs or ones that are being
evaluated for efficiency and enhancement opportunities. There have been times
in the past where this may have been used “longer” than was planned as
evaluations lagged or the new staffing needs were evolving. Many of the positions
proposed at mid-year reflect that time lag impact. With the Council question about
the Homelessness Response Manager position, it is the future of our response to
this complex issue. Because the position is currently filled at a contract level staff
sees that as “at risk”. The thought behind this was to acknowledge this will be an
ongoing need and to ensure we retain this key employee while we are doing
foundational work. The same could be said of the Mobile Crisis Unit Emergency
Medical Technician.
Outside Agency “Leased” Employees. These are employees are employed during
short-term, peak workload assignments to be accomplished using personnel
contracted through an outside employment agency.
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FY 2021-22 Mid-Year Budget Review Page 3
6. Diversity, Equity and Inclusion Major City Goal
The follow tasks listed under the Diversity, Equity and Inclusion Major City Goal on
packet pages 167-168 should be categorized as green as those activities have
been ongoing despite the delay in hiring the Diversity, Equity and Inclusion
Manager.
- Line 87, 2.1 l. Support DEI efforts throughout each department
- Line 88, 2.1 m. Coordinate activities of the DEI Employee Committee
- Line 112, 2.4 b. Assisting departments in infusing DEI into their
programs, policies and practices in relevant and practical ways
- Line 115, 2.4 e. DEI-related staff development/training
The remaining tasks categorized as yellow will be initiated and/or continued by the
new Diversity, Equity and Inclusion Manager starting on February 17th.
7. Virtual Inspections
A Council Member asked for more information about Virtual Inspections available
from the City’s Building and Safety team. Community Development offers two
programs that were developed as tools to help complete inspections in a safe and
timely manner, as follows:
Virtual Inspections: Community Development uses Google Duo to conduct remote
inspections. This program was developed as a safety measure during the
pandemic and has continued to be utilized from time to time as a workload
management tool. Virtual inspections allow for a building inspector to “walk” a
project remotely with the general contractor. These are offered as necessary to
avoid a potential exposure to Covid-19, to allow a supervisor to join an inspection,
or as a time-management tool for the inspector. A limited number of virtual
inspections have been conducted this fiscal year (less than 25).
Self-Certifications: Another tool that building inspectors have available to enhance
customer service and manage the workload is Self -Certification. During Summer
2020, building inspection workload exceeded staff’s ability to maintain next -day
inspections. A number of steps were taken to address this concern, including the
launch of a pilot self-certification program. The program has been used for less
than a dozen inspections total, and other changes made to the City’s scheduling
system for building inspections have eliminated the back log for inspections. In
summary, a self-certification program is available to allow licensed contractors to
self-certify some of the most basic types of inspections, however, it is only
promoted for use during times of high workload.
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City of San Luis Obispo, Council Memorandum
Council Agenda Correspondence
DATE: February 15, 2022
TO: Mayor and Council
FROM: Matt Horn, Public Works Director
VIA: Derek Johnson, City Manager
SUBJECT: Item 6a – FY 2021-22 Mid-Year Budget Review
Staff received the following questions, regarding the mid-year report that the City Council
is reviewing under agenda Item 6a.- FY 2021-22 Mid-Year Budget Review, specifically
regarding the funding for active transportation programs and projects. This
correspondence aims to provide additional information accordingly. The questions are
below with staff’s response shown in italics:
1. Is there need for an additional Transportation Engineering position?
The Mid-Year Budget Review includes a recommendation for additional operating
funds for consultant services to support the Transportation Planning and Engineering
work program. One may ask “why not increase in -house staffing resources in the
Transportation Engineering and Planning Program in lieu of funding additional
consultant work?”. At the recent City Council hearing on February 1, 2022, the Council
received a staff report presenting the findings of a Capital Improvement Plan Program
Assessment, completed by Management Partners. This study identified strategies to
improve the process and recommended increased resources for City-led Capital
Improvement Plan projects, including any adjustments to staffing needed to support
an ambitious work program that includes many significant transportation projects. The
recommendation from this study was not to increase staffing levels in the
Transportation Engineering and Planning Program at this time, but to shift the majority
of project management and delivery resp onsibilities for transportation CIP projects to
the CIP Engineering Program. Transportation staff are currently managing delivery of
several high-priority CIP projects, including the Railroad Safety Trail (Taft to Pepper),
Orcutt/Tank Farm Roundabout, and the recently completed Broad/Woodbridge, which
requires significant staff time. By shifting the time -intensive responsibility of CIP
project delivery to others, Transportation Engineering and Planning Program would
have more in-house resources to focus on ongoing transportation operations,
programs (i.e. Neighborhood Traffic Management, Traffic Safety/Vision Zero) and
planning & design of other priority transportation projects. During this interim period
while the CIP Engineering Program team begins to increase staffing levels to support
these process improvement strategies, Transportation Engineering and Planning staff
plan to use consultant resources to support the ambitious current work.
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FY 2021-22 Mid-Year Budget Review Page 2
2. Minor Bicycle Facility Improvements Funding
Public agenda correspondence suggested that the Miscellaneous Bikeway Facility
Accounts should be replenished at this time. Each fiscal year, there is a CIP project
that provides funding for miscellaneous minor bikeway and pedestrian facility
improvements. This is typically used for lower-cost spot improvements, like addition
of green pavement markings, traffic signage/striping modifications, and retrofitting
older drain grates. However, the Active Transportation Committee (ATC)—who
provides funding recommendations to staff and the City Council on active
transportation project priorities—recently directed Transportation staff to use the
remaining unspent balance in the Misc. Bicycle Facility Improvements account to
accelerate planning and design efforts for a complete street p roject on the Foothill
Boulevard corridor. At the time, there was not a strong consensus among the ATC on
which minor bikeway projects should be prioritized; thus, the committee preferred
advancing efforts to improve active transportation facilities on Fo othill now. The Misc.
Bicycle Facilities Account funding will be replenished at the start of the next fiscal year
(July 1, 2022).
3. Quick-Build Delivery of Active Transportation Tier 1 Projects
The Active Transportation Plan (ATP) identifies a rapid build-out of the ATP Tier 1
(highest-priority) network over a 10-year period, which is very ambitious and will
require efficient project planning, design and construction to achieve. Staff concurs
with the suggestion to utilize a quick-build approach to implement the highest-priority
active transportation projects using lower-cost strategies first, then upgrading to more
costly permanent designs over time. Design is already underway for complete street
projects along the Higuera Corridor (Marsh to Los Osos Valley Road) and the Foothill
Boulevard Corridor (Patricia to California), which will utilize this quick-build approach,
and several other priority active transportation projects are currently in construction
or planned for construction in 2022, such as the Railroad Safety Trail (Taft to Pepper),
Marsh/Higuera Bikeways and Neighborhood Greenways as part of 2021 -22 Paving
Projects, Cerro San Luis Greenway (working title for previously-named Anholm
Greenway), and Pedestrian Crossing Improvements Project (enhanced ped
crossings at Johnson/Sydney, South/King, 4 other locations). These projects are
expected to keep the Transportation Engineering and Planning Program fully
occupied through the remainder of the 2021-23 Work Program. Staff is looking ahead
to the 2023-25 Financial Plans as opportunities to request additional funding
resources to advance planning/design of the Broad Street Corridor (and other Tier 1
projects), and fund construction of the Higuera and Foothill Complete Street Projects.
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Item 6a
Department: Finance
Cost Center: 2002
For Agenda of: 2/15/2022
Placement: Business
Estimated Time: 90 minutes
FROM: Derek Johnson, City Manager
Brigitte Elke, Finance Director
Prepared By: Natalie Harnett, Principal Budget Analyst
SUBJECT: FY 2021-22 MID-YEAR BUDGET REVIEW
RECOMMENDATION
1. Receive and discuss the Mid-Year Budget report based on revised projections for all
major funds at the mid-point of the 2021-22 fiscal year; and
2. Adopt a Resolution entitled, “A Resolution of the Council of the City of San Luis
Obispo, California, approving amendments to the adopted 2021 -22 Budget
Appropriations and authorizing the City Manager to approve National Pollutant
Discharge Elimination System Permit Violation Settlements” and approve the one-
time and ongoing allocations as stated in the Mid-year Budget Report including the
annual Transportation Development Act appropriation.
DISCUSSION
Report-in-Brief
The mid-year report provides a thorough review of the City’s financials halfway through
the fiscal year. It reports out on work programs, capital projects, and reviews the current
revenue and overall expenditure trends. It also serves to review possible on e-time
allocations of unassigned fund balance as reported through the City’s audit and Annual
Comprehensive Financial Report.
The 2021-22 Fiscal Year is an anomaly due to the ongoing pandemic that influences the
City’s fiscal outlook. It therefore offers the City opportunities to immediately address
community and organizational needs and begin implementation prior to the second year
of the Financial Plan.
Background
The City’s budget policies require that the City Council review the City’s budget and
financial condition at least every six months. The mid-year review is part of the quarterly
reports and fulfills that purpose. The review allows the Council to make adjustments to
revenue and expenditure assumptions should the need arise . The accompanying Mid-
Year Budget report for 2021-22 provides a comprehensive overview of the City’s financial
condition half-way through the fiscal year. The report summarizes current financial trends
since the adoption of the 2021-23 Financial Plan in June 2021.
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Item 6a
The report’s focus is on the General Fund and each of the City’s enterprise funds. The
mid-year budget report also provides an update on departm ental performance measures,
work programs, the Capital Improvement Plan, and Major City Goals.
Based on the current revenue trends and the revised forecasts, the City is now in a
financial condition to be able to make the additional CalPERS payments cons istent with
the Fiscal Health Response Plan (FHRP). The total payment equat es to $10.2 million
from the General Fund and $2.2 million from the enterprise funds, which will put the City
back on track with its schedule to pay down the pension obligation over 20 years.
With the first FY 2021-22 quarter report, staff alerted Council that the City’s appropriation
of American Rescue Plan Act (ARPA) funding had increased from $8.9 million to $13.5
million. At this time, staff is recommending making decision on the additional $4.7 million
for appropriation with the 2022-23 Supplemental Budget. Council direction on any
preliminary priorities for the use of these funds is recommended so that staff has ample
time in preparation of the Supplemental Budget and develop any implementing programs
related to these priorities.
This report also contains a recommendation related to a settlement agreement with the
Central Coast Regional Water Board and authorization for the City Manager to approve
NPDES Permit Violation Settlements.
Mid-Year Report Organization
Section A – General Fund Summary: This section provides a narrative overview of the
City’s current financial condition and current revenue and expenditure trends. In
summary, the revised forecast shows a significant increase in revenue as compared to
the forecast presented with the adopted Financial Plan. Year-to-date expenditures are on
track for FY 2021-22 budget appropriations, but staff estimate that expenditure budgets
will need to increase in similar proportion to the revenue increase in order to meet the
demands of inflation, price pressure due to supply challenges, and to respond to the
service needs of the community.
Section B – General Fund Mid-Year Recommendations: This section outlines the
proposed mid-year expenditure budget changes as well as one-time allocations of the FY
2020-21 unassigned fund balance. Detailed recommendations are listed in Attachment A
– Appendix B and a table of the total budget changes is in cluded in the “Fiscal Impact”
section of this report. The revised forecast assumes immediate action to fund community
priorities that have emerged since June 2021. It also takes immediate action to address
labor market shortages and ensure that the City remains competitive in retaining and
attracting talent. All recommended uses of the Local Revenue Measure funding have
been reviewed by the Revenue Enhancement Oversight Commission during their January
26, 2022, meeting and the commission concurs with the submitted amendments in this
report.
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Section C – Enterprise Fund Summary: This section provides a narrative update of the
City’s enterprise funds’ financial conditions, including any recommended budget changes.
Year-to-date expenditures and revenues are on track for all funds. Revised long-term
forecasts are included.
Section D – Department Performance Measures and Work Program Updates: This
section provides an evaluation on the performance measures and an update on core
objectives of each operating program. Overall, 97% of the 74 total operating programs
manage workload within budget and meet core objectives.
Section E – Capital Improvement Plan (CIP) Update: This section provides an update
on active and ongoing CIP projects.
Section F – Major City Goal Update: This section provides an update on Major City
Goal tasks that were either scheduled for completion in 2021 -22 or are listed as “ongoing”.
Several tasks were delayed but most were completed or are scheduled to be complete d
before year end.
Appendix A – Detailed Financials: This section provides a closer look at year-to-date
actuals for the major funds and the recommended revenue budget adjustments.
Appendix B – Budget Requests: This section list provides a description for each of the
expenditure budget recommendations.
CalPERS Down payments and Investment Into 115 Trust Fund
With the 2018-19 Budget Adoption, Council adopted the “Fiscal Health Response Plan”
to help balance the long-term forecast and begin an ambitious schedule to pay down
pension obligation over 20 instead of 30 years. This was based on the commitment to
use available unassigned fund balance mainly for this purpose. Though the City did
achieve a positive revenue over expenditure picture over the past t hree fiscal years, the
planned additional CalPERs payments were postponed at the onset of the pandemic due
to the uncertainty around COVID-19. Based on the positive fiscal outlook, all outstanding
payments are recommended to be made in 2021-22. For ongoing payments above the
regular CalPERS contributions, see the updated long-term forecasts in Attachment A.
Table 1 - CalPERS Down payments:
Fund Down-Payment
General Fund 10,200,000
Water Fund 840,685
Sewer Fund 864,037
Parking Fund 311,114
Transit Fund 64,031
Whale Rock 109,229
TBID 40,678
Total $12,429,774
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Table 2 - 115 Trust Fund Investments:
Fund 115 Trust Fund Investment
General Fund 2,000,000
Water Fund 166,317
Sewer Fund 170,896
Parking Fund 61,446
Whale Rock 21,417
TBID 7,976
Total $2,428,052
American Rescue Act Plan (ARPA)
In April 2021, the City received confirmation of an estimated $8.9 million of ARPA funds
which was subsequently revised to $13.5 million in July 2021. The funding will be received
in two equal installments and the first one was received on July 6, 2021. The second
installment should arrive around the same time in 2022. The original amount of $8.9
million coincided almost exactly with the calculated revenue loss in 2020 and was
budgeted to assist in investing in capital projects that were defunded due to the fiscal
uncertainty. Since only $8.8 million is currently programmed for revenue loss, $4.7 million
remains eligible for appropriation in 2022-23. The additional ARPA funding provides a
unique opportunity for the City to address community needs.
With the issuance of the Final Rule pertaining to ARPA use, the Treasury has provided
the option to use a flat $10 million in revenue loss without further substantiation of the
loss. However, this is an either-or decision, but since the City does not anticipate any
further loss beyond 2020, it will be beneficial and allows for the most flexibility in spending.
Given the multitude of other budget recommendations proposed with the Mid-Year
Budget, staff recommend further strategic planning to present well-informed, strategic
options on how to utilize the $4.7 million at the 2022-23 Supplemental Budget meeting in
June 2022.
Settlement of Alleged Water Quality Violations
The Water Resource Recovery Facility (WRRF) is regulated through a State-issued,
regionally enforced discharge permit. Over the last year, the WRRF experienced
discharge permit violations, in part, due to the extensive use of disinfecting compounds
being used by the community to combat COVID -19. When introduced to the WRRF in
these greater concentrations, these disinfecting compounds, referred to as quaternary
ammonia, had a negative impact on the biological treatment process. The impacts from
these elevated levels of quaternary ammonia resulted in four separate pathogen
discharge permit violations at the WRRF.
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Item 6a
After extensive sampling, operational changes, literature review, correspondence with
other wastewater agencies and laboratories, as well as the use of a chemical additive
that counters the effects of quaternary ammonia, the City's WRRF was able to return to
compliance. The other 10 violations were caused by the formation of disinfection by -
products called trihalomethanes (THMs), which are a byproduct of the chlorine
disinfection process. The SLO Water Plus (WRRF) project is constructing an ultraviolet
disinfection process to replace chlorine that will bring the WRRF into compliance with
THMs.
The violations are $3,000 each and the City has contested the four pathogen violations.
Negotiations with the CCRWQCB, have resulted in a reduction to the fine amo unt, treating
the biological upset as a single event, which is reflected in the current budget request.
Staff is recommending Council delegate to the City Manager the authority to approve all
future National Pollutant Discharge Elimination System (NPDES) permit violation
settlements in an amount not to exceed $50,000 (Attachment B) to ensure settlement
payment for any mandatory minimum penalty be authorized in an expedient manner to
comply with the Central Coast Regional Water Quality Control Board (CCRWQCB)
deadline.
Policy Context
As referenced, the City’s budget policies require that City Council review the City’s budget
and financial condition at least every six months.
Public Engagement
Public comment on the item can be provided to the City Council through written
correspondence prior to the meeting and through public testimony at the meeting. The
Mid-Year Report will also be posted on the City’s website for public review.
CONCURRENCE
The City’s internal Financial Plan Steering Committee has met on multiple occasions and
concurs with the recommendations included in this report. Budget changes pertaining to
the Local Revenue Measure were presented to the Revenue Enhancement Oversight
Commission on January 26, 2022, and the commission concurs with the
recommendations included in this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2021-22
Funding Identified: Yes
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Item 6a
Fiscal Analysis:
The table below shows a summary of the recommended budget allocations by funding
source for each year of the Financial Plan. For detail, see Attachment B – Exhibit A. Based
on the City’s increased revenue projects presented in the Mid-Year Budget report, these
allocations are within the parameters necessary to present a balanced budget.
Table 3: Revenue Budget Changes1
Fund Adopted 2021-22
Budget
Revised 2021-22
Budget
Total Mid-year
Changes
General Fund* $ 99,762,516 $ 106,947,257 $ 7,184,742
Downtown Association $ 245,000 $ 245,000 $ -
Tourism Bid Fund $ 1,444,000 $ 1,444,000 $ -
Water Fund $ 24,452,759 $ 24,452,759 $ -
Sewer Fund $ 22,499,887 $ 22,500,887 $ 1,000
Parking Fund $ 5,450,826 $ 4,551,136 $ (899,690)
Transit Fund $ 6,640,081 $ 7,446,049 $ 805,968
Total $ 136,042,310 $ 143,217,464 $ 7,175,154
*includes ARPA
Table 4: Expenditure Budget Changes
Funding Source 2021-22 2022-23
One-Time Allocations $ -
General Fund FY21 One-time Fund Balance (Per ACFR) $ 4,800,000
Local Revenue Measure FY21 One-time Fund Balance (Per ACFR) $ 1,940,000 $ -
Capital Reserve $ 1,872,000 $ -
PEG Funds $ 110,030
Public Safety Equipment Replacement Fund $ 68,656 $ -
San Luis Ranch Fund $ 28,000 $ -
Affordable Housing Fund $ 30,000 $ -
Law Enforcement Grant Fund (JAG Grant) $ 10,000 $ -
Transit Fund $ 35,000 $ -
Reappropriation of Cerro San Luis Greenway Project Budget
(ATP) $ 476,971 $ -
Transportation Development Act Fund (TDA) $ 53,029 $ -
Ongoing Allocations
General Fund $ 261,025 $ 501,938
Local Revenue Measure $ 623,660 $ 1,083,497
Sewer Fund $ 396,000 $ 95,000
Water Fund $ (75,000) $ (95,000)
Parking Fund $ 135,000 $ 180,000
Total $ 10,711,342 $ 1,765,435
1 For updated long-term forecasts, see Attachment A.
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ALTERNATIVES
The Council could direct staff to not implement the proposed budget change
recommendations. Should the adjustments not be approved, the budget will remain
unchanged at the adopted budget levels. Staff does not recommend an unchanged
budget due changing needs of the community and the City organization.
ATTACHMENTS
A - Mid-Year Budget Report
B - Draft Resolution approving an amendment to the 2021-22 Budget Allocation and
authorizing the City Manager to approve NPDES Permit Violation Settlements up to
$50,000
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MID-YEAR BUDGET REVIEW
FISCAL YEAR 2021 -22
The City’s Budget and Fiscal Policies (Financial Plan Purpose and Organization Item G) call for a formal
financial status report to the Council based on the first six months after the beginning of each fiscal year.
The Mid-Year Budget Review fulfills this requirement and allows the Council to take a broader look at the
City’s financial picture and progress on Major City Goals or strategic initiatives shortly after the mid-point
of the fiscal year.
Though in most years the mid-year review is a check-in and discussion about the one-time use of
unassigned fund balance, the 2021-22 Fiscal Year is anything but “most years”. With the ongoing
pandemic-related rollercoaster or, as others have characterized it, Pandemic Flux, the City organization
finds itself in a situation to address emerging needs of the community and utilize available resources
without hesitation or delay. This mid-year therefore includes requests for immediate action and resource
allocation for one-time efforts as well as ongoing needs to position the City in a place of proactive
engagement.
This report focuses on the current fiscal year and provides an analysis of adopted budget revenues and
expenditure appropriations. It also outlines the achievements and the potential challenges for each
department and the City organization as a whole and provides an update for the adopted Major City Goals.
Based on the review and accompanying analysis, the City remains financially sound with most revenues
tracking ahead of budget and operating programs remaining within budgeted allocations.
Index Section Description Page
1 Section A General Fund Summary
2 Section B General Fund Mid-Year Recommendations
3 One-time Fund Balance Appropriations
4 Significant Operating Budget Changes (SOBCs)
5 Use of Capital Reserve
6 Revised GF Long-Term Forecast
7 Section C Enterprise Fund Updates
8 Water
9 Sewer
10 Parking
11 Transit
12 Section D Department Performance Measure and Work Program Updates
13 Section E CIP Update
14 Section F Major City Goal Update
15 Appendix A Detailed Financials
16 Appendix B Budget Request Details
“IN THE MIDST OF CHAOS, THERE IS ALSO OPPORTUNITY”
Sun Tsu
Budget Report Pg # 1
2
6
7
7
9
11
12
12
14
16
20
22
55
57
67
74
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General Fund Summary
A: GENERAL FUND SUMMARY
COVID19 and the Fiscal Outlook
Even at mid-year of 2021-22, the worldwide pandemic brought on by the COVID-19 virus remains a top-
of-mind concern for the City, the State of California and the nation at large. Over the last two years, the
economic outlook presented to Council has changed based on the most current information available. In
some cases, the outlook improved and then experienced transitory stresses as new variants of the virus
spread. In writing this report, the Omicron variant has surpassed all previous infection rates and now
presents 90% of all positive test results. Normally, the past is used to inform the future based on previous
business and economic cycles. Unfortunately, this current predicament is unlike any past experiences and
a conclusion to it remains elusive. However, as society begins to live with the virus and the pandemic turns
into an endemic, the economy will continue to stabilize and return to a more predictable business cycle.
With new revenue from the passage of Measure G, the effect of the Fiscal Health Response Plan and the
awarded allocation of ARPA funding to cover lost revenue during the pandemic, the City finds itself in a
uniquely positive financial position.
The 2021-22 revised mid-year budget is therefore oriented towards sustaining the City’s current
operational levels while meeting demands of inflation and balancing the service needs of the community.
It contains immediate action to fund community priorities that have emerged since July 2021. It also takes
immediate action to address labor market shortages and ensure that the City remains competitive to
retain and attract talent.
Revenue
The table below shows the updated revenue forecast for the General Fund (all revenue consolidated).
Detailed year-to-date actuals and mid-year changes by revenue type can be found in Appendix A.
Table 1: 21-23 Financial Plan
in thousands 2021-22 2022-23 2023-24 2024-25 2025-26
Original Forecast $ 99,801 $ 103,748 $ 101,495 $ 103,498 $ 105,404
Mid-year Revised Forecast $ 106,947 $ 110,165 $ 106,461 $ 109,370 $ 112,382
Increase/(Decrease) from
original forecast* $ 7,146 $ 6,416 $ 4,966 $ 5,872 $ 6,978
*The 2021-23 Financial Plan includes ARPA funding (split equally between the two years). The original forecast assumed only
$8.9 million but the updated allocation for the City is now $13.5 million, explaining the drop in 2023-24.
Considerations
Trying to develop a revenue forecast during a pandemic is a complex, dynamic and fluid endeavor. As the
City approached the 2021-22 mid-year review, staff analyzed current economic trends and gathered data
points to provide Council with the most up-to-date forecast possible. Generally, the City does not contract
out for comprehensive revenue forecasts, but given the current economic turbulence, staff did so this
year with a well-known independent Economic Researcher, Beacon Economics. While the City does
receive sales tax forecasts (its major revenue source) from HdL, these forecasts are largely based on
California state trends with some regional adjustments. Beacon’s proposed forecast is based on its own
proprietary econometric forecast model that takes into consideration the most updated, City-specific data
available. Staff used the combination of its own scenario modeling and the two forecasts (HdL and
Budget Report Pg # 2 Page 116 of 255
General Fund Summary
Beacon), each with a different approach, to present a well-informed and updated forecast for Council
consideration during financial decision-making.
A.Sales Tax. Sales and use tax revenue exceeded the City’s projections for FY 2020-21. There were gains
in nearly all major industry groups with the County pool up 38%; Business & Industry up 38% and
Autos/Trans up 31% driven by a switch from services to goods, inflation, and available savings. The
updated FY 2021-22 projections assume that consumer spending spike will decline slightly, plateau
and then return to a more consistent growth level. The top industries will be General Consumer goods,
Autos & Transportation and the State/County Pools. Supply chain issues will continue to influence
availability of goods, but for now, consumers seem to spend on goods rather than services due to the
ongoing COVID-19 realities.
B.Property Tax. Property tax forecasts are provided by the County Assessor’s office. The latest forecast
had very minor adjustments with an overall decrease of $35,000. The forecast takes into account
Proposition 13 increases, inventory growth, and revaluation of old housing stock.
C.Transient Occupancy Tax (TOT). Tourism along the central coast made a significant and strong
comeback as the region re-opened. TOT revenue reached all-time highs through the end of last fiscal
year and into the current year, but it is unlikely that rate and demand will stay as high as they are
now. The updated forecast assumes a strong 3rd quarter and then a fall in rate and a an adjustment in
demand towards the end of the fiscal year, leading to a decrease in overall TOT revenue for FY 22-23
followed by a conservative 2% annual growth thereafter. This will be closely monitored based on
national, state, and regional travel trends.
D.Utility Users Tax (UUT). The UUT revenue forecast has been adjusted downward in response to the
year-to-date amount collected and the historical four-year average. New regulations brought on by
the Federal Communications Commission and the California Public Utilities Commission continue to
disrupt the landscape for the revenue and staff continues to evaluate possible changes to the
Municipal Code to maximize UUT.
E.Cannabis Tax. The Cannabis revenue forecast has been adjusted downward as a result of the assumed
total active cannabis businesses within the City being reduced from eight to five for the fiscal year.
Three businesses (two delivery and one retail storefront) stopped moving through the City’s Cannabis
Operator Permit process during 2021. There are currently three cannabis businesses open and
Graph A1: Sales Tax – 3Q20 compared to 3Q21
Budget Report Pg # 3 Page 117 of 255
General Fund Summary
operating in the City, one retail storefront and two delivery businesses. The City expects two
additional cannabis businesses will open in early 2022, one retail storefront and one delivery.
However, staff continues to enforce delivery from outside businesses making sure the applicable tax
is being remitted. The State of California recently announced plans to add resources to enforce voter
approved laws for unpermitted operations into compliance.
F.Fees for Service. Overall, fee-generating department programs are currently operating at the level
projected. Some programs continue to face hurdles related to Covid, hiring challenges, or site closure
but the decreased revenue is offset by programs exceeding revenue projections. Minor adjustments
can be found in Appendix A, but the long-term forecast contains no significant changes.
G.Other Revenue. Due to the volatility in the investment world, the General Fund had a very large “Fair
Market Value” adjustment as part of the FY 20–21-year end close. This resulted in significantly lower
interest earnings than expected. To avoid this from happening in the current year, staff are
recommending reducing the interest revenue budget and using a more conservative long-term
budgeting approach. The updated budget is a placeholder to indicate some revenue, but conservative
enough to not necessitate any downward adjustments
H.Subventions and Grants. Subventions and grants fluctuate from year-to-year based on availability and
grant award rate. Generally, the City has met or exceeded its annual budget, but the budget was not
based on guaranteed sources. The mid-year adjustment reflects a change in methodology that is in
line with budgeting best practices and will avoid the City from ending in a negative position if grants
are not awarded. Moving forward, net-zero budget adjustments (revenue/expenditure offsetting) will
be posted as the grants are received and only grants that are awarded on a non-competitive “per
capita” allocation will be considered in the budgeted amount.
Development Services Designation
Financial Policy for Development Services Revenue: On June 17, 2014, the City Council revised the fiscal
policies to provide for the City Manager to allocate up to 75% of Development Services over -realized
revenues to acquire temporary resources for the timely processing of development applications and other
permit processing activities. The policy calls for the allocated revenues to be reported to the City Council
on a semi-annual basis as part of the mid-year and annual budget presentations.
The Community Development Department conducted a workload analysis in preparation for the 2021-23
Financial Plan. Ultimately, the department determined that the base revenue budget needed to be
increased to match the forecasted development services activity, thus allowing the department to
increase expenditures by adding full-time staff (as opposed to temporary or contracted resources). The
increase in the revenue budget will decrease the “over-realized” revenue and inversely, the added full-
time staff will reduce the need to draw down on the Development Services Designation.
With the 2021-23 Financial Plan Based on 2020-21 audited financials and usage during the current fiscal
year, the following table shows the current balance of the development services designation:
Budget Report Pg # 4 Page 118 of 255
General Fund Summary
Table 2: Development Services Designation
2021-22 Beginning Balance $710,657
Administrative Support: Permit Processing ($30,000)
Engineering Inspector Support ($150,000)
Current Balance $530,657
Year-to-Date Expenditures
There are no significant expenditure variances impacting projected fund balances based on data from
the first half of the year. The detailed financial reports included in Appendix A provide year-to-date
expenditure information by department. The data presented in the table includes any committed and
encumbered services.
Table 3:
Compensation Study
The City of San Luis Obispo is committed to provide competitive compensation to continue to attract and
retain talented, qualified, and experienced employees who provide the high-quality public services the
community needs and expects. This is in accordance with the City’s Compensation Philosophy that was
adopted by Council in 2011 to guide compensation decisions for labor negotiations and decisions. City
Council received and filed the 2021 Benchmark Compensation Report for the San Luis Obispo City
Employees’ Association (SLOCEA) and Unrepresented Management and Confidential Bargaining Units on
February 1, 2022.
The survey included a total of twenty-two (22) benchmark classifications, including thirteen (13)
represented by San Luis Obispo City Employees’ Association (SLOCEA) and nine (9) designated
management. Overall, the City’s base salaries compared to other surveyed employers are on average,
8.55% below the median. As a general industry standard and consistent with the City’s Labor Relations
Objectives, a classification that surveys within 5% of the market median is considered competitive. While
the exact fiscal impact of the findings is still being calculated, the updated mid-year forecast assumes an
increase in the City’s staffing costs aligned the City’s compensation philosophy and challenges to recruit
and retain employees due to a unique labor market.
Total Budget Total
Consumption Funds Available % Consumed
Staffing 60,301,460$ 28,500,686$ 31,800,774$ 47%
Contract Services 9,644,978$ 5,414,708$ 4,230,270$ 56%
Other Operating 6,637,746$ 3,550,089$ 3,087,658$ 53%
Utilities 2,865,838$ 1,314,343$ 1,551,495$ 46%
Total 79,450,022$ 38,779,826$ 40,670,196$ 49%
Budget Report Pg # 5 Page 119 of 255
General Fund Mid-year Budget Recommendations
B: GENERAL FUND MID YEAR RECOMMENDATIONS
The following section is organized by funding source:
B-1: One-time Fund Balance Appropriations
B-2: General Fund Mid-Year Operating Budget Changes
B-3: One-time Capital Reserve Requests
B-4: Re-allocation of Cerro San Luis Greenway Project Budget
B-5: Budget Requests from various funding sources
Each mid-year recommendation has a SOBC ID# that corresponds with the detailed list included in
Appendix B (Budget Report Pg 74).
B-1: One-time Fund Balance Appropriations
Based on the City’s audit and Annual Comprehensive Financial Report (ACFR), the General Fund ended
the fiscal year 2020-21 with a fund balance of $47.1 million. The growth of fund balance is two-fold:
1.The prudent Council decision to retain 2018-19 and 2019-20 available fund balance to secure the
City’s finances during the height of the COVID-19 pandemic.
2.Lower than anticipated revenue losses and expenditure savings due to the activation of the Fiscal
Health Contingency Plan that already benefited from the savings measures from the Fiscal Health
Response Plan.
Of this total fund balance, $5.3 million is unassigned and remains available for any effort that benefits
from one-time augmentation of funding. The LRM sub-fund has approximately $2 million in unassigned
fund balance.
Table 5: See ACFR page xiv
Fund Balance 9,299,971$
Encumbrances (1,971,621)$
Carryover (1,937,369)$
Allocate to Capital Reserve (FY22)(3,426,208)$
Unassigned LRM Balance 1,964,773$
Local Revenue Measure Sub-Fund
Based on Fiscal Health Response Plan.
Budget Report Pg # 6 Page 120 of 255
General Fund Mid-year Budget Recommendations SOBC# Table 6: GENERAL FUND One-time Budget Appropriations (FY21 Fund Balance)
General Fund available one-time balance $ 5,311,792
1 SLO Rep Challenge Grant1 Operating 3,950,000
2 Vehicles for New Maintenance Positions Capital 210,000
3 Bob Jones Bike Trail Vegetation Management Operating 25,000
4 Downtown Safety Enhancements Capital 375,000
5 Crisis Communications Planning Operating 50,000
6 Transfer of Mitigation Fee Payment Operating 10,000
7 Litigation Support Operating 120,000
8 Council Hearing Room - Auto Tracking Camera Operating 30,000
9 Covid Tests Operating 30,000
Total $ 4,800,000
Remaining balance3 $ 511,792 SOBC# Table 7: LRM One-time Budget Appropriations (FY21 Fund Balance)
LRM available one-time balance $ 1,964,773
10 Golf Course Pro Shop Flood Damage Repairs Capital 120,000
11 Reimbursement Agreement for 600 Tank Farm Capital 1,545,000
12 Mission Plaza Landscape & Lighting Improvements Capital 275,000
Total $ 1,940,000
Remaining balance $ 24,773
B-2: General Fund Mid-Year Operating Budget Changes
Due to the updated forecast which includes an increase in annual revenue over expenditures, staff are
recommending the following budget changes.SOBC# Table 8: General Fund Operating Budget Requests FY 21-22 FY 22-23
Available Balance $ 2,273,520 $ 911,925
14 2nd Legal Assistant Ongoing - 73,400
15 One-time Contingency: Benchmark Study Adjustments One-time 250,000 -
16 Conversion of City Attorney Contract Positions(3 FTE)2 Ongoing - -
17 Hybrid Public Meeting Support (0.5 FTE) Ongoing - 60,888
18 Monsido - ADA Compliance Software Ongoing - 4,900
19 Temporary Office Leasing and Equipment One-time 197,040
20 Transitional Legal Services Ongoing - 32,000
21 Virtual Meeting Software Ongoing - 6,200
22 Part-time Fire Inspector (0.5 FTE) (Revenue Offset) Ongoing 11,025 33,410
23 Part-time, Contract Attorney Resource Ongoing - 94,100
261,025 501,938
Remaining balance3 $2,012,495 $409,987
1 The terms and conditions of this challenge grant to be negotiated and returned to the City Council for approval.
2 The fiscal impact for this request was already included as “ongoing” in the 2021-23 Financial Plan. This is only a
request to add Full Time Equivalent (FTE) positions.
3 Given the remaining uncertainty and volatility that the economy is facing, staff recommend not appropriating any
additional expenditures at this time.
Budget Report Pg # 7 Page 121 of 255
General Fund Mid-year Budget Recommendations SOBC# Table 9: LRM Operating Budget Requests FY 21-22 FY 22-23
Available Balance $ 1,531,000 $ 1,304,870
24 Housing/Homelessness Contract Position One-time 40,000 80,000
25 Increase in Mission Plaza Maintenance Ongoing 27,000 27,000
26 Convert Mobile Crisis Unit to Permanent (1 FTE)4 Ongoing - -
27 Accelerate New Streets Position One-time - -
28 Additional Pressure Washing Ongoing 25,000 25,000
29 Additional Pruning/Watering Ongoing 200,000 200,000
30 Additional Streets Maintenance Staff (2 FTE) Ongoing 60,750 243,000
31
Additional Supplies for Downtown Maintenance
Program Ongoing - 25,000
32
CAPSLO Programming – Railroad Square Safe
Parking One-time 64,633 -
33 Centralized Resident Inquiry Platform Ongoing 40,000 40,000
34
CIP Staff Augmentation Study – Conversion of
Existing Funding to Positions (4 FTE)2 Ongoing - -
35 Community Services Coordinator (1 FTE) Ongoing - 9,728
36 Public Safety Customer Engagement Ongoing 17,000 12,000
37 Mobile Data Computers One-time 14,200 -
38
Supplemental Overtime for Farmer’s Market
Support Ongoing 15,000 15,000
39 Contract Volunteer Coordinator P&R One-time 32,850 101,508
40
Converting Contract Homelessness Response
Manager to FTE (1 FTE)4 Ongoing - -
41 Emergency Manager (1 FTE) Ongoing 38,627 143,061
42 Facilities Additional Contract Funding Ongoing 25,000
43 Parks Additional Contract Funding Ongoing - 40,000
44 Parks Maintenance Beautification Gardner (1 FTE) Ongoing 48,600 97,200
Total 623,660 1,083,497
Remaining balance5 $907,340 $221,373
4 The fiscal impact for this request was already included in the 2021-23 Financial Plan as “one-time”. This is only a
request to add Full Time Equivalent (FTE) positions and approve the request as “ongoing”. The ongoing fiscal
impact is included in the revised long-term forecast.
5 It is recommended that any remaining balances for the 21-23 financial plan be appropriated as part of the
supplemental budget.
Budget Report Pg # 8 Page 122 of 255
General Fund Mid-year Budget Recommendations
B-3: One-time Capital Reserve Requests
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 (LRM) for the purpose of
offsetting unanticipated cost increases, unforeseen conditions, and urgent unanticipated projects to
provide continued investment in infrastructure maintenance and enhancement. Use of funds from the
Capital Projects Reserve Fund can be made upon Council approval as necessary during any fiscal year. The
following projects are recommended to be funded by the reserve. The reserve will be replenished to the
20% level during supplemental budget preparation through the re-prioritization of projects or use of
unassigned LRM fund balance.SOBC# Table 10: Capital Reserve Budget Requests FY 21-22
Available Balance $ 3,276,208
45 Santa Rosa at Monterey Intersection Improvements 1,000,000
46 Fire Medium Duty Truck with Utility Bed 20,000
47 Increased Vehicle Costs Tied to Inflation 120,000
48 Mid Higuera Bypass (Design 90649) 110,000
49 Mission Plaza Restroom (Design 91439) 60,000
50 Parks Vandalism Resistant Restroom Fixtures 25,000
51 Reconstruction and Resurfacing Annual Asset Maintenance 150,000
52 Replacement of Concrete Park Tables Citywide – Safety Measure 25,000
53 Increased Sidewalk Annual Asset Maintenance 50,000
54 SLO Creek Repair at Johnson Avenue (Design 1000183) 175,000
55 Transportation Consultant Support 125,000
56 Additional Truck Mounted Sign Boards 12,000
Total 1,872,000
Remaining Balance after mid-year requests $ 1,404,208
B-4: Re-allocation of Cerro San Luis Greenway Project6 Budget
The City received an Active Transportation Grant just prior to the release of the budget and there was not
ample time 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 as a holdover strategy until such time as staff and the Active Transportation Committee
could evaluate the first priority projects to initiate from the recently adopted Active Transportation Plan
before returning to Council with appropriation recommendations as part of Mid-Year. (R-11251) Below
are two priority projects for funding, Transportation staff continue to coordinate the production of
adopted and prioritized projects many of which require design work as the first step.
6 Previously known as “Anholm Greenway”
Budget Report Pg # 9 Page 123 of 255
General Fund Mid-year Budget Recommendations SOBC# Table 11: Reallocation of Cerro San Luis Greenway Project Budget FY 21-22
Original Project Budget (LRM Portion) $ 1,705,225
57 Higuera Corridor Complete Street (Final Design) $ 250,000
58 Pedestrian Crossing Improvements (Construction)7 $ 226,971
Total $ 476,971
Remaining for allocation at later date (ATP specific projects) $ 1,223,029
B-5: Budget Requests from various funding sources
The following budget requests are recommended to be funded using Agency, Capital, Special Revenue
or Development Fee funds. They will have no impact on the General Fund and all funds have appropriate
fund balances to cover the requested expenditures.
Table 12: SOBC# Funding Source Budget Request FY 21-22
58 TDA Fund Pedestrian Crossing Improvements
(Construction)4 53,029
59 Affordable Housing Fund Affordable Housing Legal Fees 30,000
60 Public Safety Equipment Fund Confined Space Rescue Equipment 38,656
61 PEG Funds Council Chambers – Auto Tracking Cameras 110,030
62 San Luis Ranch Park Fund Madonna Rd. Bike Path Landscaping Design 28,000
63 Law Enforcement Grant Fund Mobile Command Trailer Bandwidth 10,000
64 Public Safety Equipment Fund Recruit Academy Personal Protective Equipment 30,000
Total $ 246,686
Revised General Fund Long Term Forecast
The revised long-term forecast on the following page includes all of the proposed mid-year budget
recommendations on lines 37-42.
7 Needed to fully fund construction of priority pedestrian/bicycle crossing improvements at several priority
intersections in FY2021-22, including at the Sydney/Johnson and South/King intersections.
Budget Report Pg # 10 Page 124 of 255
In Thousands Actual
2020‐21
Adopted
Budget
2021‐22
Budget
2021‐22
Budget
2022‐23
Projected
2023‐24
Projected
2024‐25
Projected
2025‐26
1 Tax & Franchise Revenue
2 Sales & Use Tax 33,273 43,002 47,093 48,648 50,048 51,549 53,104
3 Sales Tax General 20,068 18,387 20,791 21,643 22,509 23,274 24,019
4 Public Safety (Prop 172)425 336 493 497 502 507 513
5 Measure G20 12,780 24,279 25,810 26,507 27,037 27,767 28,572
6 Property Tax 19,859 20,192 20,157 20,746 21,369 22,010 22,670
7 Transient Occupancy Tax 6,960 7,213 9,051 8,636 8,809 8,985 9,165
8 Utility Users Tax 5,226 5,565 5,383 5,544 5,655 5,768 5,884
9 Franchise Fees 1,797 1,575 1,575 1,606 1,638 1,671 1,704
10 Business Tax Certificates 2,937 2,426 2,832 2,889 2,946 3,005 3,065
11 Cannabis Tax 845 1,300 1,000 1,400 1,650 1,683 1,717
12 Total Tax & Franchise Revenue 70,896$ 81,274$ 87,092$ 89,469$ 92,115$ 94,671$ 97,308$
Fees for Service & Other Revenue
13 Police Services 599 637 610 637 650 663 676
14 Fire Services 1,501 1,404 1,421 1,422 1,451 1,480 1,509
15 Development Review 7,174 6,595 6,551 6,864 7,070 7,282 7,500
16 Parks & Recreation 1,616 1,612 1,616 2,039 2,080 2,122 2,164
17 General Government 442 438 438 446 455 464 473
18 Cannabis 90 310 157 210 216 223 229
19 Other Revenues 2,126 2,166 1,886 1,938 1,984 2,027 2,082
20 Subventions & Grants 3,201 900 477 440 440 440 440
21 Federal Stimulus Funding 4,465 6,700 6,700
22 Total Fees & Other Revenue $ 16,749 $ 18,527 $ 19,855 $ 20,696 $ 14,345 $ 14,699 $ 15,074
23 Total Revenue $ 87,646 $ 99,801 $ 106,947 $ 110,165 $ 106,461 $ 109,370 $ 112,382
Use of Funds
24 Staffing 53,829$ 54,284$ 57,774$ 62,977$ 65,251$ 67,867$ 68,889$
25 Contract Services 6,415$ 4,963$ 8,479$ 7,484$ 7,708$ 7,862$ 8,020$
26 Other Operating Expenditures 8,502$ 8,127$ 8,913$ 9,161$ 6,998$ 7,203$ 7,412$
27 Cost Allocation (4,578)$ (4,717)$ (4,717)$ (5,000)$ (5,151)$ (5,305)$ (5,464)$
28 21‐23 Financial Plan SOBCs*7,529$ ‐$ ‐$ ‐$
29 Total Operating Expenditure $ 64,168 $ 70,186 $ 70,448 $ 74,621 $ 74,807 $ 77,627 $ 78,857
30 Debt Service 2,541$ 1,997$ 1,997$ 1,992$ 2,000$ 2,000$ 2,000$
31 Capital 6,999$ 26,087$ 28,531$ 25,358$ 25,597$ 25,810$ 26,020$
32 Transfers Out 617$ 495$ 495$ 550$ 824$ 1,011$ 1,208$
33 Total Expenditure $ 74,325 $ 98,764 $ 101,470 $ 102,520 $ 103,228 $ 106,448 $ 108,085
34 Beginning Fund Balance $ 33,798 $ 30,995 $ 32,118 $ 29,984 $ 29,045 $ 28,206 $ 26,753
35 Revenue Over/(Under) Expenses $ 13,320 $ 1,036 $ 5,477 $ 7,644 $ 3,233 $ 2,922 $ 4,298
36 Ending Fund Balance $ 47,118 $ 32,031 $ 37,595 $ 37,629 $ 32,278 $ 31,128 $ 31,050
37 CalPERS Downpayments (10,200) (2,000) (2,000) (2,000) (2,000) (2,000)
38 One‐time Payment to SLO Rep (3,950)
39 LRM Restricted (1,531) (1,305) (1,583) (2,058) (2,607)
40 One time hold of add'l ARPA (4,777)
41 Carryover/encumbrances from FY21 (3,818)
42 Mid‐year SOBCs (850) (261) (502) (489) (317) (326)
43 Ending Fund Balance $ 32,118 $ 32,031 $ 29,984 $ 29,045 $ 28,206 $ 26,753 $ 26,118
44 Policy Reserve Level ‐ 20%11,830 11,769 12,014 12,635 12,513 12,887 13,043
45 115 Pension Trust Fund 2,000 2,000 2,000 3,000 3,000 3,000 3,000
46 Restricted based on Audit 17,776 10,000 13,958 13,000 11,000 10,000 10,000
47 Undesignated Fund Balance $ 512 $ 8,262 $ 2,012 $ 410 $ 1,692 $ 866 $ 75
* SOBCs have been distributed through respective expenditure categories in revised forecast
GENERAL FUND LONG TERM FORECAST
Revised with Mid‐year
Budget Report Pg # 11
Page 125 of 255
Enterprise Funds: Water
C: Enterprise Funds
The City’s financial structure is separated into governmental funds and business activities or Enterprise
funds. Business activities are distinguished from governmental funds by their similarity to private sector
enterprises and are financed solely through user service charges. The City has four unique funds that fall
into this category:
WATER FUND SUMMARY___________ _____________________________________________
Revenue
Water sales are trending on track with revenue projections. Consumption is tracking back on pre-
pandemic levels with the return of Cal Poly students to campus, businesses reopening, and students
returning to K-12 schools. As is typically seen year over year, water consumption trends higher in the
summer months, due to an increase in irrigation associated with drier weather.
The Covid-19 pandemic and resulting California State water shut-off moratorium has resulted in an
increase in past due water accounts. As of January 5, 2022, there was approximately $418,000 in past due
water balances. This is approximately $200,000 more than the year prior to the start of the pandemic.
The Utilities Department applied for and received funding under the CA Water and Wastewater Arrearage
Payment Program of $263,000 to provide financial relief for water bill payments to those customers
impacted by Covid-19. Staff will apply to the same program for relief funding to cover past due sewer
balances when the secondary part of the program opens later this month. To provide economic relief and
support to residents, the Utilities department also deferred a rate increase from July 2020 to February
2021. As the economy stabilized, Council approved a lower than originally adopted rate increase of 3.5%
in July 2021.
Projections for debt proceeds are being increased from $0 in FY 2021-22 to $1,698,745. This
administrative change will correct for the timing of debt proceeds received for the Water Energy efficiency
Project currently under construction at the Water Treatment Plant. Originally the remainder of the debt
proceeds had been anticipated to come in during FY 2020-21, however due to project timing, staff expect
to receive the remaining financing in the current fiscal year. These funds will be offset by the cost of
construction.
The fund remains on track to meet revenue targets needed to meet all anticipated operating and capital
expenditures with adequate reserves. Staff will continue to monitor revenues and forecast future
expenditures alongside an upcoming rate confirmation study.
Operating Expenses
Operating expenses are on track with appropriated budget allocations. Two mid-year budget adjustments
are requested as outlined below: ID# Table 13: Water Mid-year Operating Budget Request FY 21-22 FY 22-23
65 Administrative Adjustment in Position Costing for 1 Water
Distribution Operator8 (95,000) (95,000)
66 Utilities Fleet Replacement 20,000 -
Total (75,000) (95,000)
8 The position should have been budgeted in the Sewer Fund.
Water Sewer Parking Transit
Budget Report Pg # 12 Page 126 of 255
Enterprise Funds: Water
The working capital drawdown on line #37 reflects the forecasted use as is intended to replace and
maintain infrastructure and is assumed as part of the rate setting. The 20% operating reserve remains
within policy requirements.
(in thousands)
REVENUES BY TYPE
Actual
2020-21
Original
2021-22
Budget
2021-22
Budget
2022-23
Projected
2023-24
Projected
2024-25
Projected
2025-26
Revenue by Type
1 Water Service Charges $15,417 $15,776 $15,776 $16,329 $16,900 $17,492 $18,016
2 Base Fee Revenue $5,213 $5,560 $5,560 $5,754 $5,956 $6,164 $6,349
3 Cal Poly Sales $954 $972 $972 $1,006 $1,041 $1,077 $1,110
4 Cal Poly Capacity & Resilience $535 $223 $223 $225 $230 $235 $240
5 Recycled Water $1,061 $962 $962 $995 $1,030 $1,066 $1,098
6 Development Impact Fees $4,746 $1,548 $1,548 $1,370 $789 $800 $800
7 Investment Income & Property Rev $65 $408 $408 $424 $361 $346 $277
8 Proceeds from Debt $12,601 $0 $1,699 $0 $0 $0 $0
9 Grants $326 $256 $256 $1,395 $0 $0 $0
10 Miscellaneous Revenue $415 $396 $396 $396 $396 $396 $396
11 Rate Assistance Subsidy $0 (100)$ (100)$ (100)$ (100)$ (100)$ (100)$
12 TOTAL $41,335 $26,001 $27,700 $27,794 $26,602 $27,477 $28,186
EXPENDITURE BY CATEGORY
13 Salaries & Benefits $4,144 $4,735 $4,711 $5,143 $5,251 $5,361 $5,472
14 Operating $11,253 $12,827 $13,584 $12,693 $12,900 $13,109 $13,327
15 Debt Service $2,460 $2,449 $2,449 $2,443 $1,870 $1,869 $1,866
16 Capital $10,866 $2,944 $16,419 $5,597 $4,496 $7,792 $5,827
17 Transfers Out $2,673 $2,546 $2,517 $2,490 $2,791 $2,838 $2,912
18 TOTAL $31,396 $25,501 $39,679 $28,367 $27,308 $30,969 $29,404
EXPENDITURE BY FUNCTION
19 General Government $2,673 $2,572 $2,517 $2,490 $2,791 $2,838 $2,912
20 Water Source of Supply $10,181 $10,550 $14,159 $10,410 $10,524 $10,633 $10,745
21 Water Treatment $13,608 $6,242 $10,178 $7,750 $6,773 $6,549 $6,118
22 Water Distribution $3,618 $3,888 $10,210 $5,353 $4,757 $8,272 $7,101
23 Water Resources $257 $533 $543 $465 $475 $485 $495
24 Water Administration $1,059 $1,442 $1,730 $1,306 $1,384 $1,575 $1,404
25 Comp Study Salary Contingency $0 $0 $72 $312 $318 $324 $331
26 Utilities Revenue (Billing)$0 $274 $270 $281 $286 $292 $298
27 TOTAL $31,396 $25,501 $39,679 $28,367 $27,308 $30,969 $29,404
28 CHANGES IN FINANCIAL POSITION
29 Working Capital - Beginning $20,765 $30,704 $30,704 $17,884 $17,146 $16,276 $12,619
30 Revenue Over/(Under) Expenses $9,939 $500 $ (11,980) $ (573) $ (706) $ (3,492) $ (1,218)
31 Working Capital - Year End $30,704 $31,204 $18,725 $17,311 $16,440 $12,784 $11,401
32 CalPERS Downpayments $0 $180 $841 $165 $165 $165 $165
33 Working Capital - Year End $30,704 $31,024 $17,884 $17,146 $16,276 $12,619 $11,236
34 Policy Reserve Level - 20%$4,106 $4,510 $4,652 $4,554 $4,562 $4,635 $4,715
35 Rate Stabilization $2,158 $2,231 $2,231 $2,309 $2,390 $2,473 $2,548
36 115 Pension Trust Fund $0 $120 $166 $176 $293 $293 $293
37
Unreserved Working Capital - Year
End $24,440 $24,163 $10,835 $10,108 $9,031 $5,218 $3,681
WATER FUND LONG TERM FORECAST
Revised with Mid-year
Budget Report Pg # 13 Page 127 of 255
Enterprise Funds: Sewer
SEWER FUND SUMMARY___________ _____________________________________________
Revenue
Like the Water Fund, the Sewer Fund revenue is tracking with budget projections and the Utilities
department will continue to closely monitor Monthly service charges.
The Covid-19 pandemic and resulting California State water shut-off moratorium has resulted in an
increase in past due sewer accounts. As of January 5, 2022, there was approximately $361,000 in past due
sewer balances. This is approximately $160,000 more than the year prior to the start of the pandemic. As
discussed above, the Utilities Department has received notice that there is additional funding available
under the CA Water and Wastewater Arrearage Payment Program for past due sewer accounts and will
be submitting an application to provide funding for past-due sewer bills. Staff anticipates the amount to
be similar to the amount received for water arrearages. To provide economic relief and support to
residents, the Utilities department deferred a rate increase from July 2020 to February 2021. As the
economy stabilized, Council approved a lower than originally adopted rate increase of 3.5% in July 2021.
The fund is currently assessing its sewer cap as the average water usage between December and February
will provide the sewer maximum charge for residential customers. The average use during those three
months should be indicative of turned off irrigation, but the dry winter might influence this year’s average.
The fund remains on track to meet revenue targets needed to meet all anticipated operating and capital
expenditures with adequate reserves. Staff will continue to monitor revenues and forecast future
expenditures alongside an upcoming rate confirmation study.
Operating Expenditures
Operating expenses are on track with appropriated budget allocations, but four mid-year budget
adjustments are requested. SOBC# Table 14: Sewer Fund Mid-Year Budget Requests FY 21-22 FY 22-23
67 Additional WRRF Safety Perimeter Fencing 260,000
68 Administrative Error in Position Costing for 1 Water
Distribution Operator 95,000 95,000
69 Mandatory Minimum Penalties from the State for THMs and
Pathogen Violations 21,000
70 Utilities Fleet Replacement 20,000
Total $ 396,000 $ 95,000
Budget Report Pg # 14 Page 128 of 255
Enterprise Funds: Sewer
(in thousands)
REVENUES BY TYPE
Actual
2020-21
Original
2021-22
Budget
2021-22
Budget
2022-23
Projected
2023-24
Projected
2024-25
Projected
2025-26
Revenue by Type
1 Sewer Service Charges $11,699 $12,359 $12,359 $12,792 $13,176 $13,571 $13,978
2 Utilities Base Charges $4,543 $4,653 $4,653 $4,816 $4,960 $5,109 $5,262
3 Sales to Cal Poly $639 $992 $992 $1,026 $1,057 $1,089 $1,122
4 Cal Poly Capacity & Resilience $244 $244 $244 $244 $473 $473 $473
5 Development Impact Fees $3,849 $1,384 $1,384 $1,190 $618 $600 $600
6 Industrial User Permits $9 $85 $85 $85 $85 $85 $85
7 Investment & Property Revenue $10 $402 $402 $608 $545 $519 $519
8 Long Term Debt Proceeds $20,212 $23,921 $89,916 $427 $0 $0 $0
9 Other Revenues $792 $3,866 $3,867 $397 $405 $413 $421
10 Rate Assistance Subsidy $0 ($100)($100)($100)($100)($100)($100)
11 TOTAL $41,996 $47,805 $113,801 $21,485 $21,219 $21,759 $22,360
12 EXPENDITURE BY CATEGORY
13 Salaries & Benefits $4,413 $4,814 $4,911 $5,281 $5,391 $5,502 $5,616
14 Operating $2,596 $3,333 $3,829 $3,441 $3,559 $3,685 $3,818
15 Debt Service $1,388 $1,384 $1,384 $1,381 $1,382 $7,006 $7,099
16 Capital $37,956 $20,923 $111,103 $6,148 $9,652 $3,013 $4,371
17 Transfers Out $2,402 $2,400 $2,368 $2,299 $2,529 $2,565 $2,616
18 TOTAL $48,754 $32,855 $123,596 $18,551 $22,514 $21,772 $23,521
19 EXPENDITURE BY FUNCTION
20 General Government $2,402 $2,430 $2,368 $2,299 $2,529 $2,565 $2,616
21 Wastewater Collection $2,837 $7,330 $21,654 $6,720 $5,276 $3,924 $6,081
22 Environmental Compliance $225 $279 $281 $275 $280 $286 $292
23 Water Resource Recovery $40,817 $20,044 $96,080 $6,246 $11,320 $11,637 $11,307
24 Utilities Revenue $474 $274 $313 $281 $286 $292 $298
25 Water Quality Lab $667 $864 $870 $828 $845 $862 $880
26 Water Distribution $0 $0 $95 $97 $99 $101 $103
27 Network Services $21 $0 $134 $19 $15 $254 $36
28 Comp Study Salary Contingency $0 $0 $171 $329 $335 $342 $349
29 Wastewater Administration $1,311 $1,634 $1,631 $1,457 $1,528 $1,508 $1,558
30 TOTAL $48,754 $32,855 $123,596 $18,551 $22,514 $21,772 $23,521
31 CHANGES IN FINANCIAL POSITION
32 Working Capital - Beginning $40,988 $34,230 $34,230 $23,571 $26,335 $24,871 $24,689
33 Revenue Over/(Under) Expenses ($6,758)$14,950 ($9,795)$2,934 ($1,295)($13)($1,161)
34 Working Capital - Year End $34,230 $49,180 $24,435 $26,505 $25,041 $24,858 $23,528
35 CalPERS Downpayments $0 $180 $864 $169 $169 $169 $169
36 Working Capital - Year End $34,230 $49,000 $23,571 $26,335 $24,871 $24,689 $23,358
37 Policy Reserve Level - 20%$2,160 $2,386 $2,499 $2,480 $2,572 $3,752 $3,830
38 Rate Stabilization $844 $900 $900 $932 $960 $988 $1,018
39 115 Pension Trust Fund $0 $120 $171 $180 $301 $301 $301
40 WRRF Upgrade Debt Reserve $0 $5,903 $0 $2,953 $5,907 $5,907 $5,907
41 Unreserved Working Capital - Yr End $28,273 $39,691 $20,001 $19,789 $15,132 $13,741 $12,303
SEWER FUND LONG TERM FORECAST
Revised with Mid-year
*As emergency projects occur, staff looks for a healthy unreserved working capital balance. Note the unreserved working capital for 21-22 is
significantly high as the working capital beginning balance is based off of FY 20-21 actuals and staff had budgeted for higher WRRF Upgrade
expenditures last year than actually occured leaving a higher beginning working capital balance for FY 21-22. Likewise in the revised mid-year
budget you will see a high debt proceed budget due to the timing of the WRRF Upgrade project which is reflected in the Capital budget. Lastly,
the unreserved working capital - year end is higher than normal due to cash flow needed to cushion the fund during loan disbursement
requests and contractor invoices. Original WRRF debt payments were scheduled to begin in FY 22-23 but due to timing of project completion,
have now been pushed to FY 24-25 as payments will be due one year after project completion.
Budget Report Pg # 15 Page 129 of 255
Enterprise Funds: Parking
PARKING FUND SUMMARY___________ __________________________________________
Revenue
Despite the adoption of revenue enhancement strategies included in the 2021-23 Financial Plan the
Parking Fund is trending slightly behind revenue projections. This is the result of meter and structure
revenues driven by downtown activity, staff vacancies, and deliberate waiver of parking fees to reduce
barriers for economic activity in the downtown during the pandemic. Revenue projections were made
considering the increase in downtown activity in the second half of fiscal year 2020-21. A robust recovery
is expected next fiscal year assuming a return to pre-pandemic levels of downtown activity and the
adoption of additional revenue enhancement strategies.
Structure revenues have been significantly impacted by lower-than-expected downtown activity, staff
vacancies, and equipment issues. Structure revenues are heavily reliant on downtown activity and thus
are subject to variances tied to public health and economic factors. The Parking Fund based its structure
revenue projections on increased levels of activity in the downtown in the second half of fiscal year 2020-
21, however this trend did not continue into this fiscal year. The program did make a substantial financial
commitment to encourage downtown business and activity during the holiday season with nonpaid
parking offerings at the structures and there was noticeable increase in garage utilization. There may be
seasonal factors that result in structure revenues performing better in the second half of the fiscal year.
Structure revenues have also been impacted by staffing challenges; half the garage ambassador positions
are vacant. Currently the structures are unable to collect revenues without garage ambassadors onsite.
While it is difficult to determine how long the impacts of the current labor shortage will linger, this issue
should be remedied with the recovery from the pandemic and the installation of license plate recognition
gateless technology. The performance of structure revenues will continue to be tied to the economic
recovery from the pandemic.
The revenue enhancement strategies adopted in the 2021-23 Financial Plan are having a positive impact
on meter and enforcement revenues, however despite these strategies downtown activity and
concessions for the downtown’s economic recovery are resulting in revenue shortfalls. The expansion of
enforcement hours and rate increases has resulted in a minimal revenue shortfall in meter revenues.
Furthermore, the Parking Fund is currently exceeding its revenue projections for parking fines, despite
not being fully staffed. Additional part-time parking enforcement staff have been hired and trained to
monitor and assist parking operations into the evening hours with full-time parking enforcement positions
anticipated to be filled by the beginning of Spring 2022.
Despite the projected revenue shortfall, the fund is currently positioned to sustain planned operating and
capital expenditures, meet reserve requirements, and cover anticipated debt payments associated with
the Palm-Nipomo parking structure. This is attributable to the adoption of additional revenue
enhancement strategies, additional enforcement staff, and strategic capital project planning.
However, it is important to note that with its FY 2020-21 year-end result, the Parking Fund has forgone
significant revenue as an economic recovery tool and thus was not able to meet its debt coverage
requirement as stipulated by the loan agreement with the State’s Infrastructure and Economic
Development Bank (IBank). A violation of the agreement requires that the jurisdiction demonstrates
appropriate rate increases that will eliminate the issue going forward. Though this result was largely due
to the impacts of COVID-19, it is imperative to look at the long-term forecast and ensure that revenues
and expenditures remain in balance to reach the required debt coverage ratio for the foreseeable future.
Since the City is applying to IBank as a possible lender for the Palm-Nipomo parking structure,
Budget Report Pg # 16 Page 130 of 255
Enterprise Funds: Parking
demonstrating this long-term adherence is imperative to move that project forward and realize a
generational effort. Even if the loan ultimately does not come from IBank, every bond covenant will have
similar consideration and the year-over-year net revenue result will be imperative to secure the needed
funding. Thus any changes to rates need to be revenue neutral or may otherwise compromise the City’s
ability to access lending sources.
Operating Expenditures
The Parking Fund is trending in line with the Fiscal Year 2021-22 operating budget. The fund is realizing
savings due to staff vacancies; however, this is offset by the additional need for contract services to make
up the workload, notably for security and maintenance services at the structures. The Parking Program is
requesting additional funding to execute a new security services contract to expand nighttime hours with
the goal of improving downtown and structure safety.
Budget Report Pg # 17ID# Table 15: Parking Fund Mid-Year Budget Requests FY 21-22 FY 22-23
71 Gateless Parking Garages Equipment Install (Capital) 45,000 -
72 New Security Services Agreement (Capital) 45,000 90,000
73
Supervising Parking Enforcement Officer Reclassification
(Operating) 45,000 90,000
Total $135,000 $180,000
Page 131 of 255
Line(in thousands)
REVENUES BY TYPE
Actual
2020‐21
Original
2021‐22
Budget
2021‐22
Budget
2022‐23
Projected
2023‐24
Projected
2024‐25
Projected
2025‐26
1 Parking Meter Revenues1 1,265 2,178$ 1,941$ 2,121$ 2,168 2,182 2,233
2 Parking Structure Collections2 346 1,275$ 835$ 2,229$ 2,273 2,319 2,633
3 Long‐Term Parking Revenues 422 771$ 548$ 779$ 787 795 803
4 Lease Revenues 498 459$ 459$ 430$ 434 438 443
5 Parking In‐Lieu Fees 11 21$ 21$ 21$ 21 21 21
6 Interest on Investment 4 76$ 76$ 64$ 56 30 40
7 Fines & Forfeitures 718 702$ 718$ 710$ 717 724 731
8 Police Issued Parking Fines ‐ ‐$ ‐$ ‐$ ‐ ‐ ‐
9 Other Revenues 22 30$ 14$ 28$ 30 29 29
10 Proceeds from Debt Financing3 ‐ ‐$ ‐$ ‐$ 37,052 ‐ ‐
11 Total Revenues 3,286$ 5,511$ 4,611$ 6,381$ 43,536$ 6,538$ 6,931$
USE OF FUNDS
11 Staffing 1,126$ 1,665$ 907$ 1,502$ 1,540$ 1,580$ 1,618$
12 Contract Services 683$ 607$ 607$ 796$ 816 836 857
13 Other Operating Expenditures 269$ 577$ 497$ 511$ 527$ 543$ 559$
14 Cost Allocation 710$ 870$ 870$ 887$ 905$ 923$ 942$
15 SOBCs ‐$ 180$ 180$ 135$ 135$ 135$ 135$
16 Debt Service 416$ 415$ 415$ 414$ 413$ 412$ 411$
17 Palm/Nipomo Debt Service ‐$ ‐$ ‐$ ‐$ ‐$ 2,044$ 2,044$
18 Transfers Out 691$ 675$ 676$ 689$ 703$ 717$ 731$
19 Capital 897$ 1,799$ 1,799$ 6,731$ 38,004$ 376$ 318$
20 Total Expenditure $ 4,792 $ 6,789 $ 5,951 $ 11,665 $ 43,042 $ 7,565 $ 7,615
35 Beginning Fund Balance $ 15,003 $ 13,161 $ 13,161 $ 11,510 $ 6,165 $ 6,599 $ 5,510 $‐$‐$‐$‐$‐$‐$‐
36 Revenue Over/(Under) Expenses (1,506)$ (1,278)$ (1,339)$ (5,284)$ $ 495 $ (1,027) $ (684)
37
Ending Fund Balance before
CalPERS Downpayments $ 13,496 $ 11,883 $ 11,821 $ 6,226 $ 6,660 $ 5,571 $ 4,826
Cal PERS Downpayment $ ‐ $ ‐ $ 311 $ 61 $ 61 $ 61 $ 61
39 Ending Fund Balance $ 13,496 $ 11,883 $ 11,510 $ 6,165 $ 6,599 $ 5,510 $ 4,765
40 Policy Reserve Level ‐ 20%641$ 827$ 659 822 840 859 877
CalPERS Trust Fund ‐$ ‐$ 61$ 65$ 65 65 65
46 Undesignated Fund Balance $ 12,856 $ 11,056 $ 10,790 $ 5,278 $ 5,694 $ 4,587 $ 3,823
3. Proceeds from Palm/Nipomo financing received in fiscal year 2023‐24.
PARKING FUND LONG TERM FORECAST
1. Forecast assumes return to pre‐covid activity in fiscal year 2022‐23 and takes into account the closure of lot 14's impact on revenue. Forecast takes into
account expansion of enforcement hours, approved rate increase, paid parking at railroad square, paid parking at upper Monterey, mobile app roll‐out,
and multi‐space pay stations.
2. FY 22‐23 Assumes pre‐covid downtown activity and net increase of $954k considering elimination of 1st hr free, approved rate increase, reduction of
max daily rate and installation of LPR. Assumes additional revenue from Palm/Nipomo structure starting in FY 24‐25.
Revised with Mid‐year
Budget Report Pg # 18 Page 132 of 255
Enterprise Funds: Transit
TRANSIT FUND SUMMARY___________ __________________________________________
Revenue
The Transit Fund will be utilizing Federal Transportation Administration (FTA) 5307 funds as the primary
source to cover its operating and preventative maintenance costs. These funds will be supplemented by
farebox revenue and State TDA funds for the program’s operations. The City is currently providing a “zero
fare” program to Cal Poly on a one-year extension to the 2011 Transit Service Agreement. The City will be
pursuing a long-term agreement with Cal Poly that more closely aligns with the cost of providing service.
New federal funding, American Rescue Plan Act (ARPA) funds, will be used to pay for electric vehicle
charging infrastructure.
Operating Expenditures
The Transit Program is realizing savings as it is temporarily operating at reduced service levels based on
current ridership demand. This has resulted in savings in purchased transportation, and maintenance.
While no operating budget changes are being requested, staff is requesting additional funds to relocate a
bus stop on Prado Rd. as a safety measure to eliminate mid-block pedestrian crossing to access the bus
stop. Transit will continue to monitor operations and match expenditures to revenues and take a
conservative approach to managing the fund.
Table 16: ID# Transit Fund Mid-Year Budget Request FY 21-22 FY 22-23 Ongoing
(if applicable)
70 40 Prado Rd. Bus Shelter Relocation (Capital) 35,000
Total $ 35,000 - -
Long Term Forecast
There are several large pending items looming in the Transit Program’s future that could have a significant
impact to the fund. Currently staff is in negotiations with Cal Poly University for a new long -term Transit
Service Agreement reflective of all operational costs. The Transit Program outsources its Operations &
Maintenance to a third-party vendor and the current contract extension ends next year. Prior to that,
staff will pursue a new Request for Proposal and service costs will be updated upon that contract award.
The Transit fleet has six buses at the end of their useful life and the program is focused with “electrifying
them”. Federal funds made available via the use of CAREs funds to cover operating costs were used for
the purchase of two electric buses. The cost hurdle of transitioning to an electric fleet is being addressed
with federal and state funding.
Budget Report Pg # 20 Page 133 of 255
Enterprise Funds: Transit
(in thousands)
REVENUES BY TYPE
Actual
2020-21
Original
2021-22
Budget
2021-22
Budget
2022-23
Projected
2023-24
Projected
2024-25
Projected
2025-26
1 Federal - 5307 Operating1 0 2,557$ 2,888$ 2,946$ 3,005 3,065 3,126
2 Federal -5307 Preentative Maintenance 1 0 248$ 199$ 203$ 207 211 215
3 Federal - 5307 Capital 1 1,384 -$ -$ -$ - - -
4 Federal - Cares Act2 2,806 -$ -$ -$ - - -
5 Federal - ARP (American Rescue Plan) Formula 3 - 898$ 898$ -$ - - -
6
State TDA (Transportation Development Act) STA 209 305$ 305$ 312$ 318 324 331
7 State TDA LTF 1,380 1,788$ 1,788$ 1,795$ 1,831 1,867 1,905
8
State TDA Allocated to RTA, SLOCOG and Other
Off-the-Top Obligations 691 634$ 634$ 646$ 659 672 686
9 State - APCD (Air Pollution Control District)- 500$ 500$ -$ - - -
10 PG&E Grant - 50$ 142$ 50$ - - -
11 Farebox Revenue 328 150$ 150$ 200$ 240 250 260
12 Cal Poly Agreement4 150 538$ 538$ 900$ 900 900 900
13 State - SB1 8 8$ 8$ -$ 100 100 100
14
State - LCTOP (Low Carbon Transit Operations
Program)257 -$ -$ -$ 75 76 77
15 ARPA Discretionary - -$ -$ -$ - - -
16 Interest on Investment 31 31$ 31$ 31$ 32 33 33
17 TOTAL REVENUES $ 7,243 $ 7,707 $ 8,080 $ 7,082 $ 7,366 $ 7,498 $ 7,633
Expenditures & Obligations
18 Staffing 261 301$ 349$ 380$ 392 403 415
19 Contract Services 2,414 3,470$ 2,021$ 2,446$ 2,497 2,572 2,650
20 Fuel 205 435$ 435$ 444$ 453 462 471
21 Maintenance 133 269$ 269$ 275$ 280 286 292
22 Other Operating Expenditures 70 137$ 50$ 137$ 140 143 146
23 Cost Allocation 231 235$ 235$ 257$ 262 267 273
24 SOBCs - 35$ 35$ -$ - - -
25 RTA, SLOCOG and Other Off-The-Top Contributions from TDA691 634$ 634$ 646$ 659 672 686
26 Transfers Out - -$ -$ -$ - - -
27 Capital 1,800 2,719$ 2,719$ 2,928$ 2,055 2,115 2,175
28 TOTAL Expenditures & Obligations: $ 5,804 $ 8,235 $ 6,747 $ 7,513 $ 6,738 $ 6,921 $ 7,107
29 Beginning Fund Balance $ 2,697 $ 2,716 $ 2,716 $ 3,984 $ 3,541 $ 4,156 $ 4,720
30 Revenue Over/(Under) Expenses $ 1,439 (529)$ 1,333$ (431)$ $ 628 $ 577 $ 526
31 Ending Fund Balance before CalPERS $ 4,137 $ 2,187 $ 4,048 $ 3,553 $ 4,169 $ 4,733 $ 5,246
32 Calpers Unfunded Liability 64$ 13$ 13$ 13$ 13$
33 Beginning Fund Balance5 $ 4,137 $ 2,187 $ 3,984 $ 3,541 $ 4,156 $ 4,720 $ 5,234
34 Policy Reserve Level - 20%827$ 437$ 797$ 708$ 831$ 944$ 1,047$
35 Undesignated Fund Balance $ 3,309 $ 1,750 $ 3,187 $ 2,833 $ 3,325 $ 3,776 $ 4,187
36 CAFR/ACFR Variance 1,631$ 1,368$ -$ 13$ 13$ 13$
Footnotes
5. Beginning fund balance calculated by taking the difference between current assets and current liabilities form City Annual California Financial Report
3. American Rescue Plan Act formula funding that the City is guaranteed to receive for transit. This funding is eligible for purchase of e-buses.
2. One time CAREs act funding used to cover operations costs, freed up 5307 funds to be used for the purchase of 2 e-buses.
1. 5307 grant funding is subject to minimal change by year. Funding was available for capital outlay in FY 22 because CAREs funding covered operation costs typically covered by 5307 funds. 5307
funds may be increasing by 10% starting in FY 23.
4. Cal Poly payment is based on ridership and capital costs relative to their level of service.
Revised with Mid-year
TRANSIT FUND LONG TERM FORECAST
Budget Report Pg # 21 Page 134 of 255
Performance Measures and Work Program Updates
D: Department Performance Measure and Work Program Updates
Departments constantly operate in an environment of knowns and unknowns and the budget preparation
considers that type of environment. Most day-to-day tasks fall into the category of known tasks with
known workload associated. In addition to day-to-day activities, departments expect and budget for some
level of unknown or emergent priorities. When unexpected issues arise with unknown associated
workload emerge, divisions may experience a resource imbalance and thus slow progress on projects or
strategic initiatives.
The pandemic has greatly increased the number of unknowns while requiring immediate action to
respond to the community’s needs. Additionally, retaining and recruiting employees has gotten
progressively more difficult. Almost all departments are experiencing staffing challenges, illnesses and
vacancies, which lead to increased workload and re-prioritization of tasks for positions that are staffed.
As part of the mid-year review, departments evaluated the core objectives of each program’s
performance on the following scale:
Green indicates that the program is managing workload with the appropriated budget for current work
program tasks.
Yellow indicates that a program is managing workload with the appropriated resources but may need
additional resources or objective recalibration in the future to maintain long-term work programs. This
could be due to higher-than-normal activity and does not necessarily indicate ongoing need. These
programs will be monitored closely over the next quarter.
Red indicates that a program is not currently meeting objectives and needs either additional resources
or recalibration to manage workload. This could be due to higher-than-normal activity or may indicate
ongoing need. Solutions are provided for each of these programs.

Budget Report Pg # 22 Page 135 of 255
Administration & IT
Administration & IT Department
Performance Measure Update
Objective Measure 2020-21
Actual
2021-22
Target
2021-22
Mid-year
Provides City-wide
communications to the
community.
Strategic Goal: Citywide
Communications
Open City Hall Participant Satisfaction
Rating 93% 90% 94%
# of City News Releases9 20010 150 50
Provides reliable IT resources
to the organization and
community.
Strategic Goal: Information
Technology
Maintain City Network Reliability Uptime
Status 99.9% 99.9% 99.9%
Data backed-up in Gigabytes 173,000 173,000 335,000
Number of GIS layers maintained 905 905 920
Economic Stability
Strategic Goal: Economic
Recovery and Stability
Contacts with businesses regarding
starting, expanding, and/or staying in the
City
30011 75 36
One-time funds used for direct aid to local
businesses and non-profits $932,0002 $500,000 $219,000
Supports our commitment to
sustainability and provides
open space resources to the
community.
Strategic Goal: Climate Action,
Open Space, and Sustainable
Transportation
# of Green Team12 Meetings 10 10 5
# of Open Space Conservation Plans that
will guide the long-term protection and
stewardship of natural resource values
while guiding appropriate public use
1 1 0
Strengthens the City’s
commitment to advancing
Diversity, Equity and Inclusion
Strategic Goal: DEI
# of City-wide DEI Trainings Offered13 9 10 22
Funds for High-Impact DEI Grants Awarded $109,800 $150,000 0
9 Actuals for 20-2021 includes COVID-19 County Press Releases sent by the City. Prior to COVID-19, the City
averaged 143 news Items per year and are now investing more in additional communication channels such as
social media and direct emails which do not always have a corresponding news release.
10 As of March 15, 2021.
11 This performance measure is significantly higher than a typical year as the Department’s work programs for FY21
have shifted drastically to address the pandemic. The Department contacts businesses in a variety of ways
including direct contact, business update emails, and individual emails and phone calls.
12 The Green Team is a cross-departmental collaborative body that helps guide the approach of the CAP Pillar ‘Lead
By Example: Carbon Neutral City Operations’. As noted in the Major City Goal Work Program, in 2021-23, the
Green Team will focus on implementing the carbon neutral municipal operations plan, completing the Resilient
SLO project, and facilitating all-staff sustainability training.
13 Includes DEI intro/info sessions held in July and August 2021 with almost all functional teams. “City-wide”
trainings will increase once the DEI program is fully established.
Budget Report Pg # 23 Page 136 of 255
Administration & IT
Work Program Evaluations
City Administration
In addition to the overall management of City operations, the Cannabis Business program, and City
Communications, the City Administration program provided emergency management to the
organization and community in response to the pandemic. The Communications program has worked
to improve communication efforts by centralizing resources, standardizing processes, and updating
an RFP for access to on-call contractors. Support of the Revenue Enhancement Oversight Committee
was transitioned to the Finance Department and work efforts are underway to transition the Human
Relations Commission to Administration and IT (previously in Community Development) in 2022 to
coincide with the creation of the Office of Diversity, Equity and Inclusion.
Cultural Activities
The City continues to support the City-County Library and the Performing Arts Center (PAC). The City
provides an annual contribution to operating costs and funds various capital improvements for the
library. The City is also a partner with Cal Poly and the Foundation for the Performing Arts (FPAC) in the
operation of the Performing Arts Center. Operations are overseen by the Performing Arts Commission,
with the Mayor and the City Manager serving as the City’s representatives. Due to the impacts of
COVID-19 on the PAC, the City Manager has been actively involved in work to ensure the financial
stability and recovery of this community asset.
Economic Development
The Economic Development program is a huge contributor to the Economic Recovery, Resiliency &
Fiscal Sustainability Major City Goal. Currently all tasks and goals are ahead of or on schedule including
the Downtown holiday activation program and return of the Buy Local Bonus program resulting in 4400
qualified entries and $868,522 in local spending over six weeks which is 19% more than the prior year.
The use of the $500K of TBD economic development funding has been somewhat delayed due to the
uncertainty regarding the progress of the pandemic and to be sure funds are available when needed,
but some investments have already occurred including the childcare business grant program in
coordination with CAPSLO.
Office of Diversity, Equity, and Inclusion (DEI)
The creation of the DEI office and the Major City Goal tasks related to DEI are slightly delayed by
recruitment of the DEI manager which has been complicated by a competitive and limited labor market.
A DEI Manager has been hired, however, and has a start date of February 2022.
Office of Sustainability
The Office of Sustainability started off the fiscal year with the adoption of Lead by Example: A Plan for
Carbon Neutral Municipal Operations and quickly turned attention to implementation actions through
informal activation of Green Team staff networks, particularly with energy efficiency lighting retrofits
of City facilities and EV charging infrastructure and vehicle purchases for the City’s Fleet, in
collaboration with the Public Works Department. All other work program elements remain on
schedule. Looking forward, the Office of Sustainability will be focused on preparing the Carbon Neutral
City Facilities Plan, updating the Clean Energy Choice Program, piloting the implementation of the
Better Buildings SLO program for building retrofits, and assisting with completion of the Resilient SLO
planning process. Staff will also be active in 2022 with three separate conservation easement projects
for open space protection; the timing for the delivery of these projects was not originally envisioned to
take place concurrently and will likely necessitate re-ordering some Major City Goal work scope items
in 2022-23.
Community Promotion
The Community Promotion work through the Promotional Coordinating Committee (PCC) is on track.
During the first half of the fiscal year the committee focused on the modified Cultural GIA program,
resulting in the awarding of 18 of the 25 available grants for the year. Additionally, the PCC, has guided
Budget Report Pg # 24 Page 137 of 255
Administration & IT
the implementation of the Support Local Program and corresponding marketing and advertisement
efforts. In addition to the on-going work for the programs mentioned above as well as the general
community promotion, the second half of the year will be focused on the recovery and placemaking
work efforts around projects like public art promotional efforts and resiliency related educational
sessions for stakeholders.
Tourism and BID Promotion
The Tourism Business Improvement District (TBID) has seen a significantly strong first half of the FY
resulting in a 24% increase in occupancy and 29% increase in average daily rate (ADR) compared to the
same period last year. Although research is showing that the number of American travelers reporting
that the recent COVID surge has impacted their travel, overall travel sentiment has improved to the
highest levels since the start of the pandemic. To maximize on this recovery, the TBID has launched a
new destination brand campaign “Hello to the SLO Life” and established a partnership with the City’s
Office of Sustainability and Natural Resources and EcoSLO on the new “Keys for Trees” program which
is aiding the effort to plant 10,000 trees by 2035. In the second half of the year, the TBID is looking
forward to the launch of the new midweek travel promotional campaign for February and March 2022
in partnership with Economic Development.
Downtown SLO BID Administration
The Downtown Business Improvement District (BID) provides the resources to Downtown SLO to
provide ongoing activation and placemaking activities in the Downtown including Farmers’ Market,
Concerts in the Plaza and the Holiday Parade. All of these efforts resumed in the 2020-21 fiscal and
have continued into the current fiscal year.
City Clerk
The City Clerk’s office has been active throughout the first half of 2021-22 continuing implementation
of the new agenda management system, agenda preparation, and the increasing number and size of
public records requests. Since July 1st, the department has received and processed 166 public records
requests which is consistent with past request rates and for other benchmark cities. The Clerks’ office
prepared agendas for 15 City Council meetings and processed 145 Council Agenda Reports, prepared a
total of 31 agendas and packets for Planning Commission, Architectural Review Commission, Cultural
Heritage Committee, Human Relations Committee, Revenue Enhancement Oversight Committee and
Tree Committee. In addition to agenda and packet preparation, the City Clerk’s office staff virtual
meetings for all advisory bodies.
IT – Network Services
This program is categorized as yellow due to continued support of work from home efforts and virtual
public meetings. Additionally, projects have been delayed by the supply chain issues and vendors
delayed in completing their contract obligations. Completed projects include the Radio Handheld
replacement, two-factor authentication implementation, public safety mobile data computer
replacement, Uninterruptible Power Supply (UPS) replacement and PD RIPA deployment. The Tait
backend radio replacement project is scheduled to be complete at the beginning of January, and
progress has been made on the KVEC Hill Radio Tower and Shelter, with 60% construction plans
completed.IT Support Services handled 1,881 support tickets for the 6-month period. The tickets
covered the entire range of our support activities, including hardware and software installation,
computer upgrades, and troubleshooting. Support services included creation of new Laserfiche
workflows to enable users to be more efficient with their workload. The Help Desk has been able to
keep up with the workload with the help of IT Systems Engineers in the Network Services Division.
Control Systems Administrators have been busy with the two major Utilities construction projects that
are in progress: the Water Resource Recovery Facility upgrade and the Water Treatment Plant upgrade.
IT – Information Services
This program is categorized as yellow because staff continue to experience higher than normal
workload due to the implementation of the Motion Project and system upgrades. The Information
Budget Report Pg # 25 Page 138 of 255
Administration & IT
Services team completed the Cityworks 15.7.2 upgrade (the City’s asset management system). The
team is keeping up with adding thousands of assets in the San Luis Ranch and Avila Ranch area as utility
assets are put into the ground. Information Services is also integrating assets from Whale Rock, Stenner
Water Treatment and Water Resource Recovery Facility into Cityworks. Finally, a project was
completed to provide public, land based information to the community in a map-based interface.
The Motion Core Team continues to improve the Oracle system maintenance and resolve compliance-
based issues that were identified post-implementation. The team has completed the Benefits and Open
Enrollment self-service project, the Journal Entries and Billing Receivables project, and the discovery
process for a potential new project around the tracking of Capital Projects.
Budget Report Pg # 26 Page 139 of 255
City Attorney
City Attorney
Performance Measure Update
Strategic Goals Measure 2020-21
Actual
2021-22
Target
2021-22
Mid-Year
Timely and Responsive
legal advice and
support
Strategic Goal:
Department Objectives
Administrative Citation Appeals
Received by the City 227 150 53
Appeals closed without need of a
hearing14 45 25 15
City assisted corrections to
defective appeals to allow access to
hearing
30 15 8
City facilitated hearings on the
record without need for personal
appearance by Appellant
58 50 12
# of hearing days scheduled 20 7 4
Legal Training &
Compliance
Strategic Goal:
Department Objectives
# of Council, Staff, and Advisory
Body legal trainings, legal updates,
and compliance advisory sessions15
4 12 2
Municipal Litigation &
Prosecution
Management
Strategic Goal:
Department Objectives
Percentage of Claims Resulting in
Litigation 6.8%16 <5% 7.7%17
Liability Claims Against the City
Reviewed/Managed 59 70 26
14 Closed in some way that did not include a decision being issued (e.g. withdrawn by appellant, untimely filed,
voided by the issuing department)
15 New performance measure for the 2021-23 Financial Plan. City Attorney staff give many informal advisory
sessions to Council, Advisory Body Members, and City Staff, but have yet to find capacity to plan and hold formal
trainings. The plan is that after implementing the staffing recommendations of the department organizational
assessment (estimated to be finalized in Jan. 2022) capacity will be found to do such trainings.
16 Two high dollar personal injury claims did not settle and are now in litigation. Additionally, two property damage
claims were submitted by a claimant who is now party to a federal lawsuit against the City.
17 A complaint was filed against the City even though the underlying claim was intended for a different government
agency. The misunderstanding is being cleared up. Also, an additional lawsuit against the City for property damage
came to staff’s attention in mid-December though the City has not been served.
Budget Report Pg # 27 Page 140 of 255
City Attorney
Work Program Evaluations
City Attorney
This program is designated yellow because the office has been managing increasing workload over a
long period of time with supplemental and contract legal services and administrative support staff, but
the model is neither the most efficient nor sustainable to meet the ongoing legal service demands of
the City. The City Attorney’s Office began this fiscal year by kicking off its Council-approved
organizational assessment (the “Assessment”). The timeline proposed in the RFP for the Assessment
gave December 2021 as the completion date for the final report, but, as of this writing, that report is
still in progress and the first complete draft was just received from the consultant on January 21, 2022.
The City Attorney has received preliminary staffing increase recommendations from the consultant and
the full draft report will be reviewed and used to inform any Mid-Year recommendations to Council,
with the final report being presented to Council in 2022 (forecast at this time for April) as a consent
item with a staff report outlining the Assessment process as well as a plan to implement any
recommendations.
For the first year of the 21-23 Financial Plan, as the Assessment was underway, Council approved the
addition of three contract positions for the office: Legal Assistant, Paralegal and Deputy City Attorney.
This was staff’s prediction of what would eventually be recommended by the Assessment as additional,
regular positions for the office so was included in the budget forecast as an ongoing expense with the
intention of converting them to FTEs should the Assessment ultimately make that recommendation. As
the year began, staff made the determination that recruiting for a Paralegal and Deputy City Attorney
on a short-term, contract basis was not going to provide the quality applicant pool that would make
the time spent training a new hire worthwhile. Instead, the funding has been used to support additional
Legal Assistant positions and hours for Supplemental, part-time Assistant City Attorney (“ACA”) Mark
Amberg. The Legal Assistants were hired as contract employees, so their salaries have been coming
directly from the surplus in the Contract Salaries budget line. The additional ACA hours have been
hitting the Temporary Salaries line which has driven it slightly over budget. A portion of Contract
Salaries has been marked as coverage for the forecasted overage in Temporary Salaries at year-end.
For the remainder of the current fiscal year, additional surplus in Contract Salaries is also planned for
use in the contracting of outside counsel for criminal and civil municipal code enforcement and,
potentially, to hire a regular Deputy City Attorney if the job-description-drafting processes can be
completed in time to recruit a new hire this fiscal year. In looking for efficiencies i n the allocation of
workload within the current staffing configuration, it was determined that the attorney time spent
advising on criminal and civil code enforcement, and appearing in court for criminal arraignments, was
better assigned to a local law firm via contract. Once a Deputy is hired, it may be more efficient to assign
that work to that position, but in the interim outside counsel was deemed to be a better use of time
and dollars and allows the part-time ACA to assist with managing demand that is currently well beyond
the available capacity of the City Attorney and Assistant City without supplemental legal services.
Budget Report Pg # 28 Page 141 of 255
Community Development Department
Community Development Department
Performance Measure Update
Objective Measure 2020-21 Actual 2021-22
Target
2021-22 Mid-
Year*
Affordable housing
production
Strategic Goal:
Housing
Number of affordable housing
units secured through
entitlements or construction
40 50 9418
Provide Excellent Customer
Service
Strategic Goal:
Other Department Objectives
Customer survey response
positivity rate 95% N/A19
Ensure a Safe Community
Strategic Goal:
Housing
Percent of Code Enforcement
cases investigated on-time: First
Tier – 24 Hours, Second
Tier – 2 Days, and Third Tier – 3-5
Days
88% 85% 83%
Development Review
activities
Strategic Goal:
Other Department Objectives
The target goal of meeting cycle
times 75% of the time reflects an
increase in more complex and
resource intensive development
review activities.
80% 75% 84%
Building Inspections
Strategic Goal:
Economic Stability
Percent of inspections performed
the next working day 92% 85% 93%
*As of 12/15/21
Work Program Evaluations
Community Development Administration
The Administration team provides process management and support for all the divisions within the Community
Development Department. The division also provides support for the department’s advisory bodies and the City’s
Major City Goals. To better assist customers and residents, a survey has been created for customers who finalize
plans through the Community Development Department to provide feedback on their experience. The survey is
currently being tested and staff are creating ways to best analyze the completed surveys and increase
participation. From the trial surveys, most customers expressed complete satisfaction with their experience with
the Community Development Department. Results of customer service experiences will be shared more broadly
on an ongoing basis and as part of the General Plan Annual Report and Mid-Year Budget.
Planning
The Planning Division continues to receive high work volumes while also experiencing vacancies due
to unsuccessful recruitments for an Associate Planner and a Housing Coordinator. Staff updated zoning
regulations and received approximately eight percent more planning applications in the first two quarters of the
fiscal year compared to this time last year. New recruitments to fill these critical positions are underway to meet
current workload requirements and planning consultants will be utilized to help fulfill cycle times.
Engineering
The Engineering Division’s work program was separated from the Planning Division at the beginning of the 21-23
Financial Plan. The division continues to provide significant support to the Planning entitlement process
18 More units have been secured than anticipated due to timing of receipt and processing of entitlement applications.
19 Staff is working on developing a survey that will accurately reflect customer’s satisfaction. Launch date is tentatively for Spring
of 2022 as staff works with vendors to develop.
Budget Report Pg # 29 Page 142 of 255
Community Development Department
and to the Building Division as part of the permit review team. Additionally, the division facilitates the review and
approvals for subdivision maps and encroachment permit applications, assists with FEMA Floodplain
Management and Stormwater programs, and processes building plan and map reviews. The division supports
the Housing and Homelessness Major City Goal by providing essential services for the major housing and
infrastructure projects such as the Orcutt Area subdivisions, San Luis Ranch, and Avila Ranch. Compared to this
time last year, the Engineering team is seeing significant increases in transportation permits, parking meter
permits issued for construction work, and a slight increase in number of encroachment permits.
Building and Safety
Code Enforcement:
The Code Enforcement team promotes health and safety throughout the City by increasing awareness of City
policies, investigating reported code violations, and proactively patrolling for violations. A new
Code Enforcement Technician II was hired to specialize in a Safe Housing Education Program, which supports the
Housing and Homelessness Major City Goal through education and empowerment of tenants. Due to a recent
retirement, there is a vacant Code Enforcement Supervisor which is being temporarily back filled by a Code
Enforcement Officer II in an acting role. Until permanently filled, this vacancy will create slightly delayed
investigation response times.
Building Inspections:
There has been a large increase in building inspections compared to this time last year. This increase is due to
more inspections being requested for larger development projects such as 790 Foothill, San Luis Ranch, and
Righetti Ranch. In addition to the added pressure from increased workload, there is a vacancy for one Building
Inspector due to the departure of the Building and Safety Supervisor and the reassignment of an existing Building
Inspector to acting Supervising Building Inspector. To match the demand of the City’s increased development
and increasing inspections, the division is utilizing consultant inspectors on an as-needed basis. As part of the
2021-23 Financial Plan, Council approved the addition of a Stormwater Code Enforcement Officer to address the
City’s ongoing compliance with State’s stormwater regulations and resulting notice of violations. The recruitment
for this position is currently in progress. In an effort to reduce Building Inspector workload, the division is in the
testing stage of a virtual inspection program using Google Duo, which will allow time-sensitive construction
projects to continue without scheduling an on-site inspection.
Permits:
Building permit activity has increased dramatically this fiscal year due to more solar permits, single and multi-
family homes, and commercial tenant improvement projects. There have been 80 percent more building permits
and 25 percent more applications compared to this time last year. Additionally, the TIPP-FAST Program
issued 13 permits. In the new Financial Plan, an additional Permit Technician position was approved, allowing an
internal staff member to promote and assist with the increasing workload.
Human Relations
The Human Relations Program provides funding for the activities of the Human Relations Commission, which
serves as an advisory body to the Council on issues relating to human and social services. This program was able
to award grant money to support the production and preservation of affordable housing and non-profit agencies
serving the Human Services needs of residents. The Human Relations Commission is transitioning to
Administration and IT in 2022 to coincide with the creation of the Office of Diversity, Equity and Inclusion.
Housing Policy and Programs
Housing Policy and Programs had previously been a sector of the Planning Division and was approved as a stand-
alone division in the 2021 – 2023 Financial Plan. This team has completed a study session on the Homelessness
Strategic Plan and implemented updates to the Zoning Regulations that affect several key Housing Element
Programs. Staff is currently in the process of onboarding the City’s contract “Below Market Rate Housing”
administrator. Additionally, it is updating the Inclusionary Housing Ordinance and has processed
10 agreements for refinances or reconveyances in support of the City’s affordable housing portfolio. All of these
efforts support the Housing and Homelessness Major City Goal.
Budget Report Pg # 30 Page 143 of 255
Finance Department
Finance Department
Performance Measure Update
Objective Measure 2020-21
Actual
2021-22
Target
2021-22
Mid-year
Enables & enhances transparency,
accountability & integrity.
Strategic Goal: Fiscal Policies
# of calendar days following
year-end until ACFR is issued 180 170 171
# of audits/reviews
conducted/ # of additional
agreed upon procedure audits
performed
2/1 2/2 2/2
Protects & prudently manages its financial
resources.
Strategic Goal: Fiscal Policies
# of funds within fund balance
requirements/ total funds with
fund balance requirements
8/8 8/8 8/8
Net direct annual debt per
capita (General Fund) $59 $44 $42.4
Twelve-month total rate of
return/City portfolio 3.9% 3% 0.01%
Work Program Evaluations
Finance Administration
This division is responsible for the management and administration of the City’s finance operations and
infrastructure financing. The division is comprised of the Finance Director, an Administrative Assistant,
a half-time Oracle Subject Matter Expert (contract) and an Infrastructure Financing Analyst. In addition
to administrating Community Facilities Districts, Development related agreements, and AB 1600 related
deliverables, the Infrastructure Analyst is also working on a temporary assignment with the City
Attorney’s office to revise the procedures for managing infrastructure related agreements. In
preparation of mid-year, the City’s payment strategy for its unfunded liability has been re-evaluated
and pertaining recommendations put it back on track with the original intend of the Fiscal Health
Response Plan. The division re-worked the Finance website for easier access to financial information
including voluntary disclosures. It is currently working on updating its revenue and financial
management manuals and is researching the opportunity to include green bonds in its debt policy. The
division has also been at the forefront of American Rescue Plan Act funding and applicable use in
accordance with the Treasury’s Final Rule.
Budget
The budget division has successfully delivered on its quarterly status reports to Council and has
remained nimble in response to the pandemic with careful budget management and fiscal forecasting.
The division successfully implemented its new budget software, Questica, in Spring of 2021 and looks
forward to completing its first full fiscal year cycle utilizing the program. It is also working on updating
the Budget section of the City’s internal Financial Management Manual and finding ways to improve
efficiencies in the budgeting processes.
Budget Report Pg # 31 Page 144 of 255
Finance Department
Revenue Management
The revenue division hired a third full-time employee in September 2021 (50% Accounting/50%
Revenue). This new position gives the division the resources needed to enhance its business license and
tax management program and enforce compliance, particularly of short-term vacation rentals.
Enforcement efforts underway include detecting and seeking out businesses rentals that are operating
without a license, including short- and long-term rentals and cannabis delivery drivers. The division also
successfully transitioned its Utility Users’ tax collection program to a third-party consultant, HDL, in the
spring of 2021. The goal of the transition is to improve customer service, enforce penalties on late
payments, and allow internal staff to focus on more analytical work. While initial costs associated with
getting customers to remit properly were higher than originally anticipated, staff are beginning to see
the efficiencies and expect to see overall savings by the end of the fiscal year.
Purchasing
The purchasing division is in the midst of a two-year project effort to update its operating procedures
for purchase orders across all departments and divisions. So far, the project has resulted in increased
staff efficiencies in the Oracle ERP system and increased compliance with City purchasing policy. During
the second half of the fiscal year, the division plans to bring to Council an update to the City’s purchasing
policy that will further increase efficiencies. Policy change recommendations include increasing
approval thresholds and new sections to standardize policies and procedures on contract management,
risk management, and insurance, sustainable purchasing, and recycled content procurement required
by State mandate SB1383. A local preference policy is scheduled to be heard by Council in the second
half of the fiscal year. A project is underway to automate tracking of insurance coverages and
compliance which will reduce staff time manually tracking by an estimated 50%. The automation will
create a paperless tracking system, which will reduce the City’s paper consumption and carbon
footprint by approximately 86% from current levels. The division has a vacant Financial Specialist
position since two recruitments were unsuccessful in fall 2021. Plans in the second half of the fiscal
year are to analyze the role needed and recruit again in spring, with a possible focus on risk
management and insurance.
Accounting
The accounting division is categorized as yellow because it continues to face hurdles with the City’s
financial system and its current configurations, but these hurdles should not undermine the significant
process improvements that were made within bank reconciliation and other areas of the system that
lead to audit findings. The City continues to work with Oracle’s Center for Excellence on an array of
configuration and process improvement changes to remedy system shortcomings. The division also
implemented additional quality control measures that will ensure accurate and timely financial
management until the needed reconfigurations are done. With the help of IT and Oracle Consulting
Services (OCS), the division has a planned path forward to achieve system optimization. Over the next
six months, staff will focus on the stabilization and reconfiguration of the Human Capital
Management/Payroll module and making enhancements to the Capital Projects module. With the
adoption of the 2021-22 Budget, the division added a Financial Specialist and a half-time Accounting
Assistant. The half-time position is split with Revenue and has been hired. The Financial Specialist
position is currently filled with an internal candidate to allow for training and succession planning while
the employee’s actual position in Accounts Payable is being backfilled with a supplemental employee.
Support Services & Non-Departmental Expenses
The Support Services and Non-departmental divisions are in place to help effectively budget and
account for Citywide costs not associated with a specific operating program or project. Both elements
are appropriately budgeted for the City’s current needs.
Budget Report Pg # 32 Page 145 of 255
Fire Department
Fire Department
Performance Measure Update
Objective Measure 2020-21
Actual
2021-22
Target
2021-22
Mid-year
Deliver Timely Emergency
Response to ensure rapid care
and hazard mitigation.
Strategic Goal: Other Department
Objectives
Meet the Response Time objective as
defined by General Plan
Safety Element of 4 minutes to 95% of all
lights-and-siren
emergencies in the City.
6:17 4:00 6:16
Meet the Total Response Time (TRT) goal
of 7 minutes or less to 90% of all lights-
and-siren emergencies in the City as
defined by the Department’s Master Plan.
TRT Includes Call Processing Time,
Turnout Time, and Travel Time.
8:26 7:00 8:35
Meet the Call Processing Time goal
of 1 minute or less to 90% of all lights-
and-siren emergencies in the City as part
of TRT.
2:00 1:00 1:53
Meet the Turnout Time goal
of 2 minutes or less to 90% of all lights-
and-siren emergencies in the City as part
of TRT.
3:12 2:00 3:24
Meet the Travel Time goal
of 4 minutes or less to 90% of all lights-
and-siren emergencies in the City as part
of TRT.
5:34 4:00 5:35
Provide timely service to the
development community.
Strategic Goal: Housing
% of Fire Department Development
Review activities
completed within published cycle times.
67% 80% 72%
Work Program Evaluations
Fire Administration
This program is categorized as yellow because additional department resources are needed to
continue meeting other department program objectives and priorities, however a staff
recommended solution as part of the FY 2022 Mid-Year SOBCs will meet the resource needs
improving the program category to green. Fire Administration consists of four FTEs and plans, directs,
and evaluates all Fire Department programs and their activities. The reallocation of staff time and
resources to unplanned priorities have required deferring Administration program objectives such as
updating the department’s 5 year-strategic plan. Specifically, the Fire Chief, Senior Administrative
Analyst and Administrative Assistant have been dedicating significant resources to addressing the
Disaster Preparedness and Assistance program objectives. Staff included a recommendation to add a
full-time ongoing Emergency Manager (1 FTE) to relieve administration staff from this workload as part
of the FY22 Mid-Year SOBC requests.
Budget Report Pg # 33 Page 146 of 255
Fire Department
Emergency Response
The program is categorized as yellow due to its underperformance in meeting the Total Response
Time (TRT) Performance Measure goals. To help meet the travel time component of TRT, the
department would require a significant investment in additional resources, such as adding a
strategically placed 5th fire station or increasing the number of units to help improve travel time. A 5th
fire station is planned to be added in the Southwest side of the City once the Avila Ranch development
project reaches 80% occupancy levels. To help meet turnout time, staff is working to identify
improvements to assist in meeting response time expectations including frequently scheduled
performance reports and implementing improvement plans if deemed necessary. Recently, staff have
encountered call processing and turnout time delays due to required COVID -19 EMSA protocols,
including call screening and additional PPE donning. Fire department staff will continue to work with
Police Department staff to help improve call processing time.
The 45 FTE staffed Emergency Response Program is responsible for protecting life, the environment,
and property by responding to a wide variety of emergencies, including, but not limited to: medical
emergencies, structure fires, vegetation fires, hazardous materials incidents, vehicle fires/accidents,
flooding, utility emergencies, and a wide range of urgent public assists.
Hazard Prevention --
This program is categorized as yellow because it has not been able to fully meet its development
review performance targets in FY22 and 2021 calendar year state mandated life safety inspections ,
however staff recommended solutions as part of the FY 22 Mid-Year SOBCs will meet the resource
needs improving the program category to green. Of the 100 mandated inspections, 30 public
assemblies and hospitals and assisted living center inspections have not been completed which equates
the approximately 50% of a full-time inspector’s workload. New projects including hotels, apartments
and multi-family condominiums continue to increase the total number of mandated inspections,
further hindering the department’s ability to keep up with the demand. Simultaneously, the recent
annexation of the East Airport Area brought a significant number of new industrial properti es into the
City that must be inspected by the Fire Department annually. While the department’s plan review turn-
around times have improved from 65% in 2020 to 72% in 2021 the department has still been unable to
meet our goal of 80% as the volume has increased from 566 in 2020 to 630 in 2021. The department is
recommending the addition of a half-time fire inspector as part of the FY22 Mid-Year SOBC requests.
Without the addition of a half-time fire inspector, the department anticipates that performance in
meeting both plan review turnaround times and state mandated life safety inspections will continue to
be below target levels. Updated revenue from life-safety inspection fees for R1 Inspections for FY22
provides enough funding to offset any additional costs associated with adding a half-time inspector.
Training Services
The Fire Training Program schedules, coordinates, and documents both in-house and outside training
and certification for fire department staff. The program also works to maintain and improve the health
fitness of fire department employees. The overall program goal is to provide and support highly
qualified, well trained, safe, healthy and fit employees. The Training Services program continues to utilize
dedicated funding to implement the injury reduction program for emergency response staff. This has
included training staff to conduct functional movement screening, equipment purchases and
contracted functional movement training and the department has observed a decrease in the
frequency of on-the-job injuries in the short term.
Recruit Academy
This program is categorized as yellow because while the budget is currently insufficient to cover the
operating expenses for the program, however staff has identified a funding source to cover the
Budget Report Pg # 34 Page 147 of 255
Fire Department
unplanned expenses and has included a request as part of the FY2022 Mid-Year SOBCs. The non-
staffed Recruit Academy Program is responsible for coordinating and completing the training of new
hire firefighters. The normal budget for this program is based on the hiring of four new firefighter
recruits. When the FY22 budget was being developed, staff anticipated the number to inc rease to 6
recruit firefighters and adjusted the budget accordingly. After the budget was finalized, unanticipated
retirements and resignations resulted in the need to hire a total of 9 recruit firefighters. With a cost of
$10,000 to outfit each recruit firefighter with the appropriate personal protective equipment, the
department will need approximately $30,000 in additional funding (as recommended by staff on the
FY22 SOBC requests) to offset the total cost of the program. If approved by Council, staff will utilize the
Public Safety Equipment Replacement Fund to cover these costs. This budgetary change will bring the
program category to green.
Fire Apparatus Services
The 2 FTE staffed Fire Apparatus Program performs fire apparatus services, maintenance and repair of
light and heavy fire apparatus and vehicles. The budget is currently enough to meet the overall program
objectives and activities.
Fire Station Facilities Support
The non-staffed Fire Stations Facilities Support Program manages and maintains the City’s four fire
station facilities, their grounds and miscellaneous related equipment, appliances, and furnishings. The
budget is currently enough to meet the overall program objectives and activities.
Disaster Preparedness and Assistance --
This program is categorized as yellow however staff recommended an ongoing solution as part of the
FY 22 Mid-Year SOBCs will meet the resource needs improving the program category to green . The
budget is currently sufficient to meet the overall program objectives and activities only due to the
support provided by Fire Administration Staff including the Fire Chief, Deputy Fire Chief, Senior
Administrative Analyst and Administrative Assistant and temporary funding to assist with the
program is set to expire at the end of FY23 Additionally, COVID-19 health and safety concerns have
delayed several scheduled trainings for both City staff and the Community. The non-staffed Disaster
Preparedness and Assistance Program has three ar eas of focus: 1) ensures that City personnel can
provide appropriate rescue and relief services following a major disaster such as earthquake, flood,
nuclear power accident, hazardous material spill, and wildland fire: 2) provides information and
education on disaster preparedness, and fire safety to the general public: and 3) provides assistance to
communities outside of the City of San Luis Obispo as part of the State’s Mutual Aid system. Staff has
continued attempting to fill these responsibilities with existing staff and resources, however resource
capacity has limited staff’s ability to accomplish much of the program’s mission. Without a full -time
emergency manager, the fire department has been unable to implement many areas of improvement
learned from Emergency Operation Center Exercises including but not limited to: increasing City staff
understanding of emergency plans, roles and responsibilities, updating EOC position kits, provide
additional position-specific training for key city staff, pre-develop objectives, updating maps, and
improve EOC functionality. Additionally, a full-time emergency manager is needed to ensure plans
continue to be regularly reviewed, updated and implemented such as the City’s Local Hazard Mitigation
Plan, Community Wildfire Protection Plan and Comprehensive Disaster Leadership Plan. As part of the
2021-23 Financial Plan, the department is utilizing temporary program funding to contract disaster
preparedness services to help prepare City staff for Emergency Operation Center activations, including
the coordination of grant-funded training at the FEMA Emergency Management Institute located in
Emmitsburg, MD.
Budget Report Pg # 35 Page 148 of 255
Human Resources Department
Human Resources Department
Performance Measure Update
Objective Measure 2020-21
Actual
2021-22
Target
2021-22
Mid-year
Integrated HR Services
Average days between injury and Workers’
Compensation claim filed. 9 4 4
Achieved lower severity of Workers’
Compensation claims than the risk pool Yes Yes *See Risk
Management
Annual liability claims payment under the Self-
Insured Retention amount. No Yes Yes
Employee
Development &
Growth
Percentage of On-Time Employee Performance
Evaluations 88% 95% 87%
Percentage of Internal Promotions 48% 40% 47%
Training Sessions Coordinated 29 35 14
Engaged and Aware
Culture
Number of Policies Communicated 9 5 4
Informational Sessions Coordinated 122 80 214
Work Program Evaluations
Human Resources Administration
At the end of FY21, the program was in yellow status due to the need for increased staffing to enable
proactive human resource support for all City departments. It remains in yellow status due to significant
new demands in recruitment, retention, and COVID-19 management. While these conditions are
expected to be temporary, staff will be monitoring trends closely to determine actions to address these
for the longer term if necessary. Human Resources provides s upport throughout the organization on
benefits administration and compensation, recruitment, labor relations, performance management,
training and development, and legal compliance. As approved in the 2021-23 Financial Plan, staff have
been added, responsibilities have been reassigned, and employees are transitioning into roles tailored
to achieve the best mix of knowledge and skills to meet Departmental goals for the remainder of the
year; however, it is unclear when this increased demand for staffing will su bside. Meanwhile, the
Department has been collaborating with the rest of the organization to assess needs and whether
longer term support is needed. The Department continues to partner with the Centre for Organization
Effectiveness to provide professional development trainings for employees across the organization,
held a kick-off of the first quarterly management meeting, and has made progress towards more
successful onboarding and offboarding processes. Staff also continues to promote enhancement of the
Oracle Human Capital Management system. The COVID -19 pandemic has continued to evolve in
unpredictable ways. The more contagious Omicron variant and subsequent increase in infections and
exposures among staff have increased efforts to ensure healthy work environment and uninterrupted
services to the community. These have included expanded contact tracing, preventative rapid testing,
take-home rapid tests, and virtual proctoring; updating of health screenings; guidance for supervisors;
remote work policies; development and implementation of paid leave policies; an updated COVID-19
Prevention Plan; and communications with current information for staff. Staff will review the data and
trends provided by local and state public health agencies and other governing agencies to guide us in
decision making about future needs for support.
Budget Report Pg # 36 Page 149 of 255
Human Resources Department
Wellness
The Wellness program supplements the Risk Management program by providing employees tools and
education to improve their physical and emotional well-being, thus enhancing employee productivity
and performance. Yoga classes resumed when feasible, and ergonomic assessments were coordinated
though the California Joint Powers Insurance Association (CJPIA). Since the beginning of the fiscal year,
several new pieces of equipment were added to both wellness rooms, and provisions for safe use of
the rooms during COVID-19 were communicated so staff could safely enjoy the new equipment. CJPIA-
funded preventative mental health services were offered to employees in the Police Department to
help staff following the officer fatality at the end the last fiscal year; t his was a valuable resource and
efforts are underway to provide it more broadly on a longer-term basis. The Department received
feedback from City leadership for representatives from each department to serve on the City’s SLO
Healthy and Smart (SLO HAS) Committee. These committee members represent a diverse selection of
roles across all departments and will be working together to advance the healthy and smart culture
across the organization. The functional mobility program at the Fire Department continues to show
reductions in injuries and promotes safety. It has adapted to COVID conditions and provides personal
assessments, as well as group and individualized training. Staff was honored to present the program to
other members of the CJPIA at its annual conference.
Insurance Fund
The Insurance Fund includes all insurance-related expenses and reserves for current claims, potential
settlements, and insurance premiums. Within the Fund is a Self-Insured Retention (SIR) from which
excess liability claims are paid. At mid-year, over 50% of the SIR has been expended and some higher
value claims have been filed recently, so future liability claims, and their outcomes will be closely
monitored for fiscal impacts in upcoming months. Staff anticipates there may be future increases in
Workers’ Compensation expenses in the upcoming year due to several factors, such as the uptick in
wildfires and firefighters’ exposure to injury, increases in payroll costs, and the fatality within the Police
Department among other factors that influence rates. However, the Insurance Fund is substantial and
sufficient to cover all known and anticipated expenses, including claims paid from the SIR. The balance
was established to sustain fluctuations in claims and related expenses and reflects a 75% confidence
level based on trends over the previous five years. To minimize insurance claims and expenditures from
the Fund, staff also tracks market trends and conditions that affect insurance rates and periodically
performs root cause analyses to identify ways to reduce injuries and accidents. Staff regularly reviews
contracts to ensure the City has adequate insurance coverage for its protection.
Budget Report Pg # 37 Page 150 of 255
Parks & Recreation Department
Parks and Recreation Department
Performance Measure Update
Objective Measure 2020-21
Actual
2021-22
Target
2021-22
Mid-year
Provide inclusive, accessible
programming that serves the whole
community.
Strategic Goal: Programming is Directed
to Diverse Users (P&R Strategic Plan
Goal), DEI and Economic Vitality MCGs
# of Department Community
Events 15 20 720
# of non-profit permitted
Facility Uses 15* 120 25
# of program registrations 2075 3,200 162620
# of program offerings 258 300 222 20
# of childcare spots
filled/offered 152/152* 1085 /1085 1483
# of children receiving subsidy
22 CAPSLO*
27 City
scholarship
51 CAPSLO
27 City
scholarship
44 CAPSLO
22 City
Scholarship
In Coordination with Public Works,
engage the public to prioritize new and
revitalized Recreational Amenities
Strategic Goal: Expand Parks & Facilities
(P&R Strategic Plan Goal), MCG
Economic Stability
# of public outreach meetings 5 6 5
# of updated or new parks
and amenities in process 3 4 3
Creates and fosters a sense of
community through citizen involvement
Strategic Goal: Maximize Community
Resources & Collaborations (P&R
Strategic Plan Goal)
# of volunteers/hours 11/22hrs* 100/400hrs 28/939
hours21
# of temporary Public Art or
Cultural Art Events 4 5 3
Leverage technology to engage the
community and promote program
offerings
Strategic Goal: Programming is Directed
to Diverse Users (P&R Strategic Plan
Goal)
# of Instagram followers 5,507 6,700 6,087
# of Facebook followers 4,547 4,890 3,80022
# of Virtual Program Offerings 15 15 1
Open Space Preservation and
Enhancement
Strategic Goal: Nurture Open Space (P&R
Strategic Plan Goal), Climate Action MCG
# of miles of Open Space trails
maintained
60 61 61
# of staff hours dedicated to
fuel reduction
304 2,500 326
# of encampment site clean-
ups removed from Open
Spaces
125 60 224
20 As of 12/17/2021
21 Community Services - 28 volunteers; 110 hrs. Rangers: 829 hrs.
22 Facebook got rid of “Follows” and only does “likes” now so that is why this metric is lower.
Budget Report Pg # 38 Page 151 of 255
Parks & Recreation Department
Work Program Evaluations
Recreation Administration
The Recreation Administration Program recently completed the new master plan and general plan update
and entitled the “Parks & Recreation Blueprint for the Future: 2021-2041”. The blueprint identifies short,
mid, and long-term priorities for parks and recreation amenity and facility upgrades and additions to address
the needs of the community. The blueprint assists staff and the PRC with the prioritization of projects and
will serve to guide staff
in the creation of the department Strategic Plan. In addition to the Blueprint, staff applied for and received
two grants to enhance two downtown park locations. The NFC Fitness Court grant provided $25,000 to
supplement the existing CIP project to replace the fitness equipment at Emerson Park. The other grant was
the Prop 68 State Park grant that awarded $177,952 to provide upgraded amenities to Mitchell Park.
Facilities
The Facilities Division has reopened all indoor and outdoor facilities for permitted re servations and staffing.
The Division continues to support the Open SLO Program through the set-up, maintenance, and clean-up of
the Downtown Dining program in Mission Plaza – operated weekly. Community youth and adult sports have
returned to standard facility uses without capacity restrictions for fields and courts. The Library Conference
and Community rooms, in addition to the Ludwick Community Center, are open to the community for social
gatherings, meetings, and general uses. The Division is also accepting reservations for events at the Jack
House for the upcoming 2022 season. Starting in January, the Parks and Recreation Department offices will
be closed for the rehabilitation project. Staff and all operations will be moved to the Ludwick Community
Center for duration of the project, restricting public reservations for the facility. With staffing restructures
within the Parks and Recreation Department, City-Wide Special Events are now being processed within the
Facility Division. City-Wide Special Events are Special Events permitted by the City that are organized by
Community Organizations and separate Community Events operated by the Parks and Recreation
department.
Youth Services
This division is categorized as yellow because the program is facing recruitment and retention challenges.
With new full-time Site Directors, retention of these positions has been successful; however, finding in-
classroom supplemental staff who are qualified to work as Aides, Teachers and Head Teachers has been
extremely challenging, leaving numerous children on waitlists. Recruitment challenges are exacerbated due
to the nature of Youth Services staff duties and the higher exposure risk during a pandemic. In addition, many
Youth Services staff are Cal Poly students and scheduling around academic calendars can be challenging. With
childcare at the center of the community’s economic recovery goal, Youth Services staff continue to provide
care for before and after school as well as school breaks. Due to limited staff and remaining CDC guidance,
program size is still limited resulting in children on the waitlists. California state licensed facilities are currently
provided on five SLCUSD school sites, in 10-15 classrooms. Youth Services staff continues to look for creative
solutions to accommodate as many children as possible to allow more children into the program off current
waitlists. Children with Special Needs are accommodated at all school sites and programs. Ongoing
professional development is provided to Youth Services staff, including mandated Child Abuse reporting, First
Aid and CPR, program and curriculum development, positive guidance strategies and inclusive programming,
safety, and large group management.
Community Services
Community Services is categorized as yellow due to limited staff and impacts related to Covid -induced
program changes and one-time initiatives to support childcare and shift in programming from leagues to
clinics. Many of the CS Division staff were reassigned to support childcare and after school types of
programming this past year. In a typical year, the Community Services Division hosts a variety of community-
based events, manages youth and adult athletic leagues and recreational activities, promotes healthy
Budget Report Pg # 39 Page 152 of 255
Parks & Recreation Department
lifestyles and social interactions, coordinates city-wide volunteer opportunities, and serves as liaison to the
Jack House Advisory Committee and Senior Center Board. With the loss of volunteers at the Senior Center ,
the Senior Board is unable to provide the programming that they would like and continue to request
additional support from City staff. In addition, as community sports and community events are needed to
match community requests and support the Parks and Recreation Blueprint to the Future, the role of the
Community Services Supervisor is being impacted through more smaller events and sport related
activities/classes. In addition, due to two key FTE resignations, the CS Division has a new Supervisor,
Coordinator, and two vacant positions in Specialist (LBT) roles. The Public Art Program signed a 2 -year
contract to collaborate with SLOMA for downtown and large art installations. Two key public art projects
were completed with this new partnership: Momma Mobius sculpture and the Seven Sisters wall mural.
Ranger Service
With the adoption of the 2021-23 Financial Plan, much needed additional staff were approved and hired to
maintain and patrol the City’s expanded public access (new property and trails), increased encampments in
the open space, and increased open space usage. The Ranger Service program achieved Maintenance Plan
objectives with new built trails at both Waddell and Miossi open space and recently announced the public
opening of the Miossi open space. The Ranger Service division continues to dedicate resources to clean up
trash and debris in the City’s Open Spaces and creeks. Staff are in the process of planning and developing
new trails at Righetti, Miossi/Cal Poly connection and Irish Hills. In addition, the pilot “Winter Evening Access”
program was approved by City Council to be permanent, and staff spent time preparing educational resources
and evening staffing to support the program.
Aquatics
This division is categorized as yellow because the program is facing recruitment and retention challenges
which ultimately impact operational hours. The Aquatic Division continues to operate aquatic programming
with modified County Public Health guidelines. Starting in July 2021, standard aquatic programming resumed
with traditional capacity restrictions, recreational swim and group swim lessons. Due to a local and national
lifeguard and overall workforce shortage, the SLO Swim Center has been operating a modified programming
schedule since September 2021. Pool hours were reduced for the 50-meter and therapy pool in order to
maintain the required swimmer to lifeguard ratio. The Aquatics Division has been actively recruiting and hiring
additional lifeguard staff and added additional hours in December 2021. Staff anticipate a return to normal
programming hours by Spring 2022. Management continues to provide monthly staff trainings including First
Aid, CPR, water rescue techniques, customer service and diversity trainings. Staff offer public lifeguard
training courses throughout the year.
Golf Course
This division is categorized as yellow due to the continued challenges associated with the aging irrigation
infrastructure at the course. This project will be evaluated for supplement funding or carryover funding for
2022-2023. The Laguna Lake Golf Course (LLGC) has returned to standard programming hours with no
restrictions to physical distancing on the course. The golf course has been affected by the n ational turf seed
shortage that have occurred due to the pandemic and climate change weather events. Global supply chains
have impacted the golf ball supplies as well. Golf Course operation recently implemented a new golf course
reservation and retail system at the course that will better the customer experience. Staff anticipate a new
golf course concessionaire to begin offering services at the course by February 2022. Golf management
continue to implement new programming at the course for new users including upgrades to the driving range,
weekly Night Golf, golf and disc golf tournaments, and youth golf clinics. In Fall 2021, maintenance purchased
a hydro excavator that will reduce staff time and physical labor needed to expose irrigation leaks and minimize
the amount of time irrigation at the course is turned off to fix leaks.
Budget Report Pg # 40 Page 153 of 255
Police Department
Police Department
Performance Measure Updates
Objective Measure 2020-21 Actual 2021-22 Target or
forecast
2021-22 Mid
Year*
Reduce Crime
Strategic Goal: Economic
Recovery, Department
Mission
# of total Part I Crime by
year.23 1,825 <1,825 999
Provide safe roadways
for pedestrians, vehicles,
and bicyclists.
Strategic Goal: Patrol
Objectives, Department
Mission
# of total traffic
collisions.
Vehicle: 288 Vehicle: <500 148
Pedestrian: 19 Pedestrian: <30 19
Bicycle: 44 Bicycle: <42 24
# of targeted
enforcement operations
conducted under the
Office of Traffic Safety
Grant per year
DUI Checkpoints: 2 DUI Checkpoints: 2 1
DUI Saturation Patrols:
21
DUI Saturation Patrols:
28 5
Traffic Enforcement
Operations: 10
Traffic Enforcement
Operations: 8 3
Motorcycle Safety
Enforcement: 2
Motorcycle Safety
Enforcement: 2 n/a24
Bicycle & Pedestrian
Enforcement: 4
Bicycle & Pedestrian
Enforcement: 5 3
Reduce Homeless related
Calls for Service through
proactive engagement.
Strategic Goal: Economic
Recovery, Department
Mission, Patrol Objective
# calls related to
homelessness 7344 7200 2625
# of unique individuals
contacted by CAT 524 600 199
# of Family & Agency
Reunification 56 60 9
# of Local Permanent
Housing 26 28 5
# of major camp
cleanups 6 10 925
# of Mental
Health/Substance Abuse
Treatment Referrals
146 160 54
*Figures shown for Mid-Year includes data from July – November 2021.
23 Part 1 Crimes include: homicide, forcible rape, robbery, aggravated assault, burglary, and motor vehicle theft. Figures shown
represent calendar year.
24 Staff anticipated two motorcycle safety enforcement operations to be conducted under the grant, however, these operations
were not part of the grant objectives for FY 22.
25 Also includes two clean ups conducted by Cal Trans.
Budget Report Pg # 41 Page 154 of 255
Police Department
Work Program Evaluations
Police Administration
The Training/Hiring Manager has been very busy working to fill vacancies in both Patrol and Dispatch.
Since July, staff has been working to fill eleven police officer positions (nine vacancies and two over
hires). Three officers will graduate the police academy in mid-December and two more will start a new
academy session in January. Additionally, there are several lateral officers currently going through a
background check process. Of the three vacant dispatcher positions, one has just been filled and there
are others currently in the background check process.
The Administrative Captain position remains unfilled, the Patrol Captain is currently overseeing both
department bureaus (Patrol and Administration). Although the workload has increased for the Captain,
Administration continues to meet objectives. Staff anticipates filling this vacancy early next fiscal year
as other positions are filled.
Patrol
Patrol has experienced low staffing levels due to several vacant officer positions and long-term worker’s
compensation absences. Filling shifts to ensure minimum staffing levels has been challenging and on-
duty officers are feeling the strain from working consecutive days of overtime. Overtime costs will
continue to increase until vacancies are filled with officers who have completed training and are able to
work shifts on their own. Looking at the same time period (July to mid-December) in FY 20-21
compared to FY 21-22, department overtime has increased close to 1000 hours. The main reason for
the increase has been related to shift coverage. There was a 21.5% increase in Worker’s Compensation
hours in this current fiscal year (same time period July – Dec) compared to last year. The department
hired three cadets in late June to fill vacancies, however these cadets were in the academy and could
not work to cover shifts. The cadets will graduate mid-December.
There were also two officers unable to work due to being placed on Administrative Leave; one officer
was out for approximately four months (July – Oct) and the other was out for three months (Jul – Sept).
Staff anticipates all vacancies will be filled and new officers will be ready to begin working
independently in early to mid-February. All remaining officers in training or on leave should be released
and field deployed to patrol in July 2022.
The hiring process for a second mental health clinician position for the department’s Community Action
Team (CAT) has been underway and there were some delays with the service provider. The City’s
Homelessness Response Manager is currently working to award the contract and staff anticipates this
clinician will start working with CAT next month.
Investigations
Investigations has been working to meet all objectives, although it has been challenging to provide
public awareness and training opportunities to the community due to Covid-19 restrictions. The team
has been actively working on cases related to homicide, sexual assaults, child abuse, and property
crimes. The Special Enforcement Team has been active identifying crime trends, investigating thefts
and illegal drug activity.
Support Services
The Support Services program (Records and Dispatch) is categorized as yellow due to current staffing
shortages. The two Records Clerks who were hired in early 2021 have been in training and will soon be
working independently. Once this happens, the department will be able to begin the hiring process for
the new Lead Records Clerk position (unfilled since July).
Budget Report Pg # 42 Page 155 of 255
Police Department
Like the Records section, Dispatch has also been struggling with staffing shortages and covering shifts
continues to be a challenge. Fortunately, a new dispatcher was hired in December and there are other
candidates in the background check process to fill the other two vacancies.
Neighborhood Outreach
The Neighborhood Outreach division is meeting objectives and continues to increase social media
communications. Calls related to noise complaints for the calendar year totaled 1417, a 7% decrease
from 2020. 143 noise citations were issued in the calendar year and 146 disturbance advisement card
warnings.
Party registration was reinstated in July 2021 and continues to be an excellent tool for residents to use
in planning social events. 169 party reg applications were approved between July and December
resulting in 22 warning phone calls and 4 citations.
Traffic Safety
Traffic Safety is meeting all objectives, but staffing resources are limited due to officers needed to cover
shifts in Patrol. Two officers and a sergeant are supposed to be assigned to the Traffic division,
however, due to staffing shortages in patrol this has been reduced to only one officer and a sergeant.
Once patrol is fully staffed and all new officers have completed training, staff intends to reassign the
second officer back to traffic safety.
The traffic sergeant continues to manage the annual Office of Traffic Safety grant and conduct DUI
Checkpoints, traffic enforcement, and other targeted enforcement activities.
Budget Report Pg # 43 Page 156 of 255
Public Works
Public Works
Performance Measure Update
Objective Measure FY 20-21 Actual FY 21-22 Target FY 21-22 Mid-
Year
Proactively enhances traffic safety by providing
a system of safe, reliable, and well-maintained
roadways, sidewalks, traffic signals and
streetlights.
MCG: Climate Action
Strategic Goal: Enhance Safe & Efficient
Transportation (PW Strategic Plan)
Pavement
Condition Index 74 74 73
Bicycle network in
total miles (Class
I/II/III/IV) 11/28.4/25/0.1 12.4/28.9/24.6/2.1 11.8/29.2/25.0/.1
Street miles
maintained 134 135 135
Enhance the City’s Urban Forest and maintains
visually appealing public spaces.
MCG: Climate Action
Strategic Goal: Proactively Manage Assets (PW
Strategic Plan)
# of trees
maintained 20,000 20,250 20,300
Total acreage of
park inventory 582 583 583
Provide high quality services to the community
through efficient and effective delivery of
capital improvement projects and
management of the City’s infrastructure.
MCG: Economic Recovery
Strategic Goal: Connect with our Community
(PW Strategic Plan)
Total value of CIP
Managed $28M $59M $17.7M
Work Program Evaluations
Public Works Administration
Over the last six months, Public Works Administration realized salary savings as a result of the Deputy
Public Works Director (City Engineer) vacancy. All other positions are filled, and the program is
successfully meeting its core services and objectives. Public Works Administration has been working
with Management Partners to determine necessary changes to the CIP program to enable it to deliver
the City’s expanded CIP as a result of the passage of Measure G20. The final report was submitted to
the City in August and staff is working through the adoption process. A process improvement manager
was hired in November to lead the implementation of the report’s recommendations. A copy of the
report will be provided to Council on February 1, 2022.
Parks Maintenance
Over the past six months, the Parks Maintenance program has continued to successfully provide the
community with safe park facilities, and well-maintained parks. Staff has promptly addressed broken
playground equipment to ensure the continued enjoyment of safe parks. Parks Maintenance staff has
been covering the workload the for the Parks Maintenance Specialist and Facilities Aide vacancies. The
Parks Maintenance program has had to respond to unanticipated failing irrigation systems and has had
to replace stolen and vandalized restroom fixtures and other park amenities. Discarded items and
residual campgrounds have severely impacted resources. Reduced precipitation has led to higher-than-
normal irrigation costs for the first part of the year and staff is closely monitoring this variance. Staff
Budget Report Pg # 44 Page 157 of 255
Public Works
vacancies, unanticipated failing irrigation and lower than anticipated rain have resulted in the need for
additional resources to continue to maintain work program tasks.
Swim Center Maintenance
The Swim Center Maintenance program continues to provide a safe and clean aquatic facility for the
public’s use while remaining on track with its budget. Because a large percentage of the operating
budget is for utilities and supply costs, there may be budget variances as overhead costs increase.
Staffing levels remain relatively stable with the program technician needing to assist the Facilities
Program as it has had prolonged staffing vacancies. The Program successfully completed the annual
maintenance closure, which was used for the replacement of the main pool’s expansion joint. This joint
is typically a weak link in Olympic sized swimming pools and the City was one of the first pools to install
a new foam technology for this application. The replacement of the Therapy Pool Boiler occurred at
the end of last calendar year which significantly increase reliability and efficiency. Some challenges and
technical adjustments are being made to the Therapy Pool Boiler.
Urban Forest Services
The Urban Forest Program continues to operate in a limited staffing capacity as was expected for a
majority of the 2021-22 Fiscal Year. Doing so has given the City the opportunity to assess the current
program structure and look for operational efficiencies. The City expects to conclude the Organizational
Assessment in Winter 2022 and will present in Spring 2022, in line with the initiation of an update to
the City’s tree inventory. Both efforts will be incorporated into the Urban Forest Long-Range Plan that
is being undertaken by the Administration and Public Works Departments. The program has also
recently contracted with a new tree service contractor who is performing a majority of the reactive and
preventive pruning.
Facilities Maintenance
Facilities Maintenance is currently recruiting for its last maintenance technician vacancy. Recently, the
program promoted a senior technician to Supervisor and hired for a vacant technician position.
Because the program has had staffing vacancies for a prolonged period, the program is outsourcing
more work to contractors to manage the workload. Facilities Maintenance will continue to utilize
contract services while training new staff on program operations. As the City grows facility square
footage, complexity of building systems, and work requests increase, response times and preventative
maintenance must be adjusted accordingly. The Facilities Maintenance team was heavily impacted this
year by COVID and did a large amount of work to improve the facilities to protect employees and
community members. The program maintains approximately 230,000 square feet of buildings with
four technicians in the program under regular staffing levels.
Streets & Sidewalk Maintenance
The Streets Maintenance Program is close to completing sidewalk and pavement work in pavement
zone 7, staff anticipates completion in January 2022. The project was slightly delayed by a Utilities CIP
project that took place in the zone. This work includes asphalt patching, sidewalk repair, sign
replacement, and curb painting. As of November 2021, Streets completed all annual storm prep work
including the cleaning of rock guards and delivering sandbag piles. During rain events, the Streets
Maintenance Program performs storm patrol and responds to numerous service requests. The
program also completes trash and green waste management for the corporation yard and manages the
metal recycling program. The Streets Maintenance Program has provided traffic control support for
numerous downtown projects to aid with the City’s economic recovery. This program will likely exceed
Budget Report Pg # 45 Page 158 of 255
Public Works
the budgeted amount for overtime, which was a result of downtown leaf litter by inhouse staff and
Farmer’s Market traffic control. Expenditures in other areas will be reduced to keep work efforts in
alignment with program budgets.
Traffic Signals & Lighting
Safe and efficient traffic signal operations have been maintained through regular preventative
maintenance, repairs to damaged traffic signal equipment, and ongoing refinements to traffic signal
timings and equipment, including ADA upgrades for pedestrian push buttons and assistance with
installing the third Pedestrian Hybrid Beacon in the city at Broad/Woodbridge. Several new streetlights
have been installed this year as part of new development, and several additional City-led streetlight
installations in neighborhoods near Cal Poly are currently in design. The City’s first solar-powered path
lighting was recently installed along the new Madonna Road shared-use path and the PW Department
plans to install several others as part of upcoming CIP projects (Anholm Greenway, RRST and Bob Jones
Trail Path Lighting Projects) during the 2021-23 work program. Further, staff plans to incorporate a
standard plan for solar path lighting as part of the 2022 Engineering Standards update and is continuing
to explore standard solar options for standard streetlights.
Fleet Maintenance
This program is responsible for purchasing, outfitting, maintenance, and repair of the 340 City owned
assets. Other responsibilities include emissions reporting, maintenance of the Corp Yard fuel pumps
and car wash, hazardous waste handling and disposal, and parts inventory. With the exception of the
recently approved Intern position, Fleet Maintenance is now fully staffed with mechanics, which
includes one new contract Heavy Equipment Mechanic. The two new mechanics joined the program
towards the end of the calendar year, which will help the department get caught up on backlogged
work orders. Staff performs on average 45-60 preventative work orders each month, along with
repairing assets that are a result of unscheduled breakdowns. Outside vendors and overtime work
assisted the program keeping up with the demand during the staffing vacancies. Although fuel prices
have risen considerably, the fuel budget appears to be tracking correctly and no increases are needed
at this time. Timely procurement of scheduled vehicle replacement has been impacted by increased
vehicle costs, staff is requesting additional funds to account for this phenomena.
CIP Engineering
The CIP Engineering Program continues to work on and deliver Capital Improvement Projects funded
for design and construction. During the first quarter of FY 2021 -22, several construction projects have
been completed including the Terrace Hill Pipeline and Pressure Reducing Valve Rehabilitation, the Bee
Bee/Cuesta/Loomis Waterline Replacement, and the Silt Removal 2021 project. Additionally, many
projects are currently in construction including but not limited to the 2021 Downtown Pavement
Improvements Project, Laguna Lake 2021 Maintenance Dredging Project, and the Railroad Safety Trail
Taft to Pepper Project. Inspection staff continue to review and monitor private and public projects in
construction including large developments such as San Luis Ranch and Avi la Ranch. Development and
construction activities throughout the city continues to remain at high thresholds as shown over the
past few years. Additionally, the program has seen an increase in the overall CIP budget due to approval
of Measure G20. This has greatly increased workload of existing staff and warranted the need for
additional resources to fill staffing deficiencies. The program has one vacant contract engineering
inspector position, two vacant full time engineer positions, as well as one individual working in an active
role for another position. In an effort to mitigate the staffing shortages, several projects are being
managed by outside consultant services to continue progress during design. The increase in budget
prompted a program wide assessment. A consultant was hired to do a thorough review of the
Budget Report Pg # 46 Page 159 of 255
Public Works
program’s structure and organization. The assessment of the program provided 53 recommendations
for process improvement and re-organization of the program structure. The program is categorized is
red due to the expanded workload associated with the passage of Measure G20; recommendations
will be presented to Council in early 2022 in order to address the operational deficiencies currently
present in the program and allocate additional resources to the program. While funding was
allocated to mitigate the impacts of an expanded CIP the program is still in the process of
transitioning to a permanent staffing structure more in line with the increased workload.
Transportation Planning & Engineering
The Transportation Planning & Engineering Program has continued progress with enhancing crosstown
traffic circulation, including managing several large projects in construction, progressing with design of
several upcoming capital projects, continued support for a continuous stream of private development-
related projects, and ongoing implementation of the City’s Open SLO COVID -19 response effort.
Program highlights during the first half of the 2021-22 fiscal year include completion of the
Broad/Woodbridge Crossing and progress with construction of the Railroad Safety Trail (Taft to
Pepper), Orcutt/Tank Farm Roundabout, and 2021 Downtown Paving Project. Staff has also made
progress with final design of several other projects expected to start construction in 2022, such as the
Anholm Neighborhood Greenway, Pedestrian Crossing Improvements (upgrades at 7 uncontrolled
pedestrian crossings), Higuera Two-Way Left-Turn Lane Widening (Bridge to Elks), 2022 Paving Project,
and multiple traffic safety and neighborhood traffic management projects. Staff has also begun
preliminary planning and design for protected bike lane projects on the South Higuera and Foothill
corridors, with potential implementation in 2023. Finally, staff is in the process of developing a
permanent parklet program for Council consideration and potential adoption in 2022.
While the Program has made significant progress on many fronts and is fully staffed, the team is
beginning to face challenges keeping up with project schedules and requests from community members
due to unprecedented workload levels with several large capital projects in construction and design, a
persistent stream of development-related responsibilities (from entitlement review, to infrastructure
financing/development agreements, to improvement plan review, to in-field construction and traffic
control support), and addition of new responsibilities such as development and implementation of the
Open SLO parklet program. The Program workload is likely to continue at this level with increases in
funding from the passage of Measure G-20. Staff plans to present recommendations/requests to
Council in early 2022 for additional resources in order to address the operational challenges currently
present in the program and allocate additional resources to the program where appropriate.
Budget Report Pg # 47 Page 160 of 255
Public Works
Parking and Transit
Work Program Evaluation
Parking
The Parking Fund is tracking in line with the adopted budget, but parking structure revenue is falling
slightly behind revenue projections due to staff shortages and equipment issues. The Division has
worked to address equipment issues and completed significant software updates and repairs to
hardware in November and December that have improved operations and collection of revenues at all
structures. The significant revenue enhancement strategies have been implemented including rate
increases and expansion of on-street parking enforcement hours. Staff will return at Supplement with a
full assessment of impacts the strategies have had on the health of the Fund. Staff is currently not
recommending any adjustments to programs as a very limited amount of the financial impacts from
these new strategies have been accounted for. Additional part-time parking enforcement staff have
been hired and trained to monitor and assist parking operations into the evening hours with full-time
parking enforcement positions anticipated to be filled by the beginning of Spring 2022. The Parking
Fund has continued to support downtown economic revitalization by providing free parking in the
structures on specific days during the holiday season which will have minor impact on overall revenue
collection. Parking has completed the rollout of mobile payment technology which allows parkers the
ability to pay for and track on-street parking sessions from a mobile device such as a smart phone.
Parking will pursue a digital permitting system in Spring 2022 with an anticipated go-live date of Fall
2022. The project to remove abandoned parking meter poles was completed just outside the reporting
period on January 14, 2022. The project to convert 842 Palm Street parking structure to a license plate
recognition (LPR) based gateless operation is currently active and is on track to be completed by June
2022. Additional funds are being requested to complete the gateless conversion project as material
costs are higher than originally budgeted. Parking is also requesting funds to replace the remaining
single space parking meters with multi-space pay stations, to execute a new security services contract
with expanded nighttime hours with a goal to improve downtown safety, and to create a new
supervising parking enforcement position that will oversee all the full-time and part-time parking
enforcement staff. The new supervising parking enforcement position is necessitated by the growth of
the parking enforcement staff.
Work Program Evaluation
Transit Operations and Maintenance
The Transit Fund continues to operate as expected. There are several issues that the program
will face during the remaining of the fiscal year. First, staff will negotiate with First Transit to extend the
contract for one year. This will allow sufficient time and continuity for the new Transit Manager to
prepare the request for proposals for the transit program. It is anticipated that costs may increase at a
minimum of three percent. Secondly, staff will resume to negotiate with Cal Poly for a new long-term
transit subsidy agreement. Thirdly, staff is working on the transition of the City’s diesel transit fleet to
electric transit buses. Given costs of electric buses, the program will likely need to use unappropriated
transit fund balance. Lastly, staff will use approximately $180,000 of unappropriated transit fund
balance to relocate the bus stop at Prado Day Center, to fund the current bus shelter Capital
Improvement Plan, and the Communications Plan. Staff is currently working with a consultant to
conduct an assessment of the transit program covering organizational structure, finances, partnerships,
infrastructure planning and the regulatory environment. Bus driver shortages throughout the industry
will likely cause disruptions for the foreseeable future.
Budget Report Pg # 48 Page 161 of 255
Utilities Department
Utilities Department
Performance Measures
Performance measures are designed to determine accountability, improve service quality, allocate
resources, and evaluate departmental performance in meeting San Luis Obispo’s goals and objectives.
Objective Measure 2019-20
Actual
2020-21
Actual
2021-22
Actual
2021-22
Target
2022-23
Target
Manage Assets Responsibly
& Transparently
Strategic Goal: Public
Stewardship
Grant and partnership
dollars to be obtained
to offset rates
$78,814 $1,263,187 $573,61826 $4,454,168 $939,368
Minimize number of
Customers Shut-Off
for Nonpayment27
306 0
0
500 450
Average Infrastructure
Asset Age (years)28 21.34 21.26
20.87 20.42 19.92
Connecting the Community
to High Quality & Reliable
Service
Strategic Goal: Public Service
# Unplanned Service
Interruptions29 68 49
30 0 0
# of Sewer Lateral
Replacements
including Offsets
168 155
57 100 100
Recycled Water
Delivered (AF) 234.71 259.08 130.47 300 325
Foster Leadership,
productivity, and
opportunity for personal and
professional growth.
Strategic Goal: Workforce
% of New Hire Safety
Trainings Conducted
N/A30 100% 100% 100%31 100%
Provide Coworkers and the
Community with
Information & Opportunities
to Participate in Decisions
that Impact them
Strategic Goal:
Communication
Public Outreach : # of
Communications with
the Community32
120 161 144 170 200
26 Note that the majority of grant funding that comes in is tied to expenditures and timing of reimbursement
requests. If the FY 21-22 target is not met, the Department will likely surpass the FY 22-23 target.
27 2019-2020,2020-2021, and 2021-2022 are artificially low due to the Covid-19 shut-off moratorium. In 2018-2020
(a typical year), there were 533 shut-offs for non-payment.
28 Average asset age from City fixed assets data. This should decrease each year as assets are replaced.
29 Includes water main and service line outages; and sanitary sewer overflows.
30 Did not start tracking until 2020-21.
31 Goal is to have all safety trainings conducted for all new employees within their first three months of
employment.
32 Includes Facebook posts, blog posts, email bulletins, groundbreaking event, quarterly project reports, the
Resource, website news articles, and bill inserts.
Budget Report Pg # 49 Page 162 of 255
Utilities Department
Work Program Evaluations
Water Administration/Engineering
The Water Administration/Engineering division is responsible for overall management of the City’s
drinking water program. This section is comprised of administrative, planning, engineering, and support
staff that work together with operations staff to ensure safe drinking water is provided to the
community. In addition, this section is responsible for planning efforts designed to ensure adequate
water supplies are available for the current and future needs of the City. Major work efforts of this
section include implementation of the Groundwater Sustainability Plan, which was adopted by the City
Council on December 7, 2021, and submitted to the Department of Water Resources in January 2022.
Other work includes the transition from surface water permit to surfa ce water license at Whale Rock
and Salinas reservoirs, and the development and execution of large CIP projects at the City’s water
treatment plant and within the water distribution system, which are outlined in additional detail below.
Water Source of Supply
The Source of Supply budget within the Water Division funds programs related to the City’s surface water
sources, groundwater, and recycled water. This budget is administered by staff at the Water Treatment
Plant, Whale Rock Reservoir, the Water Quality Lab, and within the Water Resources and Water
Admin/Engineering sections. Approximately 98 percent of the Source of Supply budget is utilized to fund
the delivery of raw water to the City’s water treatment plant and to fund associated capital repairs and
projects at the City’s three surface water reservoirs. Major source water CIP work efforts currently
include the installation of a backup power generator at the Salinas Booster Station, the development of
an Emergency Action Plan at Whale Rock Reservoir, and a project to repair and replace drain lines under
the Whale Rock Reservoir spillway. Approximately 45 percent of the Source of Supply budget funds debt
service for the Nacimiento Water Project, which has been critical in allowing the City to manage the
current drought without requiring mandatory water conservation measures. Despite low precipitation
to date, the City’s water supplies are currently sufficient to provide more than five years of water to the
community, which allows the City to remain in the “Monitor” stage of its Water Shortage Contingency
Plan.
Reservoir Operations
This three-member section is responsible for maintenance and operation of Whale Rock Reservoir, 18
miles of raw water pipeline, and two pump stations that deliver untreated water to the Water
Treatment Plant. CIP projects are planned to maintain, replace, or upgrade infrastructure to meet the
goals of source water quality and consistent water delivery. At the request of the Division of Safety of
Dams (DSOD); Plans and Specifications for Spillway Underdrain Repairs have been produced and
submitted for DSOD review and the first draft of the Emergency Action Plan update for Whale Rock Dam
has also been submitted for review. Ongoing CIP aimed at maintaining infrastructure safety and
reliability includes the replacement of approximately 2,000 feet of fence-line around the reservoir,
development of plans for repaving the road to the dam face and plans for draining and cleaning the
spillway stilling basin, located at the bottom of the spillway, in preparation for a required inspection.
Bids were received in November 2021 for 1,800 feet of fencing replacement which is scheduled to be
completed in the spring and staff is currently completing environmental review and permitting for the
stilling basin draining project. Work related to repaving the road to the dam face has been delayed as
the Utilities Department is in the process of hiring an engineer. In addition to scheduled CIP, Whale Rock
staff identified a leak in the Whale rock pipeline just to the south of the City of Morro Bay while
conducting routine a pipeline inspection in October. During mid-November the pipeline was taken
offline for repairs. Upon excavation of the leak, it was determined that approximately 60 linear feet of
pipe needed to be replaced before returning the line to service. Repair efforts were delayed due to a
period of extended rainfall which restricted access to the leak location. Leak repairs were completed in
Budget Report Pg # 50 Page 163 of 255
Utilities Department
mid-January and the pipeline was returned to full service. In total the pipeline was offline for
approximately two months.
Water Treatment
This 11-member section of the Utilities Department is responsible for the operation and maintenance of
the City’s drinking water plant. In the first half the current fiscal year, the water treatment plant has
provided the City’s consumers and Cal Poly with over 2,407 acre-feet of safe, reliable, potable drinking
water. The water treatment plant is in the process of implementing the Water Energy Efficient Project.
Reflecting the City’s fiscal, social, and environmental commitment to sustainability; the Water Energy
Efficiency Project is an exciting combination of necessary water treatment plant infrastructure upgrades
with energy efficiency and energy savings. Elements of the project, including the replacement of the
Ozone disinfection system and plant treated water supply system were completed in the summer of
2021. Upgrades to the Supervisory Control and Data Acquisition (SCADA) system and the installation of
Variable Frequency Drives (VFDs) at the transfer pump station are scheduled to be completed in the first
half of 2022. Global supply chain issues and shortages of raw materials have been drastically impacting
prices of chemicals used in the water treatment process for the first half of the fiscal year. The Water
Treatment Plant recently completed successful recruitment of three new Water Treatment Operators.
The section was able to utilize hiring incentives to help recruit two Treatment Grade 3 Operators and a
Treatment Grade 4 operator in December of 2021. These hiring incentives were helpful in attracting
qualified applicants for three critical openings at the Water Treatment Plant during a time period when
there has been a shortage of licensed treatment plant operators in the State.
Water Distribution
Water Distribution is a 12-person team responsible for the operation and maintenance of the City’s
Water Distribution system. This network of pipes, tanks, pumps, valves, meters, and hydrants convey
the City’s water from the Water Treatment Plant throughout the City to be used for fire protection and
domestic use. This system is currently expanding due to new development. In the first half of the fiscal
year, the section completed the replacement of approximately 5,000 feet of water main through CIP.
This work eliminated an aging water storage tank from the system, improved fire flow, resiliency, and
improved water quality through the adjacent pressure zones. The crew repaired or replaced 14 service
lines, repaired six water main leaks, performed 3,029 work orders related to establishing water service
for new customers, maintained or replaced 211 fire hydrants, replaced 264 aging water meters, and has
installed 142 new meters to support development.
Water Resources
Water Resources is a three-person team responsible for the development of local groundwater
resources, expansion of the City’s use of Recycled Water, and implementation of the City’s Water
Conservation programs. The team is also responsible for public outreach and communications regarding
the City’s drinking water program, which includes radio advertising, social media outreach, special event
campaigns, and an interactive sidewalk sticker program. The team assisted with the drafting of the 2020
Urban Water Management Plan which was adopted by City Council in June 2021. Further, the team is
involved in the administration of a groundwater contamination study funded through a Proposition 1
grant and is implementing innovative software to investigate parcel-scale water use to create focused
conservation programs. Recycled water will be a priority in the upcoming year as the Department moves
toward full utilization of the water produced by the upgraded WRRF; including a cost-of-service study
and administering a potable reuse implementation planning study.
Wastewater Administration/Engineering
The Wastewater Administration/Engineering program leads, evaluates, and provides guidance and
direction for effective water resource management for the various wastewater programs. It provides
strategic and long-term planning and engineering for the wastewater and recycled water production.
Budget Report Pg # 51 Page 164 of 255
Utilities Department
Major work efforts of this section are currently centered around the upgrade and regulatory permitting
of the Water Resource Recovery Facility (WRRF) SLO Water Plus project, energy efficiency studies, public
outreach and education, the sewer lateral rebate program, departmental asset management
standardization, consolidating roles and responsibilities of the Citywide Stormwater Program, and
completing water quality laboratory certification while transitioning to The Nelac Institute (TNI)
procedures for environmental analysis and documentation. David Hix, the former wastewater division
Deputy Director, retired in December 2021 after over 30 years of service with the City. David has been
replaced by Chris Lehman. Chris has worked for the City since 2010, and previously served as the WRRF
Supervisor since 2018.
Wastewater Collection
This nine-member division of the Utilities Department is responsible for the operation and on -going
maintenance of the City’s wastewater collection system, with two staff members dedicated to the
maintenance of the City’s storm drain systems.
The lateral rebate program has provided financial assistance to homeowners who elect to replace their
sewer lateral, providing rebates between $2,000 and $3,000. Over 80 private sewer lateral replacements
receive funding through this program annually. The new (2019) sewer lateral inspection upon sale or
transfer ownership requirements have resulted in the disclosure of sewer lateral conditions between
buyers and sellers prior to escrow closing, which has resulted in more private sewer lateral replacements
than anticipated. From 7/1/2021-1/20/2022, staff has replaced 73 sewer laterals and given 28 lateral
rebates. The biggest accomplishment during this FY was the replacement of 4,678ft of sewer main.
These programs contribute to reduced inflow and infiltration into the wastewater collection system,
meet regulatory requirements, protect human health, and preserve capacity.
Environmental Programs
Environmental Programs oversees Pretreatment Industrial Compliance for about 400 industrial users
within the City, including six Significant Industrial Users. The Program is also responsible for much of the
City’s Stormwater Program and took over coordination duties from Administration in the Fall of 2020.
This three-member program underwent significant staffing changes in the past year, and at present
hosts one Environmental Programs Manager and two Environmental Compliance Inspectors (one
currently vacant). Major work efforts center around database updates for both stormwater and
pretreatment; evaluating compliance pathways for Pathogen Total Maximum Daily Load (TMDL)
reduction in San Luis Obispo Creek; and working with Public Works and Community Development on
achieving compliance for the Stormwater Program. Since Fall of 2020, the Stormwater Program has
received two Notices of Violation (NOVs) from the State Water Control Board for not meeting
requirements set forth in the Phase II MS4 general permit. This includes but is not limited to an
incomplete construction site inventory, gaps in construction inspection reporting, and not meeting Post-
Construction Stormwater Requirements (PCRs). The Community Services Group continues to actively
work towards resolution and is currently on a quarterly technical reporting schedule to achieve
compliance with full resolution set for December 2022.
Water Resource Recovery Facility
This 13-member section of the Utilities Department is responsible for the operations and maintenance
of the City’s Water Resource Recovery Facility (WRRF), which treats all wastewater from the City, Airport,
and University, and includes recycled water production. The WRRF is in the third year of a four-year-long
construction project designed to address new state regulatory requirements, aging infrastructure,
additional capacity to meet the City’s General Plan, and provide a community asset in the form of
education and water resiliency. The Facility is involved in ongoing energy studies that will assist in
reducing energy demands of the new treatment processes. The WRRF continues to collaborate and
Budget Report Pg # 52 Page 165 of 255
Utilities Department
support Cal Poly’s award winning on-site research facility, conduct tours when feasible, and to train
future treatment professionals through a comprehensive internship program. Global supply chain and
transportation disruptions have severely impacted the price of chemicals used in wastewater treatment
processes at the WRRF. Although this pricing impact is expected to carry forward into the next fiscal
year, the WRRF will also be transitioning away from chemical-based disinfection, which will minimize
future fiscal impacts.
Utilities Revenue
Utilities Revenue is staffed with two full-time positions and provides support to 16,644 service
connections. This includes billing, payment collection, past due processing, and customer service. During
the first six months of the fiscal year, this division has continued to focus on efforts to support customers
that were financially affected by COVID-19. It provided communication and outreach regarding payment
plans, local and statewide assistance programs, as well as the newly implemented Customer Assistance
Program in preparation for the return to normal practices in the new year. Most recently, the division
secured $255k in State funding for unpaid water bills through the CA Water Arrearage Program. The
division hopes to secure similar funding for wastewater in the next six months. Early in the next year, it
plans to transition the payment website, Merchant Transact, to an updated gateway processor that will
have many customer benefits and lower costs for the City in the future.
Water Quality Lab
The five-member Water Quality Laboratory (WQL) is an Environmental Laboratory Accreditation
Program (ELAP) State Certified Laboratory which performs sampling and/or analyses in support of City
services including wastewater, recycled water, groundwater, drinking water, San Luis Obispo Creek
watershed, protecting public health and biosolids. The WQL operates under regulations ensuring
compliance with Federal, State, local regulations, and ELAP. The lab will be transitioning to new ELAP
requirements, based on The Nelac Institute (TNI) standards. The TNI standards will focus on policies,
procedures, record retention, and improved traceability for all lab related activities. The WQL has
expanded service to the City by implementing a COVID-19 wastewater surveillance program and
sampling and monitoring of San Luis Obispo Creek to meet the Waste load Allocation and Attainment
Program (WAAP) requirements. The COVID-19 surveillance program has been a collaborative effort with
the Cal Poly Biological Sciences Department.
Solid Waste Recycling
This Program was created in July 2019 to manage the City’s solid waste program and associated
budget. The program will ensure compliance with Senate Bill 1383, Assembly Bill 18262, and other
emerging solid waste regulations. The section also manages the solid waste contract, public outreach,
and relationships with external partners such as San Luis Garbage and the IWMA. The section is
managed by a Solid Waste and Recycling Coordinator and supervised by the Community Services
Group Business Services and Administrative Manager. Over the past year, the section established a
permanent Coordinator position, updated the Municipal Code to align with the goals of Senate Bill
1383 and the California Green Building Standards, participated in Green Team and Climate Action Plan
strategizing, became a participating member of the IWMA Local Task Force, and continues to be the
liaison to the community and Council for questions regarding solid waste and recycling. The use of
AB 939 fees is restricted to recycling and waste diversion related work provided to the residents of San
Luis Obispo. Facets of the program not directly related to diversion cannot be funded by AB 939
fees and are supported by the General Fund. The future expansion of the City’s program is currently
being evaluated concurrently with the IWMA’s evolution and establishment of roles with its member
agencies.
Budget Report Pg # 53 Page 166 of 255
Utilities Department
Safety
Training for the UT Department for has been successful while working through the parameters of Covid-
19. The Team was able to complete required training using various methods. CJPIA conducted virtual
training for four requirements including: Environmental, Hazard Communication, Trench Excavation
Safety, and Energy Control. In-person training was conducted for several training requirements
including: First Aid/CPR, NFPA 70E, AC Pipe, Aerial Lift, Fall Protection, Confined Space Entry, Forklift,
Respiratory Protection, Spill Prevention, Quad Monitor, and New Hire Training. Virtual and online
training methods were utilized to complete annual required training on Fire Extinguishers, Hearing
Conservation, Bloodborne Pathogens, and Heat Illness Prevention. New Hires were trained within three
months of their hire date. Wastewater Collections worked in collaboration with the Fire Department to
conduct Confined Space Entry Rescue Training. Currently, the Safety Engineer position is vacant with an
upcoming recruitment scheduled to fill the vacancy.
Budget Report Pg # 54 Page 167 of 255
CIP Update
E: CIP UPDATE
Public Works CIP Engineering and Management staff have delivered several projects within the
first half of the fiscal year as listed in the table below. There are also a number of projects
currently underway. The table below is not inclusive of all capital projects, but is intended to
highlight projects that have been completed in the first half of FY 2021-22, ongoing projects
currently under construction, and legacy projects that are currently in the planning or design
phases.
The amounts in the ‘Appropriated Project Budget’ column reflect funding that has been formally
moved into a project’s budget. The amounts do not include the total estimated budgets for each
project. For example, for projects approved via adoption of the 2021-23 Financial Plan, only the
funding approved for FY 2021-22 plus any mid-year adjustments is included. Funding for the
project in FY 2022-23 will be appropriated to the project on July 1, 2022, assuming the funding is
approved via adoption of the FY 2022-23 budget.
ID#Project Appropriated
Project Budget
Estimated
Construction
Completion
Additional Comments
1 Terrace Hill Pipeline and Pressure
Reducing Valve Rehabilitation $720,000 Complete
2 Fire Station 1 HVAC Replacement $140,000 Complete
3 Bee Bee/Cuesta/Loomis Waterline
Replacement $1,230,000 Complete
4 Silt Removal 2021 $110,000 Complete
5 Sinsheimer Irrigation and Stadium
Drainage $650,000 Complete
6 Broad Street/Woodbridge Pedestrian
Hybrid Beacon $410,000 Complete
7 Mission Plaza Railing Upgrades $80,000 Complete
8 Meadow Park Pathway Maintenance $380,000 Complete
9 Laguna Lake 2021 Maintenance Dredging
Project $605,000 Complete
10 Meinecke Strom Drain Repair $30,000 Complete
11 Swim Center Therapy Pool Boiler
Replacement $85,000 Complete
12 Downtown Parking Meter Pole Removal $140,000 Q3 FY22 Construction Ongoing
13 Jeffrey Sewer and Water Replacement $1,830,000 Q3 FY22 Construction Ongoing
14 2021 Downtown Pavement Improvement $3,190,000 Q3 FY22 Construction Ongoing
15 Energy Efficient Lighting Retrofits - City
Hall and Fire Station 1 $15,000 Q3 FY22 Construction ongoing. Project cost is
covered by on-bill financing.
16 Emerson Fitness Park Equipment
Replacement $280,000 Q3 FY22 Construction Ongoing
17 Railroad Safety Trail Taft to Pepper $3,980,000 Q3 FY22 Construction Ongoing
Completed & Ongoing Capital Projects for Q2 FY 2021-22
Budget Report Pg # 55 Page 168 of 255
CIP Update
ID#Project Appropriated
Project Budget
Estimated
Construction
Completion
Date
Additional Comments
18 Reservoir 1 Cover
Replacement $700,000 Q4 FY22 Construction Ongoing
19 Tank Farm Road and Orcutt
Roundabout $3,510,000 Q4 FY22 Construction Ongoing
20 Parks and Recreation Office
Rehabilitation $605,000 Q4 FY22 Construction Ongoing
21 Tesla Batteries $30,000 Q1 FY23 Construction is anticipated to begin 2024.
22 Calle Joaquin Lift Station
Replacement $8,534,000 Q2 FY23 Construction Ongoing
23 Wastewater Resource
Recovery Facility Upgrade $123,331,000 Q3 FY 24 Total construction budget is estimated at $140
million.
24 Area 6 and 7 Curb Ramps $1,000,000 Summer
2022
The appropriated budget is being requested via a
Council Agenda Report on February 15, 2022.
Construction is anticipated to begin May 2022.
25 Cerro San Luis Greenway $3,085,000 Fall 2022
This project was formerly known as 'Anholm
Greenway'. Of the appropriated amount, the
estimated construction cost is $2.4 million.
26 Cheng Park Revitalization $350,000 Winter 2022 Construction is anticipated to begin Fall 2022
27 North Broad Street
Neighborhood Park $958,000 Spring 2023 Construction is anticipated to begin Summer 2022.
28 Mission Plaza Restroom and
Kiosk Café $390,000 Fall 2023
This project is currently under CEQA environmental
review and planning application preparation for
project entitlements. Design is expected to extend
into Spring 2023, with construction beginning late
Spring/Summer 2023. The construction budget is
$1,035,000 for appropriation on July 1, 2022.
29 Orcutt Area Park
Improvements $1,520,000 Winter 2024 Construction is anticipated to begin 2024.
30 California and Taft
Roundabout $1,413,000 Winter 2024 Construction start is dependent on property
acquisition.
31 Palm-Nipomo Parking
Structure $2,810,000 Fall 2025 The total estimated cost included in 5 Year CIP is
$45.5 million.
32 Prado Road Bridge & Road
Widening $1,528,000 Winter 2026
The appropriated budget only reflects design costs;
total project budget is estimated at $22 million.
Construction is anticipated to begin Fall 2023.
33 Public Safety Center $191,000 Fall 2027
Public outreach effort is being scoped and will lead
into planning applications, environmental review,
and project entitlements. Construction is
anticipated to begin Summer 2025 with an
estimated budget of $52 million.
34 Prado Road Interchange $1,656,000 Fall 2030
The appropriated budget only reflects design costs;
total project budget is estimated at $72.3 million.
The estimated start of construction is in Winter
2025 with a 4 year construction timeframe. This
project is required to follow Caltrans review and
approval processes.
Completed & Ongoing Capital Projects for Q2 FY 2021-22
Budget Report Pg # 56 Page 169 of 255
On track
Task delayed or potential setbacks with workable solutions
Problems emerged with no solution yet
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion;
HH=Housing and Homelessness; CA= Climate Action, Open Space & Sustainable Transportation
MCG Task Completion Date
1 1.1 For all members of the Community
2 ERR a. Establish a process for the City to recognize and promote Minority‐owned businesses. FY22 Q3
3 ERR
b. Implement protocols within the City’s Office of Economic Development to reach out to existing and new
Minority‐owned/operated businesses to learn of their experiences operating in SLO, and to identify ways
the City can be of support.
FY22 Q3
4 ERR c. Evaluate and potentially establish a City Leadership/Chamber of Commerce / Minority Business Owners’
roundtable.FY22 Q4
5 ERR e. Update and maintain a listing of resources for BIPOC, LGBTQ+ and other underserved communities on
the City's Doing Business section of the website.Ongoing
6 ERR
f. Hire a consultant, support legal review, and establish an internal working group and hire a consultant to
research methods to support local contractors, local vendors, and labor through workforce agreements,
local purchasing requirements, alternative project delivery methods and other options to support local
businesses and employees. The Community Services Group will be leading this effort.
FY22 Q4
7 ERR g. Develop and implement a scorecard to track visitation to key areas of the City, employment, DEI
economic efforts and other relevant economic indicators.FY22 Q2
8 ERR j. Ensure adequate temporary and flex resources available to develop and execute required initiatives. Ongoing
9 1.2 Business Support
10 ERR
a‐1. Set aside funding for activations, promotions and programs like "Light Up Downtown", "Buy Local
Bonus", Shop local to aid in the recovery from the impacts of COVID‐19 through out the City and including
downtown.
Ongoing
11 ERR
a‐2. Elevate the promotion and branding of the Economic Development activities of the City highlighting
the efforts around Sustainability and DE&I through the website, videos and other collateral. ($60k
communications support for Administration)
F22 Q4
12 ERR
a‐3. Continue to work with our partners at the Chamber, REACH, Cal Poly, Downtown SLO, SCORE and
others to support the business community through retention, creation, attraction, education and
communication efforts.
Ongoing
13 ERR a‐4. Work with REACH and other partners to offset the loss of the Diablo Canyon Nuclear Power plant
through business attraction, H‐o‐ H job creation and other relevant efforts. Ongoing
14 ERR a‐5. Evaluate the continuation and/or modification of the Open SLO program Fitness in the Parks.Complete
15 ERR a‐6. Review transitioning the Business Ambassador program from a COVID response action to an ongoing
program with an available hotline as well as an online form option.Complete
16 ERR a‐7. Continue to promote the City to tourists, visitors and locals through the efforts of the TBID and the
PCC. Ongoing
17 ERR a‐8. Provide childcare programming to the community to enable residents to work and fuel the local
economy.Ongoing
18 ERR b‐1. Continue to implement the TIPP‐FAST program to fast track tenant improvement permits and support
business recovery. Incorporate subsidies into program when funding is available.Ongoing
19 ERR
b‐3. Develop a streamlined and easy to understand process for businesses to allow activities encouraged by
Open SLO, and other programs implemented in response to Covid‐19, to continue ‐ especially in relation to
outdoor dining.
Original: FY22 Q1
Updated: FY22
Q4
20 ERR b‐4. Improve efficiency and transparency in the permitting process through implementation of paperless
permitting, performance management reporting, and enhanced customer transparency tools.FY22 Q4
21 ERR b‐5. Review and establish policies as required to support broadband to the home to take advantage of the
opportunities to work from home to support the Climate Action Plan and Quality of life. Ongoing
22 ERR b‐6. Staff Resources to improve permitting efficiency and support development services program capacity Ongoing
23 ERR
c‐1. Ensure the business community is updated and aware of major City projects (CIP and others) that will
impact their operations. Coordinate with business adjusting working hours and construction impacts to
reduce impacts.
Ongoing
F: Major City Goal (MCG) Update
The following table provides an update on all ongoing Major City Goal tasks and all tasks that were scheduled for completion in FY 2021‐22.
The completion date is the originally scheduled completion date unless otherwise noted. The status of each task (far right column) is based
on the following scale:
Budget Report Pg # 57 Page 170 of 255
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion;
HH=Housing and Homelessness; CA= Climate Action, Open Space & Sustainable Transportation
MCG Task Completion Date
24 ERR c‐2. Set aside funding for the potential to expand the various Open Slo programs (Parklets, Street closures)
to other areas of the City to support busines recovery. Ongoing
25 1.3 Arts and Culture Support
26 ERR a. Support the recovery of Arts and Cultural activities throughout the City. Ongoing
27 ERR b. Support the recovery of Arts , Culture and Community programs through a PCC program similar to GIA. Ongoing
28 ERR c. Continue to support local community non‐profit organzations through the Cultural GIA program
facilitated by the PCC. Ongoing
29 ERR d. Roundabout Public Art Installations Ongoing
30 1.4 Downtown Vitality
31 ERR a‐1. Continue to partner with Downtown SLO to ensure the recovery and growth, and vitality of the
Downtown. Ongoing
32 ERR a‐2. Support Downtown SLO in expanding the Holiday "Light up Downtown" program and incentivize
private participation through a matching program.(For example $100K base with $ for $ match on $50K)Ongoing
33 ERR a‐3. Continue the work of the Vacancy and Vibrancy Task force in cooperation with Downtown SLO with a
focus on a activating and re‐leasing vacant store fronts. Ongoing
34 ERR a‐4. Review, evaluate and execute on the outcomes from the Downtown Future Forum ensuring the
required public participation and Council approval as needed. Complete
35 ERR a‐5. Continue to enhance and modify the Open SLO program "Downtown Dining" within Mission Plaza as
needed to contribute to downtown vitality. Ongoing
36 ERR a‐6. Support the restart of the various Downtown SLO activations like Farmers, Concerts in the Plaza and
the Holiday Parade. Ongoing
37 ERR a‐7. Continue to promote the Downtown to tourists, visitors and locals through the efforts of the TBID and
the PCC. Ongoing
38 ERR c‐1. Support Arts and Culture in the downtown while ensuring appropriate efforts are made to support DEI
through available programs.Ongoing
39 ERR c‐2. Support the recovery of Arts and Cultural activities by working with new and existing community
partners.Ongoing
40 ERR c‐3. Activation of public spaces in downtown through events and programming such as pop up activities
and temporary public art that celebrates the proliferation of public art.Ongoing
41 ERR c‐4. Explore options of creative placemaking and temporary public art in the downtown i.e. adjacent to
Bubblegum Alley and Rose Alley.Ongoing
42 ERR c‐5. Support creation and partnership of a Downtown Mural Program with Downtown SLO and SLOMA. Ongoing
43 ERR d‐1. Develop and present a long‐term plan for the initiatives started under the Open SLO like parklets and
street closures in the downtown. Ongoing
44 ERR d‐10. Expansion of enforcement to ensure on‐street, off‐street, and residential compliance and safety and
to improve overnight safety in the parking structures Ongoing
45 ERR d‐11. Expansion of maintenance to ensure parking structures and adjoining areas remain safe, clean and
orderly (see above for fiscal impact)Ongoing
46 ERR d‐12. Parking structure maintenance at 842 Palm, 871 Palm, and 919 Palm. Ongoing
47 ERR d‐2. Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza Concept Plan and
Council Direction.Ongoing
48 ERR d‐3. Construct the new Palm/Nipomo structure in coordination with SLO REP theatre. Ongoing
49 ERR d‐4. Continue with the City banner program.Ongoing
50 ERR d‐5. Establish and implement a plan to make the Zig Zag lights permanent in the current locations as well as
other locations in the downtown.Ongoing
51 ERR d‐6. Ensure the downtown business community is updated and aware of major City projects (CIP and
others) that will impact their operations and set aside funding to minimize the impacts where possible. Ongoing
52 ERR d‐7. Investigate opportunities to develop a Downtown Wi‐Fi Mesh. Ongoing
53 ERR d‐9. Assist with the continuation of Open SLO parklets and courtesy curbside pick up locations Ongoing
54 ERR e‐1. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors and
homelessness support. Ongoing
55 ERR e‐2. Continue to enhance downtown cleanliness through daily sidewalk scrubbing, street sweeping and
trash clean up and the improvement of the existing creek walk.Ongoing
56 ERR e‐3. Continue to provide public safety presence in the downtown. Includes costs of Downtown Bike Patrol,
Sergeant, and Officers)Ongoing
Budget Report Pg # 58 Page 171 of 255
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion;
HH=Housing and Homelessness; CA= Climate Action, Open Space & Sustainable Transportation
MCG Task Completion Date
57 ERR
e‐4. The Police department will develop an educational program, which will include in‐person presentations
for business owners (including visitor serving) to know how to deal with situations requiring public safety
support. Costs are associated with materials.
Ongoing
58 ERR e‐5. Develop a CAT staffing plan with a second social worker, to ensure public safety and social service
resources in both the downtown and creek area. FUNDING LISTED IN HOMELESSNESS MCG Ongoing
59 ERR e‐6. Evaluate a plan to reestablish a downtown sub station for public safety. (Potential of adding to Mission
Plaza Project)Ongoing
60 ERR e‐7. Track hours worked (regular and overtime hours) by the downtown sergeant and downtown officers
and tracking crime statistics.Ongoing
61 ERR e‐8. Downtown safety enhancements ‐ bollards FY22 Q4
62 ERR e‐9. Mission Plaza Railing Replacement Complete
63 1.5 Practicing fiscal responsibility
64 ERR
a. Practicing fiscal responsibility: The City will continue to focus fiscal sustainability through all work efforts,
programs, and the required budget appropriations. It will review its revenue sources ongoingly and
maximize collection and return on its investments.
Ongoing
65 ERR
b. Staff Resources: Continued enhancements to the Oracle Cloud system through the MOTION program to
increase efficiencies and overall effectiveness of the system. Additionally help maintain the City's
accounting and financial information.
Ongoing
66 ERR c. Negotiate successor agreements with employee groups in alignment with Council adopted Labor
Relations Objectives.Ongoing
67 ERR d. Complete benchmark compensation survey for SLOCEA, Management, and Confidentials groups. FY22 Q4
68 ERR e. Continue to monitor and reduce liability and workers’ compensation claims through actions aimed at
reducing liability and workers’ compensation costs. Ongoing
69 ERR f. Injury Reduction Programs, Compliance Software, Onboarding Software, and transitioning to electronic
files Ongoing
70 1.6 Paying down unfunded pension liabilities
71 ERR a. Paying down unfunded pension liabilities (includes all funds): The City will work to pay down the
unfunded liabilities and allocate additional annual payment in pursuit of a 20‐year paydown. Ongoing
72 1.7 Investing in critical infrastructure
73 ERR
a. Investing in critical infrastructure: The City will invest in critical infrastructure based on the approved
2021‐23 CIP or as otherwise directed by the City Council. Projects that 1) facilitate economic recovery, 2)
enhance safety, resilience, fire prevention, 3) address past commitments (previously budget, approved
planning documents), 4) are partnership projects with a significant portion of the cost covered by private
development, 5) address existing core infrastructure maintenance needs and 6) provide positive impact
towards climate change goals and/or Diversity Equity and Inclusions needs will be prioritized for inclusion
and Council’s consideration in the 2021‐23 CIP. Specific CIP projects/Investments are included in the
relevant task and the overall CIP plan.
Ongoing
74 ERR
b. Regional Transit Authority Analysis: The RTA is currently building a Regional Transit HUB 800 feet from
the City’s SLO Transit Bus Yard. Much of the infrastructure that supports SLO Transit is aged and nearing
the end of its lifespan. All transit providers are required to shift the fleet of transit vehicles to zero emission
vehicles.
This funding would support the analysis and review of SLO Transit’s operations and infrastructure to
determine if there may be benefit to sharing infrastructure, equipment or centralizing services to provide
increased community services at the same or reduced purchasing requirements, alternative project
delivery methods and other options to support local businesses and employees. The Community Services
Group will be leading this effort.
FY22 Q4
75 ERR c. Administrative Costs to Support Investment in CIP (Office modifications, Interns) Ongoing
76 2.1 Establish Office of DEI
77 DEI a. Design DEI Administration, Function, and Operations of the Office
Original: FY22 Q1
Updated: FY22
Q3
78 DEI b. Develop DEI Base Operating Budget
Original: FY22 Q1
Updated: FY22
Q3
79 DEI c. Identify and secure office space (2000/mo @ 7 mos Y1, 12 mos Y2) FY22 Q2
Budget Report Pg # 59 Page 172 of 255
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion;
HH=Housing and Homelessness; CA= Climate Action, Open Space & Sustainable Transportation
MCG Task Completion Date
80 DEI d. Develop positions; Hire Staff
Original: FY22 Q1
Updated: FY22
Q3
81 DEI e. Hire Diversity position ‐ 1.0 FTE
Original: FY22 Q1
Updated: FY22
Q3
82 DEI f. Hire ‐DEI Administrative Support ‐ .5 FTE
Original: FY22 Q1
Updated: FY22
Q3
83 DEI g. Hire CivicSparks Fellow ‐ Y2 ‐ .75 FTE FY22 Q4
84 DEI h. Hire Interns ‐ Cal Poly, Cuesta, community candidates ‐ .25 FTE ‐ 2 positions Y1 @ midyear / 2 ‐ Y2, full
year FY22 Q3
85 DEI
j.Create and establish formal and informal activities, outreach, programs, policies, structures to advance
equity and inclusion, cultural and systemic anti‐racism, and cultural competence in the organization and
community, and support underrepresented communities
Ongoing
86 DEI k.Implementation of prioritized activities – internal and community‐based Ongoing
87 DEI l. Support DEI efforts throughout each department Ongoing
88 DEI m. Coordinate activities of the DEI Employee Committee Ongoing
89 DEI n. Community‐based outreach, education, programming Ongoing
90 DEI o. DEI High Impact and GIA grant administration and management Ongoing
91 DEI p. Cal Poly & Cuesta collaborations Ongoing
92 DEI q. Support the HRC Ongoing
93 2.2 Develop & Implement DEI Strategic Plan
94 DEI a. Conduct needs, priority, and resource assessments. Create comprehensive DEI initiatives and
programming for the organization and community. FY22 Q4
95 DEI b. Utilize DEI Task Force Recommendations, Internal D&E Audit as foundation; Cal Poly Experience report
and other documents as reference and for benchmarking FY22 Q4
96 DEI c. Present comprehensive plan to City Council for Adoption FY22 Q2
97 DEI d. Create project designs and implementation plans. Identify applicable qualitative and quantitative metrics
to measure impact of DEI projects and overall DEI program FY22 Q2
98 DEI e. Begin implementation of prioritized programs and projects; scoped as resources allow. To be determined
through Strategic Planning process.Ongoing
99 2.3 Workforce Recruitment & Retention
100 DEI a.Improve DEI‐Focused Recruitment, Screening, Hiring Practices Ongoing
101 DEI b. Improve DEI‐focused language in job descriptions, announcements and other recruitment materials.
Identify gaps and opportunities to increase inclusivity in materials. ‐ supported by consultant, 2.1.4.g Ongoing
102 DEI c. Provide DEI‐focused screening and interviewing training to personnel and panels ‐ supported by
consultant, 2.1.4.g Ongoing
103 DEI d. Implement applicable recommendations from Internal Audit, as well as other industry best practices.
Continue to ensure final selection guidelines are consistent with DEI best practices Ongoing
104 DEI e. Conduct Pay Equity Audit
Original: FY22 Q4
Updated: FY23
Q4
105 DEI f. Examine Policies and Programs to Support for Primary Caretakers Ongoing
106 DEI g. Review, evaluate and implement findings of SLO County Child Care Study (First 5’s analysis) of childcare
for working families, as applicable; 22‐23 Supplemental Plan as resources permit.FY22 Q4
107 DEI h. Continue communicating childcare options and resources for City employees; additional to First 5
findings. Explore flex schedules, job share, remote options, etc.Ongoing
108 DEI i. Expanded Recruitment Services Expenses to Augment HR Ongoing
109 DEI j. Fire: Recruit Academy Support and Intern Program ‐ enhance DEI recruitment efforts Ongoing
110 2.4 Inclusive & Equitable Workplace
111 DEI a. Develop and Adopt Diversity Statement for the Organization FY22 Q3
112 DEI b. Assist Departments in infusing DEI into their programs, policies, and practices in relevant and practical
ways Ongoing
113 DEI c. . Further develop purpose, role, activities and enhance impact of DEI Employee Committee – (e.g. ERGs,
cultural celebrations, activity budget, speakers, self‐study materials, public web pages)Ongoing
114 DEI d. Grant equal standing and priority to the tasks and responsibilities periodically assigned to DEI committee
members as is given to their other duties Ongoing
Budget Report Pg # 60 Page 173 of 255
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion;
HH=Housing and Homelessness; CA= Climate Action, Open Space & Sustainable Transportation
MCG Task Completion Date
115 DEI e. DEI‐related Staff Development / Training Ongoing
116 DEI f. Implement a DEI module in new hire onboarding
Original: FY22 Q1
Updated: FY22
Q3
117 DEI g. Provide training and other learning opportunities for all levels. E.g. inclusive leadership, cultural
competency, assessments, speakers, self‐study, etc. Ongoing
118 DEI h. Continue Clarity Collective training as foundation training ‐ ASSIGNED / RESOURCED TO HR Ongoing
119 DEI i. Training for Council, Commission, Advisory Board – tailored for roles, Brown Act, etc. Ongoing
120 2.5 Community‐based Policing and Restorative Practices
121 DEI a. Implement After Action Report recommendations Ongoing
122 DEI b. Review and implement Governor’s recommendations regarding protests when issued Ongoing
123 DEI
c. Implement federal government changes in law enforcement. Implement RIPA Spillman Module: the
Racial and Identity Profiling Act (RIPA) was formed as part of AB953. California law enforcement agencies
will be required to collect data for stops made by law enforcement personnel. Annual reporting to DOJ is a
requirement.
Ongoing
124 DEI d. Review new Police Station building program and budget for opportunities to reduce costs to preserve
resources for community service investments FY22 Q2
125 2.6 Cal Poly & Cuesta Partnerships
126 DEI a. Solidify relationships and collaborations Ongoing
127 DEI b. CP Office of University Diversity and Inclusion (OUDI) and City DEI Office/City Manager Leadership
quarterly planning meetings Ongoing
128 DEI
c. Host City / Cal Poly Office of Student Diversity & Belonging quarterly roundtable (City & CP leadership,
DEI committee, HRC, Cal Poly students, DEI leaders, etc.) ‐ re community / student experience, relationship‐
building
Ongoing
129 DEI d. Utilize Faculty Fellow assigned to Office of DEI in partnership with CP OUDI to research best practices,
grants for internships, programs, outreach, innovative practices, etc. – seeking sponsorship from Cal Poly Ongoing
130 DEI e. Explore opportunities and build collaborations with Cuesta College Ongoing
131 DEI f. Provide City facilities as available to campus DEI programs delivered to and in the community Ongoing
132 DEI g.Utilize interns from Cal Poly and Cuesta within the Office of DEI Ongoing
133 2.7 Access, Inclusion, Support for Underrepresented Communities
134 DEI a.High Impact DEI Grants Ongoing
135 DEI b. GIA Grants Ongoing
136 DEI c. HRC Operating Budget for enhanced presence, advocacy, community building, etc. (such as awareness
campaigns, access/fairness efforts, citizen award, etc.). Activities TBD Ongoing
137 DEI h. City 101 / Community Academy to increase understanding / access / participation in City government Ongoing
138 DEI
i. City 101 – first stage, short program, easy access/commitment. Overview of City, how to access, ways to
be involved. Extensive outreach to Underrepresented minorities, community‐based sessions. Design, pilot
Y1
FY22 Q4
139 DEI k. Develop “Undocu‐Friendly” logo for City documents, as allowable by law (cost of internal resources) FY22 Q4
140 DEI m. Park major maintenance and repairs specific to Cheng Park improvements and Mission Plaza railing
improvements. FY22 Q4
141 DEI n. Parks Major Maintenance ‐ ADA Transition Plan Implementation Ongoing
142 2.8 Community Education & Programming
143 DEI a. Trainings, workshops, speakers, forums, townhalls, listening sessions, outreach, etc. for youth,
marginalized communities and community‐at‐large [in addition to CP's programming]Ongoing
144 DEI b. Utilize proven providers rather than City develop program. City serves as coordinator, sponsor, convener,
etc. Ongoing
145 DEI c. Determined by interest, guidance by BIPOC, other URMs, DEI committee, HRC + public input, etc. Ongoing
146 2.9 Support & Attract Minority‐Owned Businesses
147 DEI a.Establish a process for the City to recognize and promote Minority‐owned businesses FY22 Q4
148 DEI
b.Implement protocols within the City’s Office of Economic Development to reach out to all existing and
new Minority‐owned/operated businesses to learn of their experiences operating in SLO, and to identify
ways the City can be of support.
FY22 Q4
149 DEI c.Establish a City Leadership/Chamber of Commerce / Minority Business Owners’ roundtable. FY22 Q4
150 DEI e. Update and maintain a listing of resources for BIPOC, LGBTQ+ and other underserved communities on
the City's Doing Business section of the website.FY22 Q4
151 DEI f. Establish a process for the City to recognize and promote Minority‐owned businesses FY22 Q4
Budget Report Pg # 61 Page 174 of 255
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion;
HH=Housing and Homelessness; CA= Climate Action, Open Space & Sustainable Transportation
MCG Task Completion Date
152 3.1 Implement Housing Element
153 HH a. Inclusionary Housing Ordinance (HE programs 2.13 & 4.6)
Original: FY22 Q3
Updated: FY23
Q3
154 HH b. Flexible Density Program (HE Program 2.15)
Original: FY22 Q3
Updated: FY23
Q3
155 HH c. Develop Objective Design Standards & Update Development Review Process (HE 6.22 & 6.23)Complete
156 HH d. Zoning Regulations Update ‐ Housing (HE 5.5, 8.18, 8.23, 2.17 and AB 2345)Complete
157 HH e. Subdivision Regulations Update (HE 6.20)
Original: FY22 Q1
Updated: FY23
Q1
158 HH h. Regional Coordination (HE Chapter 4)ongoing
159 HH i. Housing Element Program Implementation (Chapter 3) ongoing
160 HH m. CDD Fleet Replacement Ongoing
161 3.2 Implement Inclusionary Housing Ordinance
162 HH a. Development review project referrals ongoing
163 3.3 Below Market Rate Portfolio Management
164 HH a. Inventory Management; Monitoring; Escrow services; Homebuyer & rental services; BEGIN/FTHB ongoing
165 3.4 Financial Management
166 HH a. CDBG Program Administration ongoing
167 HH b. GIA Progarm Administration ongoing
168 HH c. Affordable Housing Fund Administration ongoing
169 HH d. Grant research; applications; coordination ongoing
170 3.5 Advisory Body & Council meetings & support
171 HH a. Reports, Community meetings, presentations (does not include time associated with tasks identified
herein)ongoing
172 HH b. HRC liasion ongoing
173 3.6 Homelessness Team Coordination
174 HH a. Coordination of staff from various City departments (Public Works, Parks and Recreation, Police, Fire,
Administration) focused on addressing issues associated with homelessness.Ongoing
175 HH
b. Develop a Strategic Plan to guide a sustained effort of engagement by regional partners, non‐profit
partners, and community members to identify and implement coordinated solutions to chronic
homelessness.
FY22 Q3
176 HH
c. Maintain and update informational resources, such as the City's Homelessness Solutions web page, about
City actions to help the unhoused population, and the scope of services provided to address the challenges
of homelessness by the County, State, City, and regional partners.
ongoing
177 HH
d. Work to prevent homelessness through a Safe Housing Outreach and Education Program that will
provide, among other duties, information about rental assistance programs, eviction protection programs,
and new housing opportunities.
ongoing
178 HH e. Pursue a coordinated lobbying strategy to motivate action at the State and regional level, and research
and secure additional sources of funding to address local challenges.ongoing
179 HH f. Housing and Homelessness City Staff ongoing
180 3.7 Environmental Protection and Water Quality
181 HH a. Environmental clean‐ups in creek and open space areas associated with abandoned personal property
and trash (Parks & Rec)Ongoing
182 HH b. Environmental clean‐ups in creek and open space areas associated with abandoned personal property
and trash (Parks & Rec)Ongoing
183 HH c. Environmental clean‐ups in City Parks and public spaces associated with abandoned personal property
and trash (Public Works)Ongoing
184 HH d. Environmental clean‐ups in City Parks and public spaces associated with abandoned personal property
and trash (Public Works)Ongoing
185 3.8 Regional Engagement and Grant Management
186 HH a. Active participation and respresentation of the City in the County's regional strategic planning efforts to
develop regional solutions to chronic homelessness. ongoing
187 HH b. Attend HSOC & PACT meetings, support City seat on the Commission, and report status of agenda items
back to staff ongoing
Budget Report Pg # 62 Page 175 of 255
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion;
HH=Housing and Homelessness; CA= Climate Action, Open Space & Sustainable Transportation
MCG Task Completion Date
188 HH c. Support the Housing Policy and Program section and the Office of Diversity, Equity and Inclusion on
homelessness related funding opportunities, such as CDBG, GIA, DEI, and other sources.ongoing
189 3.9 Community Action Team Resources
190 HH a. Expand the current Community Action Team by adding an additional social worker position. ongoing
191 HH
b. Continue to provide public safety services by utilizing the Community Action Team; includes two officers
and a social worker. (Costs include existing social worker position, but funding for the position is provided
by the County).
ongoing
192 HH c. Continue to provide public safety services by utilizing the downtown bike team. ongoing
193 3.10 Mobile Crisis Unit Pilot Program
194 CA a. Pair a crisis worker with an Emergency Medical Technician (EMT) to provide non‐emergency response
and care to unhoused community members. one time
195 CA b. Implement the program with the goals of reducing emergency dispatch of paramedics and law
enforcement to community members who need non‐emergency support. ongoing
196 CA c. Engage with the County of San Luis Obispo in the implementation of the pilot program so that if it is
successful it can be scaled up and replicated across the region.ongoing
197 3.11 Non‐Profit Partner Support
198 HH a. Support non‐profit partners in pursuing funding resources, such as CARES Act and Project Homekey
grants.ongoing
199 HH b. Support a 25% expansion of the number of beds at the 40 Prado Homeless Services Center.Complete
200 HH c. Continue to expand Safe Parking opportunities and support coordinated regional efforts for Safe Parking,
transitional housing, and other shelter resources.ongoing
201 HH d. Ongoing General Fund support to CAPSLO for 40 Prado (includes safe parking, warming center,
operational support)ongoing
202 HH e. Bus Token in‐kind program to CAPSLO ongoing
203 HH f. General Fund low income utility subsidies Ongoing
204 HH g. Federal CDBG Grant for social services (Provided to CAPSLO to help fund Homeless Services Center
operations)ongoing
205 4.1 Provide Sustainability Resources to achieve Council's Adopted Goals
206 CA
a. To ensure consistent maintenance and adequate oversight of City Open Space lands, add one net new
Ranger Maintenance Worker to maintain level of service standards following recent Open Space
acquisitions. The City's level of service standard for Open Space is 1 Ranger per 1,000 acres.
Complete
207 CA b. To address Ranger Services staffing, recruitment, and retention, convert 5 Ranger Specialist positions
(currently limited benefit temporary) to full‐time regular permanent positions. Complete
208 CA
c. Create a limited term Sustainability & Natural Resources Analyst position to support open space
conservation planning, implement Climate Action Plan actions that were established for 2021‐23 on time,
and support the completion of the Resilient SLO climate adaptation work effort.
Ongoing
209 CA
d. Restore the Sustainability & Natural Resources Intern position to support open space administration and
planning efforts and climate action plan implementation efforts, including completion of the Community
Forest Master Plan. Costs include $10,000 in Yr 1 for minor office retrofits to support the office of
sustainability
Ongoing
210 CA e. Hire a CivicSpark Fellow for one year to initiate, complete, and begin implementing a municipal solid
waste reduction initiative.Ongoing
211 CA f. Continue grant writing consulting support to ensure focused and competitive proposals for state, federal,
and private grants. Ongoing
212 CA h. Orient the Green Team to support "Lead by Example" implementation, "Resilient SLO" implementation,
and all‐staff educational efforts.Ongoing
213 CA i. Continue SLO Climate Coalition support to provide a resource for community members to participate in
climate action initiatives and build overall community capacity. Ongoing
214 CA j. Convene an inter‐departmental staff team to assess and provide recommendations for the Urban Forest
Program's future role in advancing sustainability goals and objectives.Ongoing
215 CA k. Continue to monitor the status of the Integrated Waste Management Authority (IWMA) Polystyrene
Ordinance and respond as needed and appropriate.Ongoing
216 4.2 Continue to update and implement the Climate Action Plan ("CAP") for carbon neutrality
Budget Report Pg # 63 Page 176 of 255
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion;
HH=Housing and Homelessness; CA= Climate Action, Open Space & Sustainable Transportation
MCG Task Completion Date
217 CA
b. Implement the Lead by Example Municipal Operations Carbon Neutrality Plan, as called for by CAP Lead
by Example task 1.1. Specific projects include:
‐ i. Install electric vehicle chargers to support the transition to all‐electric fleet vehicles.
‐ ii. Initiate and complete Building and Facility Energy and Decarbonization Study in order to identify and
prioritize projects for City facilities.
‐ iii. Complete installation of lighting retrofits at City Hall and Fire Station 1 using available on‐bill financing.
‐ iv. Complete installation of solar panels at the City's Bus Yard, Fire Station 1, and Sinsheimer Pool.
‐ v. Install Transit Facility EV Charging Infrastructure
‐ vi. Review options to further integrate climate action into the 2023‐25 Financial Plan.
Ongoing
218 CA c. Provide for ongoing support for Central Coast Community Energy Policy and Operations Board Members,
and engage in staff level policy and program development, as called for by CAP Clean Energy task 1.1.Ongoing
219 CA g. Implement organic waste reduction measures required by California Senate Bill 1383, which are also
called for by CAP Circular Economy tasks 1.1, 1.2, 1.3, and 2.1.Ongoing
220 CA g. Provide support for community electric mobility work being led by the SLO Climate Coalition, in support
of CAP Connected Communities task 3.1.FY22 Q2
221 CA
a. Working with the Coastal San Luis Resource Conservation District, complete existing planning efforts and
pilot program implementation at Johnson Ranch Open Space and City Farm intended to improve soil health
and remove and store carbon, as called for at CAP Natural Solutions task 1.1.
FY22 Q4
222 4.3 Continue preservation, maintenance, and enhancement of the City's open space and urban forest
223 CA
b. Complete an Urban Forest Master Plan including a comprehensive update of tree inventory update,
assessment of tree canopy coverage, and implementation of an ongoing tracking system, as called for by
CAP Natural Solutions task 2.1.
FY22 Q2
224 CA
c. Establish a contract service for enhanced tree pruning and maintenance to ensure the long‐term health
and vigor of the City's Urban Forest, as well as public safety and identify a strategy for a prioritized
replacement schedule for downtown focus trees, and begin implementation in order to ensure the long‐
term preservation of the Downtown street tree canopy.
Ongoing
225 CA
d. Partner with ECOSLO to support the 10,000 Trees by 2035 goal through a tree planting and maintenance
program, as well as continue with the SLO Stewards Docent Program, annual creek clean up efforts, and
administration of the SLO Green Business Program.
Ongoing
226 CA e. Actively pursue opportunities to purchase open space lands and permanent land conservation
agreements in furtherance of the City's Greenbelt Protection Program.Ongoing
227 CA
f. Update the existing Cerro San Luis Natural Reserve Conservation Plan (2005), including a contemporary
natural resources inventory, mapping, policy review, and identification of land stewardship needs and
priorities.
FY22 Q2
228 CA g. Implement priority projects and actions at Cerro San Luis Natural Reserve consistent with the updated
Conservation Plan.ongoing
229 CA i. Implement priority projects at South Hills Natural Reserve consistent with the updated Conservation Plan. ongoing
230 CA n. Continue Open Space education activities including the "hikes with experts" series, Junior Ranger Camp,
supporting the SLO Stewards Docents, and ongoing public information and programming.Ongoing
231 CA
o. Continued implementation by Ranger Service staff of all Open Space maintenance activities including
establishing a replacement schedule for Open Space trailhead improvements, as well as replacement or
repair of Open Space fencing currently in disrepair, all as set forth in the adopted Open Space Maintenance
Plan
Ongoing
232 CA p. Continued, ongoing Ranger Service patrol of Open Space areas ensuring compliance with the City Open
Space regulations, the safety of users, and protection of natural resources values and functions.Ongoing
233 CA q. Implement Laguna Lake Dredging and Sediment Management and Shoreline Stabilizations Projects in
order to begin restoration of the lake for recreation and habitat improvement purposes Complete
234 4.4 Alternative and sustainable transportation
235 CA a. Establish consistent mode split tracking and reporting method, consistent with performance monitoring
recommendations as called for in the Active Transportation Plan and CAP Connected Communities task 1.1.FY22 Q3
236 CA
b. Prepare a Mobility as a Service Study to guide potential implementation of programs and software tools
to create an integrated platform linking access to transit, future bikeshare and ridesharing services, as
called for in CAP Connected Communities task 1.2.
FY22 Q4
Budget Report Pg # 64 Page 177 of 255
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion;
HH=Housing and Homelessness; CA= Climate Action, Open Space & Sustainable Transportation
MCG Task Completion Date
237 CA
d. Active Transportation Plan (ATP) Implementation:
Implement infrastructure improvements and programs specifically identified in the City's Active
Transportation Plan to improve access, mobility and safety for walking and bicycling citywide. Actions
support the CAP Connected Communities task 2.1, ATP. Specific projects and programs within the current
work program include:
‐ i. Plan, Design and Construct the ATP Tier 1 Network
‐ ii. Construct Minor Bicycle and Pedestrian Access & Safety Improvements
‐ iii. Complete preliminary design and right‐of‐way acquisition for the Railroad Safety Trail (Tiburon to
Orcutt Road)
‐ iv. Implement complete street improvements as part of 2021 and 2022 Roadway Sealing Projects
‐ v. Continue to monitor trends in the Micromobility industry and feasibility of future SLO Bikeshare
Program.
‐ vi. Complete construction of the Broad/Woodbridge Pedestrian Hybrid Beacon crossing
Ongoing
238 CA
e. Perform additional sweeping to remove debris and obstructions along sidewalks, shared‐use paths, and
bike lanes, including use of narrow street sweeping machinery and manual sweeping to clear protected
bike lanes, parklets and painted bulb outs. FUNDING IN ECONOMIC RECOVERY 1.4 e‐2.
Ongoing
239 CA f. Construct sidewalk repairs and new ADA curb ramps to improve access and safety for pedestrians,
particularly those with mobility challenges.Ongoing
240 CA
g. Achieve meaningful progress towards the "Vision Zero" goal by implementing recommendations from
the City's Annual Traffic Safety & Operations Program, with particular focus on eliminating injury collisions
involving vulnerable road users such as bicyclists, pedestrians, seniors and children.
Ongoing
241 CA
h. Construct the Anholm Neighborhood Greenway Phases 1B and 2, completing the priority bicycle and
pedestrian route between Foothill Boulevard and Downtown SLO, including safety lighting and public
artwork at the US 101/Chorro Undercrossing
FY22 Q4
242 CA i. Complete construction of the Orcutt Road/Tank Farm Road Roundabout, reducing congestion and auto
emissions and improving access and safety for bicycles, pedestrians and drivers.FY22 Q3
243 CA k. Install new streetlights throughout the city Ongoing
244 CA l. Install new solar path lights along the Bob Jones and Railroad Safety Trails, utilizing solar options where
feasible, to improve safety for active transportation users. Ongoing
245 CA n. Continue Active Transportation Education and Outreach to encourage safe behaviors for all road users
and to encourage interest and use of active transportation modes.Ongoing
246 CA o. Prepare Feasibility Study for Potential City VMT Mitigation Program, providing a programmatic
mechanism to reduce VMT and GHG production of new development projects within the city.FY22 Q2
247 CA p. Continue advancing the electrification of the SLO Transit vehicle fleet, including electrification of buses
and bus charging infrastructure. Ongoing
248 CA q. Replace SLO Transit bus shelters to maintain a quality environment for new and future transit users.Original: FY22 Q4
Updated: FY23
249 CA r. Fund two Transportation Interns to assistance with implementation of sustainable transportation
projects and programs.Ongoing
250 CA s. Implement Neighborhood Traffic Management Program to address traffic speeding concerns through
local residential streets and collector/arterial streets with fronting residential uses.Ongoing
251 CA t. Preserve and repair pavement surface within SLO Transit Bus Yard FY22 Q4
252 CA u. Pedestrian & Bicycle Pathway Maintenance: Preserve and repair pavement service along off‐street
pedestrian/bicycle pathways (RRST from Cal Poly to Taft; Madonna Inn Path; Meadow Park Paths)Ongoing
253 CA
v. Street Reconstruction and Resurfacing: Implement the City's Pavement Management Program, reparing
pavement surfaces along roadways throughout the city while leveraging opportunities for safety and
multimodal street improvements.
Ongoing
254 CA w. Traffic Sign & Striping: Repair and replace traffic signs and roadway pavement markings to maintain
traffic control measures for all road users in a state of good repair.Ongoing
255 4.5 Planning and implementation for resilience
256 CA
a. Complete the "Resilient SLO" planning project (Safety Element Update and associated CEQA) to assess
community vulnerability to the impacts of climate change and adopt a resilience policy framework in the
City's General Plan, as required by California Senate Bill 379.
FY22 Q4
257 CA
b. Following successful piloting at Terrace Hill Open Space, implement and expand vegetation management
for fire fuel reduction, as well as to promote soil health and recruitment of native perennial bunchgrasses,
using goats and sheep with a professional contractor in order to ensure a safe and effective operation.
Ongoing
Budget Report Pg # 65 Page 178 of 255
MCG Key: ERR= Economic Recovery, Resiliency & Fiscal Sustainability; DEI= Diversity, Equity & Inclusion;
HH=Housing and Homelessness; CA= Climate Action, Open Space & Sustainable Transportation
MCG Task Completion Date
258 CA
c. Proactively conduct pre‐season inspections of the creek system and implement the removal of woody
debris, hazardous trees, and other obstacles that could lead to an increased potential for local flooding in
accordance with the City's Routine Maintenance Agreement permit issued by the California Department of
Fish and Wildlife.
Ongoing
259 CA e. Respond quickly to instances when hazardous trees are identified on City Open Space lands or creek
areas where the City has a property interested.Ongoing
260 CA
f. Conduct a microgrid feasibility assessment to identify City properties that could add solar, battery
storage, and controls to allow operation during times of electrical grid outages as an uninterruptable power
supply.
FY23 Q4
261 CA
h. Establish an Open Space Fire Fuel Reduction Crew (part‐time staff, 4,000 hours), including procurement
of necessary machinery and equipment, in order to ensure that the City's has a reliable means of
conducting fuel reduction activities.
Ongoing
262 CA
i. Expand Technical Rescue Team roster from 3 to 6 firefighters to improve the City's open space rescue
capabilities and improve self‐sufficiency following the first 72 hours of a regional disaster such as
earthquake or flood where resources are often limited.
Complete
263 CA
j. Project: Storm Drainage Infrastructure Replacement ‐ capital maintenance and replacement of pipe,
culvert and constructed drainage channels to provide increased flood protection and reduced likelihood of
loss of property
Ongoing
264 CA
k. Project: Inlet Trash Capture Devices (Water and Wastewater Management Element: The City will manage
the collection system to ensure that the proper level of maintenance is provided and that the flow in
sanitary sewers does not exceed design capacity.) This annual asset maintenance project addresses capital
maintenance and replacement of pipe, culvert and constructed drainage channels to provide increased
flood protection and reduced likelihood of loss of property.
Ongoing
265 CA
l. Project: Pismo/Johnson/San Luis Creek Bank Stabilization ‐ San Luis Creek passes under Johnson Avenue
near Pismo Street. The creek bank is starting to erode and this project will stabilize the creek bank and
protect Pismo Street.
Ongoing
266 CA m. Project: Hydration Stations at Various Parks ‐ funding annually for parks surfacing maintenance and
water supply infrastructure including the installation of hydration stations.Ongoing
267 CA
n. Project: Laguna Lake Dredging ‐ rerouting of Prefumo Creek has increased sediment deposits into the
lake. This is a pilot project to ascertain if dredging is a viable solution for Laguna Lake and could become a
routine maintenance activity.
FY22 Q2
268 CA
p. Water Treatment Plant Emergency Power ‐ PSPS ‐ additional temporary or permanent emergency
generators, requiring engineering design and inspection services, and construction at the Water Treatment
Plant, Whale Rock Reservoir, and other water pump stations.
Ongoing
269 CA
q. Water Treatment Plant ‐ Power Storage Units Tesla Battery Grant ‐ when emergency power is not
required for plant operations, the power storage units will allow plant staff to shift power needs during
electrical time of use periods having lower electrical rates, and lower carbon emissions associated with the
transmission of electrical power. The control module operating the power storage units will also monitor
and track energy efficiencies of existing pumps and the plant’s treatment units.
Ongoing
270 CA
r. Sustainable Groundwater Management Act (SGMA) Groundwater Sustainbility Plan (GSP) ‐ collaborate
with Groundwater Sustainability Agency (GSA) stakeholders to effectively manage the groundwater basin in
the City, which may include preparation of research studies, field investigations, legal documents, grant
applications, and regional participation in the development of a GSP.
Ongoing
271 CA s. Mid‐Higuera Bypass ‐ this funding provides final engineering design work for this long‐planned flood
control project between Marsh Street and Madonna Road along San Luis Obispo Creek. Ongoing
Budget Report Pg # 66 Page 179 of 255
APPENDIX A: Detailed Financials
Understanding the Financial Report:
Total Budget: Adopted budget in addition to any encumbrances from prior years or budget
amendments made in the first two quarters of the year. Total budget does not include budget requests
included in the mid-year report.
Total Consumption: Total expenditures or obligations (purchase orders) as of December 15, 2021.
Budget Status:
General Fund Expenditures by
Department Total Budget Total
Consumption Funds Available % Consumed Budget
Status
Internal Services
Administration And IT 10,444,934$ 4,836,578$ 5,608,355$ 46%
1001-City Administration 1,443,722$ 670,298$ 773,424$ 46%
1002-City Council 215,501$ 91,271$ 124,230$ 42%
1003-Cultural Activities 347,632$ 318,351$ 29,281$ 92%
1004-Economic Development 1,275,440$ 601,025$ 674,415$ 47%
1005-Natural Resource Protection 1,099,068$ 592,458$ 506,610$ 54%
1007-Community Promotion 437,898$ 333,943$ 103,954$ 76%
1010-Office of DEI 506,041$ 200$ 505,841$ 0%
1021-City Clerk 574,916$ 253,183$ 321,734$ 44%
1101-Network Services 3,294,515$ 1,394,116$ 1,900,399$ 42%
1102-IT Support Services -$ -$ -$
1103-Information Services 1,250,202$ 581,734$ 668,467$ 47%
City Attorney 1,330,474$ 643,834$ 686,640$ 48%
1501-City Attorney 1,330,474$ 643,834$ 686,640$ 48%
Finance 2,237,601$ 1,043,086$ 1,194,515$ 47%
2001-Financial Administration 550,277$ 260,148$ 290,129$ 47%
2002-Budget 164,402$ 78,673$ 85,729$ 48%
2003-Revenue Management 420,193$ 223,248$ 196,945$ 53%
2004-Purchasing 225,183$ 87,408$ 137,775$ 39%
2005-Accounting 877,547$ 393,610$ 483,937$ 45%
Human Resources 1,804,960$ 741,677$ 1,063,283$ 41%
3001-Human Resources 1,786,710$ 733,596$ 1,053,113$ 41%
3003-Wellness Program 18,251$ 8,081$ 10,169$ 44%
Non-departmental/ Support Services 1,637,430$ 285,744$ 1,351,686$ 17%
2006-Finance Support Services 317,957$ 194,569$ 123,388$ 61%
2007-Finance NonDepart 1,319,473$ 91,175$ 1,228,298$ 7%
On track
Trending high or low but identified solution or savings in a different cost center
Trending high or low with no identified solution
Budget Report Pg # 67 Page 180 of 255
APPENDIX A: Detailed Financials
General Fund Expenditures by
Department Total Budget Total
Consumption Funds Available % Consumed Budget
Status
Community Services Group (CSG)
Community Development 7,338,753$ 2,990,525$ 4,348,228$ 41%
4001-Community Development Administration 1,024,382$ 401,585$ 622,797$ 39%
4002-Commissions and Committees 34,939$ 6,799$ 28,140$ 19%
4003-Planning 2,028,150$ 1,082,259$ 945,891$ 53%
4004-Engineering 678,898$ 234,254$ 444,645$ 35%
4006-Building and Safety 2,544,181$ 925,244$ 1,618,937$ 36%
4007-Human Relations 66,045$ 63,045$ 3,000$ 95%
4008-Housing Policy and Homelessness Programs962,157$ 277,338$ 684,818$ 29%
CSG Admin 685,132$ 287,535$ 397,597$ 42%
1009-Community Services Group 685,132$ 287,535$ 397,597$ 42%
Parks and Recreation 5,178,095$ 2,304,661$ 2,873,434$ 45%
7001-Recreation Administration 781,671$ 376,555$ 405,116$ 48%
7002-Recreation Facilities 275,066$ 123,739$ 151,327$ 45%
7003-Youth Services 1,272,354$ 515,301$ 757,053$ 40%
7004-Community Services 655,001$ 278,177$ 376,824$ 42%
7005-Ranger Service 818,243$ 316,471$ 501,772$ 39%
7006-Aquatics 651,167$ 270,926$ 380,241$ 42%
7007-Golf Course 714,094$ 423,446$ 290,648$ 59%
7008-Jack House 10,500$ 47$ 10,453$ 0%
Public Works 15,586,193$ 7,743,539$ 7,842,654$ 50%
5001-Public Works Administration 923,458$ 414,117$ 509,340$ 45%
5002-Parks Maintenance 3,452,234$ 1,955,134$ 1,497,099$ 57%
5003-Swim Center Maintenance 592,191$ 256,671$ 335,520$ 43%
5004-Urban Forest Services 492,709$ 183,677$ 309,032$ 37%
5005-Facilities Maintenance 1,428,128$ 730,878$ 697,251$ 51%
5006-Street/Sidewalk Maintenance 1,884,761$ 895,221$ 989,541$ 47%
5007-Traffic Signals and Lighting 569,934$ 293,628$ 276,306$ 52%
5008-Fleet 1,489,883$ 713,313$ 776,570$ 48%
5009-CIP Project Eng 2,516,076$ 1,193,401$ 1,322,675$ 47%
5010-Transportation Plan and Eng 1,016,643$ 486,329$ 530,313$ 48%
5301-Stormwater 1,220,177$ 621,170$ 599,006$ 51%
Utilities - General Fund - AB939 332,271$ 99,963$ 232,309$ 30%
6107-Solid Waste Recycling 332,271$ 99,963$ 232,309$ 30%
Budget Report Pg # 68 Page 181 of 255
APPENDIX A: Detailed Financials
General Fund Expenditures by
Department Total Budget Total
Consumption Funds Available % Consumed Budget
Status
Public Safety
Police 19,252,608$ 10,018,041$ 9,234,567$ 52%
8001-Police Administration 2,186,391$ 1,024,383$ 1,162,008$ 47%
8002-Patrol 9,514,860$ 5,329,984$ 4,184,876$ 56%
8003-Investigations 3,470,883$ 1,696,282$ 1,774,601$ 49%
8004-Police Support Services 2,920,629$ 1,410,705$ 1,509,924$ 48%
8005-Neighborhood Services 274,535$ 136,551$ 137,983$ 50%
8006-Traffic Safety 885,312$ 420,136$ 465,176$ 47%
Fire 13,621,569$ 7,783,487$ 5,838,082$ 57%
8501-Fire Administration 1,038,581$ 570,455$ 468,127$ 55%
8502-Emergency Reponse 10,925,317$ 6,361,923$ 4,563,394$ 58%
8503-Hazard Prevention 875,057$ 437,342$ 437,715$ 50%
8504-Training Services 131,427$ 50,804$ 80,623$ 39%
8505-Recruit Academy 90,300$ 75,939$ 14,361$ 84%
8506-Fire Apparatus Services 468,759$ 235,513$ 233,247$ 50%
8507-Fire Station Facility Support 45,418$ 13,900$ 31,518$ 31%
8510- Mobile Crisis Unit 0$ -$ 0$ 0%
8599-Disaster Assistance 46,709$ 37,611$ 9,098$ 81%
Grand Total 79,450,022$ 38,779,826$ 40,670,196$ 49%
Expenditures - Special Revenue Funds
Footnote Total Budget Total Consumption Funds
Available % Consumed Budget
Status
202-Downtown BID 1 245,000$ 223,958$ 21,042$ 91%
208-Tourism Bid Fund 1,451,127$ 1,073,338$ 377,789$ 74%
802-Insurance ISF Fund 4,183,103$ 4,070,305$ 112,798$ 97%
Grand Total
1 - The Downtown BID budget is based on forecasted business tax revenue that the City receives during the Business License renewal
period. The tax assessment is calculated based on gross reciepts from the prior calendar year. Overall gross receipts for downtown
businesses were 20% lower in 2020 compared to 2019.
Budget Report Pg # 69 Page 182 of 255
APPENDIX A: Detailed Financials
Operating Expenditures by Enterprise Fund Total Budget Total Consumption Funds
Available % Consumed Budget
Status
601-Water Fund 18,389,354$ 11,938,586$ 6,450,768$ 65%
2007-Finance NonDepart 1 160,368$ -$ 160,368$ 0%
6001-Water Administration/Engineering 1,410,959$ 725,933$ 685,026$ 51%
6002-Water Source of Supply 10,913,383$ 8,367,728$ 2,545,654$ 77%
6003-Water Treatment 3,302,519$ 1,464,383$ 1,838,135$ 44%
6004-Water Distribution 1,824,112$ 956,299$ 867,813$ 52%
6005-Water Resources 508,324$ 215,274$ 293,050$ 42%
6105-Utilities Revenue 269,690$ 208,969$ 60,721$ 77%
602-Sewer Fund 8,612,717$ 4,074,732$ 4,537,985$ 47%
2007-Finance NonDepart 1 171,352$ -$ 171,352$ 0%
6101-Wastewater Admin and Eng 1,569,015$ 759,196$ 809,819$ 48%
6102-Wastewater Collection 1,224,949$ 533,768$ 691,182$ 44%
6103-Environmental Programs 280,558$ 135,150$ 145,408$ 48%
6104-Water Resource Recovery 4,184,058$ 2,055,470$ 2,128,588$ 49%
6105-Utilities Revenue 312,746$ 239,265$ 73,481$ 77%
6106-Water Quality Lab 870,039$ 351,884$ 518,156$ 40%
611-Parking Fund 2 2,607,497$ 1,439,709$ 1,167,374$ 55%
5101-Parking Admin 2,607,497$ 1,142,159$ 1,465,338$ 44%
5102-Parking Enforcement 0$ 138,351$ (138,351)$
5103-Parking Structures 0$ 116,893$ (116,893)$
5104-Parking Lots and Streets (0)$ 42,306$ (42,306)$
621-Transit Fund 4,670,294$ 4,176,542$ 493,752$ 89%
5201-Transit Ops and Maint 4,670,294$ 4,176,542$ 493,752$ 89%
Grand Total 34,279,861$ 21,629,775$ 12,650,086$ 63%
1 - Credit card fees are budgeted in the Finance non-departmental cost center. These fees will be posted later in the year.
2 - The Parking Fund moved its entire budget into the Parking Administration cost center to simplify tracking and
reporting but some actual costs from early in the year still need to be adjusted.
Budget Report Pg # 70 Page 183 of 255
APPENDIX A: Detailed Financials
Total FY22
Budget Actuals YTD Variance % Received Mid-year
Revised Budget
Total Mid-year
Changes
Tax & Franchise Revenue 83,412,820$ 36,143,839$ (47,268,981)$ 43%89,230,869$ 5,818,049$
LRM Measure G (Jul-Oct)24,279,000$ 9,243,950$ (15,035,050)$ 38%25,810,000$ 1,531,000$
Property Tax 1 20,192,883$ 8,650,512$ (11,542,371)$ 43%20,157,153$ (35,730)$
Sales Tax (Bradley Burns) (Jul-Oct)18,387,000$ 7,227,434$ (11,159,567)$ 39%20,790,779$ 2,403,779$
Transient Occupancy Tax (Jul-Nov)7,213,000$ 4,155,622$ (3,057,378)$ 58%9,051,000$ 1,838,000$
Utility User Tax 1 5,565,000$ 2,104,724$ (3,460,276)$ 38%5,383,000$ (182,000)$
Business Tax 2 2,426,000$ 2,857,356$ 431,356$ 118%2,832,000$ 406,000$
Franchise Fees 1 1,575,000$ 442,179$ (1,132,821)$ 28%1,575,000$ -$
Cannabis Tax 1,300,000$ 329,735$ (970,265)$ 25%1,000,000$ (300,000)$
Gas Tax 1,223,937$ 596,676$ (627,261)$ 49%1,223,937$ -$
Gas Tax (SB1)915,000$ 314,678$ (600,322)$ 34%915,000$ -$
Safety Prop 172 336,000$ 220,974$ (115,026)$ 66%493,000$ 157,000$
General Government 2,003,389$ 1,083,846$ (919,543)$ 54%1,565,389$ (438,000)$
Interest on Investment 495,000$ 24,187$ (470,813)$ 5%230,000$ (265,000)$
Miscellaneous 450,000$ 410,710$ (39,290)$ 91%450,000$ -$
Business Licenses 2 418,443$ 434,624$ 16,181$ 104%418,443$ -$
Cannabis Operator License 310,000$ 107,032$ (202,968)$ 35%157,000$ (153,000)$
Other Rent & Lease Revenue 154,750$ 43,125$ (111,625)$ 28%154,750$ -$
Motor Vehicle Fines 118,500$ 11,412$ (107,088)$ 10%118,500$ -$
Misc Fines & Fortfietures 37,596$ 9,112$ (28,484)$ 24%17,596$ (20,000)$
Disability Insurance 19,100$ -$ (19,100)$ 0%19,100$ -$
Sale of Surplus Property -$ 302$ 302$ -$ -$
Impact Fees and Special Assessments -$ 38,017$ 38,017$ -$ -$
Damage to City Property -$ 5,326$ 5,326$ -$ -$
Development Review 6,550,817$ 2,573,534$ (3,977,283)$ 39%6,550,817$ -$
Building Permits 3,510,000$ 1,401,644$ (2,108,356)$ 40%3,510,000$ -$
Infrastructure Plan Check & Insp 1 1,200,000$ 69,740$ (1,130,260)$ 6%1,200,000$ -$
Plan Check Fees 3 602,537$ 499,181$ (103,356)$ 83%602,537$ -$
Planning & Zoning Fee 600,000$ 242,180$ (357,820)$ 40%600,000$ -$
Development Review Fees 400,000$ 158,728$ (241,272)$ 40%400,000$ -$
Encroachment Permits 305,000$ 128,725$ (176,275)$ 42%305,000$ -$
Engineering Development Review Fees 135,000$ 59,205$ (75,795)$ 44%135,000$ -$
Code Enforcement Fines 90,000$ 14,130$ (75,870)$ 16%90,000$ -$
TIPP- Contra Revenue Account (291,721)$ -$ 291,721$ 0%(291,721)$ -$
As of 12.21.2021 Mid Year Changes
1 - These revenue sources are not received on a straight line basis and can be very "lumpy". Staff expect revenue to hit the projected budgeted amount
by year end.
2 - Business license and tax certificate are renewed annual during the first quarter of the fiscal year.
3 - Budget is adjusted throughout the year as revenue is collected. 65% of plan check revenue is allocated directly to expenditure budgets in order to
offset the cost of plan check services.
Budget Report Pg # 71 Page 184 of 255
APPENDIX A: Detailed Financials
Total FY22
Budget Actuals YTD Variance % Received Mid-year
Revised Budget
Total Mid-year
Changes
Parks & Recreation 1,611,955$ 698,859$ (913,096)$ 43%1,615,555$ 3,600$
Youth Services Childcare 611,785$ 284,664$ (327,121)$ 47%611,785$ -$
Golf Greens Fees 200,000$ 86,195$ (113,805)$ 43%200,000$ -$
Adult Athletic Fees 122,400$ 33,456$ (88,944)$ 27%122,400$ -$
Youth Services Camps 106,650$ 58,737$ (47,913)$ 55%106,650$ -$
Outdoor Rental & Use Fees 88,867$ 40,435$ (48,432)$ 46%88,867$ -$
Aquatics Daily Use Fees 73,075$ 45,965$ (27,110)$ 63%73,075$ -$
Instruction Fees 61,400$ 34,883$ (26,517)$ 57%61,400$ -$
Special Events - City Sponsered 50,000$ -$ (50,000)$ 0%50,000$ -$
Youth Athletic Fees 48,000$ 3,922$ (44,078)$ 8%48,000$ -$
Other Parks & Recreation Revenue 45,000$ 12,151$ (32,849)$ 27%45,000$ -$
Multi Day Swim Passes 41,753$ 23,534$ (18,219)$ 56%41,753$ -$
Indoor Rental & Use Fees 39,532$ 19,305$ (20,227)$ 49%39,532$ -$
Golf Cart Rentals 28,262$ 9,402$ (18,861)$ 33%28,262$ -$
Swim Instruction Fees 20,923$ 13,495$ (7,428)$ 64%20,923$ -$
Special Events App/Permit 20,000$ 5,872$ (14,128)$ 29%20,000$ -$
Driving Range Fees 11,715$ 5,594$ (6,121)$ 48%11,715$ -$
Golf Rental Fees 10,566$ 4,555$ (6,011)$ 43%10,566$ -$
Sales Taxable 10,000$ 10,164$ 164$ 102%10,000$ -$
Therapy Pool Fees 8,627$ 2,951$ (5,676)$ 34%8,627$ -$
Library Rental 6,500$ 116$ (6,385)$ 2%6,500$ -$
Junior Ranger Camps 4,500$ (146)$ (4,646)$ -3%4,500$ -$
Special Events Insurance 2,400$ 3,539$ 1,139$ 147%6,000$ 3,600$
Golf Lesson Fees -$ 71$ 71$ -$ -$
Fire 1,404,376$ 608,722$ (795,654)$ 43%1,421,460$ 17,084$
Fire Plan Check & Inspection 350,000$ 177,993$ (172,007)$ 51%350,000$ -$
Cal Poly Fire Services 300,373$ 136,784$ (163,590)$ 46%273,567$ (26,806)$
R1 Inspection Fees 280,000$ 84,805$ (195,195)$ 30%320,000$ 40,000$
Medical ER Recovery 198,103$ 100,995$ (97,107)$ 51%201,993$ 3,890$
CUPA Inspection Fees 160,000$ 6,774$ (153,226)$ 4%160,000$ -$
Fire Department Permits 100,000$ 96,884$ (3,116)$ 97%100,000$ -$
Fire Alarm Permits 10,010$ 4,487$ (5,523)$ 45%10,010$ -$
Other Fire Department Revenue 5,890$ -$ (5,890)$ 0%5,890$ -$
As of 12.21.2021 Mid Year Changes
Budget Report Pg # 72 Page 185 of 255
APPENDIX A: Detailed Financials
2 – Subventions and grants fluctuate from year-to-year based on availability and grant award rate. Generally, the City has met or
exceeded its annual budget, but the budget was not based on guaranteed sources. The mid-year adjustment reflects a change in
methodology that is in line with budgeting best practices and will avoid the City from ending in a negative position if grants are not
awarded. Moving forward, net-zero budget adjustments (revenue/expenditure offsetting) will be posted as the grants are received
and only grants that are awarded on a non-competitive “per capita” allocation will be considered in the budgeted amount.
Revenue: Enterprise Funds and Special Revenue Funds
Total FY22
Budget Actuals YTD Variance % Received Mid-year
Revised Budget
Total Mid-year
Changes
Police 637,196$ 137,002$ (500,194)$ 22%610,105$ (27,091)$
Other Police Revenue 250,000$ 49,478$ (200,522)$ 20%250,000$ -$
Administrative Citations - Safety 152,833$ 33,390$ (119,443)$ 22%125,000$ (27,833)$
Alarm Permits - Contract (Police)90,000$ 23,757$ (66,243)$ 26%90,000$ -$
Police Issued Parking Fines 75,000$ -$ (75,000)$ 0%75,000$ -$
Tobacco Permits 29,000$ -$ (29,000)$ 0%29,000$ -$
DUI Cost Recovery 16,417$ 11,766$ (4,651)$ 72%16,417$ -$
Tow Release Fees 9,000$ 8,042$ (958)$ 89%9,000$ -$
Police Department Permits 7,511$ 1,909$ (5,602)$ 25%7,511$ -$
Accident Reports 3,400$ 1,449$ (1,951)$ 43%2,000$ (1,400)$
Collision Investigation 3,000$ 1,139$ (1,861)$ 38%3,000$ -$
Witness Fees 1,606$ 825$ (781)$ 51%1,606$ -$
Second Response Fees 1,071$ 387$ (684)$ 36%1,071$ -$
Credit Collections -$ 4,862$ 4,862$ -$ -$
Property Release Fees (1,642)$ -$ 1,642$ 0%500$ 2,142$
Grants & Subventions 900,000$ 267,824$ (632,176)$ 30%477,000$ (423,000)$
Other Grants/Subventions 2 900,000$ (45,642)$ (945,642)$ -5%447,000$ (453,000)$
State Grants & Subventions -$ 100,702$ 100,702$ -$ -$
Police Training Grant (POST)-$ 19,105$ 19,105$ 30,000$ 30,000$
Federal Stimulus Grants -$ 26,746$ 26,746$ -$ -$
AB939 Reimbursement -$ 77,528$ 77,528$ -$ -$
Law Enforcement SB229 Grant (COPS SLESF)-$ 89,385$ 89,385$ -$ -$
Grand Total 96,520,553$ 41,513,627$ (55,006,926)$ 43%101,471,194$ 4,950,642$
As of 12.21.2021 Mid Year Changes
2021-22 Budget Actuals YTD Variance % Received Midyear Revised
Budget
Total Mid-year
Changes
202-Downtown 245,000$ 223,987$ (21,013)$ 91%245,000$ -$
208-Tourism Bid Fund 1,444,000$ 828,798$ (615,202)$ 57%1,444,000$ -$
601-Water Fund 24,452,759$ 9,597,975$ (14,854,784)$ 39%24,452,759$ -$
602-Sewer Fund 22,499,887$ 7,420,778$ (15,079,109)$ 33%22,500,887$ 1,000$
611-Parking Fund 5,450,826$ 2,386,088$ (3,064,738)$ 44%4,551,136$ (899,690)$
621-Transit Fund 6,640,081$ 922,949$ (5,717,132)$ 14%7,446,049$ 805,968$
Grand Total 60,732,553$ 21,380,575$ (39,351,978)$ 35%60,639,831$ (92,722)$
As of 12.21.2021 Mid Year Changes
Budget Report Pg # 73 Page 186 of 255
APPENDIX B: BUDGET REQUESTS
SOBC# Description (*indicates LRM Funded)
1 SLO Rep Challenge Grant
One-time challenge grant with the SLO Repertory Theatre to support the building of their new
community theater at the corner of the Palm-Nipomo parking structure. Cost escalation have
made the project infeasible for the non-profit organization. This is an important component for
the creation of the community’s cultural corridor around the Mission and consistent with a
variety of objectives in the Economic Recovery Major City Goal.
2 Vehicles for New Maintenance Positions
Additional fleet needed for maintenance positions added with the 21-23 Financial Plan and the
21-22 Mid-year.
3 Bob Jones Bike Trail Vegetation Management
As the City continues to address the interwoven issues of water quality and natural resources
protection, flood control capacity, and encampments within the creek system, additional
vegetation management is needed through focused, site-specific effort.
4 Downtown Safety Enhancements
Additional barriers for Farmers Market to enhance downtown safety.
5 Crisis Communications Planning
When a crisis occurs, the need to communicate is immediate. To further support the Public
Information function of the City’s Comprehensive Disaster Leadership Plan (CDLP), the City
needs a comprehensive crisis communications plan that identifies for each type of incident all
audiences, messages, and contact information centers. This effort will be contracted out to a
subject matter expert and will provide ready to use templates for all incidents identified in the
CDLP.
6 Transfer of Mitigation Fee Payment
Allocate $10,000 from the General Fund unassigned fund balance to the San Luis Ranch Fund.
This is due to mitigation fee payment that was erroneously posted to the General Fund.
7 Litigation Support
The city has experienced an increase in litigation outside the coverage of the City’s Joint Powers
Insurance Authority and increasingly aggressive litigation tactics, driving increases in outside
defense costs.
8 Council Hearing Room – Auto Tracking Camera
Auto Tracking camera and ceiling mounted microphone for Council Hearing Room. This will
allow for hybrid meetings to be held in the Council Hearing room. We have approximately
$120,000 in PEG money which could offset the cost of this equipment. The $1500 ongoing fiscal
impact would be the service plan for the equipment.
9 Covid Tests
The City has spent over $15,000 on unbudgeted Covid rapid tests for employees and projects
another $15,000 needed before year end. These costs will be submitted to FEMA for
reimbursement.
10 Golf Course Pro Shop Flood Damage Repairs
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.
Currently awaiting estimate numbers, but assuming the amount exceeds $25,000, this request
has been placed in Capital.
11 Reimbursement Agreement for 600 Tank Farm
Budget Report Pg # 74 Page 187 of 255
APPENDIX B: BUDGET REQUESTS
Reimbursement due to developer per reimbursement agreement for roundabout at Santa Fe
and Tank Farm
12 Mission Plaza Landscape and Lighting Improvements Construction
Improvements to include up lighting for trees in the plaza, new light standards, and
relandscaping.
14 2nd Legal Assistant – (Org Assessment Recommendation)
Organizational Assessment of the City Attorney’s Office is still in progress, but the draft staffing
recommendation was provided in late November. After discussion with City Manager and other
City staff, this contract position, placeholder SOBC is being submitted. The draft staffing
recommendation included a second Legal Assistant or an Executive Assistant/Legal Secretary,
and also stated options of having the position be permanent or contract. With so many variables,
and with the final assessment report still incomplete, it was deemed prudent to keep this
position contract for the time being.
15 Comp Study FY 22 One-time Contingency
This request is for a contingency to cover the additional staffing costs associated with
implementing recommendations included in the compensation benchmark study assuming they
go into effect before the end of the year. Any unused balance will return to fund balance at year
end.
16 Conversion of City Attorney Contract Positions – 3 FTE (Org Assessment Recommendation)
No fiscal impact as a result of this request as the budget was already included in the 2021-23
Financial Plan as “ongoing”. The Organizational Assessment recommends the conversion of three
contract positions to permanent ongoing: Paralegal, Legal Assistant & Deputy City Attorney.
17 Hybrid Public Meetings (0.5 FTE)
Implement and support hybrid City Council and Planning Commission meetings on an ongoing
basis. This funding would provide for additional Clerk’s Office and IT staffing to manage virtual
side of hybrid public meetings by queuing up speakers via phone or Zoom and managing those
platforms. Prior to launching hybrid meetings, Council has previously indicated that a policy
discussion should be initiated and any changes to council policies and procedures should be
adopted.
18 Monsido – ADA Compliance Software
People with disabilities should be able to enjoy the same access to information as those without
disabilities. To help make the City’s website more welcoming for all, further our DEI initiatives,
and ensure compliance with ADA requirements we need a tool that will help us make our
website content accessible to everyone. This software will help scan our website content and let
us know what content is not meeting website accessibility standards. It will also help us easily fix
those issues, as well as any broken links on our website.
19 Temporary Office Leasing and Equipment
Current City offices are surpassing effective capacity levels even when accounting for remote
work and additional, temporary office space is being requested until space in existing facilities
can be maximized. Across departments a space needs assessment was conducted, and various
leasing options were explored as well as modifications for existing facilities. Leasing offices will
create the necessary, temporary space to relieve capacity issues across five departments while
projects that will come forward with the Supplemental budget are completed to ensure existing
space is used as effectively as possible. The request includes one-time set-up costs, equipment,
and a temporary lease. Some ongoing lease costs may be needed until such time as the current
SLO Repertory space is returned for future civic uses, including office space.
Budget Report Pg # 75 Page 188 of 255
APPENDIX B: BUDGET REQUESTS
20 Transitional Legal Services (related to Org Assessment)
During the implementation of the staffing recommendations from the Org Assessment,
transitional assistance will be needed in order to have time to train new staff while continuing to
meet workload demands. Amount is based on previous code enforcement and Assistant City
Attorney contract rates. Request is for funds to be used for contract or supplemental staff, or
contract work by outside law firms at the discretion of the City Attorney. Th request is
categorized as “ongoing” since it is unknown at this time how long the transition will be and
when the efficiencies of extra staffing will be realized.
21 Virtual Meeting Software
Resources for software to support virtual functionality for the public and/or Consultants.
22 Part-time Fire Inspector (0.5 FTE) (Revenue Offset)
Reinstate a half-time fire inspector 1 to meet state mandatory annual inspections and reach fire
plan review performance metrics. Updated FY22 life-safety inspection fee revenue fully offsets
the cost to reinstate the position. This revenue account is expected to continue to increase as it
is based on the number of units in the program. Currently the fire department has not been able
to complete the yet to complete state mandated inspections of multi-family dwellings in the
2021 calendar year due to staff capacity. Of the 100 mandated inspections, 30 public assemblies
and hospitals and assisted living center inspections have not been completed which equates the
approximately 50% of a full-time inspector’s workload. New projects including hotels,
apartments and multi-family condominiums continue to increase the total number of mandated
inspections, further hindering the department’s ability to keep up with the demand.
Simultaneously, the recent annexation of the East Airport Area brought a significant number of
new industrial properties into the City that must be inspected by the Fire Department annually.
While the department’s plan review turn-around times have improved from 65% in 2020 to 72%
in 2021 the department has still been unable to meet our goal of 80% as the volume has
increased from 566 in 2020 to 630 in 2021. The trade-off between plan review turn-around
times and the annual inspection program is not one that allows the department to service the
development and developed community equally.
23 Part-time, contract attorney resource (Org Assessment Recommendation)
Another part of the draft staffing recommendation from the Org Assessment is to hire a
contract, half-time Assistant City Attorney. Funding for this position is recommended as
“ongoing” but the position will be kept as a contract until other elements of the org assessment
are fully implemented.
24 Housing/Homelessness Contract Position*
2-year contract position to assist the Housing Policy and Programs division. This position will
directly report to the Homelessness Response Manager and expire June 2023 (at the end of
FY23).
25 Increase in Mission Plaza Maintenance*
This request is for maintenance costs associated with landscaping, lighting and other aesthetic
improvements related to Mission Plaza improvements.
26 Mobile Crisis Unit (MCU) (1 FTE)*
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.
Budget Report Pg # 76 Page 189 of 255
APPENDIX B: BUDGET REQUESTS
27 Accelerate New Streets Position*
No cost request to accelerate the addition of the Streets Maintenance Operator that is funded as
“ongoing” starting in the 22-23 fiscal year. Program salary savings will be used to fund the
request.
28 Additional Pressure Washing*
This request is to expand coverage area in Downtown for pressure cleaning.
29 Additional Pruning/Watering
This request is to supplement existing salary savings to keep contractor working full-time
through the end of FY, as the City is currently one full cycle behind. There is approximately $125K
remaining in budget which will only support services through February. The plan is to have two
crews going at one time and area pruning by contractors to get caught up in cycle.
30 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.
31 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.
32 CAPSLO Programming - Railroad Square Safe Parking*
This request is to add 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.
33 Centralized Resident Inquiry Platform*
This request is for a platform that would enhance the way customer issues or service request 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 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.
34 CIP Staff Augmentation Study - Conversion of Existing Funding to Positions (4 FTE)*
Budget Report Pg # 77 Page 190 of 255
APPENDIX B: BUDGET REQUESTS
In the 21-23 Financial Plan, funding was appropriated in a capital project to augment the City’s
ability to deliver capital projects. The appropriations totaled $500K for FY 22, and $1M in FY 23
and ongoing to support delivery of the City's Capital Improvement Program (CIP) which has seen
a substantial increase in complexity, scale, and number of Capital Improvement projects as a
result of the increased funding attributed to Measure G20 which will generate approximately
$25M annually.
In 2021, the City retained a consultant (Management Partners) to perform an assessment of the
City’s CIP. The assessment concluded that the City has capable, engaged and qualified staff
managing the program, but that the unprecedented growth in the size and scale of the CIP
requires focus in the following areas: delivering projects on schedule; project scoping,
budgeting, and execution; reporting, performance measurement, and management information
systems; and staffing and organizational structure. Management Partners developed 53
recommendations that cover all aspects of the City’s CIP and in November, the City hired a CIP
Process Improvement Manager to lead implementation of these recommendations over the
coming year.
The immediate priority is to right-size the organization so that the City has the capacity to
effectively manage all of the projects that are planned for the next several years. Management
Partners has recommended the addition of 4.00 FTE permanent positions, and the
reclassification of 1.00 FTE vacant position. This midyear request is to convert a portion of the
funding from the capital project to operational staffing and approve 4.00 FTE new positions,
including a new CIP Manager, a new CIP Project Manager, and an additional Engineering
Inspector and Supervising Engineer. No additional cost is attributed to this action.
The Management Partners report was provided on the consent agenda on February 1, 2022
explaining this comprehensive assessment report in detail and how the recommendations are
intended to support CIP staff and the City as a whole, in improving the overall delivery of the
many current and future capital and maintenance projects that the City is undertaking.
35 Community Services Coordinator (1 FTE)*
Budget Report Pg # 78 Page 191 of 255
APPENDIX B: BUDGET REQUESTS
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 five
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.
36 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 estimated updates on officer
arrival times and/or subsequent delays. This software can also gather service feedback via
surveys. This tool provides a direct opportunity for the community to provide helpful feedback
when responding and working with with public safety.
37 Mobile Data Computers*
The police department was given approval to over hire two police officer positions in
anticipation of natural turnover and planned retirements and minimize the need for overtime.
Two mobile data computers(MDUs) are needed for these positions and staff is requesting to
purchase two spares. Total purchase would be for four MDCs.
38 Supplemental Overtime for Farmer's Market Support*
The funding is for the deployment of Farmer's Market barricades
39 Contract Volunteer Coordinator *
Budget Report Pg # 79 Page 192 of 255
APPENDIX B: BUDGET REQUESTS
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).
40 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 regular 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 will be
put in Regular salaries in the next Financial Plan.
41 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 capacity to increase and improve the program
without increased resources as necessary to meet City Goals of resiliency and disaster
preparedness.
42 Facilities Additional Contract Funding*
The additional contract funding will be used for rain gutter 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,
Budget Report Pg # 80 Page 193 of 255
APPENDIX B: BUDGET REQUESTS
which is resulting in a higher use of contractors for some of the more complex mechanical
systems.
43 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.
44 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.
45 Santa Rosa at Monterey St Improvements
Public costs for intersection improvements at Santa Rosa/Monterey to help with pedestrian, bike
and vehicle safety improvements. Improvements will complement infrastructure investments by
adjacent property NKT property owner as they tenant the building and will provide a safer
intersection for those working at the County of SLO.
46 Fire Medium Duty Truck with Utility Bed
Due to the strained supply chain and market inflation the anticipated cost of the utility bed
associated with the Medium Duty Truck has increased past the current allocated budget for the
vehicle replacement. The budgeted amount in FY22 for this replacement is currently $125,000,
however the total project cost is now expected to be $145,000.
47 Increased Vehicle Costs Tied to Inflation
This funding would be used to build the 8 Police Department vehicles that have been purchased
or scheduled to be purchased. Build cost have increase significantly due to inflation, and the
local vendor who the City has been using for builds is no longer meeting the City's expectations.
48 Mid Higuera Bypass (Design 90649)
Funding for property easement acquisition for this flood control project between Marsh St. and
Madonna Road along San Luis Creek.
49 Mission Plaza Restroom (Design 91439)
Funding for Archeological Monitoring and Soils Report to advance final designs.
50 Parks Vandal Resistant Restroom Dispensers
Unanticipated vandalism such as from TikTok challenge33 .
51 Reconstruction and Resurfacing Annual Asset Maintenance
Additional funding for the installation of curb ramps.
52 Replacement of Park Tables Citywide - Safety Measure
This request is a result of increased cost in materials and the need to switch to aluminum tables.
Currently concrete and rubber coated expanded metal. Replacing all concrete picnic tables is
neededthat could be harmful to the public.
53 Sidewalk Annual Asset Maintenance
Repair Sidewalk Damaged by City Trees for the purpose of trip and fall prevention
54 SLO Creek Repair at Johnson (Design 1000183)
Additional funding request for permitting and design to prevent project delay. This project is
intended to stabilize the creek bank adjacent to Johnson Avenue near Pismo Street.
55 Transportation Consultant Support
33 Commonly referred to as “Devious Licks”.
Budget Report Pg # 81 Page 194 of 255
APPENDIX B: BUDGET REQUESTS
Several priority transportation projects/work efforts that will be very difficult to complete with
current staffing & workload levels. Staff is requesting funding to utilize on-call consultant
resources to support the following work efforts: a) Traffic Analysis & Preliminary Design for
Potential Johnson Ave Road Diet (Bishop to Laurel) -- Planning & design needs to be completed
in 2022 to incorporate into currently planned 2023 summer paving project. b) Downtown Signal
Timing Refinements -- Need additional staff resources to develop and implement updated signal
timing plans for Santa Rosa corridor and Downtown Core w/ upcoming street changes with
Marsh/Higuera Road Diets and changes to Santa Rosa/Monterey signal with partial ped scramble
with NKT development. c) Protected Bikeway Design Standard -- Staff desires to develop
standard plans for protected bike lanes (on-street and sidewalk-level) for inclusion in 2022
Engineering Standards Update. On-call engineering consultants have significant experience with
such facilities and should support this effort and were used during surge efforts during the
pandemic to implement a variety of projects.
56 Truck Mounted Sign Boards
This request is needed for employee safety. City has recently taken over responsibility for
maintenance work on arterial streets, which has typically been covered by contractors and thus
is now resulting in an additional cost to advise the public of impending projects in the roadway.
57 Higuera Corridor Complete Street Design
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.
58 Pedestrian Crossing Improvements
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.
59 Affordable Housing Legal Fees
Legal fees associated with affordable housing closing costs. External counsel is needed due to
high City Attorney workload
60 Confined Space Rescue Equipment
Utilize the Public Safety Equipment Fund to purchase confined space rescue equipment. The
department has been working increase the City's ability to stand on its own during both large-
and small-scale technical rescue demanding events. One area that staff has identified as a
vulnerability without the assistance from mutual aid is confined space rescue which can be
important with both a small, isolated incident to a destructive earthquake. The equipment to be
purchased will be used to facilitate victim removal and provide adequate air and communication
lines.
61 Council Chambers - Auto Tracking Cameras
Budget Report Pg # 82 Page 195 of 255
APPENDIX B: BUDGET REQUESTS
New Auto Tracking Cameras for Council Chambers. This would eliminate the need for an
operator or would allow for a remote operator. There is approximately $120,000 in PEG money
which will offset the cost of this equipment. The City has pursued a variety of efforts to secure
human operated cameras without success.
62 Madonna Rd. Bike Path Landscaping Design
Landscape improvements along Madonna Rd. at Laguna Lake.
63 Mobile Command Trailer Bandwidth
Replacement router to improve bandwidth as we integrate critical technology and full remote
dispatching capabilities from the trailer. Bandwidth has become constrained and decreases
performance. The Mobile Command Trailer is also the backup Public Safety Answering Point
(PSAP). *This estimated cost may be reduced if staff finds another solution for increasing
bandwidth.
64 Recruit Academy Personal Protective Equipment
Additional funding to purchase Personal Protective Equipment for three additional firefighters.
The normal budget for this program is based on the hiring of four new firefighter recruits. When
the FY22 budget was being developed, staff anticipated the number to increase to six recruit
firefighters and adjusted the budget accordingly. After the budget was finalized, unanticipated
retirements and resignations resulted in the need to hire a total of nine recruit firefighters. With
a cost of $10,000 to outfit each recruit firefighter with the appropriate personal protective
equipment, the department will need approximately $30,000 in additional funding to offset the
total cost of the program.
65 Administrative Error in Position Costing for 1 Water Distribution Operator
An administrative adjustment in position costing, staff allocated a Water Distribution Operator
to the Sewer Fund. The Sewer Fund pays for 1 FTE due to work Water Distribution does on
meters as meters are also used to calculate Sewer sales. Request is to move between the water
and sewer funds .
66 Utilities Fleet Replacement
The Utilities Department has two Prii that had not been budgeted for replacement in the current
5-year CIP but recently had the catalytic converters stolen. Due to the age of the vehicle and cost
of replacement, staff recommend purchasing one new vehicle ($40,000) split between Water
and Sewer Funds.
67 Additional WRRF Safety Perimeter Fencing
Due to emergent security concerns and repeated break-ins at the WRRF, staff proposes installing
architectural safety perimeter fencing. There is already budget for WRRF fencing in CIP 1000077
WRRF Major Maintenance and CIP 1000530 Recycled Water Tank. This request is to augment the
current funding available for additional fencing at the WRRF.
68 Administrative Error in Position Costing for 1 Water Distribution Operator
An administrative adjusgment in position costing, a Water Distribution Operator was costed in
the Sewer Fund. The Sewer Fund pays for 1 FTE due to work Water Distribution does on meters
as meters are also used to calculate Sewer sales. . Request is to move between the water and
sewer funds .
69 Mandatory Minimum Penalties from the State for THMs and Pathogen Violations
Budget Report Pg # 83 Page 196 of 255
APPENDIX B: BUDGET REQUESTS
The WRRF had several discharge violations in 2021. One was a process upset created by the
extensive use of a disinfectant or surfactants discharged to the WRRF referred to as quaternary
ammonia resulting in four pathogen violations. The other six violations were caused by the
formation of disinfection by-products called Trihalomethanes (THMs) which are created by the
use of chlorine. The WRRF project is constructing an ultraviolet disinfection process that will
bring the WRRF into compliance with THMs. This request is for the entire fine. The violations are
$3,000 each and the City has contested the four pathogen violations. After multiple
conversations with the Central Coast Regional Water Quality Control Board, they have agreed to
reduce the fine amount, considering the four pathogen violations as one event, which is
reflected in the current funding request.
70 Utilities Fleet Replacement
The Utilities Department has two Prii that had not been budgeted for replacement in the current
5-year CIP but recently had the catalytic converters stolen. Due to the age of the vehicle and cost
of replacement, staff recommend purchasing one new vehicle ($40,000) split between Water
and Sewer Funds.
71 Gateless Parking Garages Equipment Install
Request for additional funding due to increased costs tied to inflation.
72 New Security Services Agreement
Additional security services with expanded nighttime hours to enhance downtown safety.
73 Supervising Parking Enforcement Officer Reclassification
Supervising Parking Enforcement Officer Reclassification necessitated by a growth in the
enforcement staff.
74 41 Prado Rd. Bus Shelter Relocation
This is a new project to improve the safety for bus passengers. Relocating the bus stop on the
side of the new Prado Day Center will eliminate the need for bus passengers to J-walk to the bus
stop.
Budget Report Pg # 84 Page 197 of 255
Page 198 of 255
R _____
RESOLUTION NO. _____ (2022 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AMENDMENTS TO THE
ADOPTED 2021-22 BUDGET APPROPRIATIONS AND AUTHORIZING
THE CITY MANAGER TO APPROVE NATIONAL POLLUTANT
DISCHARGE ELIMINATION SYSTEM PERMIT VIOLATION
SETTLEMENTS
WHEREAS, in accordance with San Luis Obispo Charter Section 802, the City
Manager has submitted the 2021-23 Financial Plan to the Council for review and
consideration on June 1, 2021; and
WHEREAS, the Council adopted the 2021-23 Financial Plan and appropriated the
2021-22 budget allocation including operating, debt service, and capital improvement
plan budgets; and
WHEREAS, in accordance with Budget Policy G under Financial Plan Purpose
and Organization, the Council will formally review the City’s fiscal condition, and amend
appropriations, if necessary, six months after the beginning of the year; and
WHEREAS, the report follows the City’s completion of its annual comprehensive
financial report (ACFR) for 2020-21 which shows that the General Fund has an
unassigned Fund Balance of $5,311,792 and the Local Revenue Measure sub -fund has
an unassigned sub-fund balance of $1,964,773; and
WHEREAS, in June 2021, the City Council adopted a comprehensive Fund
Balance and Reserve Policy (R-11250) and the use of funds from the Capital Projects
Reserve Fund can be made upon Council approval as necessary during any fiscal year;
WHEREAS, in 2018-19 the City adopted a Fiscal Health Response Plan (FHRP)
and is now in a financial condition to make the CalPERS payments consistent with the
FHRP original payment schedule; and
WHEREAS, the City receives revenue under the Transportation Development Act
(TDA) which is restricted for the improvements and maintenance of bicycle and
pedestrian infrastructure and has $53,029 of unallocated funding from 2020-21 in addition
to $45,000 in 2021-22 allocation; and
WHEREAS, per Resolution No. 11251 Section 3, staff was directed to return to
Council with project recommendations and appropriation requests to further implement
Tier 1 Active Transportation Plan projects as a result of Urban Greening Grant Funding
for the Cerro San Luis Greenway Project; and
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Resolution No. ____ (2022 Series) Page 2
R _____
WHEREAS, the City of San Luis Obispo’s Water Resource Recovery Facility
(WRRF) has been issued a National Pollutant Discharge Elimination System (NPDES)
permit; and
WHEREAS, the monitoring and reporting requirement of the WRRF’s NPDES
permit are subject to mandatory minimum penalties (MMPs); and
WHEREAS, the Porter-Cologne Water Quality Act establishes MMPs for certain
types of violations of the NPDES permit; and
WHEREAS, California Water Code sections 13385 and 13385.1 require the
Central Coast Regional Water Quality Control Board (CCRWQCB) to impose MMPs of
$3,000 for certain violations; and
WHEREAS, negotiation and settlement of MMPs can occur long after the violation
event; and
WHEREAS, the 2021-22 mid-year budget appropriation amendments include the
funding to pay the violations; and
WHEREAS, it is critical that settlement payment for any MMP be authorized in an
expedient manner to comply with the CCRWQCB deadline.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The 2021-22 budget is hereby amended to appropriate a one-time
allocation of $4,800,000 from the City’s General Fund unassigned fund balance into
operating budgets for the uses listed in Exhibit A.
SECTION 2. The 2021-22 budget is hereby amended to appropriate a one-time
allocation of $1,940,000 of the Local Revenue Measure unassigned balance into
operating budget for the uses listed in Exhibit A.
SECTION 3. $1,872,000 of the Capital Projects Reserve Fund are hereby
assigned for the capital projects as listed in Exhibit A.
SECTION 4. The City will make a $12,429,774 down payment to CalPERS and
invest $2,428,052 into a 115 Pension Trust Fund.
SECTION 5. The 2021-22 budget is hereby amended to appropriate $53,029 of
2020-21 TDA carryover balance into the Pedestrian Crossing Improvements Project
(Specification 1000069) and move $45,000 of current year budgeted TDA funding and
$55,000 in Capital Outlay-Local Revenue Measure funding from the Active Transportation
Plan Implementation Project (Specification 1000502) into the Pedestrian Crossing
Improvements Project (Specification 1000069).
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Resolution No. ____ (2022 Series) Page 3
R _____
SECTION 6. The 2021-22 budget is hereby amended to re-appropriate $476,971
of the Cerro San Luis Greenway Project Budget for the ATP projects listed in Exhibit A,
with $1,223,029 remaining for allocation at a later date.
SECTION 7. The 2021-22 budget is hereby amended to make the following budget
appropriations from fund balance for the uses listed in Exhibit A.
Fund 2021-22
General Fund $ 261,025
Local Revenue Measure $ 623,660
PEG Fund $ 110,030
Public Safety Equipment Replacement Fund $ 68,656
Sewer Fund $ 396,000
Water Fund $ (75,000)
San Luis Ranch Fund $ 28,000
Affordable Housing Fund $ 30,000
Law Enforcement Grant Fund (JAG Grant) $ 10,000
Transit Fund $ 35,000
Parking Fund $ 135,000
Total $ 1,622,371
SECTION 8. The City will add 15 Full-Time Equivalent (FTE) positions as a result
of the budget appropriations in Section 7 and listed in Exhibit A.
SECTION 9. The 2022-23 adopted budget is hereby amended to make the
changes as listed in Exhibit A.
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Resolution No. ____ (2022 Series) Page 4
R _____
SECTION 10. Council delegates the authority to the City Manager to approve any
future NPDES permit violation settlements in an amount not to exceed $50,000.
On motion of ___________________, seconded by _______________________,
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was adopted on the ____ day of ___________, 2022.
______________________________
Mayor Erica A. Stewart
ATTEST:
Teresa Purrington,
City Clerk
APPROVED:
J. Christine Dietrick,
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
________________________________
Teresa Purrington,
City Clerk
Page 202 of 255
Exhibit A
R _____
Budget Amendment +
FTE
One-time/
Ongoing 2021-22 2022-23
SECTION 1: General Fund FY21 One-time Fund
Balance 4,800,000 -
Downtown Safety Enhancements One-time 375,000 -
Vehicles for New Maintenance Positions One-time 210,000 -
Bob Jones Bike Trail Vegetation Management One-time 25,000 -
Council Hearing Room - Auto Tracking Camera One-time 30,000 -
Crisis Communications Planning One-time 50,000 -
Litigation Support One-time 120,000 -
Transfer of Mitigation Fee Payment One-time 10,000 -
Covid Tests One-time 30,000 -
SLO Rep Payment One-time 3,950,000 -
SECTION 2: Local Revenue Measure FY21 one-time
Fund Balance 1,940,000 -
Golf Course Pro Shop Flood Damage Repairs One-time 120,000 -
Mission Plaza Landscape and Lighting
Improvements Construction One-time 275,000 -
Reimbursement Agreement for 600 Tank Farm One-time 1,545,000 -
SECTION 3: Capital Reserve 1,872,000 -
Santa Rose at Monterey Intersection Improvements One-time 1,000,000 -
Fire Medium Duty Truck with Utility Bed One-time 20,000 -
Increased Vehicle Costs Tied to Inflation One-time 120,000 -
Mid Higuera Bypass (Design 90649) One-time 110,000 -
Mission Plaza Restroom (Design 91439) One-time 60,000 -
Reconstruction and Resurfacing Annual Asset
Maintenance One-time 150,000 -
Sidewalk Annual Asset Maintenance One-time 50,000 -
SLO Creek Repair at Johnson (Design 1000183) One-time 175,000 -
Parks Vandal Resistant Restroom Dispensers One-time 25,000 -
Replacement of Park Tables Citywide - Safety
Measure One-time 25,000 -
Transportation Consultant Support One-time 125,000 -
Truck Mounted Sign Boards One-time 12,000 -
SECTION 6: Re-allocation of Cerro San Luis
Greenway Budget 476,971 -
Higuera Corridor Complete Street Design One-time 250,000 -
Pedestrian Crossing Improvements One-time 226,971 -
SECTION 7: General Fund 4 261,025 501,938
2nd Legal Assistant Ongoing - 73,400
Hybrid Public Meetings (0.5 FTE) .5 Ongoing - 60,888
Page 203 of 255
Resolution No. ____ (2022 Series) Page 6
R _____
Budget Amendment +
FTE
One-time/
Ongoing 2021-22 2022-23
Monsido - ADA Compliance Software Ongoing - 4,900
Office Space One-time - 197,040
Part-time Fire Inspector (0.5 FTE) (Revenue Offset) .5 Ongoing 11,025 33,410
Part-time, contract attorney resource Ongoing - 94,100
Transitional Legal Services (related to Org
Assessment) Ongoing - 32,000
Virtual Meeting Software Ongoing - 6,200
One-time Contingency for Benchmark Study
Adjustments in FY22 One-time 250,000 -
Conversion of City Attorney Contract Positions (3
FTE) 3 Ongoing - -
SECTION 7: Local Revenue Measure 11 623,660 1,083,497
CIP Staff Augmentation Study - Conversion of
Existing Funding to Positions (4 FTE) 4 Ongoing - -
Accelerate New Streets Position One-time - -
CAPSLO Programming - Railroad Square Safe
Parking One-time 64,633 -
Contract Volunteer Coordinator One-time 32,850 101,508
Housing/Homelessness Contract Position One-time 40,000 80,000
Mobile Data Computers One-time 14,200 -
Additional Pressure Washing Ongoing 25,000 25,000
Additional Pruning/Watering Ongoing 200,000 200,000
Additional Streets Maintenance Staff (2 FTE) 2 Ongoing 60,750 243,000
Additional Supplies for Downtown Maintenance
Program Ongoing - 25,000
Centralized Resident Inquiry Platform Ongoing 40,000 40,000
Parks & Rec Community Services Coordinator (1
FTE) 1 Ongoing - 9,728
Converting Contract Homelessness Response
Manager to FTE (1 FTE) 1 Ongoing - -
Emergency Manager (1 FTE) 1 Ongoing 38,627 143,061
Facilities Additional Contract Funding Ongoing - 25,000
Increase in Mission Plaza Maintenance Ongoing 27,000 27,000
Mobile Crisis Unit (MCU) (1 FTE) 1 Ongoing - -
Parks Additional Contract Funding Ongoing - 40,000
Parks Maintenance Beautification Gardner (1 FTE) 1 Ongoing 48,600 97,200
Public Safety Customer Engagement Ongoing 17,000 12,000
Supplemental Overtime for Farmer's Market
Support Ongoing 15,000 15,000
SECTION 7: PEG Fund 110,030 -
Council Chambers - Auto Tracking Cameras
One-time 110,030 -
Page 204 of 255
Resolution No. ____ (2022 Series) Page 7
R _____
Budget Amendment +
FTE
One-time/
Ongoing 2021-22 2022-23
SECTION 7: Public Safety Equipment Replacement
Fund 68,656 -
Confined Space Rescue Equipment One-time 38,656 -
Recruit Academy Personal Protective Equipment One-time 30,000 -
SECTION 7: Sewer Fund 396,000 95,000
Additional WRRF Safety Perimeter Fencing One-time 260,000 -
Utilities Fleet Replacement One-time 20,000 -
Mandatory Minimum Penalties from the State for
THMs and Pathogen Violations One-time 21,000 -
Administrative Error in Position Costing for 1 Water
Distribution Operator Ongoing 95,000 95,000
SECTION 7: Water Fund (75,000) (95,000)
Utilities Fleet Replacement One-time 20,000 -
Administrative Error in Position Costing for 1 Water
Distribution Operator Ongoing (95,000) (95,000)
SECTION 7: San Luis Ranch Fund 28,000 -
Madonna Rd. Bike Path Landscaping Design One-time 28,000 -
SECTION 7: Affordable Housing Fund 30,000 -
Affordable Housing Legal Fees One-time 30,000 -
SECTION 7: Law Enforcement Grant Fund (JAG
Grant) 10,000 -
Mobile Command Trailer Bandwidth One-time 10,000 -
SECTION 7: Transit Fund 35,000 -
40 Prado Rd. Bus Shelter Relocation One-time 35,000 -
SECTION 7: Parking Fund 135,000 180,000
Gateless Parking Garages Equipment Install One-time 45,000 -
New Security Services Agreement Ongoing 45,000 90,000
Supervising Parking Enforcement Officer
Reclassification Ongoing 45,000 90,000
Grand Total 15 $10,711,342 $1,765,435
Page 205 of 255
Page 206 of 255
2021-22 Mid-Year Budget ReviewFebruary 15, 20222021-23 Financial Plan1
Recommendations1. Receive and discuss the Mid-Year Budget report based on revisedprojections for all major funds at the mid-point of the 2021-22 fiscal year;and2. Adopt a Resolution entitled, “A Resolution of the Council of the City of SanLuis Obispo, California, approving amendments to the adopted 2021-22Budget Appropriations and authorizing the City Manager to approveNational Pollutant Discharge Elimination System Permit ViolationSettlements” and approve the one-time and ongoing allocations as stated inthe Mid-year Budget Report including the annual TransportationDevelopment Act appropriation.2BackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther
Mid-Year ReviewBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther 2021-23 Financial Plan22-23 Supplemental Budget AppropriatedBudget Policy(Financial Plan Purpose & Organization, Section G)321-23 Financial Plan Adopted21-22 Mid-Year ReviewStrategic planning, community input
June 1, 2021, Presentation slide 5A look-back on 2021-23 Financial Plan ObjectivesAdopted Major City Goals:4BackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther
Setting the Stage 5July – December 2021Updated long term forecastsExpenditures on track. Major revenue sources exceeding projections. Challenges with inflation and labor market and supply shortages July 2021Began year in a strong fiscal position with a lot of uncertaintyPresent to Council a strategic path forward in line with Financial Plan objectives and MCGsWhat now?BackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther Published 2020-21 ACFR
62021-23 Major City GoalsClimate Action, Open Space, & Sustainable Transportation. Proactively address the climate crisis, continue to update & implement the Climate Action Plan for carbon neutrality, including preservation & enhancement of open space and the urban forest, alternative & sustainable transportation, & planning and implementation for resilience. Diversity, Equity, Inclusion (DEI). In response to our commitment to making San Luis Obispo a more welcoming & inclusive city for all, continue to develop programs & policies to support diversity, equity, & inclusion initiatives & advance the recommendations of the DEI Task Force.Housing & Homelessness. To expand housing options for all, continue to facilitate the production of housing, incl. the necessary supporting infrastructure, with an emphasis on affordable & workforce housing. Collaborate with local non-profit partners and the county, the state, & federal government to discover & implement comprehensive & effective strategies to reduce chronic homelessness. Economic Recovery, Resiliency & Fiscal Sustainability. In collaboration with local partners, continue to support economic recovery for all from the COVID pandemic, and support a thriving local economy by supporting local businesses, arts, and culture, downtown vitality, practicing fiscal responsibility, paying down unfunded pension liabilities, and investing in critical infrastructure. 6BackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther
Mid-Year HighlightsChallenges at FY beginningOpportunities at mid-yearContinued Economic Uncertainties with Labor Market and Supply Chain ChallengesImproved economic outlook provides opportunity to address labor market challenges and address community needsFiscal Health Response Plan Goals on holdPortion of ARPAfunding will backfill lost revenue due to Covid and allow for investment into critical infrastructureEmerging Community NeedsBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther CalPERSscheduled pre- payments set aside during Covid. The City is now in a financial position to make payments7Proceed with CautionDelta and Omicron VariantsInflation, Labor Shortages, Supply Chain Issues
The Path ForwardBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther The 2021-22 revised mid-year budget is oriented towards sustaining the City’s current operational levels while meeting demands of inflation and balancing the service needs of the community. It contains immediate action to fund community priorities that have emerged since July 2021. It takes immediate action to address labor market shortages and ensure that the City remains competitive to retain and attract talent. 8
General Fund RevenueBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther Detail on Budget Report Pg #11 & 71• Transient Occupancy Tax (TOT) revenue hit record highs in Q1 of FY 21-22• Sales tax exceeding forecast and projected to have stable growth • Decrease in Cannabis Tax• Minor fee revenue adjustments $92 $94 $96 $98 $100 $102 $104 $106 $108 $110 $112 $114 2021‐22 2022‐23 2023‐24 2024‐25 2025‐26Total RevenueUpdated Long Term Forecast (In millions)Original ForecastMid‐year Revised Forecast+ $7.1 M+ $6.4 M+ $4.9 M+ $5.9 M+ $7.0 MARPA21-23 Financial Plan9
General Fund ExpendituresBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther Detail on Budget Report Pg # 67• Expenditures on track• Salary savings from vacancies offset by contract services and changes to labor group contracts made post-budget adoption• Effects of inflations noticeable in the cost of utilities but offset by reduced usage10
FY 2020-21 Unassigned Fund BalanceGeneral FundBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther Key Element11
FY 2020-21 Unassigned Fund Balance Recommendations (General Fund)BackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther One-time Investment into Community (Economic Development MCG): $3.95 MInvest in Infrastructure & Equipment: $640kOne-time Core Services: $210k• Vehicles for New Maintenance Positions• Bob Jones Bike Trail Vegetation Management• Downtown Safety Enhancements• Council Hearing Room - Auto Tracking Camera• Crisis Communications Planning• Transfer of Mitigation Fee Payment• Litigation Support• Covid Rapid Tests•SLO RepChallenge GrantDetail on Budget Report Pg # 7Total=$4.8M12
FY 2020-21 Unassigned Fund BalanceLocal Revenue MeasureBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther Detail on Budget Report Pg # 7Reviewed with and recommended by REOC on 1/26/202213
General Fund Budget ChangesBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther •Based on updated long term forecast and revenue projections49%42%9%Maintenance of Infrastructure• Additional Streets Maintenance positions• Downtown maintenance• Additional Pruning/ Landscape Maintenance• Parks Maintenance Gardner• Facilities Maintenance Resources• CIP Staff AugmentationCore Services or LRM Priority• Parks & Rec Community Services Coordinator• City Attorney Resources• Emergency Manager• Compliance software• Staffing Contingency• Resources for hybrid meetingsAdvancement of MCG• Contract Housing/Homelessness Position• Ongoing continuation of Homeless Response Manager• Ongoing continuation of Mobile Crisis Unit• Railroad Square Safe Parking ProgramTotal Investment (21‐23 Financial Plan)FY 21‐22 FY 22‐23General Fund 261,025 501,938 Local Revenue Measure 623,660 1,083,497 Total 884,685 1,585,435 Detail on Budget Report Pg # 7‐8Budget Recommendations by Type (2-year total)14
Capital ReserveBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther The City maintains a committed reserve for the purpose of offsetting unanticipated cost increases, unforeseen conditions, and urgent unanticipated projects to provide continued investment in infrastructure maintenance and enhancement.Detail on Budget Report Pg # 81‐8215
Other RecommendationsBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther • Recommended to be funded using Agency, Capital, Special Revenue or Development Impact Fee funds• No impact on General Fund• Funds have appropriate balances to cover recommendationsDetail on Budget Report Pg # 82‐8316
Water FundBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther • Water sales and consumption are tracking back on pre-pandemic levels• California state water shut-off moratorium results in an increase in past due water accounts• Expenditures on track • Two minor mid-year recommended budget changes17
Sewer FundBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther • Revenue is tracking with budget projections• California state water shut-off moratorium results in an increase in past due sewer accounts• Expenditures on track • Currently assessing its sewer cap based on average use between Dec-Feb• Four minor mid-year recommended budget changes18
Parking FundBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther • Despite the adoption of revenue enhancement strategies with the 2021-23 Financial Plan Parking revenues are slightly behind projections• The revenue shortfall is due to reduced downtown activity and the parking fund’s assistance with economic recovery efforts• The fund is positioned to sustain planned operating and capital expenditures, and meet reserve requirements given additional revenue enhancement strategies• Parking fund will return at supplement with additional revenue enhancement to ensure ratio requirement is met ID# Table 15: Parking Fund Mid‐Year Budget Requests FY 21‐22 FY 22‐23 71 Gateless Parking Garages Equipment Install (Capital) 45,000 ‐ 72 New Security Services Agreement (Capital) 45,000 90,000 73 Supervising Parking Enforcement Officer Reclassification (Operating) 45,000 90,000 Total $135,000 $180,000 19HN0FP1FA2FA3
Slide 19HN0 [@Fields, Paul] Would you mind populating these slides to be in line with the messaging we want to give next Tuesday?Harnett, Natalie, 2022-02-10T17:45:52.946FP1 [@Horn, Matt] [@Hussey, Gaven] [@Fuchs, Alexander] ready for your guys' review! Fields, Paul, 2022-02-10T23:48:08.983HM1 0 [@Fields, Paul] done - this might be a bit too wordy for the slide. These could be Natalie's talking points and we can truncate the info on the slide.Horn, Matt, 2022-02-11T00:14:08.476FA2 [@Fields, Paul] [@Hussey, Gaven] We also experienced staffing issues for the structures and delayed hiring for key enforcement positionsFuchs, Alexander, 2022-02-11T16:12:09.920FA3 [@Fields, Paul] [@Hussey, Gaven] If this is true, then is all future I-bank lending for the new structure now compromised? The 'call to action' re" increasing revenues and usage of facilities does not tie out to the SOBC request table below. Should there be a note about proposing additional revenue enhancements at Supplement to prime Council?Fuchs, Alexander, 2022-02-11T16:14:30.298
Parking FundBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther Alignment with Adopted Fiscal PoliciesSection 2: User Fee Cost Recovery GoalsI. Comparability with Other Communities: “In setting user fees the City will consider fees charged by other agencies…”Section 3: Enterprise Fund Fees and RatesA. Water, Sewer and Parking: “The City will set fees and rates at levels which fully cover the total direct and indirect costs …”1. Paso Robles does not collect off-street metered revenue20$2.50 $2.50 $2.50 $5.50 $5.00 $5.25 $1.63 $1.50 $1.56 $1.00 $1.00 $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00Average On-Street Average Off-Street1 Overall AverageMetered Parking Rates in the RegionCal PolyPismo BeachSan Luis ObispoPaso RoblesAverage On-StreetAverage Off-Street1Overall AverageSLO PRSLOPBCPSLO PBCP CPPRPBFP0
Slide 20FP0 [@Hussey, Gaven] [@Fuchs, Alexander] [@Horn, Matt] took a swing at referencing the fiscal policies using Gaven's data. Fields, Paul, 2022-02-10T21:54:13.132HM0 0 [@Hussey, Gaven] Please provide the talking points.Horn, Matt, 2022-02-10T23:35:24.124HM0 1 [@Fields, Paul] Can you share the average calc with the group so that if we get any questions we can answer those? Gaven might need to incorporate that information in the talking points too.Horn, Matt, 2022-02-10T23:36:22.828FP0 2 https://slocitycloud-my.sharepoint.com/:x:/g/personal/pfields_slocity_org/ETFsg73b7ktPvpJqKYEP80ABhLznhTwL92w__JdhqA_GLA?e=ysWouOFields, Paul, 2022-02-10T23:46:32.467FP0 3 This excel sheet has the table and calcsFields, Paul, 2022-02-10T23:46:58.192FA0 4 [@Fields, Paul] Is there a way to highlight the bars associated with SLO, so that its easy for viewers to ID? Fuchs, Alexander, 2022-02-11T16:17:20.739FP0 5 [@Fuchs, Alexander] I labeled that bars, should helping with ease of identifying. Fields, Paul, 2022-02-14T16:24:37.558FP0 6 Add information on hours of operation being in line with other agencies Fields, Paul, 2022-02-14T17:22:32.064FP0 7 And that adjusting hours of operation may jeopardize ability to fund parking structureFields, Paul, 2022-02-14T17:23:36.047FP0 8 PR goes til 8am to 8pm and poly goes til 7am 10pm. Pismo is 10am to 6pmFields, Paul, 2022-02-14T17:24:18.336
Transit FundBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther • Federal Transportation Administration (FTA) funds will be used to cover operating and preventative maintenance costs• Current operating savings due to reduced ridership demands• Several pending items in the forecastoNew transit agreement with Cal PolyoNew Operations & Maintenance ContractoFocus on electrifying fleetOne mid-year budget request: 21
Program UpdatesBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther • Departments continuing to meet objectives• Almost all departments are experiencing staffing challenges, absences and vacancies, which lead to increased workload and re-prioritization of tasks for positions that are staffed. • Despite challenges, many accomplishments over last 6 monthsDetail on Budget Report Pg # 22‐5422
Capital Improvement PlanBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther Railroad Safety Trail: Construction Near CompletionMission Plaza Railing Upgrade: CompleteMeadow Park Pathway Maintenance: CompleteDetail on Budget Report Pg # 5523
• Report provides update on all Major City Goal tasks scheduled for completion during FY 2021-22 or categorized as ongoing• 12 Completed tasks Major City Goals (MCGs)BackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther Detail on Budget Report Pg # 57‐6368%31%1%MCG TASK UPDATEGreen (162)Yellow (75)Red (2)24
CalPERSBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther 25Fiscal Health Response Plan: Three-year program to balance the long-term forecast and to begin an aggressive schedule to pay down pension obligation.$12.4 million retained in in unassigned fund balance as of June 2021Retained to counteract uncertainties and economic recovery needs of community. Fund 2018-19 2019-20 2020-21 2021-22*General Fund $4.2 m $3 m $3 m $2 mEnterprise Funds $918K $655K $655K $437KMinimum payment. Policy dictates that CalPERS payment be prioritized for any one-time available funding.
ARPABackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther 26•March 2021 - $8.9 million confirmed•June 2021 -2021-23 FP allocates funding under Revenue Loss to backfill capital plan projects due to resources needed in operations -Small Business Grants, CDD Resources (Housing), Mobile Crisis Unit, 2ndCAT team, and Homeless Manager (Homelessness), Shop Local programs. •July 2021 – final allocation confirmed at $13.5 million•June 2022 - $4.7 million to allocate at Supplement - $3.5 million tied to Final RuleARPAAmerican Rescue Plan ActCongressional ActSLRFThe Coronavirus State & Local Fiscal recovery Funds program – Funding Source.
National Pollutant Discharge Elimination System (NPDES) permit violations• The Water Resource Recovery Facility (WRRF) is regulated through a state-issued, regionally enforced discharge permit• Permit Violations can occur for several reasons. • The WRRF has experienced multiple discharge violations, each costing $3,000• Recommendation is to delegate City Manager the authority to approve all future NPDES permit violations settlements in an amount not to exceed $50,000• Recommendation will ensure expedient settlement payment to comply with deadlinesBackgroundGeneral FundEnterprise FundsProgram UpdateCIPMajor City GoalsCalPERs & ARPAOther 27
Recommendations1. Receive and discuss the Mid-Year Budget report based on revisedprojections for all major funds at the mid-point of the 2021-22 fiscal year;and2. Adopt a Resolution entitled, “A Resolution of the Council of the City of SanLuis Obispo, California, approving amendments to the adopted 2021-22Budget Appropriations and authorizing the City Manager to approveNational Pollutant Discharge Elimination System Permit ViolationSettlements” and approve the one-time and ongoing allocations as stated inthe Mid-year Budget Report including the annual TransportationDevelopment Act appropriation.28
Discussion29