HomeMy WebLinkAboutItem 6a - Adoption of FY 2022-23 Supplemental BudgetCity of San Luis Obispo, Council Memorandum
Council Agenda Correspondence
DATE: May 31, 2022
TO: Mayor and Council
FROM: Matt Horn, Director of Public Works
Gaven Hussey, Parking Program Manager
VIA: Derek Johnson, City Manager
SUBJECT: Staff Agenda Correspondence Item 6.a - ADOPTION OF THE FISCAL YEAR
2022-23 SUPPLEMENTAL BUDGET
Purpose of this Agenda Correspondence- Parking Rate Focus
The purpose of this Agenda Correspondence is to provide some additional details and background
about the status of the Cultural Arts District Parking Structure, new cost estimates, and the impact
of the construction and financial markets which have prompted staff to make a recommendation
for adjusted parking rates beyond those forecasted in June 2021 as part of the 2021-23 Financial
Plan (pages 339 through 342).
Each section of this memo covers crucial decision points and the footnotes that supports each
section provide historic or other technical details or considerations. Furthermore, the purpose is to
answer some initial questions received and provide additional details about the proposed
adjustments to parking rates recommended for adoption on June 7, 2022, so that the Parking Fund
can support the construction of the Cultural Arts District Parking Structure (at Palm and Nipomo
Streets). Advancing the construction of the Cultural Arts District Parking Structure is a key Capital
Improvement Project in the City’s adopted 2021-2023 Financial Plan and the Major City Goal
Economic Recovery, Resiliency and Fiscal Sustainability1.
Why is the Cultural Arts District Parking Structure Needed Now?
The Cultural Arts District Parking Structure is a high priority project for both the Parking Fund
and the City to be able to provide adequate off-street parking to the community as well as create
the necessary infrastructure for future implementation of the Downtown Concept Plan including
space for the future SLO Rep Theatre. Parking utilization has seen a steady increase returning to
similar pre-pandemic levels of operation with structures experiencing capacity issues Thursday
through Saturday evenings. Specifically, all three of the City’s current parking structures exceed
85 percent2 occupation during these times and close on Thursday evenings when capacity is
1 Supplemental Budget Pg. 128
2 85% occupancy is generally considered in the parking industry to be a saturation point that parking supply is
impacted that can has a negative perception on the availability of parking and a point that new parking supplies are
needed to meet demand.
Cultural Arts District Memorandum Page 2
exceeded. On June 21, 2022, Council will consider authorizing staff to advertise for construction
bids for the first phase3 of work for the Cultural Arts District Parking Structure.
What is the connection between parking rates, the pandemic, and the Cultural Arts District
Parking Structure?
The City’s Downtown Concept Plan incorporates the community’s vision for downtown and
guides both public and private actions and investment through 2042. Better parking that is easily
accessible is key to promoting an inclusive and easy-to-navigate downtown. At the same time, the
city is seeking to expand cultural,
historical, and artistic
opportunities, including enhancing
the downtown Cultural Arts
District.
Since the early 2000s4, the
Community and city have been
working on this fourth structure.
During this time, the Parking Fund
purposely conserved revenues to
build up working capital funds to
reduce future debt impacts arising
from the construction of the
Cultural Art’s District Parking
Structure. This was done using rate
adjustments and careful
programming of ongoing operating
expenses.
This strategy was a highly effective long-term strategy which allowed the Parking Fund to buildup
it’s unreserved working capital to roughly $13.9 Million. With the March 2020 shutdown due to
the COVID-19 pandemic, the Parking Fund deferred revenue in the approximate amount of $4
Million through fee deferrals, incentives, and other initiatives to support the urgent and immediate
needs for downtown businesses. As noted in the Budget (page 48) variables have caused these
increases to be greater than forecasted to Council with the adoption of the 2021-22 Budget. Those
variables include unprecedented cost increases in the construction industry, increased costs for
borrowing money, and the need to demonstrate to funding entities the City’s plans for maintenance
and preservation of existing assets5.
3 Phase 1A PG&E Relocation – Project Design is 90% complete. Phase 1A expected to advertise for construction in
Summer 2022, with construction work on this phase beginning Fall 2022. Phase 1B Site Clearing and Demolition –
Project is at the 95% design completion level. Staff will be applying for reviews for building permits for Phase 1B in
the Spring of 2022. Construction is scheduled to begin Spring 2023.
4 A simple search of the City’s website shows over 390 results for “Palm Nipomo” parking that dates back to the
early 2000’s with dozens of hearings on the project.
5 The City has historically under invested in parking structure maintenance and deferred maintenance issues need to
be addressed to preserve life of the existing three assets and to modernize equipment to match customer needs and
maximize technological integration.
Cultural Arts District Memorandum Page 3
Why Do Rate Adjustments Need to Be Approved in June 2022?
To secure debt financing for the Cultural Arts District Parking Structure before the vertical
construction of Phase 2 requires proof of an approved long term rate structure that will ensure
financing and other operational obligations are achieved. The bottom line is that the conclusion
based on the analysis of variables is that it is necessary to increase parking rates in 2023 and 2025
to demonstrate to future finance lenders that the Parking Fund has an approved and long-term rate
strategy to be able to continually fund the long-term debt and operations that will be taken on to
construct the Cultural Arts District Parking Structure. Some important information related the
Parking Fund’s ability to fund the Cultural Arts District Parking Structure, necessary rate
adjustments, and the need to move this project forward include:
What are the Rate Adjustments Proposed and How do they Compare Locally?
Staff have previously conveyed to Council with the 2021-23 Financial Plan, the 2021-22 Mid-
Year update, and now with the 2021-22 Budget Supplement that rate adjustments are necessary to
ensure the Parking Fund’s health, ability to support existing and future debt obligations, required
infrastructure improvements and safety upgrades, while continuing to modernize the program.
With these forecasted rates, Council also approved the elimination of the first hour of free parking
in the parking structures with the 2021-23 Financial Plan (see page 340) beginning in fiscal year
2022-23. Without these rate adjustments, the Parking Fund will not be able to build the new
Cultural Arts District Parking Structure.
Table 1 below details the proposed rate adjustments and effective dates for on-street and surface
parking lots. Table 2 below details the proposed rate adjustments and effective dates for the public
Parking Fund lost over $4 million
to support downtown during the
pandemic
Construction is immient for City
and its community partner SLO
Rep
March 28, 2022 Received revised
project cost estimate based upon
current market conditions and
forecasted out to time of
construction resulting in increased
cost for parking structure
Construction cost increases of
27% between January 2021 to
May 2022 and expected to
continue to increase
May 10, 2022 Forecasted interest
rates for debt financing adjusted
to reflect inflationary trends
Bond Counsel advise staff to have
debt ratio at a minimum of 130%
Rate adjustments are needed to
meet debt ratios and must be
approved prior to debt issuance
Majority of rate adjustments take
effect in July 2023
Cultural Arts District Memorandum Page 4
parking structures. Table 3 compares local rates which shows that the City’s current parking rates
are $1.02 below the average parking rate for on-street parking and $1.40 below the current average
parking rate for parking structure parking rates. After the July 2023 parking rates are in place, the
city will slightly exceed the average parking rate for on-street but will be $0.75 below the average
current parking structure rates assuming other areas do not increase parking rates. As indicated in
the Budget Supplement (page 48) staff is aware that both Cal Poly and Paso Robles are considering
rate adjustments.
Table 1 below shows the
proposed parking rate
adjustments that are
recommended as part of the 2022-
23 Budget Supplement. As a
reminder, parking rate
adjustments were forecasted to
Council in the 2021-23 Financial
Plan (see page 342) but are
required to be revised due to
inflation and cost of construction
increases.
Table 1: Proposed Street Parking Rates and Effective Dates
Proposed Parking Hourly Rates Current Parking Rate Effective
Jan 2, 2023
Effective
July 1, 2023
Effective
July 1, 2025
1 On-Street and Lots
2 Tier 1 (Super Core) $2.00 $2.00 $4.00 $5.00
3 Tier 2 (Core) $1.75 $2.00 $4.00 $5.00
4 Tier 3 (Outlying Areas) $1.25 $1.50 $3.00 $3.00
Table 2: Proposed Parking Structure Rates and Effective Dates
Proposed Parking Structure Rates Current Parking Rate Effective July 1, 2023
1 Parking Structures
2 Hourly $1.50 $3.00
3 Max Daily $6.00 $12.00
4 Lost Ticket $6.00 $12.00
Cultural Arts District Memorandum Page 5
What is next for communications with the Community?
Staff are focused on the following efforts to communicate about these rate changes.
1. Targeted outreach using local media, print and digital platforms in addition to City
accounts on proposed changes between May 27th and June 7th.
2. Ongoing efforts such as in person meetings and publications for community partners to
address the concerns of downtown businesses and customers.
3. Expanded outreach on the Cultural Arts District Parking Structure and community benefits
of this resource.
4. Using consultant communication services to aid staff over the next year with a consistent
and comprehensive messaging on parking rate changes, program enhancements, and the
Cultural Arts District Parking Structure construction.
Alternatives to adjusting parking rates.
1. Do not adjust parking rates per staff recommendation: If Council chooses to not
increase parking rates or adjust parking rates at a lower amount this would effectively halt
the city from constructing the Cultural Arts District Parking Structure. The parking rates
as proposed are necessary to both secure and service the debt funding required to construct
the parking structure.
2. Council could direct staff to reduce the cost of the parking structure: If Council
directed staff to look at reducing the cost of the parking structure that would require that
Council use Parking Fund working capital to hire a consultant to audit the design for ways
to decrease cost. This audit is commonly referred to as Value Engineering.
This will likely take approximately 12 months to complete as it is necessary to prepare a
Request for Proposal, have Council approve the Request for Proposal to advertise, review
proposals and select the desired consultant, the time necessary for the consultant to review
the project plans and make recommendations to staff, and the time necessary for the City’s
design consultant to update the plans for construction.
Since January 2021 through May 2022, California has seen a 27% increase in construction
cost which equates to approximately 1.58% per month. Assuming that the construction
climate near future is much like the recent past, that would require the City to find in excess
Table 3: Comparable Agency Rates w/ Proposed Rates
Average Parking
Hourly Rate
Current
Parking Rate
Effective
January 2, 2023
Effective
July 1, 2023
Effective July
1, 2025
1 On-Street
2 San Luis Obispo $1.63 $1.75 $3.50 $4.00
3 Cal Poly $2.50 --- --- ---
4 Pismo Beach $5.50 --- --- ---
5 Paso Robles $1.00 --- --- ---
6 Parking Structures
7 San Luis Obispo $1.50 $1.50 $3.00 $3.00
8 Cal Poly $2.50 --- --- ---
9 Pismo Beach $5.00 --- --- ---
Cultural Arts District Memorandum Page 6
of $10 million in construction cost savings prior to realizing any fiscal benefits and the
consultants will most likely recommend the removal of environmental sustainable and
community amenity/benefit features of the garage such as 1) solar panels and electrical
vehicle charging, 2) aesthetic detailing, 3) frontage and site readiness costs for the SLOREP
building6, 4) frontage and site readiness for affordable housing development area7 and 5)
rooftop community viewing areas8. Staff’s does not recommend this alternative as costs
would likely increase during the redesign phase and the structure would provide less benefit
to the community.
3. Council could direct staff to explore other avenues and defer construction to same
date in the future: Any direction that defers construction of the Cultural Arts District
Parking Structure to a later date in the future will likely increase the overall cost of the
parking structures construction.
6 Cost estimates are anticipated to be over a million dollars
7 The assumption is that the City would not seek to recover any of these costs, or the land costs associated with
development affordable housing and the Council could direct Staff to recover all or some of these costs to defray the
costs to the parking fund visa vi the Affordable Housing Fund.
8 The rooftop viewing area requires the structure to be built to a different load bearing standard which is
approximately 25% above the traditional costs for supporting vehicles.
Item 6a
Department: Finance
Cost Center: 2002
For Agenda of: 6/7/2022
Placement: Public Hearing
Estimated Time: 120 minutes
FROM: Derek Johnson, City Manager
Brigitte Elke, Finance Director
Prepared By: Natalie Harnett, Principal Budget Analyst
SUBJECT: ADOPTION OF THE 2022-23 SUPPLEMENTAL BUDGET
RECOMMENDATION
1. Adopt a Resolution entitled, “A Resolution of the Council of the City of San Luis
Obispo, California, approving the Fiscal Year 2022-23 Budget” as presented; and
2. Adopt a Resolution entitled, “A Resolution of the Council of the City of San Luis
Obispo, California, approving the allocation of $13,564,467 in State & Local Fiscal
Recovery Funds in accordance with the U.S. Treasury Final Rule” including
$1,564,467, as recommended by the Council Ad-Hoc Committee; and
3. Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San
Luis Obispo, California, amending Title 10, Chapter 52 (Parking Meters), of the San
Luis Obispo Municipal Code” modifying the on-street and surface parking lot hourly
rates and establishing paid parking in the upper Monterey Street area ; and
4. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, establishing parking rates for the City’s parking structures”; and
5. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, approving modifications to the Parking Citation Penalty Schedule.”
DISCUSSION
REPORT-IN-BRIEF
This report and attached documents present the 2021-23 Financial Plan Supplemental
Budget which is the official budget appropriation for the second year of the Financial Plan.
The Supplemental Budget focuses on changes in financial position and needed
adjustment to the approved second year budget. Unlike in past years, Council adjusted
the approved budget with the 2021-22 Mid-year Review – these adjustments are reflected
the budget presented in this report.
The report details the use of the $1.5 million as recommended by the Council Ad-Hoc
Committee.
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Item 6a
Lastly, the report also brings forward recommendations to modify the on-street and
surface parking lot hourly rates and established paid parking in the upper Monterey Street
area. It also recommends establishing new parking rates for the City’s structures and
modifying the Parking Citation Penalty Schedule. These changes are being
recommended because of the significant escalation in projected costs of the Cultural Arts
District Parking Structure and the need for rate increases to meet the required debt
service obligation and maintain a balanced budget.
Background
Per the City Charter, Article XIII, Section 802, the City Council must appropriate a budget
for the upcoming fiscal year by July 1st. The City’s budget policy allows for a two-year
budget to be adopted. However, the appropriation of funding is only given for one fiscal
year, necessitating an annual budget hearing for subsequent appropriation.
Consistent with the City’s two-year budgetary process, the 2022-23 Budget presented for
adoption was prepared using the adopted 2021-23 Financial Plan as its foundation.
However, unlike a typical budget cycle, the City’s fiscal forecast changed so drastically
after initial adoption in June 2021 that Council adopted changes to the 2021-22 as well
as the 2022-23 budget with the Mid-year Review on February 15, 2022. These
adjustments are now incorporated in the Financial Plan Supplement and long-term
forecasts (Attachment A).
Mid-year Adjustments
Over the first half of FY 2021-22, the City experienced a surge of economic activity that
corresponded with the lifting of COVID-19 lockdowns and stimulative fiscal and monetary
policy. Given the positive revenue trends, Council approved mid -year 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. With this action, the Council also
allocated approximately $2 million in additional budget for 2022-23, which have now been
included in the Supplemental Budget presented here. The Mid-Year Council actions also
authorized an additional payment of $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.
Compensation Adjustments
The increases in General Fund revenue forecasts also allowed Council to quickly address
compensation shortfalls identified with the 2021 Benchmark Compensation Report for
Luis Obispo City Employees’ Association (SLOCEA) and Unrepresented Management
and Confidential Bargaining Units. On February 1, 2022, the Council approved
negotiation parameters for equity adjustments and cost of living increases are now
included in the 2022-23 Supplemental Budget.
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Item 6a
Overall Financial Forecast
All of the City’s Major Funds are in a good fiscal condition and are balanced throughout
the five-year forecast with the need to make some changes to parking rates to fund
planned capital expenditures and related debt service. Current assumptions are
cautiously optimistic, and the forecast does not assume a recession only a cool-down of
current economic activity. The impacts of high inflation on the City’s forecast are still
unclear and one of the looming concerns is that the cost of providing services will outpace
revenue growth in the near future.
Changes with the 2022-23 Supplemental Budget
Operating Budgets: Given the significant Mid-year adjustments, there are only a handful
of Significant Operating Budget Changes (SOBCs) included in the recommended budget.
The General Fund operating budget increased mainly due to the addition of a Capital
Maintenance Supervisor position and a new Solid Waste program position. Both positions
are offset by revenue and do not impact the bottom -line General Fund balance. The
Enterprise Funds increased their budgets to account for the rise in costs of chemicals,
utilities, and supplies. A breakdown of all SOBCs can be found in Attachment A.
Table 1: Significant Operating Budget Changes
One-time Ongoing
General Fund $ (48,775) $ 412,156
Water Fund $ 115,980 $ 864,290
Sewer Fund $ 24,480 $ 246,287
Parking Fund $ 44,800 $ 81,825
Total $ 136,485 $ 1,604,558
Capital Improvement Program (CIP)
There are several CIP changes proposed that reflect changes identified at the mid -year
review or to address urgent needs. General Fund changes are reflective of cost increases
and staffing constraints. Following an analysis and prioritization exercise, several
projects are recommended for deferral to 2023 -25 as they are either not “shovel” ready,
or added grant funds are being sought, or they can be paused until staff resources are
available and design or other consulting services are ready to deliver the project. Deferred
projects will remain on the five-year CIP list and return to Council for funding with the
2023-25 Financial Plan. Deferred project funds are in turn recommended to be used for
cost increases for the Summer 2022 roadway sealing project and to fund the capital
reserve which is in place to keep projects moving given the volatile bidding climate . As
staff anticipates with the global economic conditions impacting costs of goods and
services it is important to bring the Capital Reserve to policy levels so that it may be
applied to construction projects in 2022-23. Historically, after significant cost increases,
price increases have tended to stabilize and absent a recession or huge constructi on slow
down, costs don’t return to previous levels, the increases simply flatten out.
Page 451 of 652
Item 6a
The FY 2022-23 Supplement does not recommend an overhaul of the adopted Capital
Improvement Plan. However, staff is recommending the establishment of a few new
projects to address emergent needs, as well as budget changes to several existing
projects. For detailed changes, see Section 7 in Attachment A. New projects are
summarized in the table below and were reviewed by the Planning Commission at its
Meeting of May 25th for General Plan Conformity:
Fund Table 2: New CIP Projects* 2022-23 Budget
Parking Installation of Pay Stations in the Railroad Square $ 66,200
Parking Installation of Pay Stations on Upper Monterey $ 122,000
Public Safety Equipment
Fund Fire Department Extractors $ 135,000
Sewer Chorro-Palm to Monterey Pipeline Replacement $ 60,000
Transit Tenant Improvements at 1260 Chorro $ 250,000
Water Johnson-Iris to Bishop Pipeline Replacement $ 180,000
Water Recycled Water System Retrofits $ 200,000
Water Water Treatment Plan Major Facility Maintenance $ 245,000
Total New Projects $ 1,258,200
*Some new projects are offset by decreases in other project budgets. See report for detail.
2022-23 Budget Document – Attachment A
The attached document gives greater detail on the City’s financial condition, updated
revenue and expenditure trends, and assumptions for FY 2022 -23. The report is
organized as follows:
Section 1: City Manager Message
Section 2: Changes from Financial Plan & ARPA Appropriations
Section 3: Consolidated Financials
Section 4: Budget Detail
Section 5: Local Revenue Measure
Section 6: Debt
Section 7: Capital Improvement Plan
Section 8: Major City Goals
Section 9: Department Updates
Section 10: Appropriation Limit
State & Local Fiscal Recovery Funds – American Rescue Plan Act (ARPA) –
Attachment D
On March 1, 2022, the City Council received a presentation regarding the applicable uses
of State and Local Fiscal Recovery Funds provided through the American Rescue Plan
Act. The staff recommendation incorporated the City’s Major City Goals objective for the
$4,664,467 that had not been allocated with the 2022-23 Financial Plan. At that meeting,
the Council approved the following action:
Page 452 of 652
Item 6a
1) $1 million to be appropriated to the Infrastructure Investment fund for a total
allocation of $9.9 million. 2) $100,000 to augment the Human Relations
Commission’s Grant-In-Aid cycle for grants in support of non-profit
organizations. 3) Allocate $2 million to affordable housing that targets extremely
low & very low income and/or homeless persons most impacted by COVID -19. 4)
$1,564,467 to be reviewed by a Council ad-hoc committee for most appropriate
use in accordance with City Major City Goals and objectives.
The Council ad-hoc committee was staffed by Mayor Stewart and Councilmember
Shoresman. The committee met on three separate occasions and the details of this
meetings and options analyzed are included as Attachment C.
March 21, 2022: The ad-hoc committee received a brief overview of the American Rescue
Plan Act and the Council action to-date; funding option under the U.S. Treasury Final
Rule; the timeline for adoption of applicable uses with the Financ ial Plan Supplement;
and next steps.
The ad-hoc committee requested to receive additional information on broadband
coverage in San Luis Obispo and research on other jurisdictions’ approach to premium
pay for essential employees.
April 20, 2022: The ad-hoc committee had received information on broadband coverage
and possible options to provide premium pay for those impacted by COVID-19 . 20 cities
responded of which five did not provide premium pay, three were considering the option,
and 12 provided some form of pay mainly to their city essential employees. Only two
jurisdictions provided premium pay to grocers and pharmacy workers. Further research
confirmed that they are thus far the only cities taking this approach.
The ad-hoc committee requested to receive additional information regarding the
complexities in administering programs in Oxnard and Port Hueneme that advanced pay
for Grocery Workers. On April 27, 2022, the ad-hoc committee received information
gathered from the Finance Director in Oxnard which showed that the programs in Port
Hueneme mirrored the Oxnard approach, albeit at a much smaller scale.
After consideration of the information and discussion, the ad-hoc committee recommends
that the City adopt the following use of the $1,564,467 of State and Local Fiscal Recovery
Funds:
a. $600,000 toward a broadband study and subsequent implementation of
recommended action.
b. $964,467 toward affordable housing that targets extremely low & very low
income and/or homeless persons most impacted by COVI D-19
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Item 6a
Insurance Fund
The Insurance Fund serves to pay the City’s annual premiums for liability, workers’
compensation, special events, volunteer, and property insurance needed to protect the
City and to manage fluctuations in claims-related expenses.
The City has received notification that its required contribution for 2022 -23 will be higher
than the amount adopted with the 2021 -23 Financial Plan. The increase in insurance
costs this year is attributable 3 factors: 1) There were some high -cost claims within the
membership pool to which the City belongs and shares expenses; 2) increases in payroll
and the number of employees also increased exposure and associated costs; 3) a recent
appraisal increased the valuation of the City’s properties and costs to i nsure them.
In order to keep within the adopted transfer to the fund, available fund balance will be
used to cover the change in cost for 2022-23. The Fund balance is currently $1,757,013;
sufficient to cover the increase of $314,000. However, the City’s fiscal policies under
Section 7. Fund Balance and Reserves (F) stipulate that the reserve will be based on a
75% confidence level of the previous five-year average claims experience, which
amounts to approximately $1,500,000. The use of fund balance wi ll leave 1,443,013
which dips slightly below the policy required level. The approach will be to replenish the
75% reserve levels as part of the 2023-25 Financial Plan to ensure the levels are
appropriately funded and adequate for foreseeable and reasonable risk exposure.
Appropriation Limit
Under Article XIII B of the California Constitution, the City is required to calculate and
adopt an appropriation limit to guide the budget appropriations. The limit restricts
appropriations from tax revenues by State and local governments. Under its provisions,
no local agency can appropriate proceeds of taxes in excess of its “appropriation limit”.
The recommended budget for fiscal year 2022-23 remains within those limits. The City
is approximately $20 million below the appropriations or Gann limit as shown in Budget
Report Section 10.
Table 3: FY 2022-23 Appropriation Limit
Appropriations Limit 2021-22 $79,470,558
Consumer Price Index 7.50%
Population Factor: County Population Growth 0.28%
Compounded Percentage Factor (multiplicative not additive) 1.025%
Appropriations Limit 2022-23 $85,666,375
Appropriations Subject to Limit $65,610,162
Appropriation amount under/(over) Limit $20,056,213
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Item 6a
Amendments to Title 10 of the Municipal Code (Attachment E)
Discussed in greater detail in the Parking Fund review is the identified need for the parking
services program (which funds operations through rates and fees) to increase parking
hourly rates. The need for Parking rate increases have been discussed in 1) 2021 -23
Financial Plan (where Council approved paid parking in the upper Monterey Area
beginning in 2022-23), 2) Mid-Year 2021-22 Financial Plan, and again in this 3) 2021-22
Budget Supplement. During the pandemic rates were not increased, although they
should have been.
As foreshadowed for several years, the assistance the Fund provided to local businesses
during the pandemic (lost revenues given free parking, free parklet use, and expanded
loading zones) combined with costs associated with building the fourth parking structure,
the Cultural Arts District Parking Structure (located at Palm and Nipomo Streets) and the
debt associated with this require rate increases beginning in 2022 -23.
Unfortunately, the drastic escalation in projected costs for the Cultural Arts District
Parking Structure require significant rate increases to meet the required debt service
obligation and maintain a balanced budget. The proposed rate increases were calculated
by forecasting the Parking Program’s operating expenditures, debt service, and parking
demand over the next five fiscal years, and looking at other local “parking districts” (Cal
Poly, Pismo Beach and Paso Robles). Notably San Luis Obispo is certainly not the most
expensive today nor following the proposed increases. Based on these factors, increases
are necessary to meet the 130% revenue to expenditure debt service ratio as required by
prospective lenders for the Cultural Arts District Parking Structure construction costs.
Table 4 below details the proposed rate increases and effective dates for on -street and
surface parking lots. Staff is recommending an introduction of an Ordinance (Attachment
E) modifying the Municipal Code to include the proposed on-street and surface parking
lot rate increases effective January 2, 2023 and July 1st in 2023 and 2025. The proposed
rate increase to Tier 2, if approved is, will not be implemented until January 2, 2023. Staff
intend to utilize the time between adoption and implementation to communicate all rate
increases and expansions to paid parking areas.
Table 4: Proposed
Parking Hourly Rates
Current
Parking Rate
Effective
Jan 2,
2023
Effective
July 1,
2023
Effective
July 1,
2025
1 On-Street and Lots
2 Tier 1 (Super Core) $2.00 $2.00 $4.00 $5.00
3 Tier 2 (Core) $1.75 $2.00 4.00 $5.00
4 Tier 3 (Outlying Areas) $1.25 $1.50 $3.00 $3.00
Page 455 of 652
Item 6a
Figure 1 – Map showing locations of Tiered Parking Rates
Establishing Parking Structure Rates (Attachment F)
Similar to the discussion above regarding the proposed on-street and surface parking lot
rate increases, an increase in parking structure rates is also necessary to meet the debt
service obligations for construction of the new parking structure while maintaining a
balanced Parking Fund. Staff is, therefore, also recommending the adoption of a
Resolution (Attachment F) establishing parking structure rates effective on July 1st, 2023.
The Resolution does include the removal of the first free hour of parking as previously
approved by Council in June 2021 as part of the 2021-23 Financial Plan adoption. Table
5 below details the proposed rates for the public parking structures. Without rate
increases to the on-street, lot, and structure rates; the Parking Fund will not be able to
support the additional debt obligation for the escalated costs of the Cultural Arts District
Parking Structure.
There is a strong need for the Parking Fund to implement previously Council approved
reduction of free parking at the parking structures and the adoption of rate increases
previously foreshadowed for Council and the Community while maintaining the hours of
operation approved by Council with the 2021-23 Financial Plan. The need for Parking
rate increases have been discussed in 1) 2021-23 Financial Plan, 2) Mid-Year 2021-22
Financial Plan, and again in this 3) 2021-22 Budget Supplement.
Page 456 of 652
Item 6a
Table 5: Proposed
Parking Structure Rates
Current
Parking Rate
Effective
July 1,
2023
1 Parking Structures
2 Hourly $1.50 $3.00
3 Max Daily $6.00 $12.00
4 Lost Ticket $6.00 $12.00
Modifying Parking Citation Penalty Schedule (Attachment G)
Staff is also recommending the adoption of a Resolution (Attachment G) modifying the
parking citation penalty schedule increasing fine amounts for three different parking
violations (expired parking session, parking within an intersection, and parking on
roadside of vehicle). Parking fines are meant to be high enough to deter unwanted
behavior and the fine amounts for the violations listed in the Resolution are no longer
effective at deterring said behavior, so staff is recommending an increase effective Ju ly
1st, 2022.
Previous Council or Advisory Body Action
The 2021-23 Financial Plan was adopted by Council on June 1, 2021, and Mid -year
changes were approved by Council on February 15, 2022. The Local Revenue Measure
(LRM) Budget allocations for 2022-23 were presented to the Citizens’ Revenue
Enhancement Oversight Commission (REOC) on May 12, 2022. After that meeting, as
discussed previously in this report, bids were received for the Summer Paving project
highlighting cost increases and staffing constraints which led to a prioritization exercise
and recommended focused project deferrals to the 2023 -25 Financial Plan. Staff has
communicated this emergent need and planned approach to the REOC. The proposed
budget remains in line with the LRM priorities.
Policy Context
Although the City adopts a two-year Financial Plan, the budget (also known as
appropriations) is adopted annually under this process. Pursuant to Section 804 of the
City Charter, the City Council must adopt the 2022-23 Budget by June 30, 2022 in order
for the appropriations to be in place when the 2022-23 fiscal year begins on July 1, 2022.
This action is accomplished by Resolution and a Budget Resolution is provided as
Attachment B to this report.
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
2022-23 Supplemental Budget (Attachment B) was posted on the City’s website for public
review on May 25, 2022.
CONCURRENCE
All departments participated in the development of the 2022-23 Supplemental Budget and
concur with the information and budgets presented in the financial plan.
Page 457 of 652
Item 6a
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the reco mmended action in
this report, because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
The 2022-23 Financial Plan Supplement and Budget appropriates the budget required for
the City organization to deliver its work programs and services. It is balanced between
revenues and expenditures and retains its operating reserve levels as set by policy. The
following budget levels are being appropriated:
*Includes ARPA allocation as recommended by the ARPA ad-hoc subcommittee.
Table C1: Total Revenue by
Fund (in thousands)
2020-21
Actual
2021-22
Budget
2022-23
Original
Budget
2022-23
Revised
Budget
% Change from
Original 2022-23
Budget
1 Tax & Franchise Revenue $70,896 $87,092 $84,379 $90,156 7%
2 Service Charges & Other Revenue
3 General Fund $16,749 $19,937 $19,369 $20,194 4%
4 Water Fund $29,435 $26,224 $21,534 $26,980 25%
5 Sewer Fund $21,784 $23,885 $21,058 $20,836 -1%
6 Parking Fund $3,349 $4,611 $6,494 $6,533 1%
7 Transit Fund $7,243 $7,707 $4,950 $11,133 125%
8 Assessment Revenue $1,631 $1,689 $1,812 $2,002 10%
9
10 Proceeds from Debt Financing
11 Water Fund $11,030 $3,270 --
12 Sewer Fund $20,212 $89,916 $4,865 $427 -91%
13 Total $182,329 $264,331 $169,326 $178,261 5%
Table C2: Total Expenditures by
Fund (in thousands)
2020-21
Actual
2021-22
Budget
2022-23
Original
Budget
2022-23
Revised
Budget
% Change from
Original 2022-23
Budget
1 General Fund* $ 79,125 101,731$ 103,621$ 108,614$ 5%
2 Business Activities
3 Water Fund $ 31,396 39,679$ 27,632$ 28,340$ 3%
4 Sewer Fund $ 48,754 123,584$ 24,367$ 18,125$ -26%
5 Parking Fund $ 4,837 7,125$ 11,520$ 14,347$ 25%
6 Transit Fund $ 5,857 8,293$ 4,895$ 8,027$ 64%
7 Special Revenue
8 Tourism Assessment $ 1,027 1,640$ 1,582$ 1,577$ 0%
9 Downtown Assessment $ 249 245$ 275$ 275$ 0%
10 Total $ 171,244 282,297$ 173,893$ 179,304$ 3%
Page 458 of 652
Item 6a
ALTERNATIVES
Do not adopt the budget and give direction to the City Manager on desired changes
and budget reallocations. The item would have to be continued to June 21, 2022, as
the Council is required to adopt a budget by July 1, 2022.
ATTACHMENTS
A – 2022-23 Supplemental Budget
B – Draft Resolution – Budget Appropriations
C – Draft Resolution – American Rescue Plan Act (ARPA)
D – Draft Ordinance – Amending Title 10 Chapter 52 of the Municipal Code
E – Draft Resolution – Amending Parking Fee Rates
F – Draft Resolution – Amending Parking Citation Schedule
Page 459 of 652
Page 460 of 652
Financial Plan
Supplement
2021-23
2022-23 Adopted BudgetPage 461 of 652
2021-23 Financial Plan
ADOPTED SUPPLEMENTAL BUDGET 2022-23
June 2022
ERICA A. STEWART, MAYOR
CARLYN CHRISTIANSON, VICE MAYOR
ANDY PEASE, COUNCIL MEMBER
JAN MARX, COUNCIL MEMBER
MICHELLE SHORESMAN, COUNCIL MEMBER
DEREK JOHNSON, CITY MANAGER
Preface
The City of San Luis Obispo follows a nationally recognized two-
year Financial Plan process. The Financial Plan links goals and
objectives with resources needed to accomplish them. 2022-23
marks the second year of the City’s 2021-23 Financial Plan. This
Supplemental Budget focuses on changes in financial position
and an updated fiscal forecast. Council approval is required for
each year of the budget cycle in order to appropriate the
funding. For complete budget information and details on Budget
Process, Major City Goals, Department Objectives, the Capital
Improvement Plan, and City policies, please review the full 2021-
23 Financial Plan located HERE.
Budget Document Pg. 2 Page 462 of 652
Table of Contents (hyperlinked)
Section 1: Intro
City Manager Message 4
Section 2: Changes from Financial Plan Adoption
ARPA Details
Mid-year Approved Budget Changes
8
10
Section 3: Consolidated Financials
Total Revenue/Expenditures
Reserve Levels
Transfers
13
14
15
Section 4: Fund Overviews/ Detailed Financials
General Fund
Special Revenue & Other Funds
Enterprise Funds: Water & Sewer
Enterprise Fund: Parking Fund
Enterprise Fund: Transit Fund
16
32
33
48
61
Section 5: Local Revenue Measure 68
Section 6: Debt Service 77
Section 7: Capital Improvement Plan 78
Section 8: Major City Goals
Economic Recovery, Resiliency & Fiscal Sustainability
Diversity, Equity, Inclusion
Housing and Homelessness
Climate Action, Open Space & Sustainability
111
114
117
122
Section 9: Department Updates
Admin/IT
City Attorney
Community Development Department
Finance
Fire
Human Resources
Parks & Recreation
Police
Public Works
Utilities
141
144
146
148
149
151
153
156
158
160
Section 10: Appropriation Limit 161
Budget Document Pg. 3 Page 463 of 652
City Manager Message
Section 1: City Manager Message
It is my pleasure to present the 2022-23 supplemental budget that is
consistent with the adopted 2021-23 Financial Plan and augmented with
important investments for emergent community and organizational needs.
The adopted budget was generated through the Council approved strategic
budgeting approach and allocated additional resources to Major City Goals
to address the community’s economic recovery, further invests in
sustainability efforts to combat climate change, and invests in community
livability through citywide improvements. The lens of Diversity, Equity, and
Inclusion has been incorporated into every aspect of the City’s work and we
look forward to making further progress on making San Luis Obispo a
welcoming and inclusive place.
Going into the 2021-23 Financial Plan, the City maintained a cautious outlook in light of the worldwide
pandemic and associated economic activities. However, with new challenges on the horizon, the forecasts
have been updated based on the current economic landscape. 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 will enter the new fiscal year in a positive and optimistic
financial position. At the 2021-22 Mid-year Review, the Council approved budget changes that
immediately addressed the needs of the community and utilized available resources without delay. This
is why the supplemental budget contains very few additional changes and continues to strategic trajectory
of allocating resources towards the five Major City Goals.
Even at this time, the worldwide pandemic brought on by the COVID-19 virus is still being monitored and
the City is poised to adjust as needed. The lessons learned from the pandemic will be with us forever and
yet we find ourselves preparing for new challenges with hyperinflation, labor and supply chain shortages,
and related cost increases .
2021-22 in Review
In so many ways, the 2021-22 Fiscal Year was an anomaly due to the COVID-19 pandemic that influenced
the City’s fiscal affairs and the variety of services needed to assist with the recovery in addition to
providing all its regular programs and projects. By the time we were halfway 2021, the City experienced a
surge of economic activity that corresponded with the lifting of lockdowns and stimulative fiscal and
monetary policy. Given the positive revenue trends, Council approved mid-year 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. With this action, the Council also allocated approximately $2 million in
additional budget for 2022-23, which are included in the Supplemental Budget presented here. The $2
million appropriation was part of other Council actions that authorized a total pre-payment of $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.
Though another turbulent year, 2021-22 saw many accomplishments and improvements for and around
the community such as:
Budget Document Pg. 4 Page 464 of 652
City Manager Message
• Expansion of childcare services to serve all five City school sites (C.L. Smith, Hawthorn, Pacheco,
Sinsheimer, and Bishop’s Peak)
• Opening of Miossi Open Space and upgrades to existing trails throughout the City’s Open Space
• Completion of an outdoor fitness court at Emerson Park as part of a National Fitness Campaign
grant
• Completion of the summer downtown paving project
• Lighting and landscape improvements at Mission Plaza
• Continued efforts toward the restoration of Laguna Lake through a two-week dredging project
• Completion of the Railroad Safety Trail project
• Addition of staff positions to deliver on the adopted Capital Improvement Plan, which has grown
in size, scope, and complexity due to voters’ passage of Measure G-20
• Completion of the 2021 Benchmark Compensation Study
• Successfully recruited for and promoted 165 employees, equivalent to 35% of the City’s
headcount
• Implemented the Mobile Crisis Unit
• Expanded Fire Technical Rescue Team Membership from three to six
• Welcomed the City’s first Diversity, Equity, and Inclusion (DEI) Manager who will continue to
advance DEI priority initiatives in the City organization and community.
• Led the second year of the Buy Local Bonus program resulting in $868,522 in direct local
spending from 4,400 shoppers at 120 unique, local businesses during the holiday season, a 19%
increase from the previous year.
• Adoption of Lead by Example: A Plan for Carbon Neutral Municipal Operations. The plan will
enable the City to achieve carbon neutral municipal operations by 2030.
• Received the GFOA Distinguished Budget Presentation Award for the 2021-23 Financial Plan and
the GFOA Certificate of Achievement for Excellence in Financial Reporting.
• Transitioned Downtown Bike Patrol Team to E-Bikes which will help increase mobility and
contribute to the City’s Climate Action Major City Goal
2022-23 Budget Highlights
Into the Future with focus and determination
As adopted in June 2021, the second year of the Financial Plan provides investments into Council adopted
strategic initiatives and 74 established service programs while maintaining a carefully balanced budget.
These ambitious work plans continue to bring new challenges. Several of the challenges that the City
addresses with the second-year budget are
some of the most pernicious issues facing
society, but the solutions are neither easy nor
inexpensive. In order to make progress and
achieve meaningful outcomes, the
organization must stay focused and
disciplined.
Workforce – the Great Reshuffle
First dubbed the “Great Resignation” is now more accurately labeled the “Great Reshuffle”. Globally,
millions of people are reconsidering and reconfiguring their careers and lives and leveraging the current
Budget Document Pg. 5 Page 465 of 652
City Manager Message
labor market to find opportunities and positions that fit with their desired lifestyle. The City is not immune
from this phenomenon and has seen record number of transitions.
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 requires and expects. In order to do so, the City will need to prioritize competitive
compensation.
To that end, the 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. Immediate action was taken to address compensation shortfalls
found by the report on April 19, 2022 for confidential and unrepresented management. As of the writing
of this message, the City is currently meeting with represented labor partners on the potential wage and
benefit increases identified in the benchmark study.
The increases in General Fund revenue forecasts allowed Council to quickly address this need and the
Council approved negotiation parameters for equity adjustments and cost of living increases are now
included in the 2022-23 Supplemental Budget. Moving forward, the City will need to be flexible and
creative in order to attract and retain well-qualified employees. More broadly, there is a need region-
wide for a concerted strategy to attract and retain employees and the absence of an effective strategy
likely portends less than optimum growth and, in the case of the City, struggles to meet service demands.
Investment into the Community
The City’s ongoing services have been developed over many years with the input from the community,
resulting in programs that provide the envisioned quality of life in San Luis Obispo. After years of
“tightening the belt” to face challenges and pension obligations head-on, the 2021-23 Financial Plan
allowed the City to allocate much needed resources back into ongoing services, programs, and
infrastructure and this effort continues with the Financial Plan Supplement and 2022-23 budget.
Capital
While the City has made significant progress on delivering capital projects, it is constrained by
unprecedented conditions that are affecting the entire nation. These obstacles include labor market
shortages, significant construction activity in our area due to Federal stimulus monies (increasing local
competition for design, inspection, and construction services), supply chain issues, and inflation.
While the construction phase of projects is often the community’s first view of the improvements that are
being made, it is really the result of months and sometimes years of planning, outreach, study, and design
work that must be completed prior to making visible progress on a project. In light of this, the City must
ensure that operating resources are right sized to deliver projects and continue meaningful progress for
the community in the maintenance and improvements to its infrastructure.
American Rescue Plan Act & the State and Local Fiscal Recovery Fund
The State and Local Fiscal Recovery Funds allocated through the American Rescue Plan Act provided much
needed fiscal relieve to state, county, and municipal governments. The City stands to receive $13.5 million
from the fund that it will use to backfill its Infrastructure Investment Fund to advance critical capital
projects, invest in affordable housing and homelessness, as well as fast and reliable broadband access for
Budget Document Pg. 6 Page 466 of 652
City Manager Message
the entire community. Page 8 in the 2022-23 Budget Supplement document provides additional detail
regarding the funding and the Council’s decision making regarding its use.
CalPERS
With the $12.4 million catch-up payment to CalPERS made in March 2022, the forecast maintains its pre-
pandemic commitment to address the long-term pension liability by making additional investments each
year. In July 2021, CalPERs reported a 21.3% net return on investments for the 12-month period that
ended June 30, 2021. Under the Funding Risk Mitigation Policy, approved by the CalPERS Board of
Administration in 2015, the double-digit return triggered a reduction in the discount rate used to calculate
employer and Public Employees’ Pension Reform Act (PEPRA) members contributions. The discount rate,
or assumed rate of return, has now dropped from 7% to 6.8% on ongoing basis. The lowering of the
discount rate will increase both employee and employer normal cost and also influence the unfunded
liability. However, the double-digit gains should largely mitigate the impact of the lower discount rate on
the unfunded liability. The City’s commitment to annually pay additional contributions will serve the
organization in the long run.
Long Term Outlook and the Path Ahead
In many ways, the 2022-23 Supplemental Budget will mark a transition period for the City organization.
The 2021-23 Financial Plan restored the work postponed by the pandemic and allowed the City to re-
invest in its core services and important Major City Goal efforts and strategic initiatives. The next several
years will concentrate on transforming the City’s role as an attractive employer and finding a balance
between the delivery of service and programs and capital programs.
Due to the current economic and geo-political circumstances, uncertainty continues to be the one
certainty in economic forecasting. However, the updated long-term forecast considers many of the
current trends and conditions and remains balanced but this and future Councils will need to be mindful
that expansion of programs or new programs will likely require tradeoffs. The City will need to remain
agile and cautious as it moves through this challenging economic and fiscal climate. As we embark on
another year of this “strange routine”, we will need to remain focused and committed to making San Luis
Obispo the kind of resilient, dynamic, and sustainable community we want to live and thrive in and
advance the key initiatives and tasks the Council set forth in the City’s Major City Goals.
With gratitude,
Derek Johnson
City Manager
Budget Document Pg. 7 Page 467 of 652
Changes from Financial Plan
Section 2: Significant Changes from the Financial Plan Adoption
American Rescue Plan Act & the State and Local Fiscal Recovery Fund
The 2021 American Rescue Plan Act provided much needed fiscal relief to State and local governments
through the State and Local Fiscal Recovery Fund. From the $350 billion allocated, the City of San Luis
Obispo will receive $13,564,467. The second tranche of the payment is expected in July 2022. The 2021-
23 adopted Financial Plan considered $8.9 million in receipts that coincided with the revenue loss the City
experienced in 2020. The City Council approved using the funding to backfill capital projects that were put
on hold and to assist with any unforeseen developments in the construction environment. The funding
was therefore placed in the Infrastructure Investment Fund for flexibility in addressing adverse
circumstances.
The U.S. Treasury’s Final Rule released in January 2022, provided final guidance to governments as to the
use of the funding under four separate categories. It also clarified that cities can use a flat amount of $10
million for revenue loss without further proof or calculation of loss.
Not all of the categories are applicable to a municipal corporation such as San Luis Obispo, but on March
1, 2022, the City Council received a presentation regarding the applicable use and a staff recommendation
that incorporated the City’s Major City Goals objective for the $4,664,467 that had not been allocated
with the Financial Plan. Council Agenda Report - March 1, 2022
At that meeting, the Council approved the following action:
1.$1 million to go toward the Infrastructure Investment fund for a total allocation of $9.9 million.
2. $100,000 to augment the Human Relations Commission’s grant-in-aid cycle for grants in support
of non-profit organizations.
3.Allocate $2 million to affordable housing that targets extremely low & very low income and/or
homeless persons most impacted by COVID-19.
4. $1,564,467 to be reviewed by a Council ad-hoc committee for most appropriate use in accordance
with City Major City Goals and objectives.
The Council ad-hoc committee was staffed by Mayor Stewart and Councilmember Shoresman. The
committee met on three separate occasions.
March 21, 2022: The ad-hoc committee received a brief overview of the American Rescue Plan Act and
the Council action to-date; funding option under the U.S. Treasury Final Rule; the timeline for adoption of
applicable uses with the Financial Plan Supplement; and next steps.
The ad-hoc committee requested to receive additional information on broadband coverage in San Luis
Obispo and research on other jurisdictions’ approach to premium pay for essential employees.
April 20, 2022: The ad-hoc committee received information on broadband coverage within the City of SLO
as well as information on efforts in other jurisdictions and possible investment options. They also received
information staff had gathered from cities through a California Cities list serve request on premium pay
for essential workers. 20 cities responded to an inquiry, of which five did not provide premium pay, three
Budget Document Pg. 8 Page 468 of 652
Changes from Financial Plan
are considering the option, and 12 provided some form of pay mainly to their city essential employees.
Only two jurisdictions (Oxnard and Port Hueneme) provided premium pay to grocers and pharmacy
workers. Further research confirmed that they are, thus far the only cities taking this approach.
The ad-hoc committee requested to receive additional information regarding the complexities in
administering the program in Oxnard and Port Hueneme. As background, Oxnard appropriated $2.5
million and each worker was eligible for up to $1,000 in payment. The City of Port Hueneme appropriated
nearly $175,000 and workers were also eligible for $1,000 payments.
April 27, 2022: The ad-hoc committee received information gathered from the Finance Director in Oxnard.
The program in Port Hueneme mirrored the Oxnard approach, albeit at a much smaller scale.
After consideration of the information and discussion, the ad-hoc committee recommended that the City
adopt the following use of the $1,564,467 million of State and Local Fiscal Recovery Funds:
1.$600,000 to improve the broadband coverage in San Luis Obispo
a.$100,000 for a digital fiber strategic plan and the remaining $500,000 to leverage state
and grant funding with the goal of advancing more digital fiber in the City with an
emphasis on closing the equity gap.
2.$964,467 toward affordable housing for at-risk population or very low to extremely low-income
classes most impacted by Covid-19.
Final Allocation of State & Local Fiscal Recovery Funding included in the 2022-23 Supplemental
Budget
Revenue Loss -
$10 million
$9.9 million to the
Infrastrucutre Invement
Fund
$100,000 for grants to
health & human services
programs/projects via the
HRC grants-in-aid
program
$3,564,467 million
tied to Final Rule
$2,964,467 for Affordable
Housing (low and very low
income)
$600,000 for
1. Citywide broadband
study
2. Implementation of
findings.
Budget Document Pg. 9 Page 469 of 652
Changes from Financial Plan
Mid-Year Report and Approved Changes to Budget Appropriations
The mid-year report the City Council receives, provides a thorough review of the City’s financial
condition 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 approve possible one-time
allocations of unassigned fund balance as reported through the City’s audit and Annual Comprehensive
Financial Report and allows the Council to adjust revenue and expenditure assumptions should the
need arise. 2021-22 Mid-Year Review - February 2022
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 was anything but “most years”. With the ongoing
pandemic-related rollercoaster or, as others have characterized it, Pandemic Flux, the City organization
found itself in a situation to address emerging needs of the community and utilize available
resources without hesitation or delay. The mid-year therefore included 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. The approved ongoing expenditures have now been included in the
2022-23 Financial Plan Supplement and considered in the long-term forecast (page 23)
The following actions were taken that will influence year-end balances and adjust previously adopted
programs and services budgets in FY 2022-23.
1.Additional CalPERS payments consistent with the Fiscal Health Response Plan (FHRP). The total
payment equates 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.
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
Budget Document Pg. 10 Page 470 of 652
Changes from Financial Plan
2.One-time and ongoing operating expenditure that are now incorporated into the Financial Plan
Supplement and the long-term forecast:
Table 1: General Fund Operating Budget Requests FY 21-22 FY 22-23
Available Balance $ 2,273,520 $ 911,925
1 2nd Legal Assistant Ongoing - 73,400
2 One-time Contingency: Benchmark Study Adjustments One-time 250,000 -
3 Conversion of City Attorney Contract Positions(3 FTE)1 Ongoing - -
4 Hybrid Public Meeting Support (0.5 FTE) Ongoing - 60,888
5 Monsido - ADA Compliance Software Ongoing - 4,900
6 Temporary Office Leasing and Equipment One-time 197,040
7 Transitional Legal Services Ongoing - 32,000
8 Virtual Meeting Software Ongoing - 6,200
9 Part-time Fire Inspector (0.5 FTE) (Revenue Offset) Ongoing 11,025 33,410
10 Part-time, Contract Attorney Resource Ongoing - 94,100
261,025 501,938
Remaining balance 2 $2,012,495 $409,987
Table 2: LRM Operating Budget Requests FY 21-22 FY 22-23
Available Balance $ 1,531,000 $ 1,304,870
1 Housing/Homelessness Contract Position One-time 40,000 80,000
2 Increase in Mission Plaza Maintenance Ongoing 27,000 27,000
3 Convert Mobile Crisis Unit to Permanent (1 FTE)3 Ongoing - -
4 Accelerate New Streets Position One-time - -
5 Additional Pressure Washing Ongoing 25,000 25,000
6 Additional Pruning/Watering Ongoing 200,000 200,000
7 Additional Streets Maintenance Staff (2 FTE) Ongoing 60,750 243,000
8
Additional Supplies for Downtown Maintenance
Program Ongoing - 25,000
9
CAPSLO Programming – Railroad Square Safe
Parking One-time 64,633 -
10 Centralized Resident Inquiry Platform Ongoing 40,000 40,000
11
CIP Staff Augmentation Study – Conversion of
Existing Funding to Positions (4 FTE) Ongoing - -
12 Community Services Coordinator (1 FTE) Ongoing - 9,728
1 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.
2 Given the remaining uncertainty and volatility that the economy is facing, staff recommend not
appropriating any additional expenditures at this time.
3 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.
Budget Document Pg. 11 Page 471 of 652
Changes from Financial Plan
Table 2: LRM Operating Budget Requests FY 21-22 FY 22-23
Available Balance $ 1,531,000 $ 1,304,870
13 Public Safety Customer Engagement Ongoing 17,000 12,000
14 Mobile Data Computers One-time 14,200 -
15
Supplemental Overtime for Farmer’s Market
Support Ongoing 15,000 15,000
16 Contract Volunteer Coordinator P&R One-time 32,850 101,508
17
Converting Contract Homelessness Response
Manager to FTE (1 FTE)3 Ongoing - -
18 Emergency Manager (1 FTE) Ongoing 38,627 143,061
19 Facilities Additional Contract Funding Ongoing 25,000
20 Parks Additional Contract Funding Ongoing - 40,000
21 Parks Maintenance Beautification Gardner (1 FTE) Ongoing 48,600 97,200
Total 623,660 1,083,497
Remaining balance $907,340 $221,373
Budget Document Pg. 12 Page 472 of 652
Consolidated Financials – All Major Funds Combined
Section 3: Consolidated Financials – Major Funds Combined
Consolidated Financials – Revenues and Expenditures
*Includes ARPA allocation as recommended by the ARPA ad-hoc subcommittee (See Budget Section 2).
Table C1: Total Revenue by Fund
(in thousands)Footnote2020-21
Actual
2021-22
Budget
2022-23
Original
Budget
2022-23
Revised
Budget
% Change from
Original 2022-23
Budget
1 Tax & Franchise Revenue $70,896 $87,092 $84,379 $90,156 7%
2 Service Charges & Other Revenue
3 General Fund $16,749 $19,937 $19,369 $20,194 4%
4 Water Fund $29,435 $26,224 $27,794 $26,980 -3%
5 Sewer Fund $21,784 $23,885 $21,058 $20,836 -1%
6 Parking Fund $3,349 $4,611 $6,494 $6,533 1%
7 Transit Fund 1 $7,243 $7,707 $4,950 $11,133 125%
8 Assessment Revenue $1,631 $1,689 $1,812 $2,002 10%
9
10 Proceeds from Debt Financing
11 Water Fund $11,030 $3,270 --
12 Sewer Fund 2 $20,212 $89,916 $4,865 $427 -91%
13 Total $182,329 $264,331 $169,326 $178,261 5%
1 - Increase due to additional Federal Grants. See budget section 4c for more detail
2 - Decrease due to timing of long-term debt proceeds reciepts
Table C2: Total Expenditures by
Fund (in thousands)
2020-21
Actual
2021-22
Budget
2022-23
Original
Budget
2022-23
Revised
Budget
% Change from
Original 2022-23
Budget
1 General Fund* $ 79,125 101,731$ 103,621$ 108,614$ 5%
2 Business Activities
3 Water Fund $ 31,396 39,679$ 27,632$ 28,340$ 3%
4 Sewer Fund $ 48,754 123,584$ 24,367$ 18,125$ -26%
5 Parking Fund $ 4,837 7,125$ 11,520$ 14,347$ 25%
6 Transit Fund $ 5,857 8,293$ 4,895$ 8,027$ 64%
7 Special Revenue
8 Tourism Assessment $ 1,027 1,640$ 1,582$ 1,577$ 0%
9 Downtown Assessment $ 249 245$ 275$ 275$ 0%
10 Total $ 171,244 282,297$ 173,893$ 179,304$ 3%
Table C3: Expenditures by
Category (in thousands)2020-21 Actual 2021-22 Budget
2022-23 Original
Budget
2022-23 Revised
Budget
% Change from
Original 2022-23
Budget
1 Staffing $ 64,014 69,732$ 73,810$ 76,920$ 4%
2 Contract Services $ 11,619 16,379$ 13,759$ 14,333$ 4%
3 Other Operating Expenses $ 29,850 28,851$ 27,457$ 32,694$ 19%
4 Capital Investment $ 58,518 160,651$ 46,390$ 48,690$ 5%
5 Debt* $ 7,244 6,685$ 12,476$ 6,667$ -47%
6 Total $ 171,244 282,297$ 173,893$ 179,304$ 3%
* Reduction in debt due to an update to the timing of the first debt payment for the Sewer Fund SRF Loan. The first payment is
now due in FY 2023-24.
Budget Document Pg. 13 Page 473 of 652
Consolidated Financials – All Major Funds Combined
Consolidated Financials – Reserves and Fund Balances (see fund sections for detail)
Consolidated Financials – Transfers between funds
Continued on next page
Table C4: Operating
Reserve (in thousands)2020-21 Actual 2021-22
Budget
2022-23
Original
Budget
2022-23
Revised
Budget
% Change from
Original 2022-23
Budget
1 General Fund
2 Operating $ 11,830 12,014$ 11,916$ 13,035$ 9%
3 Capital 3,426$ 3,592$ $ 3,809 6 %
4 Water Fund $ 4,106 4,652$ 4,483$ 4,651$ 4%
5 Sewer Fund $ 2,160 2,496$ 3,549$ 2,477$ -30%
6 Parking Fund $ 732 921$ 731$ 970$ 33%
7 Transit Fund $ 673 981$ 837$ 850$ 2%
Table C5: Unassigned Fund
Balance (in thousands)2020-21 Actual 2021-22
Budget
2022-23
Original
Budget
2022-23
Revised
Budget
% Change from
Original 2022-23
Budget
1 General Fund $ 512 2,095$ 2,493$ 301$ -88%
2 Water Fund $ 23,569 10,428$ 12,668$ 9,241$ -27%
3 Sewer Fund $ 28,273 21,022$ 25,954$ 20,588$ -21%
4 Parking Fund $ 12,454 9,750$ 5,396$ 2,929$ -46%
5 Transit Fund $ 3,411 1,148$ 1,523$ 4,373$ 187%
Table C6: Reimbursement
Transfers In/(out)2020-21 Actual 2021-22 Budget
2022-23 Original
Budget
2022-23 Revised
Budget
% Change from
Original 2022-23
Budget
1 General Fund Transfer In 4,578,402$ 4,717,442$ 4,811,791$ 4,461,578$ -7%
2 Water Fund (1,729,965)$ (1,722,409)$ (1,756,857)$ (1,535,175)$ -13%
3 Sewer Fund (1,632,521)$ (1,712,752)$ (1,747,007)$ (1,497,395)$ -14%
4 Parking Fund (710,211)$ (869,887)$ (887,285)$ (872,976)$ -2%
5 Transit Fund (321,727)$ (226,183)$ (230,707)$ (365,544)$ 58%
6 Whale Rock (183,978)$ (186,211)$ (189,935)$ (190,488)$ 0%
Budget Document Pg. 14 Page 474 of 652
Consolidated Financials – All Major Funds Combined
Consolidated Financials – Transfers between funds
Consolidated Financials - Capital Transfers
1 - Reduction due to the updated ARPA allocation. Original budget assumed the allocation of $8.9M split
equally across FY 2021-22 and FY 2022-23, with $4.465 million being deposited into the Infrastructure
Investment Fund in 2022-23. With the updated ARPA allocation ($13.5M), Council took action on March
1, 2022, to move $9.9 million into the Infrastructure Investment Fund. ($6.7 million was transferred in FY
2021-22 and $3.1 million will be transferred in FY 2022-23).
2 - Reduction due to the transfer of Capital Budget into Operating Budget for CIP Augmentation
resources. See Budget Section 7 for more detail.
Table C7: Operating
Transfers In/(out)2020-21 Actual 2021-22 Budget
2022-23 Original
Budget
2022-23 Revised
Budget
% Change from
Original 2022-23
Budget
1 Transfers in
2 General Fund Transfer in 3,538,869$ 3,426,103$ 3,602,451$ 4,190,415$ 16%
3 Insurance Fund 3,818,617$ 4,146,445$ 4,250,000$ 4,250,000$ 0%
4 Transfers Out
5 General Fund Transfer out (3,818,617)$ (4,146,445)$ (4,250,000)$ (4,250,000)$ 0%
6 Gas Tax (1,082,390)$ (1,223,937)$ (1,245,026)$ (1,377,557)$ 11%
7 Affordable Housing Fund (57,000)$ (57,000)$ (57,000)$ (57,000)$ 0%
8 TDA Fund (45,900)$ (45,000)$ (45,000)$ (45,000)$ 0%
9 TIF Fund (285,600)$ (280,000)$ (280,000)$ (280,000)$ 0%
10 TBID Fund (25,068)$ (28,852)$ (31,012)$ (34,544)$ 11%
11 IT Replacement Fund (50,000)$ (106,000)$ (109,180)$ (152,702)$ 40%
12 Water Fund (943,003)$ (794,769)$ (900,000)$ (776,578)$ -14%
13 Sewer Fund (769,208)$ (655,312)$ (700,000)$ (1,076,388)$ 54%
14 Parking Fund (280,700)$ (235,233)$ (235,233)$ (390,646)$ 66%
Table C8: Capital Transfers
In/(out)Footnote2021-22 Budget 2022-23 Original
Budget
2022-23 Revised
Budget
% Change from
Original 2022-23
Budget
1 General Fund 1 (7,177,916)$ (7,949,558)$ (6,602,325)$ -17%
2 LRM 2 (17,866,400)$ (18,763,050)$ (17,979,590)$ -4%
3 Capital Outlay 14,257,798$ 16,967,220$ 16,183,760$ -5%
4 Fleet 1,265,000$ 1,045,000$ 1,045,000$ 0%
5 IT Replacement 988,973$ 564,777$ 564,777$ 0%
6 Major Facilities Maint 867,500$ 593,200$ 593,200$ 0%
7 Infrastructure Investment 1 7,222,545$ 7,099,911$ 5,752,678$ -19%
8 Public Art Fund 442,500$ 442,500$ 442,500$ 0%
Budget Document Pg. 15 Page 475 of 652
General Fund
Section 4: General Fund Overview
The City has eight service departments under the purview of the City’s General Fund. The Utilities
Department, administering Water & Sewer, as well as the Parking and Transit programs are administered
and accounted for as business activities and the related information is presented in the “Enterprise Fund”
section of this budget document.
Revenue
Trying to develop a revenue forecast during a pandemic coupled with hyperinflation, looming
international crises, and unpredictable labor and cost increases is a complex, dynamic and fluid endeavor.
As the City approached the 2022-23 Supplemental Budget, staff used the combination of current
economic trends, local data points, its own scenario modeling, and major tax revenue forecasts from
multiple external sources, to present a well-informed and updated forecast for Council.
Sales Tax: Like the rest of the nation, the City experienced a surge of consumption that corresponded with
the lifting of lockdowns and stimulative fiscal and monetary policy and record levels of corporate and
personal savings. While the U.S economy has largely recovered from the pandemic-driven downturn, new
challenges arose. Higher labor and raw material costs along with inflationary pressures drive taxable good
prices upward and increase the City’s sales tax revenue. However, higher prices reduce consumer demand
and increase the City’s own expenditure costs. It is still unclear how these factors will influence the local
economic forecast but staff forecasts a weakening of sales tax receipt growth beginning in 2023, followed
by a modest 2% growth in the outer years.
Property Tax: The City receives its annual property tax forecasts directly from the County Assessor.
Throughout 2021 and into 2022, there was a considerable increase in home prices primary due to low
Table G-1: General Fund
Revenue Overview 20-21 Actuals 21-22 Budget
22-23 Original
Budget
22-23 Revised
Budget Change % Change
Tax & Franchise Revenue
Sales Tax (Bradley Burns)20,067,740$ 20,790,779$ 19,086,000$ 21,789,000$ 2,703,000$ 14%
LRM G-20 12,779,713$ 25,810,000$ 25,202,000$ 27,049,000$ 1,847,000$ 7%
Property Tax 19,858,530$ 20,157,153$ 20,781,387$ 20,746,387$ (35,000)$ 0%
Transient Occupancy Tax 6,960,035$ 9,051,000$ 7,753,000$ 8,636,000$ 883,000$ 11%
Business Tax 2,937,176$ 2,832,000$ 2,547,000$ 2,889,000$ 342,000$ 13%
Cannabis Tax 844,939$ 1,000,000$ 1,500,000$ 1,400,000$ (100,000)$ -7%
Franchise Fees 1,796,829$ 1,575,000$ 1,606,000$ 1,606,000$ -$ 0%
Gas Tax (SB1)851,292$ 915,000$ 941,535$ 1,049,877$ 108,342$ 12%
Safety Prop 172 425,136$ 493,000$ 339,000$ 497,000$ 158,000$ 47%
Utility User Tax 5,225,979$ 5,383,000$ 5,565,000$ 5,544,000$ (21,000)$ 0%
Development Review 7,094,935$ 6,820,055$ 6,864,650$ 5,917,618$ (947,032)$ -14%
Parks & Recreation 1,616,010$ 1,615,555$ 2,039,215$ 1,978,920$ (60,295)$ -3%
Fire 1,500,759$ 1,440,260$ 1,422,086$ 1,576,322$ 154,236$ 11%
Police 600,406$ 616,440$ 637,196$ 632,325$ (4,871)$ -1%
General Government 1,890,201$ 1,721,726$ 2,099,853$ 1,668,952$ (460,000)$ -22%
Grants & Subventions 3,114,368$ 1,204,196$ 900,000$ 587,328$ (312,672)$ -35%
ARPA 6,782,234$ 4,465,000$ 6,782,234$ 2,317,234$ 52%
Total 87,564,049$ 108,207,399$ 103,748,922$ 110,349,963$ 6,571,942$ 6%
2021-23 Financial Plan
Budget Document Pg. 16 Page 476 of 652
General Fund
inventory, high demand, and still record low interest rates. The pandemic also allowed residents in high-
cost urban cores to migrate to lower density, more affordable regions for remote work. This phenomenon
had a cascading effect throughout the nation, and San Luis Obispo experiences an exceptionally strong
real estate market. As the Fed begins to raise interest rates throughout 2022, home sales are expected to
decrease as buyers will experience diminishing purchasing power in the housing market. Similar to the
Sales Tax forecast, staff expect a weakening in property tax growth back to two to three percent annually.
Transient Occupancy Tax (TOT): Tourism along the central coast made a strong comeback as the region re-
opened and benefited from being a drive-to destination. Monthly TOT receipts continue to reach all-time
highs largely driven by high room rates; a trend that is expected to continue through the end of FY 2021-
22 as events like the Cal Poly graduation return to in-person. However, as inflation and gas prices increase
and pent-up demand declines, the City expects to see a growth plateau and a possible decline over the
next 12 months. Interestingly, when looking at the Smith Travel report data, the premier tracking source
of lodging data, the region’s average daily rate (ADR) sky-rocketed, but its occupancy rate (the number of
rooms booked) has actually declined. Although, it is hard to analyze the direct correlation between the
two, since the room inventory in San Luis Obispo has increased, the data indicates that the increased rates
are at the core driver of overall revenue growth. The long-term forecast assumes a decline in FY 2022-23
followed by modest growth in the outer years. This revenue stream will be closely monitored based on
national, state, and regional travel trends.
Utility User Tax (UUT): Historically, UUT revenue has grown at a slower pace than other major tax
revenues. Additionally, new regulations brought on by the Federal Communications Commission and the
California Public Utilities Commission, as well as legal challenges, continue to disrupt the landscape for
the revenue and staff continues to evaluate possible changes to the Municipal Code to maximize UUT.
The City does expect UUT revenue to increase in FY 2022-23 due to general increases in utility costs and
diligent collection of late fees and penalties.
Cannabis Tax: Since April 2021, the monthly cannabis tax revenue collected has stayed very consistent.
This suggests that demand for cannabis retail is relatively stable and unlikely to decrease. The City’s
second retail operator opened at the end of March and a non-retail storefront operator may open before
the end of FY2021-22. While the new businesses will lead to additional cannabis revenue, staff expect
some cannibalization to partially offset the new revenue. Staff expects to come to the City Council in
Summer 2022 with proposed ordinance changes and recommend putting in place the framework for
selecting an applicant for the third available retail permit.
Development Review: Based on data as of the third quarter in FY 2021-22, Development Review revenues
were 11 percent below the projections included in the 21-23 Financial Plan. Although Development
Review revenues tend to be “lumpy” (meaning large projects with high fees have a high influence on total
revenue collection), staff expect a significant revenue shortfall of approximately 15 percent ($1M) in 2021-
22.Due to the shortfall, staff conducted a revenue analysis and adjusted the 2022-23 budget downwards
for several reasons:
•Reduced revenues in planning and zoning are a result of fewer planning applications and building
permits across all development types from the peak that occurred in FY 2019-20. Updates to the
City’s Zoning Regulations in 2018 and again in 2021 included substantial efforts to streamline the
City’s discretionary approval processes. These efforts are working, resulting in fewer planning
Budget Document Pg. 17 Page 477 of 652
General Fund
applications overall, and a shift towards applications for “Director’s Action” rather than Minor or
Major Use Permits.
•The total number of building permits has been trending down. The reduction is not centered in
any one sector, although staff has heard anecdotally that challenges created by COVID-19 with
respect to supply chain and workforce constraints as well as a raising interest rate environment
has played a role. Looking forward, inflation and increased interest rates may continue to slow
growth in building permits as market uncertainty plagues investor confidence. However, there
are many large projects with high construction values in the permit process. This includes two
hotels, several mixed-use projects, a Porsche and Tesla auto dealership, and new housing tracts.
Although Development Review Fees are designed to recover 100% of staff costs, the City will be embarking
on a comprehensive fee study in FY 2023-24 to ensure that development application costs are fully
covered by fees. Additionally, not all of the work assigned to Community Development is under cost
recovery or otherwise offset by revenues. As the City’s Housing Program expands and zoning regulations
change, a lot of the policy workload in the department has shifted away from being fee-reimbursed and
must be covered by general government revenue (tax and franchise fee revenue). Balancing policy
initiatives with fee recovered work will be closely monitored so that both current and long-range planning
efforts stay in balance.
Other Department Revenue (Parks & Rec, Fire, Police): Overall, fee-generating department programs are
now operating at the level projected, and budgets have been adjusted to account for the policy increase
by CPI which stood at 7.9% at the end of April (Resolution 11026, June 2019).
General Government/Subventions and Grants: General government and grant revenues fluctuate from
year-to-year based on availability and award success. The City only budgets for grants or subventions that
are highly likely to be received, but the budget is adjusted throughout the year if additional revenue is
secured.
Budget Document Pg. 18 Page 478 of 652
General Fund
Expenditures
While the City treaded very conservatively over the last two years, the trends are showing that revenue
has largely returned to it is more predictable ebbs and flows and the financial forecast has improved,
though new uncertainty injected by hyperinflation and labor and supply chain issues will be closely
monitored and will be discussed in the quarterly reports to the City Council. Table G2 below shows the
total expenditures for the General Fund by type and department. While the expenditure budget has
increased significantly, it is important to note that this is primarily due to the increased cost of providing
the services adopted in the budget, as well as changes made at the 2021-22 Mid-Year review (see page
23 – Significant Changes from Financial Plan Adoption).
Because of the already ambitious Major City Goal work programs and existing department objectives,
departments were instructed to only submit mission critical Significant Operating Budget Changes
(SOBCs). This methodology is also consistent with the City’s two-year financial planning policies.
Table G2: General Fund Expenditures by type
*The 2021-22 Budget includes encumbrances from the prior year and the “staffing” line includes the $10.2 million
additional down payment to CalPERS hence the significant drop in budget from FY 21-22 to FY 22-23.
Table G3: General Fund Expenditures by Department
*Includes equity adjustments and COLA parameters for the entire general fund that were approved by Council for
MME, SLOCEA, and CONF employee groups.
Expenditure Type 20-21 Actuals 21-22 Budget
22-23 Original
Budget
22-23 Revised
Budget Change % Change
Staffing 53,829,187$ 71,379,892$ 62,936,199$ 66,250,502$ 3,314,303$ 5%
Other Operating Costs 8,501,284$ 10,151,572$ 9,157,105$ 9,057,952$ (99,153)$ -1%
Contract Services 6,415,153$ 10,761,626$ 7,483,692$ 7,816,094$ 332,402$ 4%
Grand Total 68,745,623$ 92,293,090$ 79,576,996$ 83,124,548$ 3,547,551$ 4%
2021-23 Financial Plan
Department 20-21 Actuals 21-22 Budget
22-23 Original
Budget
22-23 Revised
Budget Change % Change
Public Safety
Police 17,618,498$ 22,842,870$ 20,066,744$ 20,866,264$ 799,520$ 4%
Fire 14,024,822$ 17,103,242$ 14,440,373$ 14,515,112$ 74,739$ 1%
Community Services Group
CSG Administration 315,986$ 851,684$ 575,274$ 573,066$ (2,207)$ 0%
CDD 6,509,806$ 8,871,312$ 6,841,955$ 6,783,059$ (58,896)$ -1%
Parks and Rec 4,038,719$ 5,779,681$ 5,335,040$ 5,251,052$ (83,988)$ -2%
Public Works 12,660,253$ 17,162,531$ 15,156,004$ 16,144,599$ 988,595$ 7%
Solid Waste 121,078$ 355,478$ 176,280$ 317,456$ 141,176$ 80%
Internal Services
Administration 7,805,012$ 11,327,879$ 9,805,269$ 10,453,389$ 648,120$ 7%
City Attorney 964,100$ 1,690,991$ 1,043,562$ 1,305,660$ 262,097$ 25%
Finance 1,795,348$ 2,559,079$ 2,291,343$ 2,317,013$ 25,670$ 1%
Human Resources 1,374,481$ 2,011,411$ 1,683,223$ 1,684,948$ 1,725$ 0%
Non-Departmental*1,517,519$ 1,736,930$ 2,161,928$ 2,912,928$ 751,000$ 35%
Total 68,745,623$ 92,293,090$ 79,576,996$ 83,124,548$ 3,547,551$ 4%
2021-23 Financial Plan
Budget Document Pg. 19 Page 479 of 652
General Fund
Staffing
The majority of the 2022-23 budget changes are due to adjusted employee compensation. At the time
the City re-forecasted its revenue projections, it was also finalizing a Benchmark Compensation Report for
the San Luis Obispo City Employees’ Association (SLOCEA) and Unrepresented Management and
Confidential Bargaining Units. It had already become clear that there was a market wage and benefit
imbalance due to the turnover and attraction challenges that the City was facing and the compensation
study confirmed this initial presumption. Overall, the City’s base salaries compared to other surveyed
employers were on average, 8.55% below the median. The City Council approved wage and benefit
changes for unrepresented and confidential employees on April 19, 2022 to provide competitive
compensation in line with the City’s compensation philosophy.
In order to continue to attract and retain talented, qualified, and experienced employees who provide
quality public services that the community expects, the City would need to prioritize competitive
compensation. The increases in General Fund tax revenue allowed Council to quickly address this need
and shortly after mid-year, the Council approved negotiation parameters for equity adjustments and cost
of living increases which are now included in the 2022-23 Supplemental Budget. The updated budget also
includes previously negotiated staffing increases in Police and Fire.
In addition to the wage increases, Council also approved 15 new FTEs with the mid-year review. These
position were tied to increased demand for services, enlarging scope of services such as the City’s role in
homelessness, housing, and other community focused services.
Other Operating Costs
Though other operating costs appear to have decreased by about 1%, this is due to a transfer of the Public
Safety Equipment budget into a separate sub-fund (see page. 32). Overall, this expenditure category
increased by about $150,000 due to the rising cost of utilities and several adjustments that were approved
with the 2021-22 Mid-year Review (linked above).
Contract Services
Contract services increased by about 6% due to adjustments approved at mid-year for two main reasons:
1.Council approved about $200,000 for temporary office leasing and equipment while staff develop
a long-term solution to make space for a significant number of new employees that were added
with the Financial Plan. The hybrid work-from-home model has allowed for some flexibility, but
more and more staff are returning to the physical office now that COVID-19 restrictions have been
lifted.
2.Council approved approximately $250,000 in additional ongoing budget for the maintenance of
City parks and streets (pruning, pressure washing, downtown maintenance).
Budget Document Pg. 20 Page 480 of 652
General Fund
Significant Operating Budget Changes
Table G4: General Fund Operating Budget Changes FY 2022-23 Budget
1. Capital Maintenance Supervisor - 1 FTE (Ongoing)$ 128,170
Staff is recommending the addition of 1.00 FTE Capital Maintenance Supervisor (a new classification) to
oversee critical Public Works programs including streetlights and signals, urban forestry, and maintenance
contracts. The new position will increase the capacity of existing staff to supplement the efforts of the CIP
Engineering group to oversee the many projects included in the City’s CIP. This position will be funded
through the Local Revenue Measure and out of the $1,000,000 set aside for CIP Delivery Augmentation.
2. Developer Funds for Tree Planting (One-time)$ 18,225
The City received $18,225 from a developer in fiscal year 2021-22 for new tree planting. This money was
not used before the end of the fiscal year and thus went toward fund balance. The City received these
funds for the specific purpose of mitigating the removal of 50 trees by planting 100 new trees per City
policy. This request would reallocate the $18,225 from fund balance to the Urban Forest Cost Center's
Other Contract Services account to purchase and plant the trees in 2022-23.
3. City Employee Parking (Ongoing) $ 49,928
The City has maintained a $30,000 employee parking budget for the last five years. Actual costs have
exceeded the budget for the last two years but were offset by savings elsewhere. This request will bring
the budget to the level it needs to be considering the current cost of parking permits and employees that
utilize the parking.
4.Housing Element Funding now reimbursable by grant funding (One-time) ($115,000)
The total amount of $255,000 was approved at the start of the Financial Plan for consultant support to
complete four specific Housing Element Programs ($140k in FY22 and $115k in FY23). This includes
updating our Inclusionary Housing Ordinance, Missing Middle Housing and Subdivision Regulations. A
reimbursable grant for the Inclusionary Housing Ordinance was received and approximately $120,000 was
dedicated to that effort; therefore, part of initial budget for this effort can be removed.
5. Contingency for over-hires (Ongoing) $ 100,000
Historically, the City hasn't included a budget for over-hires (hiring for an expected vacancy before it is
vacant), but given the current labor market, this would be a prudent move in order to get positions filled
and ensure knowledge transfer and retention. This SOBC is listed as ongoing but it will be evaluated with
the 2023-25 Financial Plan to determine if still necessary.
6. Solid Waste Staffing - 1 FTE (Revenue offset) (Ongoing) $ 134,058
This request is to allocate funding to salaries in preparation for an additional FTE in the Solid Waste and
Recycling program. As the program continues to expand, inclusive of SB 1383 compliance and oversight,
additional resources are necessary. The cost of the new FTE will be 100% covered by the increase in
revenue projected from AB939 and franchise fees. For more detail on the Solid Waste program and this
request, see the Utilities section (pg. 40)
7.Contract Administrative Analyst (One-time) $ 48,000
Due to a leave of absence in the Utilities department, the City hired a contract analyst in March 2022 to
assist with workload (funded by Water and Sewer). Staff would like to fund the position for an additional
six months once the leave of absence in Utilities is over (Summer 2022). This position will help with
important one-time special projects and analytical work for the Community Services Departments.
TOTAL $ 363,381
Budget Document Pg. 21 Page 481 of 652
General Fund
Long Term Forecast
The long-term forecast is an essential planning tool for the City, and its ongoing service delivery. While
the City adopts a two-year Financial Plan that must be balanced, the outer years of the forecast are
presented to show the City’s financial condition and availability of resources into the future. The forecast
is updated every six months which gives staff the opportunity to alert Council of looming imbalances and
strategize appropriate actions to be taken. As the current forecast outlines, the City will have to be diligent
in holding the course and assign is resources prudently.
Key Takeaways
Overall, the General fund is in a good financial condition and remains balanced throughout the five-year
forecast. Current assumptions are conservatively optimistic, and the forecast does not assume a recession
only a cooling of current economic activity. The impacts of high inflation on the City’s forecast are still
unclear and a looming concern is that the cost of providing services will outpace revenue growth. Another
important note is that the forecast assumes carryover, meaning that year-end balances are left untouched
and remain in fund balance to protect the financial condition in the outer years. Fund balance does
increase in FY 2023-24 after the removal of one-time budget allocations for the 2021-23 Major City Goals
but is used in the outer years of the forecast as available revenue and required expenditure budget begin
to inch closer (See line 34 in Forecast on the next page).
Outer Year Expenditure Assumptions (FY 2023-24 through FY 2025-26)
•Negotiated staffing increases and approved parameters for SLOCEA are included.
•Assumed annual 3% increase in non-staffing operating costs.
•One-time budget allocations from the 2021-23 Financial Plan are removed.
•Cost Allocation Plan (CAP) and Cost of Services transfers inflated proportionally to General Fund
budget increases.
•Reserve maintained at 20% of operating costs (policy requirement).
•An annual $2 million additional down payment to CalPERs in order to achieve a 20-year
paydown goal.
•$3 million set aside in a 115 Pension Trust Fund to protect the City from further changes by
CalPERS.
•Continued investment into the Capital Improvement Plan (see Capital Section pg 78)
Budget Document Pg. 22 Page 482 of 652
General Fund
In Thousands Actual
2020-21
Budget
2021-22
Budget
2022-23
Projected
2023-24
Projected
2024-25
Projected
2025-26
Tax & Franchise Revenue
1 Sales & Use Tax 33,273 47,093 49,335 50,561 51,567 52,593
2 Sales Tax General 20,068 20,791 21,789 22,333 22,780 23,236
3 Public Safety (Prop 172)425 493 497 502 507 512
4 Measure G20 12,780 25,810 27,049 27,725 28,280 28,845
5 Property Tax 19,859 20,157 20,746 21,369 22,010 22,670
6 Transient Occupancy Tax 6,960 9,051 8,636 8,809 8,985 9,165
7 Utility Users Tax 5,226 5,383 5,544 5,655 5,768 5,883
8 Franchise Fees 1,797 1,575 1,606 1,638 1,671 1,704
9 Business Tax Certificates 2,937 2,832 2,889 2,946 3,005 3,065
10 Cannabis Tax 845 1,000 1,400 1,650 1,683 1,717
11 Total Tax & Franchise Revenue 70,896$ 87,092$ 90,156$ 92,627$ 94,689$ 96,797$
12 Fees for Service & Other Revenue
13 Police Services 599 610 632 651 664 678
14 Fire Services 1,501 1,421 1,576 1,624 1,656 1,689
15 Development Review 7,174 6,551 5,918 6,095 6,278 6,466
16 Parks & Recreation 1,616 1,616 1,979 2,018 2,059 2,100
17 General Government 442 438 446 459 468 478
18 Cannabis 90 157 210 216 223 229
19 Other Revenues 2,126 1,886 2,063 2,106 2,134 2,162
20 Subventions & Grants 3,201 477 587 440 440 440
21 Federal Stimulus Funding 6,782 6,782
22 Total Fees & Other Revenue $ 16,749 $ 19,937 $ 20,194 $ 13,610 $ 13,922 $ 14,243
23 Total Revenue $ 87,646 $ 107,029 $ 110,349 $ 106,237 $ 108,611 $ 111,040
Use of Funds
24 Staffing 53,829 57,774$ 64,618$ 66,424$ 68,723$ 70,827$
25 Contract Services 6,415 8,740$ 7,816$ 6,485$ 6,679$ 6,946$
26 Other Operating Expenditures 13,302 8,913$ 9,058$ 9,278$ 9,369$ 9,650$
27 Cost Allocation (4,578) (4,717)$ (4,462)$ (4,819)$ (4,963)$ (5,112)$
28 Total Operating Expenditure $ 68,968 $ 70,709 $ 77,031 $ 77,369 $ 79,809 $ 82,312
29 Debt Service 2,541 1,997$ 1,992$ 2,000$ 2,000$ 2,000$
30 Capital 6,999 28,531$ 25,632$ 24,299$ 24,801$ 25,265$
31 Transfers Out 617 495$ 296$ 449$ 635$ 831$
32 Total Expenditure $ 79,125 $ 101,731 $ 104,950 $ 104,117 $ 107,245 $ 110,407
33 Beginning Fund Balance $ 33,798 $ 32,118 $ 30,067 $ 29,801 $ 29,922 $ 29,288
34 Revenue Over/(Under) Expenses $ 8,520 $ 5,298 $ 5,399 $ 2,121 $ 1,366 $ 633
35 Ending Fund Balance $ 42,318 $ 37,416 $ 35,466 $ 31,922 $ 31,288 $ 29,921
36 CalPERS Downpayments (10,200) (2,000) (2,000) (2,000) (2,000) (2,000)
37 ARPA Allocations (see note 1)(3,664)
38 Carryover/encumbrances from FY21 (5,349)
39 Ending Fund Balance $ 32,118 $ 30,067 $ 29,801 $ 29,922 $ 29,288 $ 27,921
40 Policy Reserve Level - 20%11,830 12,014 13,035 12,928 13,260 13,669
41 115 Pension Trust Fund 2,000 2,000 3,000 3,000 3,000 3,000
42 Restricted based on Audit 17,776 13,958 13,465 11,000 11,000 11,000
43 Undesignated Fund Balance $ 512 $ 2,095 $ 301 $ 2,994 $ 2,028 $ 252
Table G-5: GENERAL FUND LONG TERM FORECAST
Revised with Supplement
Note 1: ARPA allocations as recommended by the ad-hoc committee: $2.9M affordable housing; $600,000 Broadband coverage;
$100,000 Grants-in-aid.
Budget Document Pg. 23 Page 483 of 652
Table G‐7: Detailed General Fund
Operating Expenditures 20‐21 Actuals 21‐22 Budget
22‐23 Original
Budget
22‐23 Revised
Budget Change % Change
1 Administration 7,805,012$ 11,327,879$ 9,805,269$ 10,453,389$ 648,120$ 7%
2 Administration 1,115,952$ 1,670,286$ 1,314,380$ 1,374,415$ 60,035$ 5%
3 Staffing 878,527$ 1,261,115$ 1,148,180$ 1,193,995$ 45,815$ 4%
4 Other Operating Costs 30,981$ 96,800$ 45,200$ 54,520$ 9,320$ 21%
5 Contract Services 206,444$ 312,371$ 121,000$ 125,900$ 4,900$ 4%
6 City Clerk 567,513$ 676,553$ 657,638$ 704,704$ 47,065$ 7%
7 Staffing 416,383$ 511,958$ 457,293$ 498,159$ 40,865$ 9%
8 Other Operating Costs 15,737$ 53,180$ 49,345$ 49,345$ ‐$0%
9 Contract Services 135,392$ 111,414$ 151,000$ 157,200$ 6,200$ 4%
10 City Council 173,273$ 241,611$ 216,352$ 221,756$ 5,405$ 2%
11 Staffing 159,005$ 210,861$ 186,952$ 192,356$ 5,405$ 3%
12 Other Operating Costs 9,930$ 29,449$ 29,400$ 29,400$ ‐$0%
13 Contract Services 4,339$ 1,301$ ‐$‐$‐$
14 Community Promotion 417,721$ 444,088$ 405,826$ 405,609$ (217)$ 0%
15 Staffing 37,639$ 44,275$ 38,826$ 38,609$ (217)$ ‐1%
16 Other Operating Costs 7,150$ 53,427$ 39,000$ 39,000$ ‐$0%
17 Contract Services 372,931$ 346,386$ 328,000$ 328,000$ ‐$0%
18 Cultural Activities 332,351$ 347,632$ 357,963$ 357,963$ ‐$0%
19 Other Operating Costs ‐$3,250$ 3,250$ 3,250$ ‐$0%
20 Contract Services 332,351$ 344,382$ 354,713$ 354,713$ ‐$0%
21 Economic Dev 588,878$ 1,245,541$ 907,271$ 906,219$ (1,051)$ 0%
22 Staffing 172,391$ 217,118$ 184,621$ 183,569$ (1,051)$ ‐1%
23 Other Operating Costs 10,606$ 37,650$ 27,650$ 27,650$ ‐$0%
24 Contract Services 405,881$ 990,773$ 695,000$ 695,000$ ‐$0%
25 Information Services 1,105,991$ 1,446,942$ 1,290,790$ 1,277,224$ (13,566)$ ‐1%
26 Staffing 1,007,912$ 1,364,042$ 1,207,890$ 1,194,324$ (13,566)$ ‐1%
27 Other Operating Costs 96,166$ 71,500$ 71,500$ 71,500$ ‐$0%
28 Contract Services 1,913$ 11,400$ 11,400$ 11,400$ ‐$0%
29 Natural Resource Protection 646,613$ 1,235,729$ 791,226$ 814,543$ 23,317$ 3%
30 Staffing 484,679$ 709,349$ 617,767$ 641,084$ 23,317$ 4%
31 Other Operating Costs 101,125$ 87,834$ 73,459$ 73,459$ ‐$0%
32 Contract Services 60,809$ 438,545$ 100,000$ 100,000$ ‐$0%
33 Network Services 2,856,721$ 3,485,098$ 3,261,983$ 3,502,642$ 240,660$ 7%
34 Staffing 1,069,069$ 1,351,358$ 1,277,990$ 1,321,609$ 43,620$ 3%
35 Other Operating Costs 1,338,327$ 1,600,271$ 1,540,014$ 1,540,014$ ‐$0%
36 Contract Services 449,325$ 533,469$ 443,979$ 641,019$ 197,040$ 44%
37 Office of Diversity, Equity, Inclusion ‐$534,399$ 601,841$ 888,313$ 286,472$ 48%
38 Staffing ‐$184,399$ 165,341$ 326,813$ 161,472$ 98%
39 Other Operating Costs ‐$59,000$ 59,000$ 64,000$ 5,000$ 8%
40 Contract Services ‐$291,000$ 377,500$ 497,500$ 120,000$ 32%
41 City Attorney 964,100$ 1,690,991$ 1,043,562$ 1,305,660$ 262,097$ 25%
42 City Attorney 964,100$ 1,690,991$ 1,043,562$ 1,305,660$ 262,097$ 25%
43 Staffing 836,951$ 1,263,898$ 992,802$ 1,217,800$ 224,997$ 23%
44 Other Operating Costs 97,965$ 330,794$ 19,365$ 24,465$ 5,100$ 26%
45 Contract Services 29,185$ 96,299$ 31,395$ 63,395$ 32,000$ 102%
46 Community Development 6,509,806$ 8,871,312$ 6,841,955$ 6,783,059$ (58,896)$ ‐1%
47 Building and Safety 2,506,262$ 3,283,056$ 2,321,228$ 2,133,870$ (187,358)$ ‐8%
48 Staffing 1,321,670$ 2,086,812$ 1,973,054$ 2,015,696$ 42,642$ 2%
49 Other Operating Costs 476,449$ 611,244$ 83,174$ 83,174$ ‐$0%
50 Contract Services 708,142$ 585,000$ 265,000$ 35,000$ (230,000)$ ‐87%
51 Commissions and Committees 15,291$ 34,939$ 34,939$ 34,948$ 9$ 0%
52 Staffing 15,141$ 23,739$ 23,739$ 23,748$ 9$ 0%
53 Other Operating Costs 150$11,200$ 11,200$ 11,200$ ‐$0%
54 Community Dev Admin 901,725$ 1,144,375$ 917,631$ 968,991$ 51,360$ 6%
55 Staffing 697,490$ 767,665$ 678,771$ 653,411$ (25,360)$ ‐4%
2021‐23 Financial Plan
General Fund
Budget Document Pg. 24 Page 484 of 652
Table G‐7: Detailed General Fund
Operating Expenditures 20‐21 Actuals 21‐22 Budget
22‐23 Original
Budget
22‐23 Revised
Budget Change % Change
2021‐23 Financial Plan
56 Other Operating Costs 204,235$ 193,110$ 185,260$ 221,980$ 36,720$ 20%
57 Contract Services ‐$183,600$ 53,600$ 93,600$ 40,000$ 75%
58 Engineering ‐$783,878$ 688,625$ 839,745$ 151,120$ 22%
59 Staffing ‐$713,378$ 618,125$ 769,245$ 151,120$ 24%
60 Other Operating Costs ‐$13,500$ 13,500$ 13,500$ ‐$0%
61 Contract Services ‐$57,000$ 57,000$ 57,000$ ‐$0%
62 Housing Policy and Programs ‐$1,154,044$ 941,144$ 950,332$ 9,188$ 1%
63 Staffing ‐$527,085$ 443,318$ 602,506$ 159,188$ 36%
64 Other Operating Costs ‐$10,000$ 10,000$ 10,000$ ‐$0%
65 Contract Services ‐$616,959$ 487,826$ 337,826$ (150,000)$ ‐31%
66 Human Relations 579,489$ 66,045$ 5,000$ ‐$(5,000)$ ‐100%
67 Other Operating Costs ‐$3,000$ 5,000$ ‐$(5,000)$ ‐100%
68 Contract Services 579,489$ 63,045$ ‐$‐$‐$
69 Planning 2,507,040$ 2,404,974$ 1,933,388$ 1,855,172$ (78,215)$ ‐4%
70 Staffing 2,068,912$ 1,681,166$ 1,616,517$ 1,423,301$ (193,215)$ ‐12%
71 Other Operating Costs 7,914$ 35,200$ 35,200$ 35,200$ ‐$0%
72 Contract Services 430,214$ 688,608$ 281,671$ 396,671$ 115,000$ 41%
73 CSG Administration 315,986$ 851,684$ 575,274$ 573,066$ (2,207)$ 0%
74 Community Services Group 315,986$ 851,684$ 575,274$ 573,066$ (2,207)$ 0%
75 Staffing 300,686$ 610,324$ 560,440$ 517,213$ (43,228)$ ‐8%
76 Other Operating Costs 3,554$ 12,413$ 12,000$ 13,021$ 1,021$ 9%
77 Contract Services 11,745$ 228,948$ 2,833$ 42,833$ 40,000$ 1412%
78 Finance 1,795,348$ 2,559,079$ 2,291,343$ 2,317,013$ 25,670$ 1%
79 Accounting 710,210$ 969,640$ 932,335$ 898,785$ (33,550)$ ‐4%
80 Staffing 572,059$ 794,619$ 762,215$ 728,665$ (33,550)$ ‐4%
81 Other Operating Costs 2,290$ 10,218$ 10,100$ 10,100$ ‐$0%
82 Contract Services 135,861$ 164,803$ 160,020$ 160,020$ ‐$0%
83 Budgets 190,579$ 208,648$ 185,543$ 173,883$ (11,660)$ ‐6%
84 Staffing 163,319$ 179,756$ 161,043$ 142,383$ (18,660)$ ‐12%
85 Other Operating Costs 518$2,500$ 2,500$ 9,500$ 7,000$ 280%
86 Contract Services 26,743$ 26,392$ 22,000$ 22,000$ ‐$0%
87 Financial Admin 482,451$ 622,367$ 492,334$ 557,524$ 65,190$ 13%
88 Staffing 464,588$ 549,977$ 459,234$ 524,884$ 65,650$ 14%
89 Other Operating Costs 4,086$ 20,600$ 20,600$ 22,640$ 2,040$ 10%
90 Contract Services 13,777$ 51,791$ 12,500$ 10,000$ (2,500)$ ‐20%
91 Purchasing 132,221$ 264,692$ 236,398$ 218,874$ (17,525)$ ‐7%
92 Staffing 118,270$ 242,232$ 218,188$ 198,164$ (20,025)$ ‐9%
93 Other Operating Costs 1,880$ 4,500$ 4,500$ 4,500$ ‐$0%
94 Contract Services 12,072$ 17,960$ 13,710$ 16,210$ 2,500$ 18%
95 Revenue Mgmt 279,887$ 493,732$ 444,732$ 467,947$ 23,215$ 5%
96 Staffing 196,720$ 328,352$ 264,792$ 288,007$ 23,215$ 9%
97 Other Operating Costs 6,398$ 16,200$ 16,200$ 16,200$ ‐$0%
98 Contract Services 76,769$ 149,181$ 163,740$ 163,740$ ‐$0%
99 Fire 14,024,822$ 17,103,242$ 14,440,373$ 14,515,112$ 74,739$ 1%
100 Emergency Management 38,550$ 92,048$ 37,175$ 180,217$ 143,042$ 385%
101 Staffing ‐$35,696$ 3,360$ 146,402$ 143,042$ 4257%
102 Other Operating Costs 22,559$ 13,458$ 3,815$ 3,815$ ‐$0%
103 Contract Services 15,991$ 42,894$ 30,000$ 30,000$ ‐$0%
104 Emergency Response 11,494,300$ 13,586,646$ 11,073,299$ 11,419,286$ 345,987$ 3%
105 Staffing 11,371,826$ 13,422,698$ 10,921,531$ 11,267,518$ 345,987$ 3%
106 Other Operating Costs 113,636$ 147,936$ 135,593$ 135,593$ ‐$0%
107 Contract Services 8,838$ 16,012$ 16,175$ 16,175$ ‐$0%
108 Fire Admin 1,258,603$ 1,249,968$ 1,233,678$ 1,057,173$ (176,504)$ ‐14%
109 Staffing 953,613$ 1,035,766$ 843,017$ 844,011$ 995$0%
110 Other Operating Costs 298,431$ 208,223$ 385,111$ 207,612$ (177,499)$ ‐46%
111 Contract Services 6,558$ 5,979$ 5,550$ 5,550$ ‐$0%
General Fund
Budget Document Pg. 25 Page 485 of 652
Table G‐7: Detailed General Fund
Operating Expenditures 20‐21 Actuals 21‐22 Budget
22‐23 Original
Budget
22‐23 Revised
Budget Change % Change
2021‐23 Financial Plan
112 Fire Apparatus Services 377,035$ 528,761$ 474,223$ 466,131$ (8,092)$ ‐2%
113 Staffing 222,771$ 319,878$ 267,650$ 259,558$ (8,092)$ ‐3%
114 Other Operating Costs 145,250$ 183,491$ 179,338$ 179,338$ ‐$0%
115 Contract Services 9,014$ 25,392$ 27,235$ 27,235$ ‐$0%
116 Fire Station Facility Support 38,314$ 45,418$ 42,305$ 41,675$ (630)$ ‐1%
117 Staffing ‐$‐$630$‐$(630)$ ‐100%
118 Other Operating Costs 22,343$ 38,968$ 28,875$ 28,875$ ‐$0%
119 Contract Services 15,971$ 6,450$ 12,800$ 12,800$ ‐$0%
120 Hazard Prevention 735,525$ 1,027,329$ 898,617$ 915,290$ 16,673$ 2%
121 Staffing 651,818$ 951,818$ 828,275$ 844,948$ 16,673$ 2%
122 Other Operating Costs 64,631$ 69,768$ 68,842$ 68,842$ ‐$0%
123 Contract Services 19,076$ 5,743$ 1,500$ 1,500$ ‐$0%
124 Mobile Crisis Unit ‐$269,000$ 300,000$ 314,190$ 314,190$ 5%
125 Staffing ‐$91,612$ 95,014$ 109,204$ 109,204$ 15%
126 Other Operating Costs ‐$72,053$ 99,651$ 79,314$ 79,314$ ‐20%
127 Contract Services ‐$105,335$ 105,335$ 125,672$ 125,672$ 19%
128 Recruit Academy ‐$120,300$ ‐$‐$‐$0%
129 Staffing ‐$‐$‐$‐$‐$0%
130 Other Operating Costs ‐$102,300$ ‐$‐$‐$0%
131 Contract Services ‐$18,000$ ‐$‐$‐$0%
132 Training Services 82,496$ 183,773$ 381,076$ 121,150$ (259,926)$ ‐68%
133 Staffing ‐$52,346$ 259,926$ ‐$(259,926)$ ‐100%
134 Other Operating Costs 32,867$ 83,545$ 72,420$ 72,420$ ‐$0%
135 Contract Services 49,629$ 47,882$ 48,730$ 48,730$ ‐$0%
136 Human Resources 1,374,481$ 2,011,411$ 1,683,223$ 1,684,948$ 1,725$ 0%
137 Human Resources Admin 1,365,254$ 1,993,161$ 1,665,812$ 1,667,537$ 1,725$ 0%
138 Staffing 1,055,161$ 1,415,874$ 1,308,129$ 1,309,854$ 1,725$ 0%
139 Other Operating Costs 49,104$ 50,063$ 48,800$ 48,800$ ‐$0%
140 Contract Services 260,989$ 527,224$ 308,883$ 308,883$ ‐$0%
141 Wellness 9,226$ 18,251$ 17,411$ 17,411$ ‐$0%
142 Other Operating Costs 1,688$ 2,500$ 2,500$ 2,500$ ‐$0%
143 Contract Services 7,539$ 15,751$ 14,911$ 14,911$ ‐$0%
144 Non‐Departmental 1,517,519$ 1,736,930$ 2,161,928$ 2,912,928$ 751,000$ 35%
145 Finance NonDepart 292,146$ 1,569,473$ 1,809,228$ 2,593,228$ 784,000$ 43%
146 Staffing 101,575$ 1,499,473$ 1,739,228$ 2,513,228$ 774,000$ 45%
147 Other Operating Costs 190,571$ 70,000$ 70,000$ 80,000$ 10,000$ 14%
148 Finance Support Services 1,225,373$ 167,457$ 352,700$ 319,700$ (33,000)$ ‐9%
149 Other Operating Costs 1,225,237$ 167,457$ 352,700$ 319,700$ (33,000)$ ‐9%
150 Contract Services 137$‐$‐$‐$‐$
151 Parks and Recreation 4,038,719$ 5,779,681$ 5,335,040$ 5,251,052$ (83,988)$ ‐2%
152 Aquatics 579,746$ 678,084$ 624,832$ 633,304$ 8,472$ 1%
153 Staffing 516,123$ 592,084$ 538,033$ 546,505$ 8,472$ 2%
154 Other Operating Costs 25,030$ 47,500$ 47,500$ 47,500$ ‐$0%
155 Contract Services 38,592$ 38,500$ 39,299$ 39,299$ ‐$0%
156 Community Services 384,912$ 744,552$ 674,700$ 657,382$ (17,319)$ ‐3%
157 Staffing 323,079$ 504,687$ 443,890$ 483,972$ 40,081$ 9%
158 Other Operating Costs 28,596$ 101,490$ 107,210$ 98,110$ (9,100)$ ‐8%
159 Contract Services 33,237$ 138,375$ 123,600$ 75,300$ (48,300)$ ‐39%
160 Golf Course 599,587$ 807,410$ 721,608$ 738,756$ 17,148$ 2%
161 Staffing 402,896$ 514,443$ 462,650$ 479,798$ 17,148$ 4%
162 Other Operating Costs 170,705$ 271,067$ 237,245$ 237,245$ ‐$0%
163 Contract Services 25,986$ 21,900$ 21,713$ 21,713$ ‐$0%
164 Jack House ‐$10,500$ 10,500$ 10,500$ ‐$0%
165 Other Operating Costs ‐$10,500$ 10,500$ 10,500$ ‐$0%
166 Ranger Service 508,601$ 927,415$ 864,055$ 826,321$ (37,735)$ ‐4%
167 Staffing 443,446$ 868,763$ 805,275$ 757,541$ (47,735)$ ‐6%
General Fund
Budget Document Pg. 26 Page 486 of 652
Table G‐7: Detailed General Fund
Operating Expenditures 20‐21 Actuals 21‐22 Budget
22‐23 Original
Budget
22‐23 Revised
Budget Change % Change
2021‐23 Financial Plan
168 Other Operating Costs 22,444$ 30,882$ 26,380$ 26,380$ ‐$0%
169 Contract Services 42,711$ 27,770$ 32,400$ 42,400$ 10,000$ 31%
170 Recreation Admin 759,597$ 913,884$ 797,183$ 770,190$ (26,993)$ ‐3%
171 Staffing 659,086$ 800,596$ 702,368$ 673,135$ (29,233)$ ‐4%
172 Other Operating Costs 11,620$ 84,510$ 79,560$ 81,800$ 2,240$ 3%
173 Contract Services 88,892$ 28,777$ 15,255$ 15,255$ ‐$0%
174 Recreation Facilities 234,614$ 308,533$ 310,676$ 325,907$ 15,231$ 5%
175 Staffing 214,505$ 290,518$ 292,661$ 271,892$ (20,769)$ ‐7%
176 Other Operating Costs 7,833$ 12,915$ 12,915$ 18,915$ 6,000$ 46%
177 Contract Services 12,276$ 5,100$ 5,100$ 35,100$ 30,000$ 588%
178 Youth Services 971,662$ 1,389,305$ 1,331,486$ 1,288,694$ (42,792)$ ‐3%
179 Staffing 914,213$ 1,226,328$ 1,185,716$ 1,142,924$ (42,792)$ ‐4%
180 Other Operating Costs 44,817$ 142,677$ 125,470$ 125,470$ ‐$0%
181 Contract Services 12,633$ 20,300$ 20,300$ 20,300$ ‐$0%
182 Police 17,618,498$ 22,842,870$ 20,066,744$ 20,866,264$ 799,520$ 4%
183 Investigations 2,923,797$ 4,119,381$ 3,623,590$ 3,521,262$ (102,328)$ ‐3%
184 Staffing 2,898,386$ 3,990,409$ 3,484,598$ 3,382,271$ (102,328)$ ‐3%
185 Other Operating Costs 23,882$ 29,100$ 29,100$ 29,100$ ‐$0%
186 Contract Services 1,529$ 99,872$ 109,892$ 109,892$ ‐$0%
187 Neighborhood Services 228,265$ 299,296$ 277,062$ 282,674$ 5,612$ 2%
188 Staffing 191,784$ 242,225$ 221,662$ 227,274$ 5,612$ 3%
189 Other Operating Costs 21,268$ 28,400$ 28,400$ 28,400$ ‐$0%
190 Contract Services 15,213$ 28,671$ 27,000$ 27,000$ ‐$0%
191 Patrol 9,753,373$ 11,474,557$ 10,065,018$ 10,684,397$ 619,378$ 6%
192 Staffing 9,634,380$ 11,289,495$ 9,883,837$ 10,561,497$ 677,659$ 7%
193 Other Operating Costs 118,993$ 185,061$ 181,181$ 122,900$ (58,281)$ ‐32%
194 Contract Services ‐$‐$‐$‐$
195 Police Admin 1,469,923$ 2,495,129$ 2,171,555$ 2,103,633$ (67,922)$ ‐3%
196 Staffing 786,455$ 1,492,652$ 1,323,998$ 1,246,076$ (77,922)$ ‐6%
197 Other Operating Costs 267,205$ 390,048$ 318,790$ 318,790$ ‐$0%
198 Contract Services 416,263$ 612,429$ 528,767$ 538,767$ 10,000$ 2%
199 Police Support Services 2,381,005$ 3,420,512$ 3,019,376$ 3,198,032$ 178,655$ 6%
200 Staffing 2,243,549$ 3,189,365$ 2,832,341$ 2,998,997$ 166,655$ 6%
201 Other Operating Costs 21,740$ 45,912$ 42,700$ 42,700$ ‐$0%
202 Contract Services 115,716$ 185,235$ 144,335$ 156,335$ 12,000$ 8%
203 Traffic Safety 862,135$ 1,033,995$ 910,143$ 1,076,266$ 166,123$ 18%
204 Staffing 851,537$ 997,791$ 884,543$ 1,050,666$ 166,123$ 19%
205 Other Operating Costs 9,905$ 27,268$ 19,400$ 19,400$ ‐$0%
206 Contract Services 693$8,936$ 6,200$ 6,200$ ‐$0%
207 Public Works 12,660,253$ 17,162,531$ 15,156,004$ 16,144,599$ 988,595$ 7%
208 CIP Project Eng 2,269,244$ 2,900,277$ 2,221,737$ 2,717,592$ 495,854$ 22%
209 Staffing 2,179,185$ 2,653,837$ 2,074,736$ 2,572,191$ 497,454$ 24%
210 Other Operating Costs 76,241$ 105,152$ 122,501$ 120,901$ (1,600)$ ‐1%
211 Contract Services 13,818$ 141,288$ 24,500$ 24,500$ ‐$0%
212 Facilities Maintenance 1,235,984$ 1,525,747$ 1,389,285$ 1,375,065$ (14,220)$ ‐1%
213 Staffing 628,462$ 752,017$ 667,785$ 590,030$ (77,755)$ ‐12%
214 Other Operating Costs 375,409$ 502,508$ 463,500$ 502,035$ 38,535$ 8%
215 Contract Services 232,113$ 271,222$ 258,000$ 283,000$ 25,000$ 10%
216 Fleet 1,011,969$ 1,586,950$ 1,389,493$ 1,395,387$ 5,894$ 0%
217 Staffing 479,063$ 724,727$ 643,393$ 649,287$ 5,894$ 1%
218 Other Operating Costs 454,862$ 663,860$ 585,800$ 598,300$ 12,500$ 2%
219 Contract Services 78,045$ 198,363$ 160,300$ 147,800$ (12,500)$ ‐8%
220 Parks Maint 2,926,353$ 3,716,247$ 3,399,785$ 3,478,283$ 78,498$ 2%
221 Staffing 1,182,262$ 1,553,758$ 1,372,385$ 1,383,883$ 11,498$ 1%
222 Other Operating Costs 1,177,785$ 1,533,073$ 1,447,400$ 1,447,400$ ‐$0%
223 Contract Services 566,307$ 629,415$ 580,000$ 647,000$ 67,000$ 12%
General Fund
Budget Document Pg. 27 Page 487 of 652
Table G‐7: Detailed General Fund
Operating Expenditures 20‐21 Actuals 21‐22 Budget
22‐23 Original
Budget
22‐23 Revised
Budget Change % Change
2021‐23 Financial Plan
224 Public Works Admin 606,828$ 1,068,079$ 872,405$ 1,089,021$ 216,616$ 25%
225 Staffing 534,534$ 953,906$ 834,205$ 1,044,634$ 210,429$ 25%
226 Other Operating Costs 19,499$ 46,801$ 37,200$ 42,888$ 5,688$ 15%
227 Contract Services 52,795$ 67,372$ 1,000$ 1,500$ 500$50%
228 Stormwater and Flood Control 944,270$ 1,257,484$ 1,186,536$ 1,083,704$ (102,833)$ ‐9%
229 Staffing 708,203$ 866,429$ 849,680$ 746,848$ (102,833)$ ‐12%
230 Other Operating Costs 64,976$ 94,840$ 93,531$ 93,531$ ‐$0%
231 Contract Services 171,091$ 296,215$ 243,325$ 243,325$ ‐$0%
232 Streets Maint 1,313,626$ 2,148,128$ 2,089,464$ 2,423,871$ 334,407$ 16%
233 Staffing 958,355$ 1,332,218$ 1,214,264$ 1,498,671$ 284,407$ 23%
234 Other Operating Costs 314,058$ 464,374$ 556,600$ 581,600$ 25,000$ 4%
235 Contract Services 41,212$ 351,536$ 318,600$ 343,600$ 25,000$ 8%
236 Swim Center Maint 449,101$ 615,828$ 602,752$ 595,198$ (7,554)$ ‐1%
237 Staffing 141,978$ 180,999$ 160,852$ 143,218$ (17,634)$ ‐11%
238 Other Operating Costs 287,910$ 407,732$ 416,800$ 426,880$ 10,080$ 2%
239 Contract Services 19,212$ 27,098$ 25,100$ 25,100$ ‐$0%
240 Traffic Signals and Lighting 553,073$ 607,877$ 519,510$ 535,973$ 16,463$ 3%
241 Staffing 227,066$ 296,129$ 263,110$ 256,709$ (6,401)$ ‐2%
242 Other Operating Costs 311,621$ 235,299$ 241,400$ 264,264$ 22,864$ 9%
243 Contract Services 14,387$ 76,449$ 15,000$ 15,000$ ‐$0%
244 Transportation Plan and Eng 891,289$ 1,288,538$ 1,027,502$ 995,326$ (32,176)$ ‐3%
245 Staffing 853,858$ 1,074,576$ 964,002$ 925,269$ (38,733)$ ‐4%
246 Other Operating Costs 32,175$ 47,300$ 48,500$ 55,057$ 6,557$ 14%
247 Contract Services 5,256$ 166,662$ 15,000$ 15,000$ ‐$0%
248 Urban Forest Services 449,130$ 447,375$ 457,534$ 455,180$ (2,354)$ ‐1%
249 Staffing 403,563$ 315,635$ 376,584$ 356,005$ (20,579)$ ‐5%
250 Other Operating Costs 15,515$ 30,192$ 26,950$ 26,950$ ‐$0%
251 Contract Services 30,052$ 101,549$ 54,000$ 72,225$ 18,225$ 34%
252 Solid Waste Recycling 119,370$ 355,478$ 176,280$ 317,456$ 141,176$ 80%
253 Solid Waste Recycling 119,370$ 355,478$ 176,280$ 317,456$ 141,176$ 80%
254 Staffing 113,337$ 227,664$ 129,770$ 270,946$ 141,176$ 109%
255 Other Operating Costs 6,033$ 36,510$ 36,510$ 36,510$ ‐$0%
256 Contract Services ‐$91,304$ 10,000$ 10,000$ ‐$0%
257 General Fund Total 68,745,623$ 92,293,090$ 79,576,996$ 83,124,548$ 3,547,551$ 4%
General Fund
Budget Document Pg. 28 Page 488 of 652
Table G‐8: Detailed General Fund Revenue 20‐21 Actuals 21‐22 Budget 22‐23 Original
Budget
22‐23 Revised
Budget Change % Change
1 Tax & Franchise Revenue 71,747,369$ 88,006,932$ 85,320,922$ 91,206,264$ 5,885,342$ 7%
2 Sales Tax (Bradley Burns) 20,067,740$ 20,790,779$ 19,086,000$ 21,789,000$ 2,703,000$ 14%
3 Local Revenue Measure G 12,779,713$ 25,810,000$ 25,202,000$ 27,049,000$ 1,847,000$ 7%
4 Property Tax 19,858,530$ 20,157,153$ 20,781,387$ 20,746,387$ (35,000)$ 0%
5 Transient Occupancy Tax 6,960,035$ 9,051,000$ 7,753,000$ 8,636,000$ 883,000$ 11%
6 Business Tax 2,937,176$ 2,832,000$ 2,547,000$ 2,889,000$ 342,000$ 13%
7 Cannabis Tax 844,939$ 1,000,000$ 1,500,000$ 1,400,000$ (100,000)$ ‐7%
8 Franchise Fees 1,796,829$ 1,575,000$ 1,606,000$ 1,606,000$ ‐$ 0%
9 Gas Tax (SB1) 851,292$ 915,000$ 941,535$ 1,049,877$ 108,342$ 12%
10 Safety Prop 172 425,136$ 493,000$ 339,000$ 497,000$ 158,000$ 47%
11 Utility User Tax 5,225,979$ 5,383,000$ 5,565,000$ 5,544,000$ (21,000)$ 0%
12 Development Review 7,094,935$ 6,820,055$ 6,864,650$ 5,917,618$ (947,032)$ ‐14%
13 Building Permits 3,583,995$ 3,510,000$ 3,600,000$ 2,921,700$ (678,300)$ ‐19%
14 Code Enforcement Fines 90,879$ 90,000$ 100,000$ 60,000$ (40,000)$ ‐40%
15 Development Review Fees 508,373$ 400,000$ 467,000$ 341,228$ (125,772)$ ‐27%
16 Encroachment Permits 327,948$ 305,000$ 315,650$ 323,340$ 7,690$ 2%
17 Engineering Development Review Fees 116,097$ 135,000$ 140,000$ 123,803$ (16,197)$ ‐12%
18 Infrastructure Plan Check & Inspection 829,252$ 1,200,000$ 1,236,000$ 1,432,352$ 196,352$ 16%
19 Plan Check Fees 1,140,509$ 871,776$ 400,000$ 299,000$ (101,000)$ ‐25%
20 Planning & Zoning Fee 506,162$ 600,000$ 606,000$ 416,195$ (189,805)$ ‐31%
21 TIPP‐ Contra Revenue Account (8,279)$ (291,721)$ ‐$‐$‐$
22 Parks & Recreation 1,616,010$ 1,615,555$ 2,039,215$ 1,978,920$ (60,295)$ ‐3%
23 Adult Athletic Fees 46,307$ 122,400$ 122,400$ 154,362$ 31,962$ 26%
24 Aquatics Daily Use Fees 50,361$ 73,075$ 121,132$ 115,175$ (5,957)$ ‐5%
25 Driving Range Fees 12,561$ 11,715$ 11,715$ 12,900$ 1,185$ 10%
26 Golf Cart Rentals 12,429$ 28,262$ 28,262$ 29,675$ 1,413$ 5%
27 Golf Greens Fees 198,058$ 200,000$ 224,400$ 235,180$ 10,780$ 5%
29 Golf Rental Fees 7,889$ 10,566$ 10,566$ 11,232$ 666$ 6%
30 Indoor Rental & Use Fees 12,201$ 39,532$ 54,331$ 65,100$ 10,769$ 20%
31 Instruction Fees 56,152$ 61,400$ 70,000$ 97,830$ 27,830$ 40%
32 Junior Ranger Camps 4,210$4,500$4,500$4,982$482$ 11%
33 Library Rental ‐$6,500$ 21,500$ 16,290$ (5,210)$ ‐24%
35 Multi Day Swim Passes 56,387$ 41,753$ 41,753$ 44,383$ 2,630$ 6%
36 Other Parks & Recreation Revenue 41,780$ 45,000$ 60,641$ 58,482$ (2,159)$ ‐4%
37 Outdoor Rental & Use Fees 61,033$ 88,867$ 118,850$ 129,960$ 11,110$ 9%
38 Sales Taxable 14,741$ 10,000$ 10,000$ 10,000$ ‐$ 0%
39 Special Events ‐ City Sponsered 3,564$ 50,000$ 50,000$ 13,583$ (36,417)$ ‐73%
40 Special Events App/Permit 4,333$ 20,000$ 30,600$ 33,293$ 2,693$ 9%
41 Special Events Insurance 884$6,000$9,600$6,000$(3,600)$ ‐38%
42 Swim Instruction Fees 49,997$ 20,923$ 69,160$ 75,108$ 5,948$ 9%
43 Therapy Pool Fees 9,553$8,627$ 10,096$ 16,304$ 6,208$ 61%
44 Youth Athletic Fees 36,071$ 48,000$ 53,709$ 55,000$ 1,291$ 2%
45 Youth Services Camps 86,776$ 106,650$ 149,300$ 154,275$ 4,975$ 3%
46 Youth Services Childcare 849,552$ 611,785$ 766,700$ 639,806$ (126,894)$ ‐17%
47 Fire 1,500,759$ 1,440,260$ 1,422,086$ 1,576,322$ 154,236$ 11%
48 Cal Poly Fire Services 315,241$ 273,567$ 314,122$ 361,684$ 47,562$ 15%
49 CUPA Inspection Fees 146,953$ 160,000$ 160,000$ 172,800$ 12,800$ 8%
50 Fire Alarm Permits 8,962$10,010$ 10,010$ 10,010$ ‐$ 0%
51 Fire Department Permits 101,572$ 100,000$ 100,000$ 108,000$ 8,000$ 8%
52 Fire Plan Check & Inspection 361,415$ 368,800$ 350,000$ 350,000$ ‐$ 0%
53 Medical ER Recovery 198,103$ 201,993$ 202,064$ 216,938$ 14,874$ 7%
54 Other Fire Department Revenue 41,426$ 5,890$5,890$5,890$ ‐$ 0%
55 R1 Inspection Fees 327,088$ 320,000$ 280,000$ 351,000$ 71,000$ 25%
56 Police 600,406$ 616,440$ 637,196$ 632,325$ (4,871)$ ‐1%
57 Accident Reports 1,977$2,000$3,400$3,400$ ‐$ 0%
58 Administrative Citations ‐ Safety 149,065$ 125,000$ 152,833$ 152,833$ ‐$ 0%
59 Alarm Permits ‐ Contract (Police)107,717$ 90,000$ 90,000$ 90,000$ ‐$ 0%
2021‐23 Financial Plan
General Fund
Budget Document Pg. 29 Page 489 of 652
General Fund
Table G‐8: Detailed General Fund Revenue 20‐21 Actuals 21‐22 Budget
2021‐23 Financial Plan
22‐23 Original
Budget
22‐23 Revised
Budget Change % Change
60 Collision Investigation $1,848 $ 3,000 $ 3,000 $‐ 3,000 $ 0%
62 DUI Cost Recovery $ 18,968 $ 16,417 $ 16,417 $ ‐ 16,417 $ 0%
63 Other Police Revenue $ 218,768 $ 256,335 $ 250,000 $ ‐ 250,000 $ 0%
64 Police Department Permits $2,635 $ 7,511 $ 7,511 $‐ 7,511 $ 0%
65 Police Issued Parking Fines $ 61,057 $ 75,000 $ 75,000 $ (5,000) 70,000 $ ‐7%
66 Property Release Fees $ 33 $500 $ (1,642)$ ‐ (1,642)$ 0%
67 Second Response Fees ‐$$1,071 $ 1,071 $1291,200 $ 12%
68 Tobacco Permits $ 29,247 $ 29,000 $ 29,000 $ ‐ 29,000 $ 0%
69 Tow Release Fees $7,441 $ 9,000 $ 9,000 $‐ 9,000 $ 0%
70 Witness Fees $1,650 $ 1,606 $ 1,606 $‐ 1,606 $ 0%
71 General Government $ 1,890,201 $ 1,721,726 $ 2,099,853 $ (460,000)1,668,952 $ ‐22%
72 Business Licenses $ 442,200 $ 418,443 $ 426,812 $ ‐ 445,911 $ 0%
73 Cannabis Operator License $ 90,449 $ 157,000 $ 388,000 $ (178,000) 210,000 $ ‐46%
75 Impact Fees and Special Assessments $ ‐ 147,070 $‐$‐$‐$
76 Interest on Investment $ 54,464 $ 230,000 $ 500,000 $ (282,000) 230,000 $ ‐55%
77 Misc Fines & Fortfietures $ 95,371 $ 17,596 $ 37,596 $ ‐ 37,596 $ 0%
78 Miscellaneous $ 676,867 $ 625,437 $ 471,100 $ ‐ 469,100 $ 0%
79 Motor Vehicle Fines $ 75,677 $ 118,500 $ 118,500 $ ‐ 118,500 $ 0%
80 Other Rent & Lease Revenue $ 308,103 $ 154,750 $ 157,845 $ ‐ 157,845 $ 0%
81 Grants & Subventions $ 3,114,368 $ 7,986,429 $ 5,365,000 $ 7,369,562 $ 2,004,562 ‐35%
82 AB939 Reimbursement $ ‐ 181,338 $‐$$ 327,328 327,328 $
83 Federal Stimulus Grants $ ‐ 566,680 $‐$‐$‐$
84 Law Enforcement SB229 Grant (COPS SLESF $ ‐ 156,727 $‐$$ 140,000 140,000 $
85 Mutual Aid Reimbursements $ 1,833,347 $ ‐ 684,264 $‐$‐$
86 Other Grants/Subventions $ 178,185 $ 447,000 $ ‐ 900,000 $(900,000)$ ‐100%
87 Police Training Grant (POST)$ 6,001 $ ‐ 64,485 $‐$‐$
88 State Grants & Subventions $ 192,091 $‐ 8,447 $‐$‐$
89 Zone 9 Streambed Clearance ‐$‐$‐$$ 120,000 120,000 $
91 ARPA Allocation $ 6,782,234 $ 4,465,000 $ 6,782,234 $ 2,317,234 52%
92 Total General Fund 87,564,049$ 108,207,398$ 103,748,922$ 110,349,963$ 6,571,942$ 6%
Budget Document Pg. 30 Page 490 of 652
Special Revenue & Other Funds
Section 4: Special Revenue and Other Funds
Tourism Business Improvement District (TBID)
The Tourism Business Improvement District (TBID) assessment is set at 2% of the lodging industry’s gross
receipts. The program annually aligns its operating budget with its anticipated revenues. Tourism along
the Central Coast made a strong comeback as the region re-opened and revenues are reaching all-time
highs as new hotels drive up the average daily rate and available inventory. Staff expect the growth to
slow and likely decline moving into FY 2022-23 once pandemic driven demand is fading.
Table S-1: TBID Budget
Downtown Business Improvement District
The Downtown Business Improvement District assessment is collected annually with the Business Tax
renewal from businesses located within the geographical boundary of the Downtown District. Business
tax certificates are renewed at the beginning of each fiscal year based on prior calendar year gross
receipts. The revenue is then remitted to Downtown SLO monthly via contract services.
Table S-2: Downtown Business Improvement District Budget
Boysen Ranch Conservation Fund
Boysen Ranch consists of approximately 116 acres bounded by Los Osos Valley Road, Foothill Boulevard,
and O’Connor Way. The funding was set up as an endowment to fund monitoring and maintenance of
the restored wetland area. No changes in financial position were made for this fund.
Table S-3: Boysen Ranch Conservation Fund Budget
Expenditure Type 20-21 Actuals 21-22 Budget
22-23 Original
Budget
22-23 Revised
Budget Change % Change
Contract Services 769,214$ 1,245,420$ 1,229,436$ 1,232,968$ 3,532$ 0%
Other Operating Costs 25,546$ 97,627$ 89,100$ 89,100$ -$ 0%
Staffing 203,149$ 268,258$ 232,064$ 219,993$ (12,071)$ -5%
Transfers 29,498$ 28,852$ 31,012$ 34,544$ 3,532$ 11%
Total 1,027,407$ 1,640,157$ 1,581,612$ 1,576,605$ (5,007)$ 0%
2021-23 Financial Plan
Expenditure Type 20-21 Actuals 21-22 Budget
22-23 Original
Budget
22-23 Revised
Budget Change % Change
Contract Services 249,074$ 245,000$ 260,400$ 275,000$ 14,600$ 6%
Total 249,074$ 245,000$ 260,400$ 275,000$ 14,600$ 6%
2021-23 Financial Plan
Expenditure Type 20-21 Actuals 21-22 Budget
22-23 Original
Budget
22-23 Revised
Budget Change % Change
Contract Services -$ 22,500$ 7,500$ 7,500$ -$ 0%
Grand Total -$ 22,500$ 7,500$ 7,500$ -$ 0%
2021-23 Financial Plan
Budget Document Pg. 31 Page 491 of 652
Special Revenue & Other Funds
Public Safety Equipment Fund
The Public Safety Equipment Fund (PSEF) was created with the 2019-21 Financial Plan to help budget and
forecast the replacement of Public Safety equipment that has expired or become damaged. The Fund had
received an original seed amount with the 2019-20 budget and, going forward, an annual allocation is
made from the Local Revenue Measure (see pg 68). The current balance of the fund is $1,165,124. At the
time of Financial Plan adoption, this dedicated funding was accounted for as a restricted balance within
the General Fund and budget was drawn out on an as-needed basis. The fund is now a stand-alone fund
and expenditures will be budgeted and paid for directly out of the new fund. This methodology will help
with expenditure tracking and overall fund management. In 2022-23, planned expenditures include the
replacement of gas masks, drones, AEDs, breathing apparatus sets, and a cardiac monitor.
Table S-4: Public Safety Equipment Fund Budget
Insurance Fund
The Insurance Fund serves to pay the City’s annual premiums for liability, workers’ compensation, special
events, volunteer, and property insurance needed to protect the City and to manage fluctuations in
claims-related expenses.
The City has received notification that its required contribution for 2022-23 will be higher than the amount
adopted with the 2021-23 Financial Plan. The increase in insurance costs this year is attributable 3 factors:
1)There were some high-cost claims within the membership pool to which the City belongs and shares
expenses; 2) increases in payroll and the number of employees also increased exposure and associated
costs; 3) a recent appraisal increased the valuation of the City’s properties and costs to insure them.
In order to keep within the adopted transfer to the fund, available fund balance will be used to cover the
change in cost for 2022-23. The Fund balance is currently $1,757,013; sufficient to cover the increase of
$314,000. However, the City’s fiscal policies under Section 7. Fund Balance and Reserves (F) stipulate that
the reserve will be based on a 75% confidence level of the previous five-year average claims experience,
which amounts to approximately $1,500,000. The use of fund balance will leave 1,443,013 which dips
slightly below the policy required level. This will be reconsidered with the 2023-25 Financial Plan to ensure
the reserve levels are appropriately funded.
Table S-5: Insurance Fund Budget
Expenditure Type 20-21 Actuals 21-22 Budget
22-23 Original
Budget
22-23 Revised
Budget Change % Change
Other Operating Costs -$ -$ -$ 445,978$ 445,978$ -
Grand Total -$ -$ -$ 445,978$ 445,978$ -
2021-23 Financial Plan
Expenditure Type 20-21 Actuals 21-22 Budget
22-23 Original
Budget
22-23 Revised
Budget Change % Change
Liability/Other Insurance 1,323,824$ 2,002,059$ 2,055,128$ 2,193,116$ 137,988$ 7%
Worker's Comp Insurance 2,037,611$ 2,181,044$ 2,668,844$ 2,844,913$ 176,069$ 7%
Grand Total 3,361,435$ 4,183,103$ 4,723,972$ 5,038,029$ 314,057$ 7%
2021-23 Financial Plan
Budget Document Pg. 32 Page 492 of 652
Enterprise Funds – Water and Sewer
Section 4:Utilities Department – Water and Sewer Enterprise
Funds
Overview
The City’s water and sewer operations are paid for by service rate revenues and cover all costs for
operations, maintenance, infrastructure replacement, and debt service. Taxes, including utility user taxes,
do not support these services. When preparing annual budgets, the Utilities Department analyzes past
financial results, reviews upcoming operational and capital needs, and current and future debt
obligations to assess the financial position of each of the funds. The 2021-23 Financial Plan adopted
balanced Water and Sewer Fund budgets that considered all these factors. In June 2021, the City Council
also adopted a two-year rate increase that was anticipated to cover expenses related to replacement of
aging water and sewer lines, increasing regulatory requirements, and increased equipment,
maintenance, and operational costs. Recommended water and sewer rate increases for 2021-22 and
2022-23 are lower than originally projected. The most recent rate study, conducted in 2018, had
projected rate increases would need to be 5.5 percent in 2021 and 5.5 percent in 2022. However,
following a 2021 rate confirmation study, rates were adopted by the City Council as follows:
Year Adopted Water
Rate Increase
Adopted Sewer
Rate Increase
2021-22 3.5% 3.5%
2022-23 3.5% 3.5%
Revenue
Post-Pandemic Revenue Normalization
Emerging from the Covid-19 pandemic, utilities revenues are tracking on-pace for 2021-22 and are also
anticipated to meet 2022-23 projections. Data used in this analysis is current as of April 2022, and
includes the following notable details:
1.Distribution of water use amongst customer classes has returned to a pre-pandemic norm as
businesses have reopened, remote work has decreased, schools have opened, and Cal Poly has
resumed in-person classes.
2.The City’s Water Fund received a payment of $225,015.67 in 2021-22 from the State of
California for pandemic-related past-due water bills. An additional $190,752.46 is anticipated
to be received during Fiscal Year 2021-22 to fund past-due sewer bills. These funds were and
will be used to offset or “forgive” past due balances held by customers during the pandemic.
3.Cal Poly’s water and sewer use has returned to a pre-pandemic level, and revenues are
projected in alignment with budget projections.
Budget Document Pg. 33
Table U1: Utility Rates
Page 493 of 652
Enterprise Funds – Water and Sewer
Utilities Revenue Overview (Excludes Debt Proceeds)
Table U2: Water Revenue 2021-22 Budget 2022-23 Original
Budget
2022-23 Revised
Budget Change % Change
1 Water Sales 13,785,100$ 16,328,641$ 16,328,641$ -$ 0%
2 Utilities Base Charges 5,559,695$ 5,754,284$ 5,754,284$ -$ 0%
3 Prop 1B Revenue 256,395$ 1,395,000$ 1,395,000$ -$
4 Sales to Cal Poly 971,788$ 1,005,801$ 1,044,673$ 38,872$ 4%
5 Reclaimed Water Sales 961,817$ 995,481$ 995,481$ -$ 0%
6 Cal Poly Capacity & Resilience 223,000$ 224,795$ 259,490$ 34,695$ 15%
7 Development Impact Fees 1,548,200$ 1,370,400$ 1,370,400$ -$ 0%
8 Miscellaneous Penalties 118,000$ 118,000$ 118,000$ -$ 0%
9 Utilities Set-up Fees 217,000$ 217,000$ 130,000$ (87,000)$ -40%
10 Interest on Investment 407,600$ 423,500$ 50,000$ (373,500)$ -88%
11 Development Review Fees 26,000$ 26,000$ 26,000$ -$ 0%
12 Miscellaneous Revenue 20,000$ 20,000$ 20,000$ -$ 0%
13 Credit Collections 14,000$ 14,000$ 14,000$ -$ 0%
14 Other Utilities Charges 1,000$ 1,000$ 1,000$ -$ 0%
15 Low Income Subsidy (100,000)$ (100,000)$ (100,000)$ -$ 0%
Totals 24,009,595$ 27,793,902$ 27,406,969$ (386,933)$ -1%
Table U3: Sewer Revenue 2021-22 Budget 2022-23 Original
Budget
2022-23 Revised
Budget Change % Change
1 Sewer Service Charges $12,359,499 $12,792,082 $12,792,082 $0 0%
2 Utilities Base Charges $4,652,807 $4,815,655 $4,815,655 $0 0%
3 Sales to Cal Poly $991,741 $1,026,452 $1,026,452 $0 0%
4 Cal Poly Capacity & Resilience $243,568 $243,568 $243,568 $0 0%
5 Development Impact Fees $1,383,900 $1,190,200 $1,190,200 $0 0%
6 Miscellaneous Penalties $119,000 $119,000 $120,000 $1,000 1%
7 Industrial User Permits $85,000 $0 $85,000 $85,000
8 Other Utilities Charges $1,000 $0 $70,000 $70,000
9 Utilities Set-up Fees $217,000 $217,000 $60,000 -$157,000 -72%
10 Interest on Investment $401,514 $608,300 $50,000 -$558,300 -92%
11 Development Review Fees $26,000 $26,000 $26,000 $0 0%
12 Miscellaneous Revenue $20,000 $20,000 $20,000 $0 0%
13 Credit Collections $14,000 $14,000 $10,000 -$4,000 -29%
14 Waterways Management Fees $0 $85,000 $0 -$85,000 -100%
15 Low Income Subsidy -$100,000 -$100,000 -$100,000 $0 0%
Totals $20,415,029 $21,057,257 $20,408,957 -$648,300 -3%
Budget Document Pg. 34 Page 494 of 652
Enterprise Funds – Water and Sewer
Water Shutoff Moratorium
The Covid-19 pandemic and resulting California State water shut-off moratorium had resulted in an
increase in past due water accounts. The moratorium on water shutoffs for non-payment expired on
December 31, 2021. Over the course of the pandemic Utility Department staff worked with residents,
business owners, and community members to “catch up” on past due accounts with the option of
payment plans for outstanding account balances. In additional to payment options for outstanding
balances, staff highlighted the Customer Assistance Program (CAP) which provides discounted water and
sewer rates to income-eligible customers. Following the extended moratorium on shutoffs, shutoffs for
non-payment were reinitiated in early April with volumes equivalent to pre-pandemic levels.
Key Assumptions and the New Normal
The Utilities Department used the above data and the following assumptions to forecast revenues for the
2022-23 Supplemental Budget. These assumptions will continue to be monitored and updated as more
information becomes available.
1.Consumption revenue will track as originally projected. This estimate is derived from year-to-
date water production and consumption data.
2.The already approved 2022-23 rate increases (3.5 percent water and 3.5 percent sewer) will be
enacted as previously scheduled. As noted prior, recommended water and sewer rate
increases for 2021-22 and 2022-23 are lower than originally projected in the 2018 rate study.
3.Fiscal impacts from drought are anticipated to be minimal when compared to prior drought
periods due to the City having an already-low per capita water use. Impacts will be further
limited by the changes to the rate structure that were made following the 2012-2015 drought
which resulted in a higher portion of a customer’s bill being fixed (a base fee), and a lower
portion being variable in nature (consumption charges).
Expenditures
Inflation and Supply Chain Interruptions
Historical methodologies used to forecast Water and Sewer Fund expenditures have been challenged as
the department has experienced uncharacteristically high increases in the prices of raw materials,
specifically those related to construction materials and chemicals. The Utilities Department has
compiled available data and performed an analysis to develop a strategy for accommodating the
significant increase in projected expenditures to the Water and Sewer Funds. Data used in this analysis
is current as of April 2022 and is discussed in greater detail below.
Chemical Price Increases
1.Due to a drastic change in purchasing cost, the chemical budget increased by approximately 50
percent at the City’s Water Treatment Plant, resulting in ongoing increases in projected
expenditures of approximately $186,000 compared to 2021-22 budgeted levels in the Water
Fund. In years past, typical chemical cost increases ranged from five to ten percent. Due to the
current supply chain shortages, specific chemical prices have increased by as much as 106
percent compared to the prior fiscal year.
Budget Document Pg. 35 Page 495 of 652
Enterprise Funds – Water and Sewer
2.Similarly in wastewater treatment, the chemical budget increased by approximately 29 percent
at the City’s Water Resource Recovery Facility (WRRF), amounting to an increase of
approximately $180,000 when compared to the 2021-22 levels budgeted in the Sewer Fund.
Increases at the Water Resource Recovery Facility would have been substantially higher, if not
offset by new equipment coming online that requires less chemical use when compared to the
older equipment.
3.When establishing a new contract for chemical deliveries in 2021, significant price instability
existed in the chemical market. To keep vendors from artificially inflating bid amounts to
account for this uncertainty, staff worked with chemical vendors to allow for prices to be
reexamined and renegotiated mid-way through the contract. Chemical prices are subject to
renegotiation in August of 2022 and could increase further should the chemical market remain
unstable. Significant cost increases due to the upcoming chemical price renegotiations in
August would require the Utilities Department to return to the Council with additional funding
requests.
Electrical Price Increases
1.Electrical costs for the department’s non-Community Choice Energy (CCE) operations are
projected to increase as much as 20 percent over original projections. The facilities that are
unable to utilize CCE, “non-CCE”, are located outside of the City limits and include the City’s
Water Treatment Plant, Whale Rock Reservoir, Salinas Reservoir, and Nacimiento Reservoir.
Total electrical increases for those four facilities are projected at approximately $505,000 for
the Water Fund over original 2022-23 budget projections. These increases are entirely due to
source water pumping cost increases.
2.Electrical increases of $85,000 were originally anticipated at the City’s Water Treatment Plant;
however, these have been offset in full by electrical savings realized from the recent Water
Treatment Plant Energy Efficiency Project that replaced the facility’s ozone disinfection system
with a more energy-efficient system.
3.All Sewer Fund electricity use is located within the City and therefore provided by the CCE1
Program and is not anticipated to increase in 2022-23.
1 The March 1, 2022, transition to new rates coincides with a ten-year high in national energy costs. Despite
these challenging energy market conditions, the CCCE Policy Board of Directors on December 15, 2021, finalized a
CCCE Electric Generation Rate anticipated to be 3% – 25% lower than PG&E’s anticipated Electric Generation
Rates. These rates are through December 2022.
CCCE customers have the same access to rate assistance programs as customers of PG&E. Rate relief provided
through the CARE, FERA, AMP, HEAP or Medical Baseline programs also apply to CCCE customers.
Budget Document Pg. 36 Page 496 of 652
Enterprise Funds – Water and Sewer
Drought-Related Increases
In March 2022, the Governor of California issued an executive order related to statewide drought
conditions. The executive order outlined a series of actions, which as of this writing, are still being
considered for adoption by the State Water Board. The most impactful of these actions could require all
of California’s urban water suppliers to implement the water saving measures outlined in Level 2 of their
Water Shortage Contingency Plans, regardless of local water supply conditions. Notable actions that the
City would be required to implement from Stage 2 of its Water Shortage Contingency Plan include
requirements for additional community outreach, a restriction of allowable irrigation hours,
implementation of rebate programs, an increase in proactive conservation audits and inspections. The
extent of the impacts of the executive order will be largely dependent on the specific actions approved
by the State Water Resources Control Board and the implementation timeline that the State approves.
Regardless of the specific actions of the State Water Board, City staff anticipate substantial increases in
drought and water conservation-related work as a result of the State’s messaging about ongoing
drought and water shortages across the State. Should the State Water Board implement less significant
actions than outlined by the Governor, the department may not need the full amount of additional
budget requested.
1.Utilities Department staff are anticipating a higher volume of drought-related work as the City
enters its third consecutive year of less than average rainfall and as it implements programs
associated with the recent executive order. Additional support is being requested in the Utility
Billing and Water Resources sections to accommodate increased drought-related workloads.
Total temporary and contract staffing increases amount to $131,200 for Fiscal Year 2022-23 and
provide one full-time contract Water Resources Technician, two part-time supplemental Water
Resources Technicians, and one part-time supplemental Utility Billing Assistant.
2.In alignment with the request for additional staffing budget, staff are anticipating the need for
additional public outreach-related drought funding. Total supplemental outreach funding
being requested is $40,000 for FY 2022-23.
3.To support water conservation program expansion during drought, staff are requesting
$30,000 in additional funding for water conservation-related materials.
4.During the 2012-2015 drought, the Water Fund experienced a significant reduction in revenue
due to drought and state-mandated conservation actions. While staff acknowledge that there
is likely to be some reduction in Water and Sewer Fund revenues due to the drought, it is not
anticipated to be as substantial as what was previously experienced due to two major factors.
First, the water rate structure was updated following the 2012-2015 drought with a higher
share of a customer’s monthly bill now being fixed, and not dependent on monthly water
consumption. Therefore, variation in consumption has a smaller impact on the total revenue
brought in from water sales. Second, water use within the City never returned to its pre-
drought levels following the 2012-2015 drought and staff do not anticipate that impacts from
Stage 2 measures will have as substantial of an impact as they did during the last drought.
Measures outlined within Stages 3-5 of the Water Shortage Contingency Plan require more
Budget Document Pg. 37 Page 497 of 652
Enterprise Funds – Water and Sewer
significant mandatory water conservation measures and would have more substantial impacts
on revenues.
5.Although drought is often only considered a domestic water supply issue, there is also a major
impact on the wastewater treatment processes during periods of extended drought. The
concentration of waste within wastewater are often much higher as indoor water use
decreases. As a result, the City’s wastewater system treats and processes waste with much
higher levels of waste concentrations, placing major stress on the system and operations. In
addition, during drought, it becomes more difficult to meet state wastewater quality standards
with increased pollutant strength due to greater concentrations resulting from less water
being discharged. Staff will continue to monitor drought impacts on the wastewater treatment
process.
6.The City is undertaking a Recycled Water Maximization Study that will be presented to Council
at the end of the calendar year. This study draws from the conclusions of the City’s 2017
adopted Recycled Water Master Plan, the treatment design aspects incorporated into the
current construction of the Water Resources Recovery Facility (WRRF), and the recently
adopted Groundwater Sustainability Plan for the San Luis Obispo Basin. This study will
evaluate opportunities for utilization of any remaining available recycled water until a point in
time in which the City may utilize this resource for potable reuse. Potential uses for available
recycled water during this interim period could include expanding uses within the City and
short-term contract sales outside of the City. The Recycled Water Maximization Study will also
evaluate seasonal availability of recycled water, cost of production and delivery, policy analysis
and General Plan conformance, and the City’s water rights.
Budget Document Pg. 38 Page 498 of 652
Enterprise Funds – Water and Sewer
Table U4: Utilities Operating Expenditures by Program (excludes Debt & Capital)
Table U5: Utilities Expenditures by Type (excludes Debt & Capital)
Expenditure Type 20-21 Actuals 21-22 Budget
22-23 Original
Budget
22-23 Revised
Budget Change %
Change
Water Fund
1 Water Admin and Eng 5,622,752$ 1,563,537$ 1,290,850$ 1,348,534$ 57,684$ 4%
2 Water Source of Supply 9,803,475$ 10,945,103$ 10,233,233$ 10,818,843$ 585,610$ 6%
3 Water Treatment 2,720,989$ 3,609,374$ 3,229,196$ 3,461,885$ 232,690$ 7%
4 Water Distribution 1,612,549$ 1,985,097$ 1,869,866$ 1,861,907$ (7,959)$ 0%
5 Water Resources 256,913$ 579,126$ 465,257$ 571,228$ 105,971$ 23%
6 Utilities Revenue -$ 292,433$ 276,100$ 308,054$ 31,954$ 12%
7 General Government/Non-
Departmental 2,799,424$ 2,677,546$ 2,747,226$ 2,441,375$ (305,851)$ -11%
8 Water Fund Total 22,816,102$ 21,652,217$ 20,111,728$ 20,811,827$ 700,099$ 3%
9 Sewer Fund
10 Wastewater Admin and Eng 4,873,327$ 1,753,310$ 1,419,224$ 1,390,945$ (28,279)$ -2%
11 Wastewater Collection 1,106,185$ 1,496,082$ 1,261,897$ 1,331,027$ 69,130$ 5%
12 Environmental Programs 224,631$ 317,393$ 274,771$ 282,237$ 7,466$ 3%
13 Water Resource Recovery 3,371,998$ 4,552,817$ 4,062,458$ 4,182,465$ 120,008$ 3%
14 Utilities Revenue 474,350$ 335,148$ 284,879$ 310,113$ 25,234$ 9%
15 Water Quality Lab 668,269$ 966,653$ 827,721$ 832,235$ 4,514$ 1%
16 General Government/Non-
Departmental 2,528,185$ 2,539,416$ 2,538,928$ 2,676,437$ 137,509$ 5%
17 Sewer Fund Total 13,246,945$ 11,960,818$ 10,669,878$ 11,005,459$ 335,581$ 3%
Expenditure Type 20-21 Actuals 21-22 Budget
22-23 Original
Budget
22-23 Revised
Budget Change %
Change
Water Fund
1 Staffing 4,143,709$ 5,551,424$ 4,900,833$ 4,968,326$ 67,493$ 1%
2 Contract Services 396,688$ 765,881$ 602,515$ 665,420$ 62,905$ 10%
3 Other Operating Costs 10,856,297$ 12,817,734$ 11,951,523$ 12,866,328$ 914,805$ 8%
4 Transfers 2,672,968$ 2,517,178$ 2,656,857$ 2,656,857$ -$ 0%
5 Water Fund Total 18,069,662$ 21,652,217$ 20,111,728$ 21,156,931$ 1,045,203$ 5%
Sewer Fund
6 Staffing 4,413,273$ 5,775,389$ 4,951,456$ 4,889,494$ (61,962)$ -1%
7 Contract Services 691,314$ 1,081,706$ 822,931$ 863,361$ 40,430$ 5%
8 Other Operating Costs 1,903,669$ 2,735,659$ 2,448,484$ 2,678,821$ 230,337$ 9%
7 Transfers 6,238,684$ 2,368,064$ 2,447,007$ 2,573,783$ 126,776$ 5%
10 Sewer Fund Total 13,246,940$ 11,960,818$ 10,669,878$ 11,005,459$ 335,581$ 3%
Budget Document Pg. 39 Page 499 of 652
Enterprise Funds – Water and Sewer
Significant Operating Budget Changes
The Utilities Department is recommending significant operating budget changes (SOBCs) in 2022-23 in
response to the chemical and electricity rate increases noted prior, implement required drought
response, as well as the ongoing need for safety equipment and security services at the City’s
water and wastewater facilities. The full SOBC write ups are detailed in Appendix U1 (pg. 46).
Table U6: Recommended Operating Budget Changes:
One-time Ongoing
1 Water $ 115,980 $ 864,290
2 Source of Supply $ 3,500 $ 582,797
3 Water Admin $ 40,000 $ 1,500
4 Water Distribution $ 18,000 $ 29,475
5 Water Resources $ 30,000 $ -
6 Water Treatment Plant $ 20,000 $ 232,268
7 Utility Billing $ 4,480 $ 18,250
8 Sewer $ 24,480 $ 246,287
9 Wastewater Admin $ -$ 2,500
10 Wastewater Collections $ 20,000 $ 15,000
11 WRRF $ -$ 210,537
12 Utility Billing $ 4,480 $ 18,250
13 Grand Total $ 140,460 $ 1,110,577
Solid Waste Recycling Program
The Solid Waste and Recycling Program is funded by the General Fund and AB 939/SB 1383 fees passed
through San Luis Garbage Company customers and remitted monthly to the City. With the approval of
the 2022 Solid Waste Rate Setting adopted by City Council on April 19, 2022, 1.55 percent of the total
rate increase will be allocated to the City via additional AB 939/SB 1383 fees. The additional revenue is
approximately $100,000 annually. For FY 22-23, the Solid Waste and Recycling Program operates with
approximately $327,000 in revenues, and just over $317,000 in expenses, including personnel. The
program is currently managed by one full-time equivalent (FTE) staff member, with support from a
contract position expiring in August of 2022. The proposed budget for FY 22-23 includes the addition of
a permanent FTE position, as mentioned below, due to the expansion of monitoring and compliance
with regulatory state mandated programs.
Included in the General Fund section of the budget (pg. 41) is a request to allocate the funding for
an additional position (1 FTE) to the Solid Waste and Recycling Program. In 2022, California’s SB 1383,
the largest adopted solid waste bill in nearly 30 years, became effective and as a result, local
government solid waste sections are expanding to comply. The expanded workload includes but is not
limited to: 1.Adopting an organics procurement policy.
2.Acquiring and submitting organics diversion data to the Integrated Waste Management
Authority (IWMA) for regular reporting to the State.
3.Mediating customer issues and complaints.
4.Ensuring contract compliance between the IWMA, City, and San Luis Garbage Company.
5.Developing an enforcement methodology by January 1, 2024.
Budget Document Pg. 40 Page 500 of 652
Enterprise Funds – Water and Sewer
Continued conversations with Human Resources regarding the program's expansion are occurring to
determine the appropriate position and pay grade.
Unassigned Working Capital
It is the City's policy to maintain a reserved working capital balance of 20 percent of operating
expenditures in the Water and Sewer Funds, this reserve is known as the “Operating Reserve”. This is
considered the minimum level necessary to adequately provide for:
1.Economic uncertainties, local disasters, and other financial hardships or downturns in the local
or national economy.
2.Contingencies for unseen operating or capital needs.
3.Cash flow requirements.
All working capital that is not designated is considered unassigned. The current target for Unassigned
Working Capital balance in the Water and Sewer Fund is $10 million per fund.
Water Fund - Unassigned Working Capital
The Water Fund is facing increased expenditures that are largely attributable to the chemical and
electricity cost increases that started in 2021-22. As the City conducts rate setting for a two-year
period, these increases were not captured as part of the previously approved 3.5% rate increase for
2022-23, resulting in a projected shortfall for the 2022-23 fiscal year. The Water Fund Unassigned
Working Capital balance for 2022-23 is approximately $9.1 million, which is healthy enough to absorb
these impacts for a single year; however, long-term forecasts of the use of the Unassigned Working
Capital to address these increased costs shows it decreasing to approximately $4.1 million by 2030-31.
The projected decrease in Unassigned Working Capital can largely be attributed to inflationary
increases in material and labor costs in operating expenditures and capital improvement projects.
Rather than using the Unassigned Working Capital balance, the Water Fund will first utilize Rate
Stabilization Reserves to fund the budget shortfall in this fiscal year. The goal and intent of Rate
Stabilization Reserves are to provide a level of stability to both the City and the customer. Consistent
with the Financial Plan Process and Policies, staff will address the longer-term impacts at the 2023-25
Financial Plan with potentially higher than previously forecasted rate increases to maintain the health
of the Water Fund beginning in 2023-24 and to rebuild the Rate Stabilization Reserve fund balance. The
use of Rate Stabilization Reserves, currently at $2.2 million, will allow the Utilities Department to
continue to deliver a high level of service during the ongoing drought, allow for the continued
execution of critical CIP projects, and will preserve the Unassigned Working Capital, currently at $10.2
million, in case of a drastic or significant economic downturn. The Water Fund Unassigned Working
Capital is displayed on line 40 in the Five-Year Forecast on pg. 44.
Budget Document Pg. 41 Page 501 of 652
Enterprise Funds – Water and Sewer
Sewer Fund – Unassigned Working Capital
Based on the long-term forecast the Sewer Fund is in a financially stable and healthy position with an
anticipated Unassigned Working Capital balance of approximately $20.1 million in FY 2022-23.
However, at the close of FY 2023-24 the balance is anticipated to decrease to $16 million, and down to
$14 million at the close of FY 2024-25 due to significant increases in material and labor costs associated
with operating programs and capital improvement projects. For FY 2022-23, the increased
expenditures are largely attributable to chemical cost increases of as much as 100 percent, which
started in 2021-22. For FY 2023-24, electrical accounts will have a larger impact as the WRRF
transitions from chemical to ultraviolet disinfection. This larger Unassigned Working Capital balance
also exists for cashflow purposes on the WRRF Project. Based on current fiscal circumstances, the
Sewer Fund is in a relatively stable position. The Sewer Fund Unassigned Working Capital is
displayed on line 42 in the Five-Year Forecast on pg. 45.
Long Term Strategy
Since adoption of the 2021-23 Financial Plan, significant inflationary and supply chain-related issues
have emerged, requiring that the previously adopted 2022-23 Water and Sewer Fund budgets be
revised to maintain existing operations. The Water and Sewer Funds are separate and distinct;
however, the impacts of inflationary price increases and supply chain disruptions have impacted both
funds similarly. In addition to these impacts, the City experienced another abnormally dry winter that
has caused the Water Fund to receive an increased volume of drought-related work and staff are
anticipating the need for additional staffing and operating resources as the State of California rolls out
a state-wide response to the current drought.
The procurement and use of chemicals is critical in delivering high quality water to the community, as
well as treating wastewater in a manner to address regulatory, health, and safety standards. During FY
2022-23, staff will carefully evaluate operations and fiscal impacts related to the chemical and
electricity budgets across the funds. Staffing and personnel costs are a major part of water and
wastewater operations and expenses. Taking into consideration recent compensation increases and
on-going negotiations with various employee groups, the Water and Sewer Funds anticipate staffing
expenses to increase in FY 2022-23 as well. This will result in an on-going fiscal commitment related to
personnel and staffing costs in future years, increasing total operating expenses. Due to the ongoing
nature of these increased expenditures, this need must be offset by increased revenues. The Water
and Sewer Fund long-term forecasts project annual revenues and expenditures, assuming a 3.5 percent
rate increase each year. Initial analysis indicates that 3.5 percent increases on an ongoing basis are not
adequate to accommodate increased expenditures in Water and Sewer Fund costs in outer years.
Utilities Department staff will engage with a rate consultant to reexamine the revenue needed to
support essential water and wastewater operations, while accounting for chemical increases, electricity
increases, capital construction cost increases, and staffing related increases.
In preparation of the 2023-25 Financial Plan, staff will take into consideration a new normal to ensure
fund stability and long-term fiscal health to support the day-to-day operation of the water and
wastewater systems. With increased operating costs seen in the areas of electricity, chemicals, staffing
Budget Document Pg. 42 Page 502 of 652
Enterprise Funds – Water and Sewer
among others including safety and security, staff is tasked with strategically navigating these factors in
relation to rate setting in future years to continue operations that meet regulatory requirements and
public expectations. It is important to note that these challenges are not specific to the City of San Luis
Obispo, and utility agencies nationwide are facing similar challenges.
Summary
The City’s water and sewer operations are paid for by rate revenues and cover all costs for operations,
maintenance, infrastructure replacement, and debt service. The Utilities Department is recommending
significant operating budget changes (SOBCs) in 2022-23 in response to the chemical cost increases
and electricity rate increases, drought response, as well as the ongoing need for safety equipment and
security services at the City’s water and wastewater facilities. Due to the ongoing nature of these
increased expenditures, this need must be offset by increased revenues. In preparation of the 2023-25
Financial Plan, staff will take into consideration a “new normal” to ensure fund stability and long-term
fiscal health to support the day-to-day operation.
Budget Document Pg. 43 Page 503 of 652
Enterprise Funds – Water and Sewer
Table U7: Water Fund Five Year Forecast
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Actual Budget Budget Budget Budget Budget
REVENUES BY TYPE
1 Water Service Sales (Charges)15,417$ 15,776$ 16,329$ 17,472$ 18,695$ 19,349$
2 Utilities Base Fee Charges 5,213$ 5,560$ 5,754$ 6,157$ 6,588$ 6,819$
3 Sales to Cal Poly 954$ 972$ 1,045$ 1,118$ 1,196$ 1,238$
4 Cal Poly Capacity & Resilience 535$ 223$ 259$ 233$ 235$ 240$
5 Reclaimed Water Sales (Recycled Water)1,061$ 962$ 995$ 1,065$ 1,140$ 1,180$
6 Development Impact Fees 4,746$ 1,548$ 1,370$ 789$ 800$ 800$
7 Investment and Property Revenue 585$ 408$ 50$ 50$ 50$ 50$
8 Long Term Debt Proceeds 11,030$ 3,270$ -$ 700$ 6,000$ 2,000$
9 State Grants- (Prop 1B & SGMA)326$ 480$ 1,395$ -$ -$ -$
10 Miscellaneous (Other) Revenue 596$ 396$ 309$ 239$ 239$ 239$
11 Rate Assistance Subsidy -$ (100)$ (100)$ (100)$ (100)$ (100)$
12 TOTAL 40,465$ 29,494$ 27,407$ 27,722$ 34,842$ 31,814$
13 EXPENDITURE BY CATEGORY -$ -$ -$ -$
14 Salaries & Benefits 4,144$ 4,711$ 4,968$ 5,073$ 5,179$ 5,287$
15 Operating Expenditures 11,253$ 13,584$ 13,532$ 13,880$ 14,136$ 14,403$
16 Capital Outlay 10,866$ 16,419$ 5,085$ 4,386$ 10,767$ 6,182$
17 Debt Service 2,460$ 2,449$ 2,443$ 1,870$ 1,869$ 1,866$
18 Transfers Out 2,673$ 2,517$ 2,312$ 2,427$ 2,549$ 2,676$
19 TOTAL 31,396$ 39,679$ 28,340$ 27,636$ 34,500$ 30,415$
20 EXPENDITURE BY FUNCTION -$ -$ -$ -$
21 General Government 2,696$ 2,517$ 2,312$ 2,427$ 2,549$ 2,676$
22 Water Source of Supply 10,181$ 14,159$ 10,996$ 11,220$ 11,343$ 11,469$
23 Water Treatment 13,608$ 10,178$ 7,211$ 6,099$ 7,751$ 6,146$
24 Water Distribution 3,618$ 10,210$ 5,442$ 5,412$ 10,158$ 7,564$
25 Water Resources 257$ 543$ 571$ 584$ 597$ 610$
26 Water Administration 1,035$ 1,723$ 1,370$ 1,446$ 1,643$ 1,480$
27 Non-departmental -$ 72$ 130$ 132$ 135$ 138$
28 Utilities Revenue (Billing)-$ 277$ 308$ 316$ 325$ 333$
29 TOTAL 31,396$ 39,679$ 28,340$ 27,636$ 34,500$ 30,415$ $ $ 7,968$ $ $ $
30 CHANGES IN FINANCIAL POSITION -$ -$ -$ -$
31 Working Capital - Beginning 20,765$ 28,503$ 17,478$ 16,380$ 16,301$ 16,479$
32 Revenues over (under) Expenditure 9,069$ (10,185)$ (933)$ 86$ 343$ 1,399$
33 Working Capital - Year End before CalPERS 29,834$ 18,318$ 16,545$ 16,466$ 16,644$ 17,879$
34 CALPERS Down Payment -$ 841$ 165$ 165$ 165$ 165$
35 Working Capital - Year End 29,834$ 17,478$ 16,380$ 16,301$ 16,479$ 17,714$
36 Audit Adjustments (1,331)$ -$ -$ -$ -$ -$
37 Operating Reserve 4,106$ 4,652$ 4,651$ 4,650$ 4,746$ 4,847$
38 Rate Stabilization 2,158$ 2,231$ 2,313$ 2,475$ 2,648$ 2,741$
39 UFL Trust Fund -$ 166$ 176$ 176$ 176$ 176$
40 Unreserved Working Capital - Year End 23,569$ 10,428$ 9,241$ 9,001$ 8,909$ 9,951$
in thousands
Revised with Supplement
Budget Document Pg. 44 Page 504 of 652
Enterprise Funds – Water and Sewer
Table U8: Sewer Fund Five Year Forecast
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Actuals Budget Budget Budget Budget Budget
REVENUES BY TYPE
1 Sewer Service Charges 11,699$ 12,359$ 12,792$ 13,240$ 13,703$ 14,183$
2 Utilities Base Charges 4,543$ 4,653$ 4,816$ 4,984$ 5,159$ 5,339$
3 Sales to Cal Poly 639$ 992$ 1,026$ 1,062$ 1,038$ 957$
4 Cal Poly Capacity & Resilience 244$ 244$ 244$ 473$ 473$ 473$
5 Development Impact Fees 3,849$ 1,384$ 1,190$ 618$ 600$ 600$
6 Industrial User Permits 9$ 85$ 85$ 85$ 85$ 85$
7 Investment & Property Revenue 10$ 402$ 50$ 50$ 50$ 50$
8 Long Term Debt Proceeds 20,212$ 89,916$ 427$ -$ -$ -$
9 State Grants 258$ 3,470$ -$ -$ -$ -$
10 Miscellaneous Revenue 533$ 397$ 306$ 312$ 318$ 325$
11 Rate Assistance Subsidy -$ (100)$ (100)$ (100)$ (100)$ (100)$
12 TOTAL 41,996$ 113,801$ 20,836$ 20,724$ 21,326$ 21,912$
13 EXPENDITURE BY CATEGORY
14 Salaries & Benefits 4,413$ 4,911$ 4,889$ 4,992$ 5,097$ 5,204$
15 Operating Expenditures 2,596$ 3,817$ 3,542$ 3,968$ 4,109$ 4,257$
16 Capital Outlay 37,956$ 111,103$ 5,738$ 9,640$ 3,498$ 4,371$
17 Debt Service 1,388$ 1,384$ 1,381$ 1,382$ 7,006$ 7,099$
18 Transfers Out 2,402$ 2,368$ 2,574$ 2,702$ 2,838$ 2,979$
19 TOTAL 48,754$ 123,584$ 18,125$ 22,685$ 22,548$ 23,909$
20 EXPENDITURE BY FUNCTION
21 General Government 2,402$ 2,368$ 2,574$ 2,702$ 2,838$ 2,979$
22 Wastewater Collection 2,837$ 21,654$ 6,529$ 5,572$ 4,103$ 6,165$
23 Environmental Compliance 225$ 281$ 282$ 289$ 296$ 303$
24 Water Resource Recovery 40,818$ 96,068$ 6,046$ 11,327$ 12,264$ 11,547$
25 Utilities Revenue 474$ 320$ 310$ 319$ 327$ 336$
26 Water Quality Lab 667$ 870$ 832$ 852$ 873$ 894$
27 Network Services 21$ 134$ 19$ 15$ 254$ 36$
28 Finance Non-Dept 124$ 171$ 103$ 105$ 107$ 109$
29 Wastewater Administration 1,186$ 1,718$ 1,429$ 1,504$ 1,487$ 1,541$
30 TOTAL 48,754$ 123,584$ 18,125$ 22,685$ 22,548$ 23,909$
31 CHANGES IN FINANCIAL POSITION
32 Working Capital - Beginning 40,988$ 35,237$ 24,589$ 27,131$ 25,001$ 23,609$
33 Revenues over (under) Expenditures (6,758)$ (9,783)$ 2,711$ (1,961)$ (1,222)$ (1,998)$
34 Working Capital - Year End before CalPERS 34,230$ 25,453$ 27,300$ 25,170$ 23,779$ 21,611$
35 CALPers Downpayments -$ 864$ 169$ 169$ 169$ 169$
36 Working Capital - Year End 34,230$ 24,589$ 27,131$ 25,001$ 23,609$ 21,442$
37 Audit Adjustments 1,007$ -$ -$ -$ -$ -$
38 Operating Reserve - 20%2,160$ 2,496$ 2,477$ 2,609$ 3,810$ 3,908$
39 Rate Stabilization 844$ 900$ 932$ 964$ 995$ 1,024$
40 UFL Trust Fund -$ 171$ 180$ 180$ 180$ 180$
41 SRF Loan Reserve 2,953$ 5,907$ 5,907$ 5,907$
42 Unreserved Working Capital - Year End 28,273$ 21,022$ 20,588$ 15,340$ 12,717$ 10,423$
in thousands
Revised with Supplement
Budget Document Pg. 45 Page 505 of 652
One‐time Ongoing
Water 115,980$ 864,290$
1 Source of Supply 3,500$ 582,797$
2
Other Contract Services ‐ $2,560 for Irrigation Suitability Analysis for RW, needed as WRRF
processes change plus $3,500 permitting fee from RWQCB to move to Recycled Water General
Order.
3,500$ 2,560$
3
Water Supply ‐ $488,829 of total increase is due to electrical cost increases as determined by
PG&E. Approximately $70,000 of increase is related to staffing increases at Whale Rock which are
passed through as operational costs.
580,237$
4 Water Admin 40,000$ 1,500$
5
Drought Outreach ‐ This budget increase is being requested to accommodate drought‐related
outreach which includes information about rebate programs, increased conservation messaging,
and messaging about potential adopted by the State. Current budget exists to fund the Utilities
Department's standard public outreach program and is not sufficient to accommodate drought‐
related public outreach.
40,000$
6
E&P: AutoCAD Software Plans ‐ Additional funding for AutoCAD Licenses for E&P Team (2
Licenses). This is utilized between Water and Wastewater and will be split 50/50 between Water
and Wastewater Admin.
1,500$
7 Water Distribution 18,000$ 29,475$
8
Communication Services ‐ Verizon ‐ Added cost due to cell phone and communication needs for
staff. Staff originally intended that tablets and cell phones would utilize single data charge but this
was not successful when implemented in the field.
7,400$
9 Construction Materials and Supplies ‐ Raw material costs projected to increase 25% including
asphalt mix, base materials for road repair, cement and concrete mix, and sand and gravel. 5,075$
10
Contract Services ‐ Due to increased recycled water cross connection inspections and management
of City's cross connection control program by the County. Also includes increase in costs for hauling
of spoils from leak repairs, which are largely due to fuel cost increases.
10,000$
11 Education and Training ‐ Education and Training budget was removed due to COVID‐19, will
provide for approximately $1,000 per employee 7,000$
12 Office Supplies ‐ Reduction due to prior purchase of phones for operators. Funding not needed
until phones are due for replacement.(2,000)$
13
Safety Materials and Supplies ‐ $20,000 for two (2) new Self Contained Breathing Aparatus (SCBA)
packs and a spare bottle. The team uses these for safely entering confined spaces for rescue
purposes and the existing equipment has exceded its lifecycle. This will be purchased through Fire's
RFP in 22/23.
20,000$
14 Water Resources 30,000$ ‐$
15
Materials and Supplies ‐ Additional funding related to water conservation rebate and give away
materials. Prior City programs included toilet rebate program and washing machine rebate
program.
30,000$
16 Water Treatment Plant 20,000$ 232,268$
17
Chemicals ‐ Increase in chemical cost for water treatment process including Aluminum Sulfate,
Sodium Hydroxide, Polymers Coagulant, Actiflo Ballast Sand, Chlorine, Filter Aids, Sodium Silico
Fluoride, and Liquid Oxygen.
186,308$
18
Contract Services ‐ Additional costs to contract services including after‐hours security patrols
($3,840), hazardous material removal ($2,000), diesel fuel for generator ($28,800), increases for
the Annual Water Analyses mandated by Division of Drinking Water ($2,250), and uniform and
linen services for new operator ($1,035).
38,675$
19
Protective Clothing ‐ $20,000 for two (2) new Self Contained Breathing Aparatus (SCBA) packs and
a spare bottle. The team uses these for safely entering confined spaces for rescue purposes and
the existing equipment has exceded its lifecycle. This will be purchased through Fire's RFP in 22/23.
20,000$
Appendix U‐1: Utilities Operating Budget Changes FY 2022‐23
APPENDIX U‐1: Utilities Operating Budget Changes
Enterprise Funds – Water and Sewer
Budget Document Pg. 46 Page 506 of 652
One‐time Ongoing
Appendix U‐1: Utilities Operating Budget Changes FY 2022‐23
20 Solid Waste Services ‐ Increase costs due to anticipated 25% cost increase.1,285$
21 Special Equipment Replacement Parts ‐ Due to specialized equipment there is the need for four (4)
dissolved ozone analyzer probe tips (4 per year @ 2500)6,000$
24 Utility Billing (50% Water Fund Share)4,480$ 18,250$
25 Other Contract Services ‐ Ongoing cost increase of $12,500/year for 500 additional water meters in
2022‐23. One‐time cost increase of $8,960 for contract staffing for Utility Billing support.4,480$ 6,250$
26 Postage ‐ Increase due to cost of postage and increase in number of customers. 9,000$
27 Print and Reproduction Costs ‐ Increase due to material cost increases and increase in number of
customers.3,000$
28 Sewer 24,480$ 246,287$
29 Wastewater Admin 2,500$
30
Software Licensing and Maintenance Agreements ‐ Additional funding for AutoCAD Licenses for
E&P Team (2 Licenses). This is utilized between Water and Wastewater and will be split 50/50
between Water and Wastewater Admin.
2,500$
31 Wastewater Collections 20,000$ 15,000$
32
Data Processing Services ‐ The team uses IT Pipes for sewer inspections. The annual software
licensing has increased due to a deferred upgrade. The prior version of the software was
approximately ten years out of date and no longer supported.
15,000$
33
Safety Materials and Supplies ‐ $20,000 for two (2) new Self Contained Breathing Apparatus (SCBA)
packs and a spare bottle. The team uses these for safely entering confined spaces for rescue
purposes and the existing equipment has exceded its lifecycle. This will be purchased through Fire's
RFP in 22/23.
20,000$
34 WRRF 210,537$
35
Chemicals ‐ Increase in chemical cost for wastewater treatment process including Sodium
hypochlorite, hydrogen peroxide, and citric acid. Chemical costs have increased due to supply chain
shortages and there is no immediate alternative. Moving forward, the WRRF's chemical
consumption will be significantly reduced as the new facility is commissioned.
180,837$
36
Other Contract Services ‐ Contract cost increase for security services with Spectre Security. New
vendor due to prior vendor not showing up. Additionally, security patrols at the WRRF have been
increased from once to four times nightly due to weekly security incidents. Its expected that this
frequency will be reduced after the attention associated with construction is reduced.
29,700$
36
Other Contract Services ‐ Contract cost increase for security services with Spectre Security. New
vendor due to prior vendor not showing up. Additionally, security patrols at the WRRF have been
increased from once to four times nightly due to weekly security incidents. Its expected that this
frequency will be reduced after the attention associated with construction is reduced.
29,700$
24 Utility Billing (50% Sewer Fund Share)4,480$ 18,250$
25 Other Contract Services ‐ Ongoing cost increase of $12,500/year for 500 additional water meters in
2022‐23. One‐time cost increase of $8,960 for contract staffing for Utility Billing support.4,480$ 6,250$
26 Postage ‐ Increase due to cost of postage and increase in number of customers. 9,000$
27 Print and Reproduction Costs ‐ Increase due to material cost increases and increase in number of
customers.3,000$
37 Grand Total 140,460$ 1,110,577$
Enterprise Funds – Water and Sewer
Budget Document Pg. 47 Page 507 of 652
Parking Fund
Section 4: Parking Fund
Overview
As one of the City’s Enterprise Funds, the Parking Services Program finances its operations through three
primary sources; 1) rates and fees charged for parking services; 2) property lease income, and 3) one-
time income from payments such as “Parking in Lieu fees”. According to City fiscal policies 1, the Parking
Fund’s revenues must be sufficient to cover operations, capital asset improvements, maintenance, debt
obligations, and appropriate reserve levels to keep the fund healthy and prepared for unforeseen and
long-term funding needs.
Discussed in greater detail below, there is a strong need for the Parking Fund to implement previously
Council approved reduction of free parking at the parking structures and the adoption of rate increases
previously foreshadowed for Council and the Community while maintaining the hours of operation
approved by Council with the 2021-23 Financial Plan. The need for Parking rate increases have been
discussed in 1) 2021-23 Financial Plan, 2) Mid-Year 2021-22 Financial Plan, and again in this 3) 2021-22
Budget Supplement.
These parking rate increases are needed and are largely driven by the anticipated cost increases and
corresponding debt and debt ratios, for the construction of the new Cultural Arts District Parking Structure
(formerly referred to by its cross-street location as Palm/Nipomo), as the costs for this structure are
increasing due to unprecedented construction cost escalation. Without these rate increases, the Parking
Fund will not be able to build the new Cultural Arts District Parking Structure. While rate increases are
not recommended lightly, these rate increases are necessary to meet Council objectives including the
Downtown Concept Plan, Economic Recovery from the Pandemic, and Downtown Vitality and even with
these rates increases parking cost in the downtown are both comparable to other parking cost in the area
or lower as shown below in Table P1. Staff is aware that both Cal Poly and Paso Robles are considering
fee rate increasing in the coming year.
In addition to parking rate increases, parking citation penalties or fines are recommended to be increased.
Parking fines are meant to be high enough to deter unwanted behavior and the fine amounts for the
violations listed in Table P1 are no longer effective at deterring unwanted behavior. Parking citation
penalties are recommended to be effective July 1st, 2022. It should be noted that while citation do
provide a revenue source for the parking fund, that revenue is offset operating cost to staff parking
enforcement officers as well as $13 of every citation fine amount is directed to state and county agencies
for service fees and surcharges.
1 2021 Annual Comprehensive Financial Report page xvii (located on page 23 of the PDF under Budgetary Policies)
https://www.slocity.org/home/showpublisheddocument/31535/637758729982570000
Budget Document Pg. 48 Page 508 of 652
Parking Fund
Table P1: Average Parking
Hourly Rate and Fines
Current Parking
Rate
Effective
January 2,
2023
Effective
July 1, 2023
Effective
July 1, 2025
1 On-Street
2 San Luis Obispo $ 1.63 $ 1.75 $ 3.50 $ 4.00
3 Cal Poly $ 2.50 --- --- ---
4 Pismo Beach $ 5.50 --- --- ---
5 Paso Robles $ 1.00 --- --- ---
6 Parking Structures Hourly Rate
7 San Luis Obispo $ 1.50 $ 1.50 $ 3.00 $ 3.00
8 Cal Poly $ 2.50 --- --- ---
9 Pismo Beach $ 5.00 --- --- ---
10 Fines
11 San Luis Obispo $ 40.00 --- --- ---
12 parking after session is expired $ 40.00 $ 45.00
13 no standing, stopping, or
parking within intersection $ 40.00 $ 60.00
14
no standing, stopping, or
parking on the roadside of a
vehicle stopped, parked, or
standing at the curb
$ 33.00 $ 60.00
15 Cal Poly --- --- --- ---
16 parking after session is expired $ 55.00
17 no standing, stopping, or
parking within intersection $ 55.00
18
no standing, stopping, or
parking on the roadside of a
vehicle stopped, parked, or
standing at the curb
$ 55.00
19 Pismo Beach --- --- --- ---
20 parking after session is expired $ 80.00
21 no standing, stopping, or
parking within intersection $ 35.00
22
no standing, stopping, or
parking on the roadside of a
vehicle stopped, parked, or
standing at the curb
$ 54.00
23 Paso Robles --- --- --- ---
24 parking after session is expired $ 33.00
25 no standing, stopping, or
parking within intersection $ 139.00
26
no standing, stopping, or
parking on the roadside of a
vehicle stopped, parked, or
standing at the curb
$ 33.00
Budget Document Pg. 49 Page 509 of 652
Parking Fund
The FY2022-23 budget was developed based on a review of previous years’ revenues and expenditures,
forecasting tied to approved revenue enhancement strategies, operating and capital needs, and future
debt obligations. Since the onset of the COVID-19 pandemic, Fund expenditures have exceeded revenues
and are projected to do so in FY2022-23 due to continued impacts of the pandemic, needed capital
investment to modernize the Parking Services program, and cost preparing for the construction of the
City’s fourth parking structure. The Parking Fund is positioned to sustain this short-term structural deficit
by using working capital. However, measures must be taken to mitigate this structural deficit; if it
continues past FY2022-23, it will jeopardize the City’s ability to secure financing for the construction of
the Cultural Arts District Parking Structure (formerly referred to by its cross streets of Palm/Nipomo).
Shown in table P7 is the required debt ratios for lenders. For future debt obligations a ratio of 130% or
greater is required.
Expenditures Continue to Exceed Revenues as Pandemic Impacts Linger
This Parking Fund summary provides projected revenues and expenditures for FY2021-22, the
supplemental budget for FY2022-23, and revised financial forecasting through FY2026-27 based on the
assumed implementation of future rate and fee changes.
As Council has been informed throughout the pandemic, the Parking Fund has operated at a deficit,
expenditures continue to exceed revenues and are projected to do so until FY2023-24 as shown in Table
P11. The primary reason for this arises from the diminished demand for paid parking in Downtown and
the pandemic’s ongoing impacts on social, office, and retail activities. A secondary reason for this is that
the continued modernization of the Parking Services program has required significant investment in
equipment and facilities which has resulted in increased capital and operating expenditures. At the time
of the writing of this report, revenues are trending upward but have not yet reached pre-pandemic levels.
The timeline for a full recovery of downtown parking revenues, while unknown, is expected to parallel the
recovery from the pandemic and the changes in consumer and workforce behavior.
The uncertainty of the rate at which Parking revenues are expected to recover has been considered in
concert with the debt obligations needed to finance the Cultural Arts District Parking. Due to projected
revenue shortfalls and anticipated increased construction costs for the new parking structure, staff has
forecasted three rate increases occurring on January 2, 2023 and July 1st in 2023 and 2025 necessary to
maintain a balanced Parking Fund. These rate increases will be needed to secure the financing for the
construction of the parking structure (including all phases of design, site preparation, and vertical
construction) which is now estimated at $53 million.
Cultural Arts District Parking Structure and Debt Service Ratio Requirements for
the Fund
As previously mentioned, the Parking Fund’s expenditures have exceeded its revenues throughout the
pandemic. To assist the local economy and businesses, the fund temporarily suspended collection of
revenues and created new loading zones and parklets and offered free parking during the holiday
shopping season. Over the past two years, the fund lost approximately $750,000 in revenues through
these supportive efforts. Due to a then existing working capital (much of which was being built up to help
fund the construction of the City’s fourth parking structure, the Cultural Arts District Parking Structure),
the Parking Fund was able to maintain service levels, its capital improvement schedule, and its 20%
operating reserve despite operating at a deficit for three consecutive fiscal years. The prolonged impacts
Budget Document Pg. 50 Page 510 of 652
Parking Fund
of the deficit has resulted in the fund falling short of its debt service ratio coverage 2. The Fund’s debt
service ratio is a critical component for future debt funding and could jeopardize the fund’s ability to
secure a loan from the California Infrastructure and Economic Development Bank (I-Bank) or on the open
market (e.g. bond sales) if not addressed by increasing fund revenues. Phase 1A and Phase 1B, “site
preparation” of the Cultural Arts District Parking Structure are scheduled to begin in Fiscal Year 2022-23.
This effort, which entails grading and site demolition, will be paid for from existing working capital. Phase
2, “vertical construction” is scheduled to begin in Fiscal Year 2023-24 and will be debt funded. The debt
proceeds and capital outlay necessary for the structure are included in the updated fund analysis show in
Table P11.
The cost of construction is anticipated to see further increases during Phase 1 and Phase 2 that are not
currently shown; thus, it is important that the City plan for and be prepared for bonding in excess of the
current estimated cost of construction. An updated construction estimate was prepared by a consultant
in March 2022 showing a projected increase of over 11% of the construction cost for the Cultural Arts
District Parking Structure. Costs are subject to further change as the design is finalized, and staff begins
the process of bond issuance to finance construction. The process of providing debt proceeds from the
issuance of bonds takes approximately six months. To begin construction in the Fall of 2023 staff plans to
initiate this process in December 2022. Due to current economic uncertainty caused by the pandemic and
global instability, staff is anticipating interest rates to range from 3% to 5% at time of bond issuance which
is significantly higher than initially forecast.
Operating Program Expenses
As shown in Table P2, a summary of the revised 2021-23 Financial Plan operating budget projections for
the Parking Fund. Expenses are increased due to the recently completed class and compensation study
and the need for increased security services to maintain a safe environment in the parking structures
downtown. Previous years’ actuals for staffing have been significantly lower than the budgeted amount
as the Parking Services Program has struggled to fill and keep key positions. Parking has been undergoing
a transition to credit card pay stations in the parking structures and paid parking in lots and streets which
in turn has resulted in an increase in merchant fees paid due to the higher volume of credit card payments.
The Parking Services Program is requesting approval for a full-time supervisor position that will oversee
the maintenance and operations of the structures, surface lots, and on-street parking spaces. The position
being requested would supervise the Parking Meter Repair Worker, new Facilities Maintenance Workers,
Lead Attendants, and the Parking Ambassador positions; all of which currently report directly to the
Parking Services Supervisor.
Centralizing all maintenance and operations of these key parking assets would allow the Parking Services
Supervisor to focus on contract management, budgeting, and the implementation of CIP Projects. The
Parking Services Program is also requesting the reclassification of the Parking Services Supervisor to an
Assistant Parking Manager; this position would oversee the Parking Maintenance Supervisor and
Supervising Parking Enforcement Officer, as shown in Figure 1 below. This position change is important
because the Parking Maintenance Supervisor and Supervising Parking Enforcement Officer would both be
reporting to the Assistant Parking Manager. In addition to these supervisory responsibilities the Assistant
2 Debt financing requires the City’s net income and depreciation be 130% of its annual debt obligation
Parking Manager would continue assisting with administrative duties such as budgeting, contract
management and CIP delivery.
Budget Document Pg. 51 Page 511 of 652
Parking Fund
Figure 2 – Proposed Organizational Chart for the Parking Services Program
Table P2: Parking Fund Operating Expenditures by Type
Significant Operating Budget Changes
Drinking Fountain: $16,800 is needed to replace a dilapidated water fountain located at the Marsh Street
parking structure on Pacific Street with a new water hydration station that will service the needs of the
downtown community.
Row Labels FY 2021 Actuals FY 22 Budget 2023 Adopted
2023 Revised
Budget Change % Change
1 Staffing 1,126,434 2,022,327 1,802,766 1,917,920 115,155$ 6%
2 Contract Services 682,982 751,806 449,265 584,065 134,800$ 30%
3 Other Operating Costs 323,855 577,218 580,133 623,458 43,325$ 7%
4 Transfers 990,911 1,105,120 1,122,518 1,263,622 141,104$ 13%
5 Grand Total 3,124,182$ 4,456,471$ 3,954,682$ 4,389,066$ 434,384$ 11%
2021-23 Financial Plan
Budget Document Pg. 52 Page 512 of 652
Parking Fund
Parking Structure Equipment Extended Warranty: $28,000 would cover an extended warranty for newly
installed equipment in City parking structures. The cost of equipment maintenance and replacement is
anticipated to be greater than the cost of the extended warranty. Having the extended warranty in place
would enable the Parking Services Program to keep equipment in good working order for the community
and would minimize payment collection issues.
Marketing and Communication: $30,000 is needed to provide the proper resources for the Parking
Services Program to effectively inform the community of operational initiatives and gain valuable input
from stakeholders. These resources should improve transparency of the goals of the Program while
improving community engagement.
Reclassification of Parking Coordinator Position to Parking Maintenance Supervisor: $6,500 is for the
reclassification of an existing parking coordinator position that would oversee the maintenance and
operations of the structures, surface lots, and on-street parking spaces. The position being requested
would supervise the Parking Meter Repair Worker, new Facilities Maintenance Workers, the Lead
Attendants, and the Parking Ambassador positions.
Reclassification of Parking Services Supervisor Position to Assistant Parking Manager: $20,000 would
reclassify the existing Parking Services Supervisor position to an Assistant Parking Manager position. The
Supervising Parking Enforcement Officer and proposed Parking Maintenance Supervisor positions would
report to the Assistant Parking Manager. Additional responsibilities include contract management,
budgeting, and the implementation of CIP projects.
Overtime: The Parking Program requires an additional $12,000 for overtime as the need has exceeded
the budgeted amount for the last three years. This need is tied to staff shortages, an expansion of
enforcement hours and increased service levels at the parking structures.
Credit Card Merchant Fees: An additional $13,325 is needed due to Parking’s transition to credit card pay
stations in the parking structures and for lots and streets. This has resulted in an increase in merchant
fees paid due to the higher volume of credit card payments.
Table P3: Parking Fund Operating Budget Changes One-time Ongoing
1 Drinking Fountain $ 16,800
2 Parking Garage Equipment Extended Warranty $ 28,000
3 Overtime $ 12,000
4 Credit Card Merchant Fees $ 13,325
5 Marketing and Outreach $ 30,000
6 Fund New Parking Maintenance Coordinator $ 20,000
7 Fund Reclass of Parking Services Supervisor $ 6,500
8 Total $ 44,800 $ 81,825
Proposed Changes to the Capital Improvement Plan
Pay Station Installations - Upper Monterey St.: This request for $122,000 would cover the installation of
new pay stations and associated signage on upper Monterey St. This effort would implement an approved
revenue enhancement strategy included in the 2021-23 Financial Plan.
Budget Document Pg. 53 Page 513 of 652
Parking Fund
Pay Station Installations - Railroad Square Parking Lot: This request for $66,200 would cover the
installation of new pay stations and associated signage in the Railroad Square parking lots. This effort
would implement an approved revenue enhancement strategy included in the 2021-23 Financial Plan.
Pay Station Installations - Downtown: This request for $800,000 would continue the build out of multi-
space pay stations that will replace more single space meters. This funding will replace about one third
of the remaining single space meters. The multi-space pay stations have been adopted by the customers
and continuing this effort will provide a more consistent customer experience as well as providing what
patrons expect in today’s wireless, App-dominated world. Though staff had not planned on building out
the system until the 2023-25 Financial Plan, wireless providers have informed staff that existing single
space meters will no longer be supported by their 3-G infrastructure. Staff concluded that a continuation
of the work to switch to multi-space station would be the most cost-effective and customer-oriented
approach. This request would essentially advance the funding and therefore free up future funding for
other needs. With multi-space meter installations, single space meter poles will be removed
concurrently and existing single space meter poles without meters will be prioritized for removal.
Table P4: Parking Fund CIP Changes
1 Upper Monterey Paid Parking $ 122,000
2 R/R Square Paid Parking $ 66,200
3 Pay Station Installation $ 800,000
4 Total 988,200
Revenues
As an enterprise fund, the Parking Services Program finances its operations through rates and fees charged
for parking services, property lease income and one-time incomes such as Parking In-Lieu fee payments.
According to City fiscal policies, rates must be sufficient to cover operations, capital asset improvements
and maintenance, debt obligations and maintain appropriate reserve levels to keep the fund healthy and
prepared for unforeseen and long-term funding needs. The fund is not able to meet these requirements
at current rates given the additional debt service and operating costs associated with the Cultural Arts
District Parking Structure.
Revenues from service charges are still recovering from the COVID-19 pandemic, it is still unknown when
parking demand will return to normal levels. For FY2022-23, revenues are projected to be below what
was initially forecasted in the 2021-23 Financial Plan for FY2021-22. Parking meter and structure revenues
are heavily reliant on downtown activity and thus are subject to variances tied to public health and
economic factors. Due to large increases in the estimated construction cost for the Cultural Arts District
Parking Structure brought on by labor and materials shortages as well as high inflation, recovering
revenues and rate increases are critically needed so the fund can meet its debt obligation requirements
despite lower-than-normal demand. Staff is proposing three rate increases occurring on January 2, 2023
and July 1st in 2023 and 2025 at the proposed rate schedule as shown in Table P6.
Budget Document Pg. 54 Page 514 of 652
Parking Fund
It should be noted that there is some loss in revenue associated with customers leaving parking structures
after hours, or when not staffed. There is a technologic solution to this issue and the Parking Services
Program is working to implement a gateless solution to address these issues for all parking structures.
While this work is important, this project delivery is limited based up CIP delivery staffing discussed in
other sections of this document.
Key Assumptions
1.Parking utilization is expected to reach pre-pandemic levels in FY2023/24
2.Cultural Arts District Parking Structure are anticipated to exceed $53M
3.No changes to parking enforcement hours
4.Full implementation of adopted revenue enhancement strategies approved in the 2021-23
Financial Plan
5.Adoption of rate increases as shown below in Table P6 and included in the parking fund’s long-
term forecast
Proposed Parking Rate Increases
Due to the drastic escalation in the projected cost of the Cultural Arts District Parking Structure and
reduced parking demand, staff incorporated rate increases needed to meet the required debt service
obligation and maintain a balanced budget. These rate increases were calculated by forecasting the
Parking Program’s operating expenditures, debt service, and parking demand over the next five fiscal
years. Based on the forecasted demand these increases are necessary to meet the 130% revenue to
expenditure debt service ratio as required by I-Bank or possible other lender on the open market for
current debt and debt issuance to fund the Cultural Arts District Parking Structure construction costs.
Without these rate increases the Parking Fund will not be able to sustain the additional debt obligation
for the escalated costs of the Cultural Arts District Parking Structure.
Parking rates are charged based on location for meters and all structures are at the same rate. Approved
operational hours are as follows: Mondays – Saturdays: 9:00 am – 9:00 pm; Sundays: 1:00 pm – 9:00 pm.
Any reductions to operational hours would require additional hourly rate increases beyond what is
proposed to offset that change.
Table P5: Parking Revenues ACTUAL Budget BUDGET PROJECTED PROJECTED PROJECTED
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
REVENUES
Service Charges
1 Parking Meter Revenues 1,265,085 1,940,900 2,268,500 4,876,000 4,876,000 5,688,700
2 Parking Structure Collections 347,873 835,300 2,030,950 4,647,100 4,793,400 5,060,700
3 Long-Term Parking Revenues 483,346 547,800 844,900 695,300 766,000 768,700
4 Lease Revenues 497,879 459,200 487,800 456,300 456,300 456,300
5 Parking In-Lieu Fees 10,691 20,600 20,600 20,600 20,600 20,600
6 Total Services Charges 2,604,874 3,803,800 5,652,800 10,695,300 10,912,300 11,995,000
7 Fines & Forfeitures 718,173 717,800 793,500 852,100 852,100 852,100
8 Interest on Investment 3,559 75,600 62,000 34,000 41,500 44,700
9 Other Revenues 22,000 14,100 25,000 17,100 15,500 19,200
10 TOTAL REVENUES 3,348,606 4,611,300 6,533,300 11,598,500 11,821,400 12,911,000
11 Proceeds from Debt Financing 46,315,169
12 TOTAL REVNEUES INCL. DEBT FINANCING 3,348,606 4,611,300 6,533,300 57,913,669 11,821,400 12,911,000
Budget Document Pg. 55 Page 515 of 652
Parking Fund
Table P6: Parking Hourly Rate
Changes
Current Parking
Rate
Effective
January 2,
2023
Effective
July 1,
2023
Effective
July 1,
2025
1 Parking Meters Hourly Rate
2 Tier 1 (Super Core) $2.00 $2.00 $4.00 $5.00
3 Tier 2 (Core) $1.75 $2.00 $4.00 $5.00
4 Tier 3 (Outlying Areas) $1.25 $1.50 $3.00 $3.00
5 Parking Structures Hourly Rate
6 Hourly $1.50 $1.50 $3.00 $3.00
Figure 1 – Map showing locations of Tiered Parking Rates
Shown in table P7 below is the required debt ratios for lenders. For future debt obligations a ratio of
130% or greater is required. As shown below future ratios all meet this requirement with the proposed
rate increases. It is imported to display this information for lenders as it shows the funds ability to pay
back future debt at the same time as taking care of existing assets. The increase in ratio from 2021-22
and 2022-23 is due to the parking fund debt restructuring. The General Fund assumed parking fund debt
for the 919 Palm Parking Structure and the Parking Fund is servicing the debt obligation to the General
Fund each year by transferring out funds. This transfer out is not included in the ratio calculation. This
debt structure allows for a positive revenue to expenditures ratio which is required to fund the future
Cultural Arts District Parking Structure.
Budget Document Pg. 56 Page 516 of 652
Parking Fund
P7: Debt Ratio Met With Proposed Rate Increases
Capital Improvement Projects
The Capital Improvement Projects identified for FY2022-23 include annual asset maintenance projects for
the City’s existing three parking structures. This investment is intended to extend the useful life of these
assets as conveyed in the Condition Assessment and Management Plan (CAMP). In FY 2021-22 the Parking
Program completed scheduled maintenance at the Marsh parking structure. Last fiscal year, in addition
to its investment in asset maintenance, the Parking Program pursued capital projects focused on
improving user experience. Single space meters were removed in the downtown as part of the roll-out of
multi-space pay stations which helped to modernize the program and expand utilization of the sidewalks.
The program will look to complete the transition to multi-space pay stations during the next few years
once debt service obligations are fully addressed. Pay stations provide an improved customer experience
by offering contactless payment option and by allowing parking sessions to be extended from any pay
station within the same rate zone (e.g. Tier 1, Tier 2, Tier 3 as shown in Figure 2).
While the Parking Services Program is well positioned to complete already programmed capital projects,
concerns related to meeting debt coverage requirements has required the delay of additional projects
such as replacement of all single space parking meters with multi-space parking meters. Continued
progress has been made on the delivery of the Cultural Arts District Parking Structure CIP and the design
is currently 95% complete. Once complete, the new structure will require an increased investment in asset
maintenance. Staff is monitoring inflation and will continue to make the necessary adjustments to ensure
the program can continue providing core services, maintain its infrastructure, and deliver the Cultural Arts
District Parking Structure.
Capital Improvement Program Budget Summary
ACTUAL PROJECTED
EOY BUDGET PROJECTED PROJECTED PROJECTED
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
1 Total Revenue 3,348,606$ 5,229,400$ 6,533,300$ 11,598,500$ 11,821,400$ 12,911,000$
2 Operating Expenditures (3,084,271)$ (3,719,000)$ (4,389,065)$ (4,701,700)$ (4,755,900)$ (4,800,700)$
3 Net-Income 264,334$ 1,510,400$ 2,144,235$ 6,896,800$ 7,065,500$ 8,110,300$
4 Depreciation 663,100$ 649,200$ 648,900$ 653,733$ 653,733$ 653,733$
5 Debt Service 855,471$ 415,085$ 414,100$ 4,193,200$ 4,063,500$ 3,935,300$
6 Ratio -47% 207% 361% 149% 158% 189%
Table P7: Net-Income
to Debt Ratio
Table P8: Parking CIP Summary (in
thousands)
2021-22
Budget Carryover FY 2021-22
Total Budget*
2021-22
Actuals
2022-23
Budget
2023-24
Forecast **
2024-25
Forecast **
2025-26
Forecast
2026-27
Forecast
1 842 Palm Parking Structure Maintenance 400 800 1,200 55 400 400 400 400 400$
2 871 Marsh Street Structure Maintenance 400 693 1,093 30 400 400 400 400 400$
3 919 Palm Street Structure Maintenance 100 200 300 - 100 150 100 50 50$
4 Fleet Replacement: Public Works - - - - 130 37 - - -$
5 IT Replacement 4 21 25 - 4 15 76 18 -$
6 Major Facility Maintenance 5 - 5 - 25 - - - -$
7 Cultural Arts District Parking Structure***850 1,907 2,757 20 5,582 46,315 - - -$
8 Gateless Parking Equipment Install 40 - 40 - 90 - - - -$
9 Multi-Space Pay Stations (New)- 87 87 137 800 - 1,200 - -$
10 Upper Monterey Paid Parking (New)- - - - 122 - - - -$
11 Paid Parking at Railroad Square (New)- - - - 66 - - - -$
12 Total 1,799 3,708 5,507 241 7,719 47,317 2,176 868 850$
* Includes Carryover
** FY 22-23 will be financed through built-up working capital and FY 23-24 through debt financing
***Forecasted cost for phase I work in FY 22-23 is $6,969,000. This is subject to further change so additional budget is not being requested at this time.
Budget Document Pg. 57 Page 517 of 652
Parking Fund
Cultural Arts District Parking Structure
Table P9 Cultural Arts District Parking Structure (formerly the Palm-Nipomo Parking Structure)
Status Project is currently under design review.
Design review will be completed prior to building permit applications. This project is broken down into
the following phases:
•Phase 1A PG&E Relocation – Project Design is 90% complete. Phase 1A expected to advertise
for construction in Summer 2022, with construction work on this phase beginning Fall 2022.
•Phase 1B Site Clearing and Demolition – Project is at the 95% design completion level. Staff
will be applying for reviews for building permits for Phase 1B in the Spring of 2022.
Construction is scheduled to begin Spring 2023.
•Phase 2 Parking Structure Construction – Structure design is at 95% design completion level.
Staff will be applying for reviews for building permits in the Summer of 2022. Construction
scheduled to begin Fall 2023 immediately following completion of Phase 1B Site Clearing and
Demolition.
Budget Current Project
Budget
Project Budget
Expended
Total Project
Budget Estimate
Budget Notes
$ 2,808,989 3 $ 1,315,529 $ 53,300,000 The total cost of construction of all phases of
the Cultural Arts District Parking Structure
has increased by 11.83%, or $4.7 Million,
due to abnormal inflation/rising costs. This
percent increase is tracked by Engineering
News Record’s Construction Cost Index. This
budget estimate includes construction costs,
soft costs including construction
management services, and a 12%
construction cost contingency to address
unforeseen changes during the work. The
current projected cost to deliver the Cultural
Arts District Parking Structure is $53 million.
Phase 1 which entails utilities and
demolition work is estimated to cost $7
million and will be covered by working
capital. The cost of construction which is
estimated to be $46.3 million will be paid for
by debt proceeds.
Phase 1: Site Prep
using Working
Capital
$7,000,000
Phase 2:
Construction and
Debt Financed
$46,300,000
Debt Service
Debt service payments for the Cultural Arts District Parking Structure are scheduled to begin in FY2023-
24, the year the City will receive debt proceeds. Payments for the Parking Structure are estimated to be
$3.7M annually but will depend on final debt financing terms. The next debt service to be retired is for
the Marsh St. Parking Structure expansion which will occur in August 2031. The 919 Palm St. Parking
Structure debt obligation will be retired in June 2036. As previously mentioned the General Fund assumed
this debt obligation and the Parking Fund is servicing the debt via a transfer out from the Parking Fund to
the General Fund.
3 Current project budget reflects ongoing design phase work, as well as Phase 1A PG&E Relocation construction
costs.
Budget Document Pg. 58 Page 518 of 652
Parking Fund
Parking Fund Financial Forecast
Unreserved Working Capital
City policy requires that the Parking Fund maintain a fund reserve that is 20 percent of operating
expenditures. The balance beyond this required reserve is the unreserved working capital. The
unreserved working capital has intentionally been built up in anticipation of the Cultural Arts District
Parking Structure. Phase 1A and 1B of the Cultural Arts District Parking Structure construction which entail
utility work, grading and site demolition will be entirely covered by the current unreserved working
capital. Upon construction completion of the parking structure, Parking’s operating costs will increase as
will the minimum level of investment in asset maintenance. Staff will continue to closely monitor its
unreserved working capital to ensure resources are being appropriately used to support the programs
resiliency and sustainability while at the same time providing the optimal customer experience.
Long-Term Strategy
The Parking Program will continue to closely monitor trends that impact revenues. Staff is focused on
maintaining the fund’s health while continuing to provide core services, improve customer experiences
and sustain the financing of a generational capital project. The fund is continuing to weather the impacts
of the COVID-19 pandemic and unprecedented inflation. Careful planning and strategic decision making
have enabled the fund to bear these challenges thus far, however it cannot sustain the additional costs of
the Cultural Arts District Parking Structure without adjustment.
Throughout the pandemic, the Parking Services Program has worked to provide an unparalleled level of
outreach and communication to the community through local, social, and print media in addition to direct
infield customer engagement. Through these efforts staff have identified the increased need for
communication and are requesting a $30,000 (see Table P3) increase to the communications budget of
$5,200 that are used to inform the community about rate, operational, enforcement and special offerings.
With the assistance of the Public Communications Manager, the Program has developed a Communication
Plan that is aimed at maximizing trust and confidence while increasing awareness of the Parking Services
Program’s much overdue modernization efforts and how parking benefits the community. The Program
has contracted with a communications consultant to assist with creation and distribution of
communication materials throughout the remainder of the calendar year. Communication needs, and
emphasis will continue to be a priority for the Parking Services Program in the long-term as technology
evolves and the City’s fourth parking structure, the Cultural Arts District Parking Structures, is constructed
and begins operations. Communications cost directly related to the construction of the Cultural Arts
District Parking Structure will be included in the project budget.
Table P10: Debt Service 2020-21
(Actuals)
2021-22
(Budgeted)
2022-23
Supplement
2023-24
Projected
2024-25
Projected
2025-26
Projected
2026-27
Projected
1 Marsh Expansion 416,071$ 415,085$ 414,068$ 413,021$ 411,941$ 410,829$ 409,682$
2 919 Palm 439,400$ 440,193$ 437,509$ 439,095$ 438,668$ 437,982$ 335,959$
3 Cultural Arts District Parking Structure 3,782,400$ 3,653,800$ 3,526,800$ 2,362,200$
4 Total 855,471$ 855,278$ 851,577$ 4,634,516$ 4,504,409$ 4,375,610$ 3,107,841$
Budget Document Pg. 59 Page 519 of 652
Parking Fund
Table P11: Parking Fund Five Year Forecast
ACTUAL Budget BUDGET PROJECTED PROJECTED PROJECTED
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
REVENUES
Service Charges
1 Parking Meter Revenues 1,265,085 1,940,900 2,268,500 4,876,000 4,876,000 5,688,700
2 Parking Structure Collections 347,873 835,300 2,030,950 4,647,100 4,793,400 5,060,700
3 Long-Term Parking Revenues 483,346 547,800 844,900 695,300 766,000 768,700
4 Lease Revenues 497,879 459,200 487,800 456,300 456,300 456,300
5 Parking In-Lieu Fees 10,691 20,600 20,600 20,600 20,600 20,600
6 Total Services Charges 2,604,874 3,803,800 5,652,800 10,695,300 10,912,300 11,995,000
7 Fines & Forfeitures 718,173 717,800 793,500 852,100 852,100 852,100
8 Interest on Investment 3,559 75,600 62,000 34,000 41,500 44,700
9 Other Revenues 22,000 14,100 25,000 17,100 15,500 19,200
10 TOTAL REVENUES 3,348,606 4,611,300 6,533,300 11,598,500 11,821,400 12,911,000
11 Proceeds from Debt Financing 46,315,169
12 TOTAL REVNEUES INCL. DEBT FINANCING 3,348,606 4,611,300 6,533,300 57,913,669 11,821,400 12,911,000
14 EXPENDITURES
15 Staffing 1,141,869 1,711,200 1,917,920 1,952,400 1,982,000 2,001,800
24 Contract Services 682,982 831,100 584,065 675,500 690,400 705,800
25 Other Operating Expenditures 268,520 498,000 623,458 526,500 536,600 546,900
26 General Government (CAP)710,200 710,200 872,976 873,000 873,000 873,000
27 Operating Transfers Out 280,700 675,400 390,646 674,300 673,900 673,200
28 919 Palm Debt Service - - - - -
29 Total Operating Expenditures 3,084,271 4,425,900 4,389,065 4,701,700 4,755,900 4,800,700
30 Capital Improvement Plan Projects*896,769 1,844,200 9,106,900 47,363,900 2,259,200 1,018,200
31 Debt Service 855,471 855,278 850,800 852,116 850,609 848,810
32 Cultural Arts District PS Debt Service - - - 3,782,400 3,653,800 3,526,800
33 Total Debt Service 855,471 855,278 850,800 4,634,516 4,504,409 4,375,610
34 TOTAL EXPENDITURES 4,836,510 7,125,378 14,346,765 55,848,000 10,668,900 9,345,700
55 CHANGES IN FINANCIAL POSITION
56 BEGINNING FUND BALANCE 14,892,628 13,185,700 10,671,600 3,941,735 5,860,504 6,891,704
57 Revenue Over/(Under) Expenses (1,487,905) (2,514,078) (6,686,865) 1,961,769 1,074,200 3,483,500
59 ENDING FUND BALANCE W/O CALPERS 13,404,723 10,671,622 3,984,735 5,903,504 6,934,704 10,375,204
60 Cal PERS Downpayment 219,055 43,000 43,000 43,000 43,000
61 ENDING FUND BALANCE 13,185,668 10,671,622 3,941,735 5,860,504 6,891,704 10,332,204
62 Policy Reserve Level - 20%731,800 921,200 969,800 975,900 986,500 995,300
63 CalPERS Trust Fund - - 43,000 64,400 107,400 107,400
64 UNRESERVED FUND BALANCE 12,453,868 9,750,422 2,928,935 4,820,204 5,797,804 9,229,504
*Fiscal Year 2022-23 is the forecasted cost of construction, not the budgeted amount.
2021-23 Financial Plan
PARKING FUND LONG-TERM FORECAST
Budget Document Pg. 60 Page 520 of 652
Transit Fund
Section 4: Transit Fund
Overview
As an enterprise fund, the Transit Program funds its operations entirely with state and federal subsidies
and fare revenues. This consists of federal and state funding as well as local fare revenue generated
through the sale of bus passes and a discounted fare agreement with Cal Poly. As projected in the 2021-
23 Financial Plan, revenues kept pace with escalating costs in Fiscal Year (FY) 2021-22 and are projected
to continue to do so in FY2022-23. The noted caveat being that inflationary and wage pressures will
require the City to closely monitor costs and revenues so that they remain balanced and any expansion of
services (i.e. routes, reduced headways, duration of service) will require new revenues.
This report presents a review of the Transit Enterprise Fund for FY2021-22, and a forecast for FY2022-23
through FY2026-27. The forecast covers key issues and trends which could impact the overall health of
the fund. Due to the receipt of federal funds in response to the COVID-19 pandemic, the Transit Fund
remains in excellent health. Staff was able to secure $12.3 million in American Rescue Plan Act (ARPA)
funds for Transit operations. Additionally, the City will be receiving $4.7 million in funding from the San
Luis Obispo Regional Transit Authority for bus replacements. These funds have positioned the Transit
Program to maintain and significantly accelerate its schedule of capital outlay; notably the scheduled
replacement of its fleet with zero emissions buses to comply with state requirements. Staff is focused on
securing additional funds to ensure the appropriate infrastructure is in place to support the electrification
of Transit’s fleet. While these one-time grant funding opportunities are certainly helpful to address
upcoming mandating fleet requirements and capital outlay, they are not sufficient to otherwise address
the ongoing service needs and demands for shorter headways and prolonged service delivery during each
day.
Constraints
Labor shortages have caused the Transit Program to shift to an alternative and a reduced schedule of
routes. Staff plans on addressing this issue by leveraging federal dollars to boost wages and attract interest
in driver vacancies with its contracted service provider. This will enable the Transit Program to offer a
schedule of routes that reflects the returning ridership demand. While demand is trending upward, lower
than anticipated demand in FY2021-22 resulted in lower costs from First Transit, LLC, (First Transit), the
City’s transit operator. Staff is working on executing an amendment to its operations and maintenance
agreement with First Transit to extend the agreement for an additional two-year term. This two-year
term agreement is expected to adjust contractor wages to attract and retain drivers in a tight and
competitive job market.
The Transit Program continues to dedicate a significant portion of its resources to servicing Cal Poly at a
discounted rate. Staff is seeking to execute a new long-term agreement with Cal Poly that would result in
quarterly payments based on level of ridership and proportionate contribution toward capital asset
maintenance and replacement 1. This is a crucial work effort as Transit relies heavily on Cal Poly to hit its
state required 20 percent fare-box ratio. Furthermore, as the Transit Program endeavors to achieve
1 While federal grants will help maintain and accelerate capital replacements; in the long term, capital costs need
to be factored into operating revenues so that deferred replacement costs do not accumulate over time.
Budget Document Pg. 61 Page 521 of 652
Transit Fund
compliance with the California Air Resource Board’s Zero Emission Goal for heavy duty vehicles, it is
appropriate that Cal Poly contribute toward capital asset maintenance and replacement 2.
The influx of federal funds to support transit systems during the COVID-19 pandemic have given the
Transit Program the ability to make significant strides in its transition toward an electric fleet. This funding
will also be relied on to incentivize drivers to fill vacancies, enabling Transit to return to its standard level
of service. Absent this funding, Transit would not have been able to replace buses in accordance with its
bus replacement schedule nor would it be able to respond with contract change to address the current
labor shortage. Staff is currently working with a consultant to analyze and review Transit’s operations and
infrastructure to ensure the optimal program structure for providing quality services to the community.
This study will serve as a guiding document for how to navigate similar constraints in the future.
Discretionary Revenues for Electric Bus Purchases
The Transit Program successfully secured funding beyond its originally anticipated Federal Transit
Administration (FTA) and Transportation Development Act (TDA) formula-based grant funding. $12.3
million in ARPA funding from the FTA was secured to support operations for the next three fiscal years.
This will free up FTA funds that were originally going to be used on operations and maintenance to be
spent on electric bus purchases. The San Luis Obispo Regional Transit Authority secured funding from the
FTA, $4.7 million of which will be allocated to the City for the replacement of fleet with electric buses.
Transit secured $285,000 in Low Carbon Transportation Operations Program grant funding that will be
used for infrastructure costs related to the purchase and installation of electric bus charging units.
Key Assumptions
Transit’s forecast is based on previous year trends and upcoming operational changes. Staff continues to
navigate constraints and opportunities arising from the COVID-19 Pandemic. Ridership levels and
additional funding opportunities will be monitored closely. Assumptions made in the Transit Fund forecast
are shown below.
1.Ridership will continue to trend upwards and reach pre-pandemic levels in FY2022-23.
2.A new long-term agreement with Cal Poly will be executed that more accurately reflects the cost
of providing services and includes contributions toward capital asset maintenance and
replacement
3.The Transit Fund will continue to receive formula based federal and state grants on an annual
basis.
4.An amendment with First Transit, LLC will be executed that will reflect an increase in wages for
drivers and operations staff.
Operating Expenses
Contract Services
In June 2016 the City Council approved the award of the Transit Operations and Maintenance contract to
First Transit. The contract called for a base four-year term with the potential for additional extensions.
The City Council in May 2022 authorized the final amendment with First Transit, a two-year extension.
The terms of the agreement include a significant increase in costs tied to driver and operational staff
2 Cal Poly Transit Agreement negotiations are ongoing and staff hopes to return for Council action prior to the end
of the fiscal year.
Budget Document Pg. 62 Page 522 of 652
Transit Fund
wages. These increased costs will enable the Transit Program to increase service levels to match increasing
ridership demand. The increased cost will be covered by discretionary ARPA funds. Current pricing for SLO
Transit Services is in line with industry standards, however, it outperforms other transit providers in the
region based on key performance indicators. Transit will be conducting a review of past performance and
start planning future operational needs to craft the scope of work for a new operations and maintenance
contract following the lapse of this last amendment.
Fuel
Fuel costs have steadily risen in FY 2021-22 and staff anticipates this trend to continue into the new fiscal
year. This could serve as an additional impediment to providing adequate service levels. Should fuel prices
increase significantly beyond staff projections, the program will either maintain alternative service levels,
use undesignated working capital to cover the increased costs, or reduce capital expenditures. As Transit
shifts to an electric fleet the impacts of volatile fuel prices will become less impactful. With only two
electric buses being added to the fleet this year, the benefits in the short-term will be minimal 3.
General Government
City Staff is currently working on a cost allocation plan for Fiscal Year 2021-22, a minimal increase is
anticipated from the previous fiscal year. The purpose of the cost allocation plan is to quantify the level
of support operating departments, such as transit, receive from internal services departments funded
through the General Fund.-. The Transit Fund is responsible for reimbursing the general fund for those
services. The Cost Allocation Plan does impact the performance of the farebox ratio, as it is considered an
operating expense.
Revenues
In accordance with the City’s fiscal policies transit rates are set based on targets tied to the Transportation
Development Act, the City will strive to cover at least twenty percent of transit operating costs with fare
revenues. While ridership was low, this did not inhibit the Transit Fund from meeting this twenty percent
state requirement as the service level tied to the City’s operating and maintenance contract with First
Transit is based on ridership demand. The Transit Fund is projected to finish FY 2021-22 with a balanced
budget given decreased operating costs, and the receipt of both anticipated annual grants along with
unanticipated state and federal discretionary grants. As noted above, staff is currently negotiating with
3 Currently SLO Transit operates 17 buses of which two are pending replacement by electric buses. Due to fuel
pricing volatility, 50% of the diesel bus fleet or more will need to be replaced by electric transit vehicles to realize
savings. The current electric vehicle replacement schedule is planned to replace two to three buses per year based
upon available funding. The Current FTA lifecycle of a bus is 12 years, which means the more buses SLO Transit buys
at one time would require that same expenditure in future years.
Table T1: Transit Operating
Budget 20-21 Actuals 21-22 Budget
22-23 Original
Budget
22-23 Revised
Budget Change % Change
1 Staffing 313,020$ 422,212$ 372,314$ 306,115$ (66,198)$ -18%
2 Contract Services 2,414,328$ 904,871$ 2,895,950$ 2,895,950$ -$ 0%
3 Other Operating Costs 407,776$ 3,407,654$ 684,100$ 684,513$ 413$ 0%
4 Transfers 321,727$ 226,183$ 230,707$ 365,544$ 134,837$ 58%
5 Grand Total 3,456,850$ 4,960,920$ 4,183,071$ 4,252,122$ 69,051$ 2%
2021-23 Financial Plan
Budget Document Pg. 63 Page 523 of 652
Transit Fund
Cal Poly to execute a new long-term agreement that more adequately reflects the cost to the Transit Fund
to provide this service.
Federal Transit Administration
Federal Transit Administration (FTA) funding is based upon population and service level categories. SLO
Transit is part of the Federally recognized SLO Central Urbanized Area that receives additional FTA funding
for performing above industry standards, known as State Transportation Innovation Funding (STIC)
funding. FTA funds are typically used for operating and preventative maintenance costs, however the
influx of additional federal funds tied to COVID relief has freed these funds to be used for the purchase of
electric buses. Coronavirus Aid, Relief, and Economic Security (CARES) Act funding covered Transit’s
operating costs in FY2021-22 and ARPA funding will cover operating and preventative maintenance costs
over the next three fiscal years. The ARPA grant funding allows the use of Federal 5307 funds that would
typically be used for operating costs to be used for capital expenditures, specifically for the replacement
of existing transit vehicles with new zero emission buses. This Federal 5307 funding coupled with
additional grant funds secured by the San Luis Obispo Regional Transit Authority in the amount of $4.7
million specifically for the City’s Transit Program will fund the replacement of eight existing buses with
new electric buses over the next several years. Given the required timeframe for both programming this
funding and lead time for new buses, the City should start to see new buses from these grant funds in two
years.
Transportation Development Act
The California Transportation Development Act (TDA) is comprised of two sources of funding for
transportation programs. Local Transportation Funds (LTF) and State Transportation Assistance (STA). LTF
is derived from a retail sales tax and STA is derived from a statewide excise tax on fuel. Both funds are
distributed to the regions by the State. San Luis Obispo Council of Governments (SLOCOG) then allocates
this amount regionwide to each of the cities in the County, the County, and the Consolidated
Transportation Services Agency for the San Luis Obispo region. TDA funding was in line with staff
projections in the 2021-23 Financial Plan and are projected to remain consistent. State revenue in FY2021-
22 is higher than usual due to grants from PG&E and the Air Pollution Control District. The APCD and Air
Pollution Control District funds will reimburse the Transit Fund for part of the cost to install electric vehicle
charging infrastructure.
Fare Revenue
Local revenue is generated from cash fares, pass sales, and an agreement with Cal Poly. The terms of the
agreement entail payment from Cal Poly on a quarterly basis that is calculated by applying a discounted
fare per Cal Poly rider. In Fiscal Year 2021-22 both general and Cal Poly ridership increased from the
previous Fiscal Year. As ridership demand is increasing, staff is working to address labor shortages to
ensure service levels reflect this increased demand. There is a requirement tied to the receipt of state
funding that local revenue account for 20% of the transit operating budget.
Cal Poly plays a considerable role in the generation of local farebox revenues and the overall health of the
Transit Fund. The current agreement with Cal Poly is scheduled to lapse on June 30, 2022. Staff is working
with Cal Poly to reach an agreement based on levels of ridership and proportional contributions toward
capital asset maintenance and replacement. Reaching agreement with Cal Poly will be critically important
Budget Document Pg. 64 Page 524 of 652
Transit Fund
and an equitable share of costs 4to ensure robust services to meet their Master Plan mode shifts, labor
agreements and equity with other users.
Revenues Summary
Capital Projects
With the influx of federal funds staff will maintain its schedule of bus replacements with zero emission
alternatives. Two electric buses were purchased in FY2021-22 and will be delivered in Fall 2022.
Additionally, work is underway to revise Transit’s capital outlay schedule to purchase and install the
infrastructure necessary to support an entirely electric fleet. Chargers and zero emission buses will require
a 1 to 1 ratio given most of the operational buses will need to charge every night so that they can be used
during the day. This work is being funded by the Transit Fund’s unreserved working capital, state
discretionary grant funding and federal ARPA funding. Part of the cost will be reimbursed by PG&E and
the Air Pollution Control District. Transit will replace eight buses with zero emissions buses over the next
several fiscal years.
New CIP for Office Space Improvements
To leverage operational synergies and common goals to serve resident and visitors’ transportation needs,
and to free up space in the offices at 919 Palm Street for added CIP engineering staff, Transit staff will be
relocating to the Parking Services Office Space. This will require tenant improvements at 1260 Chorro
Street. A new CIP has been proposed for the Transit Fund in the amount of $250,000 to cover tenant
improvements at 1260 Chorro Street. This would result in a consolidation of Transportation services, a
4 Using 2018 data as non-COVID ridership information for Cal Poly, Cal Poly paid $0.77 per ride while a general non-
Cal Poly rider fee is $1.50.
Table T2: Number of riders year
over year
General
Ridership Cal Poly Total Ridership
1 Fiscal Year 2018-19 342,000 609,000 951,000
2 Fiscal Year 2019-20 278,000 427,000 705,000
3 Fiscal Year 2020-21 142,000 37,000 179,000
4 Fiscal Year 2021-22 259,000 269,000 528,000
Table T3: Revenues Sum of FY
2021 Actuals
Sum of FY 22
Budget
Sum of 2023
Adopted
Sum of 2023
Revised
Budget
Sum of
Change
Sum of %
Change
1 TDA Revenue 1,379,861$ 2,101,064$ 1,729,374$ 1,729,374$ -$ -
2 STA Revenue 208,814$ -$ 246,430$ 311,567$ 65,137$ 26%
3 Other State Grants 265,199$ 550,000$ -$ 50,000$ -$ -
4 Low Carbon Operation Revenue -$ -$ -$ 291,000$ 291,000$ -
5 FTA 5307 (Capital)-$ -$ -$ -$ -$ -
6 FTA 5307 (Preventative Maintenance)-$ 248,349$ -$ 202,581$ 202,581$ -
7 FTA 5307 (Operating)-$ 2,557,332$ 1,462,600$ 2,945,716$ 1,483,116$ 101%
8 Other Federal Grants -$ -$ -$ 4,100,000$ 4,100,000$ -
9 Federal Stimulus Grants 4,189,680$ 898,093$ -$ -$ -$ -
10 Other Grants/Subventions -$ -$ -$ -$ -$ -
11 Bus Fare 478,000$ 687,500$ 800,000$ 850,000$ 50,000$ 6%
12 Cal Poly Transit Agreement Revenues -$ -$ -$ -$ -$ -
13 Interest on Investment 30,826$ 30,826$ 6,500$
14 6,552,380$ 7,073,164$ 4,238,404$ 10,486,738$ 6,191,834$ 246%
Budget Document Pg. 65 Page 525 of 652
Transit Fund
shared public counter, and an enhanced customer experience. Staff does not anticipate this relocation
will have a significant impact on the Transit Programs operating budget. The Transit Fund will fund the
necessary tenant improvements for the office space pay market rate rent to the Parking Fund for use of
the space. This market rate rent cost will be included as a Transit Fund expense in the 2023-25 Financial
Plan once costs and timeframe are better known.
Summary of Capital Improvement Plan
Changes in Financial Position
City policy requires that the Transit Fund maintain a minimum working capital balance that is 20 percent
of operating expenditures. The working capital beyond this amount is considered unassigned. It is best
practice for Transit operations to maintain a total working capital balance that could cover six months of
operations. The unassigned working capital balance currently reflects the $12.3 million in ARPA
discretionary funds that will be received over three years. Staff is working on updating the bus
replacement schedule which would result in increased capital expenditures through Fiscal Year 2025-26
and will result in a lower unassigned working capital balance than is shown below.
Long-Term Strategy
Federal funding has mitigated previously held concerns about a shortfall of funding needed to deliver
necessary capital projects. The Transit Fund is well-positioned to meet state requirements and City goals
of attaining a zero-emission fleet and the infrastructure necessary to support it. Furthermore, the Transit
Fund has sufficient funding to maintain its schedule of bus shelter replacements 5 and will be exploring
updating the same as well as other rider services to the shelters adjacent to City Hall. This funding will
also be used to address the labor shortage by offering higher wages to drivers through its operations and
maintenance contract with First Transit, LLC. The federal funding that made this possible is an anomaly,
and previously held concerns on reliance on outside funding should be maintained. Staff will review
recommendations provided in the Transit Program Analysis and Assessment to determine what
adjustments need to be made to achieve greater long-term fiscal sustainability. To maintain fund health
the Transit Program continues to pursue discretionary grants and seeks to reach more equitable terms in
its service agreement with Cal Poly.
5 Staff will propose replacing shelters at City Hall in the 2023-25 Financial Plan as well as self-cleaning restrooms for
transit users.
Table T4: CIP Summary 2021-22
Budget Carryover Total Budget Actuals 2022-23
Budget
2023-24
Budget
2024-25
Budget
1 40 Prado Rd. Bus Shelter Relocation 35,000$ -$ 35,000$ -$ -$ -$ -$
2 Bus Replacements 1,935,916$ 366,596$ 2,302,512$ -$ 1,910,000$ 2,085,000$ 2,085,000$
3 Bus Shelter Replacement (91253)-$ -$ -$ -$ -$ 90,000$ 90,000$
4 IT Replacements 1,201$ 3,063$ 4,264$ -$ 3,157$ -$ -$
5 Transit Auto Location System (91606)-$ 82,343$ 82,343$ -$ -$ -$ -$
6 Transit Facility EV Charging Infrastructure 651,824$ -$ 651,824$ 29,878$ -$ -$ -$
7 Bus Yard Parking Lot Maintenance -$ -$ -$ -$ 500,000$ -$ -$
8 Bus Wash Replacement -$ -$ -$ -$ 450,000$ -$ -$
9 Transit Supervisor ADA EV Van 70,000$ -$ 70,000$ -$ -$ -$ -$
10 Vault Room Addition Study -$ -$ -$ -$ 15,000$ -$ -$
11 Transit Yard Solar -$ 22,077$ 22,077$ -$ -$ -$ -$
12 1260 Chorro Tenant Improvements -$ -$ -$ -$ 250,000$ -$ -$
13 2,693,941$ 474,080$ 3,168,020$ 29,878$ 3,128,157$ 2,175,000$ 2,175,000$
Budget Document Pg. 66 Page 526 of 652
Transit Fund
Table T5: Long-Term Forecast Actual
2020-21
Budget
FY2021-22
Revised Budget
FY2022-23
Projected
FY2023-24
Projected
FY2024-25
Projected
FY2025-26
Fund and/or Revenues
1 Federal - 5307 Operating -$ 2,557,332$ 2,945,716$ 3,004,630$ 3,064,723$ 3,126,017$
2 Federal -5307 Preventative Maintenance -$ 248,349$ 202,581$ 206,633$ 210,765$ 214,981$
3 Federal - 5307 Capital 1,384,000$ -$ -$ -$ -$ -$
4 Federal - Cares Act 2,805,680$ -$ -$ -$ -$ -$
5 Federal - ARP (American Rescue Plan) Formula -$ 898,093$ -$ -$ -$ -$
6 State TDA (Transportation Development Act)
STA 208,814$ 305,458$ 311,567$ 317,799$ 324,154$ 330,638$
7 State TDA LTF 1,379,861$ 1,787,606$ 1,729,374$ 1,763,961$ 1,799,241$ 1,835,226$
8 State TDA Allocated to RTA, SLOCOG and Other
Off-the-Top Obligations*690,993$ 633,596$ 646,268$ 659,193$ 672,377$ 685,825$
9 State - APCD (Air Pollution Control District)-$ 500,000$ -$ -$ -$ -$
10 PG&E Grant -$ 50,000$ 50,000$ -$ -$ -$
11 Farebox Revenue 328,000$ 150,000$ 200,000$ 240,000$ 250,000$ 260,000$
12 Cal Poly Agreement 150,000$ 537,500$ 650,000$ 900,000$ 900,000$ 900,000$
13 State - SB1 8,468$ 8,000$ -$ 100,000$ 100,000$ 100,000$
14 State - LCTOP (Low Carbon Transit Operations
Program)256,731$ -$ 291,000$ 75,000$ 75,750$ 77,265$
15 ARPA Discretionary -$ -$ 4,100,000$ 4,100,000$ 4,100,000$ -$
16 Interest on Investment 30,826$ 30,826$ 6,500$ 6,630$ 6,763$ 6,898$
17 TOTAL REVENUES $ 7,243,373 $ 7,706,760 $ 11,133,006 $ 11,373,846 $ 11,503,773 $ 7,536,848
18
19 Expenditures & Obligations
20 Staffing 313,020$ 358,181$ 306,115$ 315,299$ 324,758$ 334,500$
21 Contract Services 2,414,328$ 3,470,217$ 2,895,950$ 2,982,829$ 3,072,313$ 3,164,483$
22 Fuel 204,966$ 435,034$ 320,000$ 326,400$ 332,928$ 339,587$
23 Maintenance 133,171$ 269,453$ 240,000$ 244,800$ 249,696$ 254,690$
24 Other Operating Expenditures 69,639$ 137,442$ 124,513$ 127,003$ 129,543$ 132,134$
25 Cost Allocation 230,707$ 235,321$ 365,544$ 372,855$ 380,312$ 387,918$
26 RTA, SLOCOG and Other Off-The-Top
Contributions from TDA 690,993$ 633,596$ 646,268$ 659,193$ 672,377$ 685,825$
27 Transfers Out -$ -$ -$ -$ -$ -$
28 Capital 1,800,000$ 2,753,518$ 3,128,157$ 2,055,000$ 2,115,000$ 2,175,000$
60 TOTAL Expenditures & Obligations: $ 5,856,823 $ 8,292,762 $ 8,026,547 $ 7,083,378 $ 7,276,927 $ 7,474,136
61
62 CHANGES IN FINANCIAL POSITION
63 Beginning Fund Balance** $ 2,697,491 $ 2,715,598 $ 2,129,596 $ 5,223,501 $ 9,501,414 $ 13,715,705
65 Revenue Over/(Under) Expenses 1,386,550$ (586,002)$ 3,106,459$ 4,290,468$ 4,226,846$ 62,712$
67 Ending Fund Balance before CalPERS $ 4,084,041 $ 2,129,596 $ 5,236,056 $ 9,513,969 $ 13,728,260 $ 13,778,417
68 CalPERS Downpayment -$ -$ 12,555$ 12,555$ 12,555$ 12,555$
69 Ending Fund Balance $ 4,084,041 $ 2,129,596 $ 5,223,501 $ 9,501,414 $ 13,715,705 $ 13,765,862
70 Policy Reserve Level - 20%673,166$ 981,130$ 850,424$ 873,837$ 897,910$ 922,662$
71 Undesignated Fund Balance $ 3,410,875 $ 1,148,467 $ 4,373,076 $ 8,627,577 $ 12,817,795 $ 12,843,200
2021-23 Financial Plan
**FY 2022-23 Beginning Fund Balance is based on projected FY 2021-22 year end balance which is higher than what is shown in the FY 2021-22
Budget column because of some additional unanticipated revenue and expenditure savings.
*State TDA Allocation is shown to illustrate SLO Transit's state funding contribution toward regional planning as dictated by RTA.
Budget Document Pg. 67 Page 527 of 652
Local Revenue Measure
Section 5: Local Revenue Measure
The Local Revenue Measure is a 1.5 percent local sales
tax approved by City voters in November 2020 that went
into effect on April 1, 2021. It replaced the previous .5
percent local sales tax approved by City voters in
November 2006. The tax is instrumental in protecting
and maintaining operating services and public
infrastructure identified by the community as high
priorities such as community safety, creek protection,
addressing homelessness, keeping public areas safe and
clean, retaining local businesses, investments in youth/senior services, streets, open space/natural areas
and other vital services and facilities.
The largest use of Local Revenue Measure funding for operating costs is for fire, police, rangers and other
public safety services. Other examples include staffing for programs such as neighborhood street paving,
flood control, and code enforcement.
FY 2021-22 In Review and Emergent Trends
At the end of March 2022, 70% of the City’s forecasted sales tax revenue for this fiscal year had been
collected due to the timing of disbursements from the California Department of Tax and Fee
Administration (CDTFA) which lags behind. This accounts for revenue earned July 2021 through February
2022. Like the rest of the nation, the City experienced a surge of consumption that corresponded with the
lifting of lockdowns and stimulative fiscal and monetary policy. While the U.S economy has largely
recovered from the pandemic-driven downturn, new challenges arose. Higher labor and raw material
costs due to supply chain issues, along with inflationary pressures drive taxable good prices upward and
increase the City’s sales tax revenue. However, higher prices reduce consumer demand and increase the
City’s own expenditure costs. It is still unclear how these factors will play into the local economic forecast,
but staff expect a weakening of sales tax receipts beginning in 2023.
While the City has made significant progress on delivering capital projects, it is currently constrained by
unprecedented labor and supply chain shortages that are affecting the entire world. Locally, these include
labor market shortages, significant construction activity in our area that are increasing local competition
for design, inspection, and construction services.
Table L1: Local Revenue Measure Forecast
2021-22 2022-23 2023-24 2024-25 2025-26
Revenue Forecast 25,810,000$ 27,048,880$ 27,725,102$ 28,279,604$ 28,845,196$
Growth from prior year 5%3%2%2%
Budget Document Pg. 68 Page 528 of 652
Local Revenue Measure
Table L2: Changes from the Adopted Financial Plan (or Mid-year Review)
Project Project Name 22-23 Original Budget 22-23 Revised Budget Change
1000500 CIP Project Delivery Augmentation $1,000,000 $142,710 $(857,290)
Change reflects reallocation of capital budget to Public Works' operating budget to cover cost of 4.00 FTE new positions
added at FY 2021-22 Mid-Year. In addition, the change reflects the recommended addition of 1.00 FTE Maintenance
Supervisor to create additional capacity within Public Works to deliver capital and maintenance projects.
1000027 Urban Forest Maintenance $175,000 $375,000 $200,000
Change is due to a correction of an approved FY 2021-22 Mid-Year request to add $200,000 to the operating budget for
annual pruning and watering costs. This expenditure should have been classified as a capital expenditure and is being
moved to an existing capital project for FY 2022-23 via adoption of the Budget Supplement.
90346 Street Reconstruction & Resurfacing $4,266,258 $3,266,258 $(1,000,000)
Project budget is being decreased for two purposes:
1. To transfer $900,000 to the Capital Reserve to partially reimburse use of $1,000,000 used in FY 2021-22 to advance
construction of the Area 6 & 7 Curb Ramps ahead of the Summer 2022 Slurry Seal project; and
2.to balance the budget appropriated for FY 2022-23.
Table L3: FY 2022-23 Projects Recommended for Deferral (See Budget Section 7 for more detail)
ID# Spec# Project FY 2022-23 Budget to
be Deferred
1 91503 California & Taft Roundabout $2,720,000
2 1000031 Parking Lot Maintenance – Meadow Park and Minor Repair of
City Parking Lots
$155,000
3 90742 Storm Drain System Replacement – Woodbridge Runoff $175,000
4 1000052 Buchon-Santa Rosa Intersection Improvements $250,000
5 1000029 Bridge Maintenance $100,000
6 1000032 Pedestrian and Bicycle Pathway Maintenance - Railroad Safety
Trail from Cal Poly to Taft Street
$50,000
7 1000075 Major Facility Maintenance - Ludwick Community Center Roof
and Solar
$40,000
8 91385 Park Major Maintenance & Repairs - Santa Rosa Barbeque
Replacements
$7,500
9 Total $3,497,500
Table L4: Recommended Use of Deferred Project Funding (See Budget Section 7 for more detail)
ID# Spec# Project/Reserve FY 2022-23 Budget to
be Reallocated
1 90346 Roadway Sealing 2022 +$1,585,000
2 1000055 City Hall Meeting Room TI +$115,000
3 Capital Reserve +$1,797,500
4 Total $3,497,500
Budget Document Pg. 69 Page 529 of 652
Local Revenue Measure
Investment into Capital
The City’s Capital Improvement Program (CIP) has grown significantly due to an increase in available
funding to maintain, enhance, and expand City infrastructure from Measure G-20. It quickly became
evident that the growth of the CIP exceeded the City’s existing organizational capacity to effectively
deliver capital projects. In March of 2021, the City executed an agreement with Management Partners to
perform an assessment of the City’s CIP. The assessment resulted in 53 recommendations covering all
aspects of the City’s CIP to improve project delivery, including staffing and organizational structure, policy,
work processes and responsibilities, finance and budget, staff training and onboarding, and
communication and reporting. Since the CIP Process Improvement Manager was hired last year, many of
these recommendations have been implemented. With the mid-year budget update, the City added 4.00
FTE new positions and an additional position is being recommended with the Supplemental Budget.
While the construction phase of projects is often the community’s first encounter with the improvements
that are being made, it is also the result of months and sometimes years of planning, outreach and design
work that must be completed prior to making visible progress on a project and proceed to vertical
construction. Considering this, the City must ensure that operating resources are right sized to deliver
projects. Overall operating costs are forecasted to grow by about 12-15% in the next fiscal year due to
equity adjustments and inflationary pressures. Based on existing staff positions, the table below shows
the percentage split between operating and capital expenditures for LRM:
Table L4: Operating/Capital Split 22-23 23-24 24-25 25-26
Operating1 32% 26% 26% 26%
Capital 68% 74% 74% 74%
2022-23 Appropriations
The Local Revenue Measure funds 44.6 positions and over 85 CIP projects. The graph below shows the
total LRM investment by priority. The full list of LRM appropriations for FY 2022-23 is included on the
next page.
1 Many operating costs have a direct nexus to Capital. The split is approximately 80/20 (80% Capital, 20%
operating) when CIP-related staff are categorized under “Capital”.
Budget Document Pg. 70 Page 530 of 652
Local Revenue Measure
3%
14%
6%
3%
6%
9%
1%
13%
36%
9%
GRAPH L5: LRM EXPENDITURES BY PRIORITY
Address Homelessness
Community Safety and Emergency Preparedness
Creek and Flood Protection
Economic Development and Business Retention
Open Space/Natural Areas Preservation and
Maintenance
Other Services and Projects
Protect Financial Stability
Safe and Clean Public Areas
Street Maintenance and Transportation (includes bicycle
and pedestrian improvements)
Youth/Senior Services and Recreation Facilities
Budget Document Pg. 71 Page 531 of 652
Operating CapitalAddress Homelessness 764,069$ 1Housing/Homelessness Contract Position97,055$ 2Mobile Crisis Unit ( Social Worker ‐ contract through TMH)207,810$ 3Mobile Crisis Unit (Paramedic) 1FTE92,190$ 4CAT Team Social Worker ‐ Contract through TMH116,188$ 5Expansion of 40 Prado Homeless Services Center Bed Capacity 63,826$ 6Housing and Homelessness Contract Services Support117,000$ 7Parks and Open Space Environmental Clean‐Up Resources70,000$ Community Safety and Emergency Preparedness1,992,685$ 1,520,700$ 8Emergency Manager (1 FTE)161,130$ 9Public Safety Customer Engagement12,000$ 10Supplemental Overtime for Farmer's Market Support15,000$ 11Community Safety and Emergency Preparedness (Firefighters, 2; Downtown Police Patrol Officers, 3, Downtown Sergeant, 1): FTE 61,180,646$ 12Emergency Response Live ‐ Fire Training Improvements17,570$ 13Facility Roll Up Door Replacements ‐ Various Locations15,000$ 14Fire ‐ Fleet Replacement (1/2 ton truck, 1; Heavy Duty Truck, 1; Heavy Duty Truck w/ Utility Bed, 1; Compact Truck, 1; Open Space Rescue Truck, 1)465,000$ 15Fire Emergency Operations Center Training (Emergency Management Services)30,000$ 16Fire Equipment Replacement (PPE, AED, etc.)177,499$ 17Fire Hydrant Replacement40,000$ 18Fire Inspection Management Software (Mobile Eyes)12,200$ 19Fire Intern Program23,257$ ‐$20Fire Station #3 & #4 Remodel Space Study and Design75,000$ 21Fire Station #4 Exterior Paint27,500$ 22Fire Technical Rescue Team Expansion9,150$ 23Fire Training/Safety Captain (1 FTE)263,352$ 24Initial Design Study ‐ Police Station Replacement300,000$ 25Open Space and Creeks Hazardous Tree Removals20,000$ 26Police ‐ Information Technology316,000$ 27Police ‐ Fleet Replacement (Patrol Hybrid SUV, 2/YR; Motorcycles; SNAP SUV, 1; Investigations SUV, 1)235,000$ 28Police ‐ Public Safety Equipment Replacement and Supplies70,881$ 29Police Evidence Storage Bldg. and Police Range ‐ Roof Replacement47,200$ Creek and Flood Protection 742,816$ 550,000$ 30Creek and Flood Protection ( Wastewater Collection Operators and Supervisor, Environmental Compliance Inspectors, Stormwater Management, Environmental Programs Manager): FTE 6 742,816$ 31Creek Trash Capture 50,000$ 32Storm Drainage Infrastructure Replacement (multiple locations)325,000$ 33Woodbridge Groundwater Runoff Diversion175,000$ FY 2022 ‐ 232022‐23 Local Revenue Measure Expenditure Budget by PriorityLocal Revenue Measure Budget Document Pg. 72Page 532 of 652
Operating CapitalFY 2022 ‐ 232022‐23 Local Revenue Measure Expenditure Budget by PriorityEconomic Development and Business Retention 757,375$ 117,500$ 34Additional Banner Arms, Bench Arm Rests, Signs25,000$ 35Annual Public Art Maintenance and Projects (Utility Box Beautification, Small Public Art Projects, Maintenance)92,500$ 36Arts, Culture and Community Partner Support25,000$ 37Economic Development Data Tracking and Reporting30,000$ 38Economic Development Program Support25,000$ 39Holiday Activation Support in Downtown for Lighting and Other Features150,000$ 40New Economic Development Strategic Plan100,000$ 41Open SLO ‐ Downtown Dining Temporary Staffing27,375$ ‐$42Support for Underserved/Underrepresented Community Businesses150,000$ 43TBD Business Retention/Recovery Programs250,000$ Open Space/Natural Areas Preservation and Maintenance709,019$ 730,000$ 44Additional Pruning/Watering200,000$ 45Parks Additional Contract Funding40,000$ 46Parks Maintenance Beautification Gardner (1 FTE)106,643$ 47ECOSLO partnership ‐ SLO Stewards, Tree Planting & Maint., Green Business, Creek Clean Up20,000$ 48Fuel Reduction Crew (4000 Supplemental Staff Hours)61,589$ 49New Ranger Maintenance Worker (1 FTE)85,276$ 50Open Space Acquisition250,000$ 51Open Space Fencing25,000$ 52Open Space Maintenance80,000$ 53Open Space Vegetation Management and Fuel Reduction20,000$ 54Open Space/Natural Areas Preservation and Maintenance (2 FTE Ranger Maintenance Workers ) 190,892$ 55Ranger Services Staffing Resources70,071$ 56Sustainability & Natural Resources Analyst98,819$ ‐$57Sustainability & Natural Resources Intern/ Urban Forest Master Plan Intern15,729$ ‐$58Urban Forest Maintenance175,000$ Other Services and Projects1,165,820$ 1,230,817$ 59Centralized Resident Inquiry Platform40,000$ 60Capital Projects Engineering Staff (6 FTE)883,460$ 116,540$ 61CIP Interns5,900$ 62City Fleet Vehicle Repairs20,000$ 63City Storage Area Network (SAN)178,136$ 64Citywide Wireless System Replacement70,641$ 65Contract Heavy Equipment Mechanic113,539$ 66Council Hearing Room Modification and Functionality Improvements245,000$ 67Electric Vehicle Charing Stations (Various City Facilities, Including Parks and Rec and Corp Yard)100,000$ 68Energy Management Controls Upgrade50,000$ 69Facilities Maintenance 3/4 ton Pickup with Utility Bed60,000$ 70Fleet Intern22,921$ Local Revenue Measure Budget Document Pg. 73Page 533 of 652
Operating CapitalFY 2022 ‐ 232022‐23 Local Revenue Measure Expenditure Budget by Priority71Funding for Increased Cost of Facilities Maintenance Materials and Supplies30,000$ 72Increased Contract Funds for Specialized Mechanic Services50,000$ 73Major Facility Maintenance ‐ ADA Transition Plan Implementation10,500$ 74Roundabout Public Art Installations400,000$ Protect Financial Stability404,558$ 75Accounting Assistant (1 FTE)60,041$ 76Application Systems Specialist (1 FTE)135,485$ 77Financial Specialist ‐ Accounting (1 FTE)102,881$ 78Fire Injury Reduction Program18,000$ 79Fire Policy Research Software (Lexipol)9,369$ 80Half‐Time Technology Project Manager (.5 FTE)78,782$ Safe and Clean Public Areas586,454$ 2,710,000$ 81Additional Pressure Washing25,000$ 82Additional Streets Maintenance Staff (2 FTE)216,512$ 83Additional Supplies for Downtown Maintenance Program*25,000$ 84Facilities Additional Contract Funding25,000$ 85Increase in Mission Plaza Maintenance27,000$ 86Additional Landscape Maintenance Contract Services65,000$ 87Bob Jones Trail and Railroad Safety Trail Solar Lighting1,350,000$ 88Curb Ramps and Sidewalks Replacement (various locations)150,000$ 89Increased Trash and Recycling Services in Public Spaces125,000$ 90Mission Plaza Concept Plan Implementation (Phase 1 ‐ Restroom Replacement and Kiosk Café)1,035,000$ 91Safe and Clean Public Areas (Parks Maint. Specialist): FTE 177,942$ 92Sidewalk Replacement and Installation (includes street trees)100,000$ 93Street and Pathway Lighting (various locations)75,000$ Street Maintenance and Transportation (includes bicycle and pedestrian improvements) 1,084,129$ 6,721,573$ 94Additional Street Operator for Maintenance of Streets and Right of Way (1FTE)101,242$ 9521‐22 Sealing Project Complete Street Components200,000$ 96Accessibility and Process Improvement Support Services12,000$ 97Active Transportation Plan Implementation305,000$ 98Bridge Maintenance ‐$99Buchon‐Santa Rosa Intersection Improvements‐$100California & Taft Roundabout Construction‐$101Concrete Street ‐ Monterey ‐ CA to Santa Rosa800,000$ 102Increased Asphalt and Concrete Budget60,000$ 103Increased Budget for Signals and Street Light Equipment and Electricity25,000$ 104Madonna Inn Frontage Bike Pathway (Madonna to Fernandez)150,000$ 105Neighborhood Traffic Improvements75,000$ 106Pavement Management (Downtown areas)3,010,000$ 107Prado Road Bridge & Road Widening 146,573$ Local Revenue Measure Budget Document Pg. 74Page 534 of 652
Operating CapitalFY 2022 ‐ 232022‐23 Local Revenue Measure Expenditure Budget by Priority108Prado Road Interchange (YR 1 PA/ED Phase & YR 2 Design Phase)1,910,000$ 109Railroad Safety Trail from Cal Poly to Taft Street‐$110Street Maintenance and Transportation (Engineering, Streets Maintenance, Active Transportation) FTE 4.60599,957$ 111Supplemental Street and Parklet Sweeping 250,000$ 112Traffic Signs & Striping Maintenance25,000$ 113Transportation Interns35,930$ 114Transportation Monitoring & Modeling Update70,000$ 115Transportation Safety & Operations 30,000$ Youth/Senior Services and Recreation Facilities 395,492$ 1,701,500$ 116Contract Volunteer Coordinator (1 FTE)106,626$ 117Concrete Bench & Table Replacement Various Locations15,000$ 118Hydration Stations Various Parks and Facilities15,000$ 119Irrigation Mainline Leak Repair15,000$ 120Jack House Arbor refurbishment7,500$ 121Laguna Lake Golf Course Maintenance20,000$ 122Ludwick and Senior Center ‐ Exterior Paint and Shell Rehabilitation30,000$ 123Ludwick Community Center ‐ Roof and Solar Replacement‐$124Meadow Park Exercise/Par Course Equipment Replacement20,000$ 125Mission Plaza Arbor Refurbishment70,000$ 126Mitchell Park Playground Equipment Replacement100,000$ 127Orcutt Area ‐ Linear Park Planning and Construction815,000$ 128Park Maintenance ‐ Fleet Replacement: (Mower, 1; Tractor, 1; Trailers, 4;) 108,000$ 129Parking Lot Maintenance 50,000$ 130Parks and Recreation ‐ Fleet Replacement103,000$ 131Parks and Recreation Master Plan Implementation200,000$ 132Parks Major Maintenance ‐ ADA Transition Plan Implementation 20,000$ 133Parks Play Area Surfacing30,000$ 134Santa Rosa Park Barbecue Replacements‐$135SLO Swim Center Minor Capital Maintenance and Operating Costs (Electricity conversation for solar)55,000$ 136Swim Center ‐ Pool Automatic Vacuum18,000$ 137Swim Center Furnaces Replacement40,000$ Local Revenue Measure Budget Document Pg. 75Page 535 of 652
Operating CapitalFY 2022 ‐ 232022‐23 Local Revenue Measure Expenditure Budget by Priority138Swim Center Supplies (pool chemicals, etc.)25,000$ 139Water Stations and Supply Lines25,000$ 140Youth Services Staffing Resources (Equivalent to 1.5 FTEs)116,925$ ‐$141Youth/Senior Services and Recreation Facilities (Parks Maint. Specialist): FTE 191,941$ Total LRM Budget8,602,418$ 15,282,090$ Transfer to Capital Reserve2,697,500$ 8,602,418$ 17,979,590$ *Budget items highlighted in orange were approved at the 2021‐22 Mid‐year Review*Budget items highlighted in green reflect projects with recommended changes in the 2022‐23 Supplemental Budget. See Budget Section 7 for detail26,582,007$ Grand TotalLocal Revenue Measure Budget Document Pg. 76Page 536 of 652
Debt
Section 6: Debt Service
Debt Issue Principle Interest Total Payment
Debt Service Fund
2012 Revenue Bond 2012 Refunding Revenue Bonds 285,000 102,300 387,300
2014 Revenue Bond Los Osos Valley Overpass 185,000 238,031 423,031
2018 Revenue Bond Refunding 2005, 2006, 2009 Bonds 569,850 369,719 939,569
2018 Lease Fire Truck 142,144 3,986 146,131
2014 State Loan Energy Sources Conservation 93,074 1,168 94,242
Lease Golf Cart Leases 1,860 1,860
2020 Financing Motorola Radios 217,671 217,671
Total Debt Service Fund 1,494,600 715,205 2,209,804
Water Fund
2012 Revenue Bond Refunding Bond 550,000 22,000 572,000
2018 Revenue Bond Refunding 2005, 2006, 2009 Bonds 16,530 10,725 27,255
2018 Revenue Bond Refunding 2006 Water Revenue 470,000 416,500 886,500
2020 State Loan CIEDB - Water Treatment 588,144 368,659 956,803
Total Water Fund 1,624,674 817,884 2,442,558
Parking Fund
2018 Revenue Bond Refunding 2005, 2006, 2009 Bonds 265,350 172,159 437,509
2001 State Loan CIEDB- Marsh St. Parking 301,748 112,320 414,068
Total Parking Fund 567,098 284,479 851,577
Sewer Fund
2018 Revenue Bond Refunding 2005, 2006, 2009 Bonds 18,270 11,854 30,124
2009 State Loan CIEDB-Tank Farm Lift Station 322,310 230,000 552,310
2008 Bank Loan Installment Sale Agree.-SunTrust 170,000 11,130 181,130
2014 Bank Loan Installment Sale Agree.-US Bank 511,479 105,896 617,375
Total Sewer Fund 1,022,058 358,880 1,380,939
TOTAL ALL FUNDS 4,708,430 2,176,448 6,884,878
FY 22-23
Budget Document Pg. 77 Page 537 of 652
Capital Improvement Projects
Section 7: Capital Improvement Projects
Overview
All City construction projects and equipment purchases costing $25,000 or more are included in the City
Capital Improvement Plan (CIP). The CIP is adopted as part of the budget in every Financial Plan and
accomplishes several goals.
Maintains and replaces existing City infrastructure in accordance with the City’s asset
management plans, infrastructure replacement schedules, and other documents
Meets community needs and desires as established in the Community Budget Forum,
Major City Goals and Council priorities.
Plans, schedules, and finances projects to ensure cost-effectiveness and conformance
with established policies.
Comprehensive policies relative to the development of the City’s CIP are specified in the Budget Policies
section of the 2021-23 Financial Plan including detailed information relative to both the two-year Financial
Plan and the Five-Year CIP forecast1.
The Supplemental Budget is the second-year budget of a two-year Financial Plan. Before the beginning of
the second year of the two-year cycle, the City Council reviews the progress during the first year, adjusts
as necessary, and approves appropriations for the second fiscal year. As reported in the Mid-Year Budget
Review, the revised revenue forecast for the General Fund is significantly increased compared to the
forecast presented with the adopted Financial Plan, due largely to the continued re-opening and recovery
of the economy. Due to revenue trends at the time, the FY 2020-21 Supplemental Budget included a full
overhaul of the CIP budget initially presented in the 2019-21 Financial Plan. Fortunately, current financial
conditions do not require similar recommendations for FY 2022-23. That said, some projects are
experiencing delays or cost increases due to a variety of factors, discussed extensively below. The FY 2022-
23 CIP section below includes recommended changes to certain project budgets to reflect changes at the
FY 2021-22 Mid-Year Budget review or address urgent needs. It is likely that additional funding may need
to be requested for additional projects throughout the coming year associated with anticipated ongoing
supply chain and/or costs of goods issues.
The current project to augment CIP delivery (discussed in more detail below) informs the format and
content of the FY 2022-23 CIP Supplemental Budget and continues progress towards providing more
comprehensive and contextual reporting on the CIP. The CIP Supplemental Budget is intended to provide
readers with a clear picture of the context in which the CIP is operating, as well as insight into the progress
to date implementing the Management Partners 2022 CIP Process Improvement recommendations in the
current year, and further changes and enhancements to come in FY 2022-23.
1 2021-23 Financial Plan, Pages 537-569. https://www.slocity.org/government/department-directory/finance/city-
budget
Budget Document Pg. 78 Page 538 of 652
Capital Improvement Projects
The 2021-23 Financial Plan includes funding for 115 construction projects (inclusive of new assets, asset
replacements and asset maintenance) that are managed by CIP Engineering, Transportation, or Utilities
project managers. In FY 2021-22 to date, 22 projects have been completed (this includes both projects
funded in FY 2021-22, as well as projects funded and initiated prior to the 2021-23 Financial Plan). 81
projects are in progress, with 50 projects scheduled to begin construction prior to the end of FY 2022-23,
assuming Council’s adoption of staff’s recommendations for the 2022-23 CIP.
City construction projects are completed in seven distinct phases, shown below. While the construction
phase is the most visible to the community, it is also the culmination of months to sometimes years’ worth
of planning, design, engineering and permitting which all work to minimize issues and delays during the
construction phase.
Project Identification
& Budgeting
•City Council & community input
•Project planning & development
•Funding identified & approved by Council
Project Design •Preliminary work
•Project layout and mapping
•Retain consultant design services
Plans & Specifications
•Development of detailed information
•Coordination with third party utilities
•50% design review
•90% plan review/design review
•Project communications
•Environmental review
Project Ready to
Construct
•Design completion
•Advertisement of project for public bid
•Award of construction contract
Permits •City building permit
•Outside agency permits
Construction
Project Completion •Ribbon cutting
•Notice of completion project closeout
Budget Document Pg. 79 Page 539 of 652
Capital Improvement Projects
The chart to the right shows the
status of the 115 construction
projects funded in the 2021-23
Financial Plan. It is expected that
roughly two-thirds of the projects
currently in design will begin
construction prior to the end of
2021-23. Most of the construction
projects that have not yet started
will not be funded until the start of
FY 2022-23, assuming adoption of
staff’s recommendations.
Measure G20 and Expansion of CIP
The 2021-23 Financial Plan represents significant growth to the City’s CIP, due to the passage of the Local
Revenue Measure (Measure G-20) which increased the local sales tax rate from 0.5 percent to 1.5 percent
which is projected to generate approximately $25 million annually. For the General Fund alone, capital
expenditures in the current year have increased by $18.5 million or 70% compared to FY 2020-21 when
including American Rescue Plan (ARPA) funding. Absent the one-time ARPA funding, General Fund capital
expenditures in the current year have increased by $14 million or 65% compared to the prior year.
CIP Process Improvements in Progress
The growth of the CIP has exceeded the City’s existing organizational capacity to effectively deliver capital
projects. To address this, the 2021-23 Financial Plan included budget augmentations of $500,0000 in FY
2021-22 and $1 million in FY 2022-23 and beyond to “right-size” the organization to address the increased
project workload. In 2021, the City contracted with Management Partners, a local government consulting
firm, to perform an assessment of the delivery of the CIP and provide both structural and process
improvements to deliver projects. The Management Partners assessment resulted in 53 recommendations
covering all aspects of the City’s CIP to improve project delivery. The recommendations
FY 2021-22 CIP Process Improvements
A CIP Process Improvement Manager was hired in November 2021 to lead the implementation of
the recommendations, as well as other identified areas for improvement. Many of the
recommended improvements relate to the policies that govern the CIP and the processes that are
Design
61%
Construction
3%
Study
1%
Complete
8%
Not Started (not
funded until FY
22-23)
22%
Not Started
5%
Status of Construction Projects Funded in
2021-23 Financial Plan
Budget Document Pg. 80 Page 540 of 652
Capital Improvement Projects
followed to deliver projects. The work being done in the current year lays the foundation for a
multi-year process to refine CIP policies and processes to best deliver on the expanded CIP. It is
expected that the work being done today will be reflected during the 2023-25 Financial Plan, when
projects will be delivered as intended.
The $500,000 budgeted for the CIP Project Delivery Augmentation project in FY 2021-22 funds
these efforts, as well as contracted services to support delivery of various parks projects as well as
implementation of the Mission Plaza Concept Plan and Public Safety Center. The table below
summarizes planned expenditures from the project budget in the current year:
Because the growth of the CIP has outpaced the City’s capacity to deliver projects, the first priority
has been to add new staff positions, as recommended by Management Partners. As part of the
Mid-Year Budget update, the Council approved the addition of 4.00 FTE new positions to build
capacity to address the unprecedented CIP growth and support implementation of other
recommendations over the coming year. These positions are funded with the additional budget
allocated in the 2021-23 Financial Plan and include:
1.1.00 FTE Engineering Inspector to provide construction management for capital projects;
2.1.00 FTE Capital Projects Manager (a new classification) to provide project management
for capital projects that do not require a high degree of engineering expertise and to
partner with Engineers to manage larger and more complex capital projects;
3.1.00 FTE Supervising Civil Engineer to manage more complex and higher profile projects
and also provide direct oversight of Engineers and Capital Projects Coordinators who are
actively managing projects; and
4.1.00 FTE CIP Manager (a new classification) to manage to non-technical aspects of the
City’s CIP.
In addition, 1.00 FTE vacant Engineer has been reclassified to the new Capital Projects Coordinator
position.
As of the writing of this report, staff has developed the new classifications and has completed the
required meet and confer process with SLOCEA for the addition of the Engineering Inspector,
establishment of the new Capital Projects Manager classification and reclassification of the
Engineer position. Recruitments for these new positions are either in progress or will begin very
soon. The expectation is that the increased staff capacity (both in number and broadened skillset)
will enable the CIP Engineering program to more effectively deliver on the planned capital projects
which have increased in complexity, scale and number.
Table C1: FY 2021-22 Planned CIP Project Delivery Augmentation Project Expenditures
ID# FY 2021-22 Budget $ 500,000
1 MP CIP Project Management -Phase I (55,000)
2 RRM PM Support for Mission Plaza and Public Safety Center (136,720)
3 MP Parks Project Management - Phase 2 (100,000)
4 CIP Process Improvement Manager (Contract) (117,600)
5 Office Supplies for CIP Process Improvement Manager (3,608)
6 Remaining Balance 87,072*
* Remaining budget available to fund the cost of the new staff positions, for the remainder of FY
2021-22.
Budget Document Pg. 81 Page 541 of 652
Capital Improvement Projects
2022-23 CIP Process Improvements
As part of the Supplemental Budget, staff is recommending the addition of 1.00 FTE Capital
Maintenance Supervisor (a new classification) to oversee critical Public Works programs including
streetlights and signals, urban forestry, and maintenance contracts. The intent is that this new
position will increase the capacity of existing staff to supplement the efforts of the CIP Engineering
group to oversee the many projects included in the City’s CIP. Because of the direct alignment of
this new position to the effort to augment CIP delivery, it is recommended that this position be
funded from the designated $1,000,000 for the CIP augmentation project in FY 2022-23. The table
below summarizes planned expenditures from the project budget in FY 2022-23:
In addition to building staff capacity (necessarily prioritized in 2022), the CIP Process Improvement
Manager is also exploring opportunities to update policies and work processes, streamline project
delivery, more clearly define roles and responsibilities throughout the organization, improve
communication and reporting internally and externally, and improve staff onboarding and training
in line with the Management Partners recommendations.
Project Delivery
Project Delivery is constrained by several unprecedented conditions. These include limited staffing (a
phenomena not unique to the City but impacting all businesses), significant construction activity in our
area, due to Federal stimulus monies (increasing local competition for design, inspection, and construction
services), supply chain issues, and inflation.
Staffing Constraints
As of the writing of this report, there are 8.00 FTE vacant positions in the CIP Engineering Program
in addition to 1.00 FTE vacant CIP Manager. This is due in part, to the addition of the 4.00 FTE new
positions noted above, but also reflects the transition of several employees (Engineers and an
Engineering Inspector) who have left for career advancement and/or higher compensation in the
private sector or other public sector agencies. Currently, each CIP Engineer has a project workload
of approximately 15 ongoing active projects in different phases of delivery. In addition, the City
Engineer is managing three of the four legacy projects (discussed in more detail below) and the
Supervising Civil Engineer is also providing direct management of certain projects, which impacts
Table C2: FY 2022-23 Planned CIP Project Delivery Augmentation Project Expenditures
ID# FY 2022-23 Budget $ 1,000,000 Notes
1 CIP Process Improvement Manager
(Contract)
(89,301) Remainder of contract initiated
in November 2021
2 CIP Manager (185,182) New positions approved by
Council via adoption of FY
2021-22 Mid-Year
recommendations
3 Supervising Civil Engineer (189,475)
4 Engineering Inspector I/II/III/IV (138,470)
5 Capital Projects Manager I/II/III (134,432)
6 Capital Maintenance Supervisor (146,599) New position recommended for
approval in FY 2022-23
Supplemental Budget
7 Remaining Balance 116,540*
*Remaining budget available to fund continuation of existing contracted services, or new contract
services to support project delivery.
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Capital Improvement Projects
their ability to provide overall management of the CIP. Due to the scale and complexity of some
projects, the current project workload is neither ideal nor sustainable. The use of consultant
resources has previously been a good option to build capacity when there are staff vacancies.
However, due to staffing shortages in all industries and the number of construction projects
currently underway in the region, there is a shortage of consultant availability to move projects
forward without delay.
Supply Chain Issues and Construction Cost Escalation
The FY 2021-22 Mid-Year Budget Review noted that global supply chain issues resulting from the
COVID-19 pandemic have influenced the availability and cost of goods. These issues have
continued and have been exacerbated by the current conflict in Ukraine. The supply chain issues
and cost escalation have impacted various City operations, from water treatment at the WRRF to
fleet replacements, and have also extended to construction projects. Today, the construction
industry is still facing uncertainty in costs, and labor supply. Multiple City projects have come in
well above engineers’ estimates and have had to be rebid and/or returned to the City Council for
further funding allocations. The costs of materials are escalating far more rapidly than indexes can
predict and the construction industry is facing a labor shortage. At present, it is predicted that
costs will escalate approximately 22% year over year. In addition to projects coming in over bid,
several capital projects received no bids, which is an unusual occurrence.
As noted in the Utilities Fund Review, inflation and supply chain issues have particularly impacted
Utilities’ projects and operations. Chemical price increases have increased the Water Treatment
Plant and Wastewater Recovery Facility’s chemical budgets by approximately 50% and 29%
respectively. Electrical costs for Utilities’ non-Community Choice Energy operations are projected
to increase as much as 20% over initial projections. These material cost increases, in addition to
the need to respond to current drought conditions, result in significant operating budget changes
in FY 2022-23 for both the Water and Sewer funds.
Fortunately, recent government intervention may help to ease up some of the supply chain issues.
Governor Newsom and State Department of General Services have recently identified sites to store
shipping containers to alleviate delays to goods getting into California’s ports. At this time, it is too
soon to tell whether or not these storage sites will increase the availability of goods.
Efforts to Address Constraints to Project Delivery
Recognizing that the City is not able to significantly influence many of the constraints noted above, staff
has been working to adjust processes and expectations in order to effectively deliver capital projects.
Below is a summary of a number of efforts currently underway to adapt to the current realities of the CIP:
Compensation
In order to assure that the City provides competitive compensation and to address recruitment and
retention issues throughout the organization, the City initiated a compensation study in August
2021. The study included a survey of other employers to evaluate the City’s base salaries and
determined that overall, the City’s base salaries are 8.55% below the median of comparator
agencies. In February 2022, the survey results were presented to the City Council, and shortly
after, the City initiated the negotiation process with SLOCEA in order to increase wages for SLOCEA-
represented staff (this includes many of the classifications within the CIP Engineering group that
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Capital Improvement Projects
design and deliver the City’s capital projects). As of the writing of this report, negotiations with
SLOCEA are still underway, but the hope is that increased compensation will improve the City’s
ability to recruit and retain employees that are critical to delivery of the CIP.
Project Prioritization
It is expected that staffing constraints will continue well into 2023. With limited opportunity to
address the factors contributing to staffing shortages, CIP staff led an effort to realistically assess
capacity to deliver on the construction projects funded in the 2021-23 Financial Plan, and prioritize
those projects not yet started. The prioritized has been vetted by the CIP Review Committee to
assure broad input and support. The intent of this effort is to:
1.Set realistic expectations related to project delivery;
2.Prioritize the project management tasks that will be assigned to new staff as they are
onboarded; and
3.Identify which projects not yet in progress may be able to reallocate funding to projects in-
progress that may need additional funding due to cost escalation.
The identified priority levels include:
The priority levels for each construction project can be found in Tables C7 through C14 which
provide status update on all projects funded in the 2021-23 Financial Plan. The next section
summarizes staff’s recommendations around projects that can be deferred to the 2023-25
Financial Plan, in order to fund projects that are in need of additional funding.
Recommended Changes to General Fund Projects to Address Impacts of Supply
Chain and Construction Cost Issues
As a part of the Supplement, staff is recommending several changes to General Fund projects for FY 2022-
23, reflective of the cost increases and staffing constraints noted above. The project prioritization exercise
described above was used to guide analysis of projects to identify those that could be deferred to 2023-25.
The projects recommended for deferral are those that are:
1.Not construction ready, or
2.Grant funding is being sought for, or
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Capital Improvement Projects
3.Can be paused until staff resources are online.
The projects listed below are recommended for deferral (they are not being cancelled) and will be included
in staff’s recommendations for funding in the 2023-25 Financial Plan. The funding from the deferred
projects is recommended to be used for cost increases for the Summer 2022 Roadway Sealing project which
came in significantly over bid, the City Hall Meeting Room Tenant Improvements project, and to fund the
Capital Reserve at the policy-required funding level. Staff anticipates that reserve funding will be needed
in order to address the increased cost of goods and services due to continued global economic conditions
into FY 2022-23.
The following projects are recommended to be deferred to 2023-25. All projects are funded through the
Local Revenue Measure or General Capital Outlay.
Table C3: FY 2022-23 Projects Recommended for Deferral
ID# Spec# Project FY 2022-23 Budget to
be Deferred
Funding
Source Priority
1 91503 California & Taft Roundabout $2,720,000 LRM 2
2 1000031 Parking Lot Maintenance – Meadow Park and Minor Repair of
City Parking Lots
$155,000 LRM 5
3 90742 Storm Drain System Replacement – Woodbridge Runoff $175,000 LRM 5
4 1000052 Buchon-Santa Rosa Intersection Improvements $250,000 LRM 5
5 1000029 Bridge Maintenance $100,000 LRM 6
6 1000032 Pedestrian and Bicycle Pathway Maintenance - Railroad Safety
Trail from Cal Poly to Taft Street
$50,000 LRM 6
7 1000508 City Hall Lighting $15,000 General
Fund
6
8 1000075 Major Facility Maintenance - Ludwick Community Center Roof
and Solar
$40,000 LRM 6
9 91385 Park Major Maintenance & Repairs - Santa Rosa Barbeque
Replacements
$7,500 LRM 6
10 Total $3,512,500
The deferred funding is recommended to be allocated as follows:
Table C4: Recommended Use of Deferred Project Funding
ID# Spec# Project/Reserve FY 2022-23 Budget to
be Reallocated
1 90346 Roadway Sealing 2022 $1,585,000
2 1000055 City Hall Meeting Room TI $130,000
3 Capital Reserve $1,797,500
4 Total $3,512,500
Additional information about each of these projects is included below in the ‘Recommended Changes to
Existing Projects’ section.
Viewing the Capital Improvement Plan Through the Lens of Diversity, Equity, and
Inclusion (DEI)
The City Council set a vision of a community with core values of diversity and inclusivity with the adoption
of its 2019-21 Major City Goals. In developing the 2021-23 Financial Plan, DEI was identified as one of four
Major City Goals. Staff is in the process of developing a deeper understanding about the interplay between
capital projects and DEI and how the built environment can help to advance the City’s DEI goals.
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Capital Improvement Projects
In the near term, there are a number of capital projects funded in the 2021-23 Financial Plan that provide
an opportunity to support diversity, equity and inclusion within the community. These include:
1.Curb ramp construction projects to provide an accessible route for pedestrians at intersections;
2.Implementation of the Americans with Disabilities Act (ADA) transition plans for major facility
maintenance and parks maintenance and repair projects;
3.Performing a planning study for gender-inclusive restroom and sleeping facilities for Fire Stations
three and four; and
4.Reviewing the new Police Station building program and budget for opportunities to reduce costs
to preserve resources for community service investments.
5.Council’s provision of policy direction for the framework of Community Work Force Agreements
(CWAs) for named projects to encourage local worker participation on legacy capital projects so
that local workers can benefit from these projects.
Legacy Project Updates
Among the projects funded in the 2021-23 Financial Plan are four major or “legacy” projects which will be
highly visible to the public and support growth into the future. Below is a status update on the legacy
projects funded in the 2021-23 Financial Plan:
Table C5: Legacy Project Updates
90435 - Cultural Arts District Parking Structure (formerly the Palm-Nipomo Parking Structure)
Status Project is currently under design review.
Design review will be completed prior to building permit applications. This project is broken down into the
following phases:
•Phase 1A PG&E Relocation – Project Design is 90% complete. Phase 1A expected to advertise for
construction in Summer 2022, with construction work on this phase beginning Fall 2022.
•Phase 1B Site Clearing and Demolition – Project is at the 95% design completion level. Staff will be
applying for reviews for building permits for Phase 1B in the Spring of 2022. Construction is scheduled to
begin Spring 2023.
•Phase 2 Parking Structure Construction – Structure design is at 95% design completion level. Staff will be
applying for reviews for building permits in the Summer of 2022. Construction scheduled to begin Fall
2023 immediately following completion of Phase 1B Site Clearing and Demolition.
Budget Current Project
Budget
Project Budget
Expended
Total Project
Budget Estimate
Budget Notes
$2,808,989 $1,315,529 $53,300,000 The total cost of construction of all phases of the
Cultural Arts District Parking Structure has increased by
11.83%, or $4.7 Million, due to abnormal inflation/rising
costs. This percent increase is tracked by Engineering
News Record’s Construction Cost Index. This budget
estimate includes construction costs, soft costs including
construction management services, and a 12%
construction cost contingency to address unforeseen
changes during the work.
The Current Project Budget reflects ongoing design
phase work, as well as Phase 1A PG&E Relocation
construction costs.
Working Capital
$7,000,000
Debt Financed
$46,300,000
91365 - Public Safety Center
Status The project is currently in the Planning and Entitlements phase.
Staff received Council feedback to continue to move forward with project development in November 2021. The
next phase includes public outreach and the planning and entitlements phase, including adoption of a CEQA
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Capital Improvement Projects
environmental document. Staff will be reaching out to a public relations consultant experienced in large municipal
project communications to assist with outreach. Construction is anticipated to begin in Summer 2025.
Budget Current Project
Budget
Project Budget
Expended
Total Project
Budget Estimate
Budget Notes
$190,685 $110,558 $53,200,000 The Total Project Budget Estimate includes ongoing
design and CEQA environmental review costs,
construction costs including market escalation of 3.5%
per year to the construction year, as well as soft costs
during construction such as construction management.
As this project moves through the project delivery
process, construction estimates will be updated based
upon more refined project details and current known
construction costs.
Working Capital
$1,200,000
Debt Financed
$52,000,000
91613 - Prado Interchange
Status The Project is currently in the Project Approval/Environmental Document phase (PA/ED).
1.The PA/ED phase is anticipated to be complete by January 2024.
i.Elks Lane re-alignment and impacts to City Corporation Yard (30% plans) 8/2022
ii.Prado Road widening 10/2022
iii.CEQA Documents under consultant review after Caltrans comments 5/2022
iv.Caltrans to begin NEPA document development 6/2022
v.30% Plans and const estimate for all alternatives considered 7/2023
vi.Meetings with Caltrans to choose preferred alternative 9/2023
2.Final design which is the Plan Specification and Estimates (PSE) delivery phase, is anticipated to
commence in January 2024 and be complete by June 2025.
i.Only for preferred alternative
3.Construction is anticipated to begin in December 2025.
i.Anticipate 36-48 month construction window
Budget Current Project
Budget
Project Budget
Expended
Total Project
Budget Estimate
Budget Notes
$1,656,120 $947,657 $72,300,000 The Current Project Budget reflects design costs only.
The Total Project Budget Estimate includes construction
cost and is planned to be funded using contributions
from San Luis Ranch, SLOCOG, Traffic Impact Fees,
County of San Luis Obispo, City Capital Outlay funds and
debt financing. Staff are activity seeking grant funding
to support project construction.
* The amount of working capital and debt financing to
support this project is dependent upon the ability to
acquire grant funding for this project.
Working Capital
~$42,300,000*
Debt Financed
~$30,000,000*
91439 - Mission Plaza Concept Plan Implementation
Status The Project is currently in the design phase and is at a design completion level of approximately 30% complete.
The planning application has been submitted and has been reviewed by the Community Development
Department’s Planning staff. Planning and advisory body review and approval was completed on April 25, 2022
with project review and approval by the Cultural Heritage Commission (CHC). The design consultant will be
preparing a revised construction cost estimate pending design review by the CHC. Building permit issuance is
expected in early spring 2023, with construction beginning in late spring or early summer 2023.
Budget Current Project
Budget
Project Budget
Expended
Total Project
Budget Estimate
Budget Notes
$449,825 $119,891 $1,484,825 The Total Project Budget Estimate includes ongoing
consultant services for project entitlements,
environmental review, and design work. The total
estimate also includes current figures for project
construction including soft costs. As the project
completes entitlements and enters detailed design, the
Working Capital
$1,484,825
Debt Financed
$0 budget will be updated based upon more refined project
details and current known construction costs.
Budget Document Pg. 87 Page 547 of 652
Capital Improvement Projects
Projects Completed to Date in FY 2021-22
As of the development of the Supplemental Budget, 24 projects have substantially completed construction.
This number includes projects approved in the 2021-23 Financial Plan and prior. The summary
below reflects projects funded from the City’s various funds and shows the comprehensive enhancements
that the CIP Engineering Program provides to provide a safe, welcome, clean and beautiful community.
The projects below support reliable delivery of water throughout the city, improve and maintain park
facilities, prevent flooding in local creeks, improve the safety of City transportation infrastructure, and
reduce greenhouse gas emissions, among other things.
Table C6: Projects Substantially Completed Construction in FY 2021-22 to Date (through 5/20/22)
ID# Project# Fund Project
1 91425 Water Terrace Hill Pipeline and Pressure Reducing Valve Rehabilitation
2 91647 General Fire Station 1 HVAC Replacement
3 1000066 Water Bee Bee/Cuesta/Loomis Waterline Replacement
4 1000198 General Silt Removal 2021
5 91385-12 General Sinsheimer Irrigation and Stadium Drainage
6 91609 General Broad Street/Woodbridge Pedestrian Hybrid Beacon
7 1000196 General Mission Plaza Railing Upgrades
8 1000021 General Meadow Park Pathway Maintenance
9 91392 General Laguna Lake 2021 Maintenance Dredging Project
10 90742 General Meinecke Storm Drain Repair
11 1000111 General Swim Center Therapy Pool Boiler Replacement
12 1000163A Parking Downtown Parking Meter Pole Removal
13 1000167 General 2021 Downtown Pavement Improvement
14 1000090 Water/Sewer Jeffrey Sewer and Water Replacement
15 1000060 General Energy Efficient Lighting Retrofits - City Hall and Fire Station 1
16 1000190 General Emerson Fitness Park Equipment Replacement
17 1000180 Parking Downtown Crack Sealing
18 1000184 Parking Monterey and Broad Improvement
19* 1000180 Parking Sinsheimer Court Entrance Hardscape
20* 1000034 Water Reservoir 1 Cover
21* 91375 General Railroad Safety Trail Taft to Pepper
22* 1000031-13 General French Park Parking Lot
23* 91385 General Poinsettia Creek Walk
24* 91385 General Sinsheimer Hardscape Replacement
*Project is not fully complete (“Notice of Completion” a legal notification process not filed), but construction work is substantially
done
In addition to the projects included in the list above, there are additional projects (including the Water
Treatment Plant Energy Efficiency project that are anticipated to complete construction by the end of FY
2021-22.
Status of Projects Funded in 2021-23 Financial Plan
FY 2021-22 saw the start of the construction phase for many projects, which will carry into FY 2022-23. In
addition, many other projects will begin construction in the coming year. The table below provides a status
update on those projects that are funded in the 2021-23 Financial Plan. While the construction phase of
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Capital Improvement Projects
projects is often the community’s first view of the improvements that are being made, it is also the result
of months to years of planning, outreach and design work that must be completed prior to making visible
progress on a project.
The tables below list all projects funded in the 2021-23 Financial Plan and include the amount of funding
approved in FY 2021-22 and FY 2022-23, as well as a brief status update on each, and indication about
whether or not the project will begin construction in 2021-23 (for projects with a construction element).
The identified priority for all construction projects based on the project prioritization exercise described
above is also included. To convey workload, the projects are sorted by the workgroup that is leading the
projects. Projects that aren’t funded until the start of FY 2022-23 generally show a status of ‘N/A’, unless
work is already underway by staff to ready the project for construction FY 2022-23.
Table C7: Projects Led By CIP Engineering (bold are project categories)
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
Const.
Start in
2021-23
Priority
2021-22 2022-23
1 1000049 842 Palm Parking Structure
Maintenance
$400,000 $400,000 Design Yes 2
2 1000050 871 Marsh Street Structure
Maintenance
$400,000 $400,000 Design Yes 2
3 1000051 919 Palm Street Structure
Maintenance
$100,000 $100,000 Design Yes 2
4 1000029 Bridge Maintenance $0 $100,000 N/A No 6
5 1000052 Buchon-Santa Rosa Intersection
Improvements
$0 $400,000 Design Yes 5
6 1000075 Major Facility Maintenance $520,000 $437,500
7 Fire Station #1 Administration Bldg.
Roof
$270,000 $0 Design Yes 2
8 Jack House Roof and Widows Walk
Railing
$100,000 $0 Design No 4
9 Swim Center Therapy Pool Boiler $85,000 $0 Complete Complete Complete
10 City Hall Landing Repair $60,000 $0 Design Yes 2
11 HVAC Air Handler at Parking Services $5,000 $25,000 Design No 5
12 Corp Yard Fuel Island Siding /
Recoating of Fuel Island and
Dispensers
$0 $300,000 Design Yes 2
13 Fire Station #4 - Exterior Paint $0 $27,500 Design Yes 6
14 879 Morro - Roof $0 $15,000 N/A No 6
15 Ludwick and Senior Center - Exterior
Paint and Shell Rehab
$0 $30,000 N/A No 6
16 Ludwick Community Center - Roof and
Solar Replacement
$0 $40,000 N/A No 6
17 1000021 Meadow Park Pathways $350,000 $0 Complete Complete Complete
18 91385 Park Major Maintenance & Repairs $1,730,000 $55,000
19 Sinsheimer Stadium Irrigation and
Drainage Replacement
$650,000 $0 Complete Complete Complete
20 Railroad Bike path fencing $350,000 $0 Design Yes 5
21 Cheng Park Revitalization $300,000 $0 Design Yes 2
22 Poinsettia Creek Walk $215,000 $0 Complete Complete Complete
23 Sinsheimer Hardscape Replacement $135,000 $0 Complete Complete Complete
24 Mission Plaza Railing Upgrade $80,000 $0 Complete Complete Complete
25 Santa Rosa Barbecue Replacements $0 $7,500 N/A No 6
26 Jack House Arbor $0 $7,500 N/A No 6
27 Meadow Park Exercise/Par Course
Equipment Replacement
$0 $40,000 N/A No 6
Budget Document Pg. 89 Page 549 of 652
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
Const.
Start in
2021-23
Priority
2021-22 2022-23
28 1000031 Parking Lot Maintenance $175,000 $255,000
29 French Park $70,000 $0 Complete Complete Complete
30 Minor Repair of City Parking Lots $50,000 $25,000 Not started No 5
31 Fire Station 2 $45,000 $0 Design Yes 5
32 Meadow Park $10,000 $130,000 Design Yes 5
33 Ludwick Community Center $0 $10,000 N/A No 6
34 Santa Rosa Park $0 $20,000 N/A No 6
35 Islay Park $0 $35,000 Design Yes 2
36 Laguna Lake $0 $35,000 N/A No 6
37 1000102 Parking Lot Maintenance - Bus Yard $5,000 $500,000 Design Yes 4
38 1000032 Pedestrian and Bicycle Pathway
Maintenance
$20,000 $200,000
39 Pedestrian and Bicycle Pathway
Inventory and PCI Study
$20,000 $0 Study N/A 4
40 Railroad Safety Trail from Cal Poly to
Taft Street
$0 $50,000 N/A No 6
41 Madonna Inn Frontage Bike Pathway
(Madonna to Fernandez)
$0 $150,000 Design Yes 1
42 1000035 Pismo/Johnson/SL Creek Bank
Stabilization
$92,272 $0 Design No 3
43 1000033 Playground Equipment Replacement $110,000 $100,000
44 DeVaul Ranch Playground $60,000 $0 Design No 5
45 Vista Lago Mini Park Playground $50,000 $0 Design No 5
46 Mitchell Park Playground $0 $100,000 N/A No 6
47 1000084 Sewer Maintenance Hole Cover
Adjustments
$85,000 $25,000 Ongoing Yes 5
48 90849 Sidewalk Replacement and Installation $235,461 $250,000
49 Curb Ramps and Sidewalks $135,461 $150,000 Ongoing Yes 4
50 Street Tree Sidewalks $100,000 $100,000 Ongoing Yes 4
51 1000046 Silt Removal $210,000 $100,000 Design Yes 5
52 90742 Storm Drain System Replacement $910,000 $725,000
53 Drainage Infrastructure Replacement $860,000 $675,000 Design Yes 4
54 Trash Capture $50,000 $50,000 Design Yes 4
55 90346 Street Reconstruction & Resurfacing $3,592,702 $4,266,258
56 Pavement Management $3,592,702 $3,366,258 Design Yes 1
57 Concrete Street - Monterey - CA to
Santa Rosa
$0 $900,000 Design Yes 3
58 91740 Trench Repairs- Sewer $25,000 $25,000 Ongoing Yes 5
59 91147 Trench Repairs- Water $200,000 $200,000 Ongoing Yes 5
60 1000034 Water Storage Tank Maintenance $50,000 $1,355,000
61 Wash water tank #1 $40,000 $325,000 Design Yes 5
62 Reservoir 2 Cover Replacement $10,000 $950,000 Design No 5
63 Edna Tank Recoating $0 $80,000 N/A No 6
64 91149 Water Valve Cover Adjustments $50,000 $30,000 Ongoing Yes 5
65 1000506 Bus Shelter Replacements $105,000 $0 Design Yes 4
66 1000053 Bus Wash Replacement $75,000 $450,000 Not started No 5
67 1000055 City Hall Meeting Room TI $0 $130,000 Design Yes 2
68 1000516 Fire Station 3&4 Remodel Space Study
and Design
$25,000 $75,000 Design No 4
69 1000060 Lighting Energy Efficiency Retrofits $15,000 $0 Complete Complete Complete
70 1000522 Major Facility Replacements $200,000 $300,000
71 Police Station Replacement $100,000 $300,000 Design No 2
Budget Document Pg. 90 Page 550 of 652
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
Const.
Start in
2021-23
Priority
2021-22 2022-23
72 Parks and Recreation Interior Office
Rehabilitation
$100,000 $0 Const. Yes 1
73 90649 Mid-Higuera Bypass $100,000 $100,000 Design Yes 2
74 91439 Mission Plaza Concept Plan
Implementation
$0 $1,035,000
75 Phase 1 - Restroom Replacement and
Kiosk Café
$0 $1,035,000 Design Yes 2
76 91252 Prado Road Bridge & Road Widening $7,070,100 $14,972,220 Design No 2
77 1000535 Transit Facility EV Charging
Infrastructure
$715,000 $0
78 EV Infrastructure Upgrades Behind the
Meter
$615,000 $0 Design Yes 2
79 EV Charger Installations $100,000 $0 Design Yes 2
80 1000538 Vault Room Addition Design Study $0 $15,000 N/A No 6
81 1000091 Verde, Luneta, Ramona Pipe
Replacement
$1,276,000 $0 Design Yes 1
82 1000539 Wastewater Collections System
Improvements
$160,000 $3,860,000
83 Morro, Mill, Santa Rosa $135,000 $1,485,000 Design No 5
84 Islay, Henry, Sierra Way $25,000 $1,825,000 Design No 5
85 San Jose, Ramona, Monte Vista,
California
$0 $25,000 N/A No 6
86 Taft, Hathaway, Phillips, Buena Vista,
Loomis
$0 $25,000 N/A No 6
87 Murray, Chorro, Meineke $0 $500,000 Design Yes 2
88 1000545 Waterline Replacement: California
Ave - Stafford to Mill
$140,000 $1,650,000 Design No 3
89 1000550 WRRF And Wastewater Collection
Shop
$150,000 $350,000 Design No 3
90 1000502 Active Transportation Plan
Implementation
$200,000 $200,000
91 Area Sealing Projects Complete Street
Components
$200,000 $200,000 Design/
Ongoing
Yes 2
92 1000501 Bob Jones Trail and RRST Solar
Lighting
$100,000 $1,350,000 Design No 3
93 1000508 City Hall Lighting $0 $15,000 N/A No 6
94 1000057 Development Related Park
Improvements
$1,520,000 $4,210,026
95 Orcutt Area - Neighborhood Park $1,200,000 $0 Design No 3
96 Orcutt Area - Linear Park $200,000 $825,000 Design Yes 3
97 Orcutt Area - Pocket Park $80,000 $350,000 Design No 3
98 Orcutt Area - Trail Junction $40,000 $160,000 Design No 3
99 Laguna Lake Improvements $0 $2,875,026 Design No 6
100 1000512 Downtown Zig-Zag Lighting $250,000 $0 Design No 4
101 1000513 Electric Vehicle Charging Station at
Various Facilities
$175,000 $100,000
102 Utilities - 879 Morro $75,000 $0 Design Yes 3
103 Corporation Yard $50,000 $0 Design Yes 3
104 Parks and Recreation $50,000 $0 Design Yes 3
105 Various City Facilities $0 $100,000 N/A No 3
106 1000514 Emerson Park Amenity Upgrades and
Beautification
$2,810,000 $0 Design No 3
107 99110 Laguna Lake Dredging and Sediment
Management Project Implementation
$840,000 $0
108 Dredging and Shoreline Restoration $840,000 $0 Complete Complete Complete
Budget Document Pg. 91 Page 551 of 652
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
Const.
Start in
2021-23
Priority
2021-22 2022-23
109 91683 North Broad Street Neighborhood
Park
$175,000 $0 Design Yes 2
110 90435 Cultural Arts District Parking Structure
(formerly the Palm - Nipomo Parking
Structure)
$850,000 $5,582,000
111 PG&E Relocation $700,000 $0 Design Yes 2
112 Adobe Removal $150,000 $0 Design Yes 2
113 Site Clearing and Preparation $0 $5,432,000 Design Yes 2
114 CM Services $0 $150,000 Design Yes 2
115 91613 Prado Road Interchange $500,000 $5,849,571
116 PA/ED Phase $500,000 $0 Study No 2
117 Design Phase $0 $4,004,660 Study No 2
118 Construction Phase $0 $1,844,911 Study No 2
119 1000528 Recycled Water Broad Street - Tank
Farm to Aerovista
$45,000 $1,040,000 Design No 5
120 1000037 South Street Median Landscaping $240,000 $0 Design Yes 5
121 1000500 CIP Project Delivery Augmentation $500,000 $1,000,000 In progress N/A 2
122 Total $27,496,535 $52,207,575
Table C8: Projects Led by Fleet Maintenance and Fire CIP Engineering
The fleet replacements led by Fleet Maintenance and Fire do not have a construction component. This table does not
include information about estimated construction start timeframes and the projects below were not prioritized.
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
2021-22 2022-23
1 Fleet Maintenance
2 1000518 Fleet Replacement: CDD $0 $74,000
3 Building & Safety SUV (#0129, <> Chevy Bolt EV) $0 $37,000 N/A
4 Building & Safety SUV (NEW <> Chevy Bolt EV) $0 $37,000 N/A
5 1000519 Fleet Replacement: Parks and Recreation $139,000 $103,000
6 Golf Course Mower (1201) $65,000 $0 Ordered
7 Masticator attached to Skid-Steer $35,000 $0 Not ordered yet
8 Parks and Recreation Event Trailer $20,000 $0 Not ordered yet
9 Golf Course Trailer (0506) $10,000 $0 Not ordered yet
10 Dump Trailer $9,000 $0 Not ordered yet
11 Parks and Recreation Minivan (0802) $0 $48,000 N/A
12 Parks and Rec Ranger Truck, F350 HD Towing $0 $55,000 N/A
13 1000553 Fleet Replacement: Police $220,000 $235,000
14 Police Patrol Hybrid SUV (2 Vehicles per Year) $130,000 $130,000 Ordered
15 Police SNAP SUV Hybrid (0818) $50,000 $0 Received, currently
being built
16 Police Motorcycles $40,000 $40,000 2 Received, currently
being built
17 Police Investigations SUV $0 $65,000 N/A
18 1000520 Fleet Replacement: Public Works $631,000 $298,000
19 Streets Maintenance F550 Truck with Hooklift Bed(0843) $150,000 $0 Not ordered yet
20 Streets Maintenance F550 Truck with Utility Bed and
Crane(0842)
$135,000 $0 Not ordered yet
21 Fleet Maintenance (Corp Yard) Stationary Generator (200kw) $100,000 $0 Not ordered yet
22 Park Maintenance Mower (1007,1504) $75,000 $0 Not ordered yet
23 Streets Maint Asphalt Zipper Safety Improvements (1802) $75,000 $0 Cost increase, not
pursuing
24 Streets Maint 2 Axle Kneeling trailer (0420) $30,000 $0 Not ordered yet
25 Facilities Maintenance 3/4 ton Pickup with Utility Bed (0612) $0 $60,000 N/A
26 Parks Maintenance Trailer (9915) $0 $8,000 N/A
Budget Document Pg. 92 Page 552 of 652
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
2021-22 2022-23
27 Park Maintenance Tractor (0218) $0 $75,000 N/A
28 Parking 1/2 ton Pickup (0813) $0 $55,000 N/A
29 Parking Scooters (1403,1404 Go-4's) replc with 1 LPR
equipped vehicles
$0 $75,000 N/A
30 Parks Maintenance Trailers (0007, 9405) $0 $10,000 N/A
31 Parks Maintenance Trailer (0320) $0 $15,000 N/A
32 Engineering Pickup (2), 3 Yr Temp $66,000 $0 Ordered
33 1000521 Fleet Replacement: Utilities $170,000 $535,000
34 WRRF F550 Flatbed with crane (0611-F550 Diesel) $80,000 $0 Not ordered yet
35 WRRF Forklift (0622) $40,000 $0 Not ordered yet
36 Water Resources - Chevy Bolt $35,000 $0 Ordered
37 Water Distribution Signboard (0613) $15,000 $0 Not ordered yet
38 Sewer WWCL Tilt-Trailer (0616) $0 $30,000 N/A
39 Whale Rock Trailer (0417) $0 $15,000 N/A
40 Sewer Hydrocleaner (0718) $0 $475,000 N/A
41 Water Distribution Trailer (0235) $0 $15,000 N/A
42 Fire
43 1000554 Fleet Replacement: Fire $275,000 $465,000
44 Fire Medium Duty Truck with Utility Bed $125,000 $0 Ordered
45 Fire 1/2 ton Truck $75,000 $0 Received, currently
being built
46 Fire Heavy Duty Truck (Type 3 Wildland) $0 $415,000 N/A
47 Fire Compact Truck $0 $50,000 N/A
48 Open Space Rescue 4x4 1/2 Ton Truck $75,000 $0 Received, currently
being built
49 Total $1,435,000 $1,710,000
Table C9: Projects Led by Information Technology
The IT replacements led by Information Technology do not have a construction component. This table does not
include information about estimated construction start timeframes and the projects below were not prioritized.
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status
2021-22 2022-23
1 1000074 IT Replacement $1,112,558 $606,445
2 911 Phone System $250,000 $0 Study
3 Police CAD Hardware (Servers and Storage) $233,000 $117,000 Study
4 Audio Recording System Replacement $150,000 $0 Design
5 VMware Infrastructure Upgrade $131,250 $0 Complete
6 Radio Handhelds & Mobiles $116,758 $0 Not started
7 IT Pipes Inspection Software and Licenses $82,250 $0 Complete
8 Public Safety Specialized Surveillance cameras (PODs)
Replacement (9K ea, 14 total)
$63,000 $54,000 Design
9 Uninterruptible Power Supplies (UPS’s Servers and Storage) $51,000 $0 Complete
10 Asset Management (Cityworks - Utilities Integration) $35,300 $0 Implementation
11 City SAN $0 $198,500 N/A
12 PD SAN $0 $145,000 N/A
13 Wireless System Citywide $0 $91,945 N/A
14 Total $1,112,558 $606,445
Table C10: Projects Led by Parks and Recreation
Many of the projects led by Parks and Recreation do not have a construction component. This table does not include
information about estimated construction start timeframes for all projects and not all projects below were prioritized.
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority
2021-22 2022-23
1 1000503 Annual Public Art Maintenance and
Projects
$142,500 $142,500
2 Small Public Art Projects $102,500 $102,500 Ongoing Yes N/A
Budget Document Pg. 93 Page 553 of 652
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority
2021-22 2022-23
3 Utility Box Beautify $20,000 $20,000 Not Started N/A 4
4 Public Art Annual Asset Maintenance $20,000 $20,000 Ongoing Yes 3
5 1000510 Downtown Public Art Installations $200,000 $0 Ongoing Yes N/A
6 1000030 Laguna Lake Golf Course Maintenance $20,000 $20,000 Ongoing Yes N/A
7 91397 Open Space Maintenance $85,000 $105,000
8 General Open Space Maintenance $60,000 $80,000 Ongoing Yes N/A
9 Open Space Fencing $25,000 $25,000 Complete Complete N/A
10 1000532 Roundabout Public Art Installations $300,000 $300,000 Design Yes N/A
11 1000526 Parks and Rec General Plan
Implementation
$200,000 $200,000 Study N/A N/A
12 Total $947,500 $767,500
Table C11: Projects Led by Public Works Maintenance
The projects led by Public Works Maintenance were not prioritized.
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 2021-22 2022-23
1 Facilities Maintenance
2 1000075 Major Facility Maintenance $252,500 $195,700
3 Energy Management Controls Upgrade $75,000 $75,000 Const. Yes
4 Fire Station 1 Campus Roof Access Ladders $50,000 $0 Not started Yes
5 Swim Center Pool Water Chemical Regulator $50,000 $0 Design Yes
6 IT Room Heat Pump Replacements $20,000 $0 Const. Yes
7 Facility Roll Up Door Replacements - Various
Locations
$17,000 $15,000 Ongoing Ongoing
8 Hydration Stations $15,000 $15,000 Design Yes
9 ADA Transition Plan Implementation $10,500 $10,500 Design Yes
10 Swim Center Olympic Pool Thermal Blankets $5,000 $0 Not started Yes
11 Swim Center Bath House Ceiling $5,000 $0 Not proceeding N/A
12 Police Evidence Storage Bldg. Roof $5,000 $22,200 Not started Yes
13 Swim Center Furnaces (2 Furnaces) $0 $40,000 N/A N/A
14 Swim Center Auto Vacuum $0 $18,000 N/A Yes
15 91385 Park Major Maintenance & Repairs $20,000 $20,000
16 ADA Transition Plan Implementation $20,000 $20,000 Ongoing N/A
17 1000157 Banner Arms, Bench Arm Rests, Signs $100,000 $25,000 In Progress Yes
18 Parks Maintenance
19 91385 Park Major Maintenance & Repairs $85,000 $85,000
20 Parks Play Surfacing $30,000 $30,000 Complete Complete
21 Water Stations and Supply Lines $25,000 $25,000 Design complete Yes
22 Concrete Bench & Table Replacement Various
Locations
$15,000 $15,000 Started Yes
23 Irrigation Mainline Leak Repair $15,000 $15,000 Started Yes
24 Streets Maintenance
25 1000511 Downtown Safety Enhancements $400,000 $0 Started Yes
26 Urban Forest
27 1000027 Urban Forest Maintenance $175,000 $175,000
28 Urban Forest Maintenance $175,000 $175,000 Ongoing Yes
29 Total $1,032,500 $500,700
Table C12: Projects Led by Traffic
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority*
2021-22 2022-23
1 91612 Neighborhood Traffic Improvements $75,000 $75,000 Design Yes 3
2 91616 Streetlights - Annual Asset
Maintenance
$75,000 $75,000
3 Pathway Lighting Various Locations $75,000 $75,000 Study No 4
4 90943 Traffic Signs & Striping Maintenance $25,000 $25,000 Design Yes 4
Budget Document Pg. 94 Page 554 of 652
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority*
2021-22 2022-23
5 1000073 Transportation Safety & Operations $50,000 $50,000 Design Yes 4
6 91503 California & Taft Roundabout $300,000 $2,798,000 Design No 2
7 91610 Higuera St. Widening - Bridge to Elks $510,000 $0 Design Yes 3
8 1000502 Active Transportation Plan
Implementation
$350,000 $350,000
9 Pedestrian Facility Improvements $100,000 $100,000 Design/
Ongoing
Yes 2
10 RRST (Tiburon to Orcutt) Preliminary
Engineering & ROW
$100,000 $0 Design Yes 3
11 Bicycle Facility Improvements $100,000 $100,000 Design/
Ongoing
Yes 4
12 Active Transpiration Plan Tier 1
Network Implementation
$50,000 $150,000 Design/
Const.
Yes 3
13 1000036 Cerro San Luis Neighborhood
Greenway Plan Implementation
$2,450,000 $0
14 Phase II $2,450,000 $0 Design Yes 2
15 1000056 Development Agreement - City Share $0 $715,000
16 600 Tank Farm $0 $715,000 N/A N/A N/A
17 1000155 Open SLO $200,000 $0
18 Downtown Renewal - Supplemental
funding for Curbside Parklets
$200,000 $0 Const. Yes 3
19 1000537 Transportation Monitoring &
Modeling Update
$40,000 $115,000 Const. Yes 5/6
20 Total $4,075,000 $4,203,000
*Only construction projects are prioritized.
Table C13: Projects Led by Utilities
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority
2021-22 2022-23
1 1000063 Fire Hydrants $40,000 $40,000 Const. Yes 5
2 91739 Inflow/Infiltration Reduction $200,000 $250,000 Const. Yes 5
3 91736 Infrastructure Renewal Strategy
Report Update
$0 $250,000
4 Flow Study $0 $250,000 N/A No 6
5 1000150 Sustainable Groundwater
Management Act GSP
$150,000 $150,000 Study No 4
6 1000540 Water Distribution System Hydraulic
Model Update
$100,000 $0 Study No 5
7 1000062 Water Meters and Boxes $286,000 $330,000 Const. Yes 5
8 99653 Treatment Major Facilities
Maintenance
$274,000 $109,000
9 Ozone System Maintenance $125,000 $40,000 Const. Yes 5
10 WTP Roof Repair $80,000 $0 Not started No 5
11 Air Compressor and Dryer
Maintenance
$36,000 $36,000 Const. Yes 5
12 Chemical System Maintenance $33,000 $33,000 Const. Yes 5
13 1000527 Wastewater Collections System -
Point Repairs
$50,000 $50,000 Ongoing Yes 5
14 1000542 Water Treatment Plant Major Facility
Maintenance
$275,000 $180,000
15 Cityworks Integration (water) $50,000 $90,000 Not started No 5
16 Lab TOC Analyzer Replacement $0 $30,000 N/A No 6
17 Actiflo Train #2 Mixer Bearing/Gear $0 $35,000 N/A Yes 6
18 Facility Master Plan $150,000 $0 Study No 5
19 Aluminum Bulk Tank #1 Replacement $50,000 $0 Const. Yes 5
20 Transfer Pump CLA-VAL Re-build $25,000 $0 Const. Yes 5
21 Package Thickener $0 $25,000 N/A No 6
Budget Document Pg. 95 Page 555 of 652
Capital Improvement Projects
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority
2021-22 2022-23
22 1000065 Waterline Replacements - Point
Repair
$590,000 $0 Const. Yes 5
23 91335 Whale Rock Reservoir - Major Facility
Maintenance
$815,000 $145,000
24 Spillway Drain Repairs $765,000 $0 Design Yes 5
25 Stilling Basin $30,000 $90,000 Design Yes 5
26 Reservoir Fencing $20,000 $20,000 Const. Yes 5
27 Whale Rock Reroof of Shop and
Residence
$0 $35,000 N/A Yes 6
28 91617 Whale Rock Transmission Pipeline $60,000 $510,000
29 Transmission Pipeline Repairs $60,000 $510,000 Not started Yes 5
30 1000077 WRRF Major Maintenance $340,000 $520,000
31 Cityworks Integration $50,000 $100,000 Not started No 5
32 Digester Portable Heaters $50,000 $0 Const. Yes 5
33 Coating Maintenance $15,000 $0 Not started No 5
34 Headworks Grit Piping and Blowers $0 $95,000 N/A No 6
35 Headworks Grit Pump $0 $175,000 N/A No 6
36 Lab Improvements $0 $150,000 N/A No 6
37 Chain Link Fence Extension $175,000 $0 Not started Yes 5
38 Security Lighting $50,000 $0 Not started No 5
39 1000530 Recycled Water Tank $237,500 $50,000
40 Tank Site Fencing $87,500 $0 Not started No 5
41 SH Line and Pump & Bioassay Test $150,000 $50,000 Const. Yes 5
42 91369 Wastewater Lift Station
Rehabilitation: Airport Lift Station
$2,020,000 $0 Design No 5
43 1000082 Wastewater Lift Station
Rehabilitation: Silver City Lift Station
$0 $70,000 Not started No 6
44 1000551 WRRF - Digester Flare Upgrade $0 $100,000 N/A No 6
45 91219 WRRF Upgrade $15,920,563 $426,625
46 Construction $11,069,088 $22,335 Const. Yes 1
47 Construction Management $3,088,281 $257,357 Const. Yes 1
48 Office Engineering $1,235,313 $102,943 Const. Yes 1
49 Program Management $527,881 $43,990 Const. Yes 1
50 1000083 Wastewater Lift Station
Rehabilitation: New Buckley Lift
Station
$396,000 $0 Const. Yes 5
51 1000541 Water Treatment Plant - Power
Storage Units Tesla Battery Grant
$30,000 $0 Const. Yes 3
52 1000126 Water Treatment Plant Emergency
Power – PSPS
$465,000 $0 Design Yes 3
53 Total $22,249,063 $3,180,625
Table C14: Projects Led by Other Groups
Many of the projects led by other groups do not have a construction component. This table does not include
information about estimated construction start timeframes for all projects and not all projects below were
prioritized.
ID# Project# Project Name
Funding Allocated in
2021-23 Financial Plan Status Const. Start in
2021-23 Priority*
2021-22 2022-23
1 Administration
2 1000507 City Facility Energy Infrastructure
Plan
$100,000 $0 Started N/A 4
3 Community Services Group
4 1000027 Urban Forest Maintenance $140,000 $0
5 Urban Forest Master Plan $140,000 $0 Started Yes N/A
6 Developer
7 1000056 Development Agreement - City
Share
$120,000 $0
Budget Document Pg. 96 Page 556 of 652
Capital Improvement Projects
8 Avila Ranch - Buckley Extension
Class I
$120,000 $0 Const. Yes N/A
9 Natural Resources
10 99837 Open Space Acquisition $250,000 $250,000 In progress N/A N/A
11 Parking
12 1000525 Parking Enforcement Equipment
at Gate Entry
$40,000 $90,000 Design Yes 4
13 Transit
14 1000505 Bus Replacements with EV $1,854,000 $1,910,000 Ordered N/A N/A
15 1000536 Transit Supervisor ADA EV Van $70,000 $0 Not ordered yet N/A N/A
16 Total $2,574,000 $2,250,000
*Only City construction projects are prioritized.
FY 2022-23 Capital Improvement Plan
As noted, the FY 2022-23 Supplemental Budget does not recommend an overhaul of the CIP. However,
staff is recommending the creation of new projects to address emergent needs, as well as budget changes
to several existing projects. These changes are summarized in the tables below.
New Projects Recommended for FY 2022-23
The tables below provide a summary of the new projects recommended for funding in FY 2022-23, sorted
by fund. Many of these new requests reflect emergent or urgent needs. The projects for Parking, Transit
and Fire are recommended to be funded either with fund balances or reserves specific to those funds.
Utilities has identified projects that can be delayed to free up the budget needed to support the new
projects (the delayed projects are noted below in the ‘Recommended Changes to Existing Projects’ table
following this section.
Table C15: New Projects in Parking Fund
Project No.:
1000163
Project Name:
Installation of pay stations on Upper Monterey Street
Proponent Department:
Public Works
Project Summary: Council approved the expansion of paid parking in the upper Monterey area with the 2021-23 Financial Plan as part of the
long-term approach to address the Parking Fund's health and ensure it was able to meet debt service. This project is for the infrastructure
needed to complete the implementation of paid parking.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Parking $122,000 Parking fund undesignated capital N/A
Project No.:
1000163
Project Name:
Installation of pay stations in the Railroad Square parking lots
Proponent Department:
Public Works
Project Summary: Council approved the expansion of paid parking in the Railroad Square parking lots with the 2021-23 Financial Plan as part
of the long-term approach to address the Parking Fund's health and ensure it was able to meet debt service. This project is for the
infrastructure needed to complete the implementation of paid parking.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Parking $66,200 Parking fund undesignated capital N/A
Table C16: New Projects in Public Safety Equipment Fund
Project No.: NEW Project Name:
Fire Department Extractors
Proponent Department:
Fire
Project Summary: Project to install washing machine extractors at Stations 2, 3 and 4. Washing Machine Extractors are used to extract
carcinogenic material from personal protective equipment after structure fires or hazardous materials exposures. Currently the department
only has one extractor located at Station 1, which cannot keep up with demand after a large incident. Project was paused in FY 2020 due to
COVID-19 and is being funded through the Public Safety Equipment Fund.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Public Safety
Equipment
$135,000 Public Safety Equipment Fund Budget was set at $120,000 in January 2020.
Increase to $135,000 to accommodate
inflation.
Budget Document Pg. 97 Page 557 of 652
Capital Improvement Projects
Table C17: New Projects in Sewer Fund
Project No.: NEW Project Name:
Chorro - Palm to Monterey Pipeline Replacement
Proponent Department:
Utilities
Project Summary: The City’s wastewater collection system includes approximately 140 miles of sewer pipelines with some portions of the
system being older than 100-years. The older areas of the wastewater collection system are near the end of their useful life and have been
prioritized based on need as recorded by field inspections. The objective of this project is to replace sewer pipeline along Chorro from Palm to
Monterey Street. The existing ductile iron pipe crossing the creek experienced a corrosion problem and is need of replacement as a high
priority project since the sewer system serves key components of the downtown area. The new pipeline will meet City Engineering Standards
and will provide resiliency in the wastewater collection system against corrosion problems normally encountered near the creek.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Sewer $60,000 Project is recommended to be funded through the
reallocation of funding approved for other FY 2022-
23 projects included in the 2021-23 Financial Plan
which are recommended to be deferred to a future
fiscal year.
FY 2022-23 recommended project budget
funds design for the project. An additional
$253,000 will be recommended in FY 2023-
24 for project construction.
Table C18: New Projects in Transit Fund
Project No.: NEW Project Name:
Tenant Improvements at 1260 Chorro
Proponent Department:
Public Works
Project Summary: This project will redesign the 1260 Chorro Street office to accommodate all of the mobility services that the City offers.
Transit Services staff will be relocating and share the office currently occupied by Parking Services. This project will provide one counter where
the community can reach both services.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Transit $250,000 Undesignated Capital Transit Fund N/A
Table C19: New Projects in Water Fund
Project No.: NEW Project Name:
Johnson - Iris to Bishop Pipeline Replacement
Proponent Department:
Utilities
Project Summary: The objective of the project is to replace a critical water transmission pipeline along Johnson Avenue from Iris to Bishop
Street. The existing cast iron pipe has been deteriorating faster than anticipated and is need of replacement as a high priority project given
this pipeline serves a major hospital and other essential facilities along Johnson Avenue. The new pipeline will meet standards by the
American Water Works Association (AWWA) that will provide resiliency in the distribution network against variations in pressure and flows for
current and future developments.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Water $180,000 Project is recommended to be funded through the
reallocation of funding approved for other FY 2022-
23 projects included in the 2021-23 Financial Plan
which are recommended to be deferred to a future
fiscal year.
FY 2022-23 recommended project budget
funds design for the project. An additional
$1,890,000 will be recommended in FY 2023-
24 for project construction.
Project No.: NEW Project Name:
Recycled Water System Retrofits
Proponent Department:
Utilities
Project Summary: The City operates and maintains the recycled water system comprised of one distribution zone, one booster-pump station,
and a concrete tank located at the Water Resource Recovery Facility (WRRF). With the on-going efforts for water conservation, this project
will convert existing irrigation systems from potable water use to recycled water systems. In 2017, a series of parcels were identified as
priority projects that could provide water conservation measures of the City’s potable water portfolio by changing into recycled water
systems; “purple pipe". The objective of this project is to follow the recommendations from the 2017 study and expand the use of recycled
water systems within the City’s service areas approved by the Regional Board.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Water $200,000 Project is recommended to be funded through the
reallocation of funding approved for other FY 2022-
23 projects included in the 2021-23 Financial Plan
FY 2022-23 recommended project budget
funds design for the project. An additional
which are recommended to be deferred to a future
fiscal year.
$200,000 will be recommended in FY 2024-
25 further efforts.
Budget Document Pg. 98 Page 558 of 652
Capital Improvement Projects
Project No.:
1000542-05
Project Name:
Water Treatment Plant Major Facility Maintenance
Proponent Department:
Utilities
Project Summary: Annual Asset Replacement - The City’s Water Treatment Plant was originally constructed in 1961. In 1995, a significant
upgrade to the plant was completed to meet changing water quality requirements. In April of 2008, another major upgrade project was
completed that replaced older equipment, added additional storage capacity for treated water, and enhanced treatment processes. The
ongoing maintenance of the facilities and equipment at the Water Treatment Plant is necessary to prolong the useful life of the facilities and
ensure staff’s ability to operate the plant and treat water to State and Federal standards. The proposed maintenance projects include asset
replacement of the polymer mixing unit’s gears, bearings, and appurtenances related to the coagulation system needed for water treatment
and disinfection.
Budget Information
Fund 2022-23 Rec
Budget Funding Source Notes
Water $210,000 Project is recommended to be funded through the
reallocation of funding approved for other FY 2022-
23 projects included in the 2021-23 Financial Plan
which are recommended to be deferred to a future
fiscal year.
FY 2022-23 recommended project budget
funds for replacement of the unit. An
additional $75,000 will be recommended in
FY 2024-25 for further retrofits related to the
polymer mixing system.
Recommended Changes to Existing Projects
The table below summarizes recommended changes to existing project budgets for FY 2022-23.
Recommended changes to project budgets are based on the following:
1.Deferral of projects to future years in order to free up funding to address the new projects noted
above that are needed to address urgent needs.
2.Reclassification of expenditures as capital or operating as appropriate.
3.Receipt of additional funding from outside agencies.
4.Deferral of projects in order to fund others that are exceeding budget based on initial estimates or
the Capital Reserve.
5.Increase to those projects that are expected to exceed budget.
Table C20: Changes to Existing Projects
ID# Project# Project Name Proponent
Dept Fund
22-23 Budget
in 2021-23
Financial Plan
22-23
Revised
Budget
Change
1
1000500 CIP Project Delivery Augmentation Public
Works
Capital
Outlay
$1,000,000 $116,540 $(883,460)
Notes: Change reflects reallocation of capital budget to Public Works' operating budget to cover cost of 4.00 FTE new positions added
at FY 2021-22 Mid-Year. In addition, the change reflects the recommended addition of 1.00 FTE Maintenance Supervisor to create
additional capacity within Public Works to deliver capital and maintenance projects.
2
1000027 Urban Forest Maintenance Public
Works
Capital
Outlay
$175,000 $375,000 $200,000
Notes: Change is due to a correction of an approved FY 2021-22 Mid-Year request to add $200,000 to the operating budget for
annual pruning and watering costs. This expenditure should have been classified as a capital expenditure and is being moved to an
existing capital project for FY 2022-23 via adoption of the Budget Supplement.
3
90649 Mid-Higuera Bypass Public
Works
Capital
Outlay
$100,000 $150,000 $50,000
Notes: Funding is allocated from the County yearly through approval by the Zone 9 Advisory Committee. For FY 2022-23, additional
funding of $50,000 has been approved in support of ongoing design and environmental permit application work for the Mid-Higuera
Bypass Project. The funding source for this work is County Zone 9, with funding expended through Capital Outlay.
4
1000046 Silt Removal Public
Works
Capital
Outlay
$100,000 $130,000 $30,000
Notes: Funding is allocated from the County yearly through approval by the Zone 9 Advisory Committee. For FY 2022-23, additional
funding of $30,000 has been approved in support of ongoing Silt Removal Projects, for a total FY 2022-23 budget appropriation of
$130,000. The funding source for this work is County Zone 9, with funding expended through Capital Outlay.
5 1000055 City Hall Meeting Room TI Admin Capital
Outlay
$130,000 $260,000 $130,000
Budget Document Pg. 99 Page 559 of 652
Capital Improvement Projects
ID# Project# Project Name Proponent
Dept Fund
22-23 Budget
in 2021-23
Financial Plan
22-23
Revised
Budget
Change
Notes: Project is currently in the final design phase and is anticipated to be constructed in FY 2022-23. Current project estimates
indicate that the $130,000 initially appropriated is insufficient to construct the project, and an additional budget allocation of
$130,000 is necessary.
6
1000031 Parking Lot Maintenance –
Meadow Park and Minor Repair of
City Parking Lots
Public
Works
Capital
Outlay
$255,000 $100,000 $(155,000)
Notes: The parking lot maintenance activities funded in this projects are in various phases. Staff is recommending deferral of
Meadow Park parking lot maintenance ($130,000) to the 2023-25 Financial Plan, as well as reallocation of $25,000 planned for minor
repairs of City parking lots in order to fund projects in need of additional funding in FY 2022-23 and the Capital Reserve. The
remaining funding in this project will fund other parking lot maintenance projects in FY 2022-23.
7
90742 Storm Drain System Replacement –
Woodbridge Runoff
Public
Works
Capital
Outlay
$725,000 $550,000 $(175,000)
Notes: Staff is recommending deferral of this project in order to fund projects in need of additional funding in FY 2022-23 and the
Capital Reserve. This project is recommended for deferral as the project is not expected to need construction funding until the 2023-
25 Financial Plan. The remaining funding in this project will fund other storm drain system replacements in FY 2022-23.
8
1000052 Buchon-Santa Rosa Intersection
Improvements
Public
Works
Capital
Outlay
$400,000 $150,000 $(250,000)
Notes: Staff is recommending deferral of this project in order to fund projects in need of additional funding in FY 2022-23 and the
Capital Reserve. Due to staffing constraints, final project design is not expected to be complete until FY 2023-24 and therefore
construction funding may be deferred until the next Financial Plan period.
9
1000029 Bridge Maintenance Public
Works
Capital
Outlay
$100,000 $0 $(100,000)
Notes: Staff is recommending reallocation of funding for bridge maintenance projects in order to fund projects in need of additional
funding in FY 2022-23 and the Capital Reserve. Due to staffing constraints, final project design for the next phase of bridge is not
complete and therefore construction funding may be deferred until the next financial plan period
10
1000032 Pedestrian and Bicycle Pathway
Maintenance - Railroad Safety Trail
from Cal Poly to Taft Street
Public
Works
Capital
Outlay
$200,000 $150,000 $(50,000)
Notes: Staff is recommending deferral of this project in order to fund projects in need of additional funding in FY 2022-23 and the
Capital Reserve. Due to staffing constraints, final project design for the next phase of pathway maintenance is not complete and
therefore construction funding may be deferred until the next financial plan period. The remaining funding in this project will fund
other pedestrian and bicycle pathway maintenance projects in FY 2022-23.
11
1000508 City Hall Lighting Public
Works
Capital
Outlay
$15,000 $0 $(15,000)
Notes: Staff is recommending deferral of this project in order to fund projects in need of additional funding in FY 2022-23 and the
Capital Reserve. This budget for design project will be incorporated into a future planned CIP for improvements to the bus stops
adjacent to City Hall, utilizing transit funding
12
1000075 Major Facility Maintenance -
Ludwick Community Center Roof
and Solar
Public
Works
Capital
Outlay,
Parking,
Sewer,
Water
$633,200 $593,200 $(40,000)
Notes: Staff is recommending deferral of this project in order to fund projects in need of additional funding in FY 2022-23 and the
Capital Reserve. Due to staffing constraints, this project is not expected to enter design until sufficient staffing resources are
available. The remaining funding in this project will fund other major facility maintenance projects in FY 2022-23.
13
91385 Park Major Maintenance & Repairs
- Santa Rosa Barbeque
Replacements
Public
Works
Capital
Outlay
$160,000 $152,500 $(7,500)
Notes: Staff is recommending deferral of this project in order to fund projects in need of additional funding in FY 2022-23 and the
Capital Reserve. Due to staffing constraints, project design is not expected to begin until FY23/24 and therefore design funding may
be deferred until the next Financial Plan period. The remaining funding in this project will fund other park maintenance and repair
projects in FY 2022-23.
14
91503 California & Taft Roundabout Public
Works
Capital
Outlay &
Developer
Cont.
$2,798,000 $78,000 $(2,720,000)
Notes: Project is in progress, but construction is not anticipated to begin until FY 2023-24 due to delays with right-of-way acquisition.
In addition, staff is pursuing grant funding for this project which may decrease City costs. The funding that is being deferred to the
Budget Document Pg. 100 Page 560 of 652
Capital Improvement Projects
ID# Project# Project Name Proponent
Dept Fund
22-23 Budget
in 2021-23
Financial Plan
22-23
Revised
Budget
Change
2023-25 Financial Plan is recommended to be allocated to projects in need of additional funding in FY 2022-23 and the Capital
Reserve.
15
90346 Street Reconstruction &
Resurfacing - Pavement
Management
Public
Works
Capital
Outlay &
SB1
$4,266,258 $4,851,258 $585,000
Notes: Project budget is being modified for several purposes:
1. To transfer $900,000 to the Capital Reserve to partially reimburse use of $1,000,000 used in FY 2021-22 to advance
construction of the Area 6 & 7 Curb Ramps ahead of the Summer 2022 Slurry Seal project; and
2. To adjust for a forecasted LRM fund imbalance in FY 2022-23; and
3. In mid-May, the City received two bids for this project which were both significantly over the engineer’s estimate. On June
21, 2022, staff will recommend that Council award a contract to the lowest responsive bidder. The recommendation to
proceed with this project is due to the fact that deferral of road maintenance activities results in more expensive
rehabilitation treatments being required in the future. In addition to the $1,585,000 recommended to be funded by the
deferral of projects initially planned for FY 2022-23, staff also seek approval of budget amendment requests in the current
year to reallocate funding from the Jack House Roof and Windows Walk Railing maintenance project ($100,000) and South
Street Median Landscaping project ($240,000) in order to fully fund the additional $1,925,000 for this project.
16
1000163 Multi-space pay station installation
in the downtown
Public
Works
Parking $0 $800,000 $800,000
Notes: This project is the continuation for replacement of single space meters with multi-space pay stations. This request replaces
half of the remaining single space coin meters with credit card capable pay stations. This project will be funded through working
capital.
17
1000542-07 Water Treatment Plant Major
Facility Maintenance – Cityworks
Integration Plan Implementation
Utilities Water $90,000 $0 $(90,000)
Notes: Project start is recommended to be deferred to FY 2024-25 to fund new projects recommended as a result of urgent needs.
The Cityworks Software Implementation task has been reprioritized.
18
1000542-01 Water Treatment Plant Major
Facility Maintenance – Package
Thickener
Utilities Water $25,000 $0 ($25,000)
Notes: The Package Thickener project has been reprioritized and the project start is recommended to be deferred to FY 2023-24 to
fund new projects recommended as a result of urgent needs.
19
1000034-02 Water Storage Tank Maintenance –
Edna Tank Recoating
Utilities Water $80,000 $0 $(80,000)
Notes: The Edna Tank Internal Coatings Replacement project has been reprioritized and the project start is recommended to be
deferred to FY 2023-24 to fund new projects recommended as a result of urgent needs.
20
1000034-03 Water Storage Tank Maintenance –
Wash Water Tank #1 Replacement
Utilities Water $325,000 $0 $(325,000)
Notes: The Wash Water Tank #1 Replacement project has been reprioritized and the project start is recommended to be deferred to
FY 2023-24 to fund new projects recommended as a result of urgent needs.
21 91147 Water Utility Trench Repairs Utilities Water $200,000 $0 $(200,000)
Notes: Project start is recommended to be deferred to FY 2023-24 to fund new projects recommended as a result of urgent needs.
22 1000082 Sewer Lift Station Replacement -
Silver City
Utilities Sewer $70,000 $0 $(70,000)
Notes: Project start is recommended to be deferred to FY 2023-24 to fund new projects recommended as a result of urgent needs.
23
1000077 WRRF Major Facility Maintenance –
Lab Improvements
Utilities Sewer $520,000 $370,000 $(150,000)
Notes: The Lab Improvements project has been reprioritized and the project start is recommended to be deferred to FY 2023-24 to
fund new projects recommended as a result of urgent needs. The remaining funding in this project will fund other WRRF
maintenance and projects in FY 2022-23.
24 91739 Inflow and Infiltration Reduction Utilities Sewer $250,000 $0 $(250,000)
Notes: Project start is recommended to be deferred to FY 2023-24 to fund new projects recommended as a result of urgent needs.
25
1000521-03 Fleet Replacement: Utilities –
Sewer Hydrocleaner
Utilities Sewer $475,000 $0 $(475,000)
Notes: At FY 2021-22 Mid-Year, the City Council approved Resolution 11289 which made Sewer funds available to purchase this
vehicle in FY 2021-22 rather than in FY 2022-23. This change in the FY 2022-23 Supplement is reflective of prior Council action which
impacts the FY 2022-23 budget.
Budget Document Pg. 101 Page 561 of 652
Capital Improvement Projects
Capital Reserve Update
The City’s comprehensive Fund Balance and Reserve Policy was adopted in June 2021 and includes
guidelines related to the Capital Projects Reserve Fund, as follows:
In the current year, the reserve has been used as intended to offset unanticipated cost increases and help
advance unanticipated projects that were necessary for infrastructure maintenance and enhancement.
The use of the reserve to date in 2021-22 is as follows:
Table C20: FY 2021-22 Use of Capital Reserve
ID# 2021-22 Beginning Capital Reserve Fund Balance $3,426,208
1 Use of Funds
2 Fire Station #1 Roof Replacement $(200,000) Approved by Council on 7/6/21 to address unanticipated
structural repair work associated with this project.
3 Parks and Recreation Office Interior $(150,000) Approved by Council on 12/7/21 to cover additional costs that
came in over the engineer’s estimate due to the rise in
construction labor and material costs.
4 Mid-Year Requests $(1,872,000) Approved by Council via adoption of the Mid-Year
recommendations on 2/15/22 to augment various project
budgets, address emergent safety issues and fund increased
fleet replacement costs. The single largest expense was $1M
to fund the City’s responsibility for a project to improve Santa
Rosa at Monterey intersection safety improvements.
5 Area 6 & 7 Curb Ramps $(1,000,000) Approved by Council on 2/15/22 to fund curb ramp
construction work ahead of the Summer 2022 Slurry Seal
project to minimize construction delays and public impacts.
Capital Reserve funding was used to advance the project’s
construction one fiscal year and will be returned to the Capital
Reserve at the commencement of the 2022-23 fiscal year
when the project was originally funded.
6 Current Balance $204,208
The use of the reserve has resulted in a balance that is substantially under the 20% of budget policy
requirement. However, these funds have been used strategically to advance projects to mitigate delays
which often result in cost increases and prolonged impacts to the public. It is expected that the reserve
will continue to be a useful tool as the City works to ‘right-size’ the CIP to meet the demand to deliver on a
significant increase in capital projects by providing additional funding to keep projects moving forward.
In order to meet the policy-driven fund balance requirement for this reserve, staff recommends the
following:
1.Allocation of the forecasted $907,000 in LRM fund balance at the end of FY 2021-22 due to
revenues exceeding expenditures (the exact amount will not be known until FY 2021-22 is closed
out) to the reserve; and
The City will maintain a committed reserve of 20% of capital improvement
plan budget from the Local Revenue Measure for the purposes of offsetting
unanticipated cost increases, unforeseen conditions, and urgent
unanticipated projects to provide continued investment in infrastructure
maintenance and enhancement. Use and allocations of funds from the
Capital Projects Reserve Fund will be made to Capital Projects including
Major Facility Replacement upon Council approval as necessary during any
fiscal year.
Budget Document Pg. 102 Page 562 of 652
Capital Improvement Projects
2.Allocation of $900,000 from the $4,266,258 initially planned for appropriation to Pavement
Management within Street Reconstruction and Resurfacing (90346) to the reserve to partially
‘reimburse’ the $1M used in 2021-22 for Area 6 & 7 Curb Ramps.
3.Allocation of $1,797,500 from projects that were initially planned for FY 2022-23, but are now
recommended to be deferred to the 2023-25 Financial Plan, due to the staffing constraints
discussed above.
In addition, staff is currently working to identify an ongoing practice to assure that the reserve meets the
20% policy requirement year over year.
The following two tables provide detailed lists of Existing Projects and Remaining
Balances (C21) and 2022-23 Recommended Project Budgets by Funding Source
(C22).
Budget Document Pg. 103 Page 563 of 652
Table C21: Projects and Remaining Balances
Project Current Budget Actual Available
1 1000015‐2018 Transportation Monitoring (91420) 70,878$ 60,045$ 10,833$
2 1000027‐Urban Forest ‐ Annual Asset Maintenance Account Cap‐X 965,797$ 616,989$ 117,810$
3 1000029‐Bridge Maintenance ‐ Annual Asset Maintenance Account 13,432$ ‐$ 13,432$
4 1000030‐Laguna Lake Golf Course ‐ Annual Asset Maintenance Account 50,000$ 30,000$ 15,926$
5 1000031‐Parking Lot Maintenance ‐ Annual Asset Maintenance Account 312,621$ 113,031$ 180,579$
6 1000032‐Pedestrian and Bicycle Pathway ‐ Annual Asset Maintenance Account 20,000$ 14,225$ 5,775$
7 1000033‐Playground Equipment Replacement ‐ Annual Asset Maintenance Account 157,145$ ‐$ 157,145$
8 1000034‐Reservoir Maintenance 1,664,743$ 768,616$ 797,420$
9 1000035‐Pismo/Johnson/SL Creek Bank Stabilization 277,272$ 66,052$ 42,023$
10 1000036‐Anholm Neighborhood Greenway Plan ‐ Phase 2 3,085,455$ 301,321$ 2,662,330$
11 1000037‐South Street Median Landscaping 255,000$ 15,904$ 214,525$
12 1000044‐Water TTHM Byproduct Reduction Project 3,142,174$ 2,821,448$ 251,455$
13 1000046‐Silt Removal ‐ Annual Asset Maintenance Account ‐ Zone 9 355,774$ 17,896$ 310,532$
14 1000047‐Fleet Replacements ‐ Annual Asset Maintenance 605,593$ 127,358$ 139,101$
15 1000049‐842 Palm Parking Structure 1,200,000$ 116,189$ 1,072,380$
16 1000050‐871 Marsh Street Parking Structure Maintenance 1,125,906$ 104,042$ 1,011,865$
17 1000051‐919 Palm Street Parking Structure Maintenance 300,000$ 18,698$ 281,302$
18 1000057‐Development Related Parks Improvements 1,820,000$ ‐$ 1,820,000$
19 1000058‐Bus Replacements 2,192,771$ ‐$ 448,512$
20 1000060‐Lighting Energy Efficiency Retrofits 15,000$ ‐$ 15,000$
21 1000061‐LOVR Spur of the Bob Jones Bike Path 150,000$ ‐$ 150,000$
22 1000062‐Water Distribution Meters and Boxes 741,384$ 620,787$ 110,489$
23 1000063‐Water Distribution Fire Hydrants 62,276$ 62,251$ 24$
24 1000065‐Water Distribution Point Repairs 1,066,240$ 264,447$ 727,767$
25 1000069‐Pedestrian Crossing Improvements 320,000$ 41,501$ 256,202$
26 1000073‐Transportation Safety and Operations 175,000$ 29,459$ 139,719$
27 1000074‐IT Replacements ‐ Annual Asset Maintenance Account 3,001,910$ 1,479,040$ 1,283,356$
28 1000075‐Major Facilities Maintenance ‐ Annual Asset Maintenance Account 1,204,211$ 168,823$ 936,143$
29 1000077‐WRRF Major Equipment Maintenance 840,000$ 85,907$ 754,093$
30 1000083‐Sewer Lift Station ‐ New Buckley Station 576,000$ 155,699$ 397,678$
31 1000084‐Sewer Manhole Cover Adjustments 1,301$ ‐$ 1,301$
32 1000087‐Sewer Lift Station – Calle Joaquin 700,000$ 8,794$ 691,206$
33 1000091‐Verde, Luneta, Ramona Pipe Bursting 1,392,000$ 19,566$ 1,372,218$
34 1000096‐Mission Plaza Enhancements 47,906$ 46,057$ 1,849$
35 1000126‐PSPS Emergency Power 4,224,960$ 1,104,081$ 2,919,524$
36 1000130‐Police Patrol SUV ‐ 1511 65,000$ 20,567$ 44,433$
37 1000131‐Police Patrol Replacement ‐ 1536 75,000$ 18,412$ 56,588$
38 1000132‐Police Patrol SUV ‐ 1507 65,000$ 20,567$ 44,433$
39 1000139‐City Facilities HVAC Replacements 151,588$ 150,690$ 897$
40 1000144‐Transit Yard Solar 74,467$ 73,650$ 817$
41 1000150‐Groundwater Basin Management Revised 574,581$ 381,024$ 177,434$
42 1000152‐City Security Project 380,000$ 89,136$ 290,864$
43 1000154‐Public Safety Equipment Replacement 1,145,884$ 235,436$ 910,448$
44 1000155‐Open SLO 1,000,203$ 831,827$ 148,683$
45 1000157‐Banner Arm ‐ Bench Rests ‐ Signs 196,000$ 86,459$ 87,731$
46 1000159‐City Hall Breaker Replacement 30,000$ ‐$ 30,000$
47 1000160‐Pedestrian Safety Improvements on Monterey at Buena Vista 30,000$ 10,766$ 19,234$
48 1000161‐Pedestrian Crosswalk Beacon on Ramona 50,000$ ‐$ 35,000$
49 1000163‐Multi‐space On‐Street Pay Stations 602,850$ 582,084$ 20,753$
50 1000164‐Orcutt/Tank Roundabout Construction 5,132,007$ 2,198,163$ 707,140$
51 1000166‐Bullock Lane CMP Replacement 352,146$ 342,856$ 3,931$
52 1000167‐2021 Downtown Pavement Improvements Project 4,004,889$ 3,813,281$ 23,531$
53 1000170‐City Hall EV Charging Station 110,820$ 81,883$ 28,937$
54 1000171‐Higuera Street Paving 181,216$ 174,330$ 6,886$
55 1000174‐Higuera Parking Structure 151,828$ ‐$ 151,828$
56 1000176‐Whale Rock Intake Valve Replacement 200,000$ ‐$ 200,000$
57 1000181‐Fleet Services Vehicle Lift 100,000$ 69,145$ 9,283$
58 1000186‐2020 Neighborhood Greenways Public Art 32,900$ 13,369$ 19,531$
59 1000188‐Mitchell Park Picketball Courts 210,000$ 8,328$ 201,600$
Budget Document Pg. 104 Page 564 of 652
Table C21: Projects and Remaining Balances
Project Current Budget Actual Available
60 1000190‐Emerson Park Fitness Court 310,400$300,548$7,862$
61 1000501‐Bob Jones Trail and RRST Solar Lighting 100,000$‐$ 100,000$
62 1000502‐Active Transportation Plan Implementation 600,000$50,520$316,632$
63 1000503‐Annual Public Art Maintenance and Projects 142,500$62,800$74,888$
64 1000505‐Bus Replacements with EV 1,854,000$ ‐$ 1,854,000$
65 1000507‐City Facility Energy Infrastructure Plan 100,000$‐$ 100,000$
66 1000510‐Downtown Public Art Installations 200,000$139,948$60,052$
67 1000511‐Downtown Safety Enhancements 775,000$208,581$566,198$
68 1000512‐Downtown Zig‐Zag Lighting 250,000$‐$ 250,000$
69 1000513‐Electric Vehicle Charging Station at Various Facilities 175,000$‐$ 144,947$
70 1000514‐Emerson Park Amenity Upgrades and Beautification 2,810,000$ ‐$ 2,810,000$
71 1000516‐Fire Station 3&4 Remodel Space Study and Design 25,000$‐$ 25,000$
72 1000519‐Fleet Replacement: Parks and Recreation 139,000$‐$ 73,189$
73 1000520‐Fleet Replacement: Public Works 631,000$9,289$ 562,091$
74 1000521‐Fleet Replacement: Utilities 705,000$‐$ 602,121$
75 1000522‐Major Facility Replacements 270,000$12,278$196,448$
76 1000525‐Parking Enforcement Equipment at Gate Entry 85,000$‐$ 85,000$
77 1000526‐Parks and Rec General Plan Implementation 200,000$‐$ 200,000$
78 1000527‐Wastewater Collections System ‐ Point Repairs 67,249$‐$ 23,994$
79 1000528‐Recycled Water Broad Street ‐ Tank Farm to Aerovista 45,000$‐$ 45,000$
80 1000530‐Recycled Water Tank 237,500$‐$ 202,749$
81 1000532‐Roundabout Public Art Installations 300,000$‐$ 100,000$
82 1000535‐Transit Facility EV Charging Infrastructure 715,000$34,691$647,458$
83 1000536‐Transit Supervisor ADA EV Van 70,000$‐$ 70,000$
84 1000539‐Islay, Henry, Sierra Way Wastewater Collections System Improvements 25,000$‐$ 25,000$
85 1000541‐Water Treatment Plant ‐ Power Storage Units Tesla Battery Grant 30,000$8,567$ 21,433$
86 1000542‐Water Treatment Plant Major Facility Maintenance 275,000$24,139$221,696$
87 1000545‐Waterline Replacements : California Ave ‐ Stafford to Mill 140,000$‐$ 140,000$
88 1000550‐WRRF And Wastewater Collection Shop 150,000$‐$ 150,000$
89 1000553‐Fleet Replacement: Police 380,000$103,069$127,742$
90 1000554‐Fleet Replacement: Fire 295,000$125,608$105,648$
91 1000558‐Area 6 & 7 Curb Ramps 1,000,000$ ‐$ 183,010$
92 1000561‐Morro, Mill, Santa Rosa Wastewater Collections Systems Improvements 135,000$‐$ 135,000$
93 1000562‐Mission Plaza Landscape and Lighting Improvements Construction 275,000$35,170$229,605$
94 1000563‐Additional WRRF Safety Perimeter Fencing 260,000$‐$ 260,000$
95 1000564‐Vehicles for New Maintenance Positions 210,000$‐$ 12,349$
96 1000566‐40 Prado Rd. Bus Shelter Relocation 35,000$‐$ 35,000$
97 1000568‐Golf Course Pro Shop Flood Damage Repairs 120,000$23,823$93,177$
98 90346‐Street Reconstruction and Resurfacing ‐ Annual Asset Maintenance Account 817,942$616,074$200,483$
99 90435‐Palm‐Nipomo Parking Structure 2,808,989$ 1,478,924$ 833,113$
100 90480‐Marsh at Santa Rosa Replacement 2016 (90480)6,669,047$ 5,664,947$ 980,248$
101 90525‐Public Art Annual Asset Maintenance Account 75,142$13,802$56,336$
102 90572‐Bicycle Facility Improvements ‐ Annual Asset Maintenance Account 158,618$51,570$86,185$
103 90649‐Mid‐Higuera Bypass 722,301$475,767$91,149$
104 90741‐RRST Hwy 101 BR (90741)13,429$‐$ 13,429$
105 90742‐Storm Drains Annual Asset Maintenance Account 1,125,472$ 262,678$300,225$
106 90849‐Sidewalk Annual Asset Maintenance Account 841,342$370,470$465,043$
107 90884‐Traffic Ops Improvements (90884)48,902$47,809$1,093$
108 90943‐Traffic Signs and Striping Maintenance 95,758$43,372$38,326$
109 90949‐Traffic Model Update (90949)139,515$78,894$53,451$
110 91020‐Utility Box Beautify (91020)25,926$7,745$ 18,181$
111 91118‐Sewer Lift Station and Siphon Replacement ‐ Calle Joaquin (91118)8,534,359$ 1,079,267$ 1,998,207$
112 91147‐Water Utility Trench Repair (91147)746,984$510,911$165,681$
113 91152‐Edna Tank Maintenance (91152)40,005$‐$ 40,005$
114 91156‐Broad and Leff Culvert Repair (91156)10,000$9,921$ 1$
115 91219‐WRRF Facility Upgrade (91219)142,950,129$ 81,312,590$ 22,042,853$
116 91224‐Foothill Sewer Lift Station 2,498,476$ 113,145$2,340,238$
117 91250‐Facility Maintenace ‐ Annual Asset Maintenance Account 97,902$80,422$17,480$
118 91252‐Prado Road Bridge Widening 11,849,343$ 712,462$9,688,922$
Budget Document Pg. 105 Page 565 of 652
Table C21: Projects and Remaining Balances
Project Current Budget Actual Available
119 91293‐Railroad Crossing Upgrade ‐ California & Foothill (91293)292,731$5,406$ 287,325$
120 91294‐Higuera at 50 Higuera Widening (91294)417,078$58,096$341,673$
121 91295‐Traffic Safety Implementation 164,467$15,810$134,217$
122 91320‐Downtown Renewal 361,096$286,921$73,919$
123 91335‐Whale Rock Major Maintenance (91335)1,396,716$ 193,573$1,053,505$
124 91365‐Police Station Replacement 190,685$110,558$3,475$
125 91368‐Reservoir No 2 Replacement 171,570$59,578$111,991$
126 91369‐Sewer Lift Station Replacement ‐ Airport 2,170,000$ 113,641$2,008,524$
127 91375‐Railroad Safety Trail Taft to Pepper ‐ 2018 (91375)7,144,559$ 5,845,347$ 588,246$
128 91376‐Safe Route to School (91376)318,147$316,258$1,889$
129 91385‐Parks Major Maintenance ‐ Annual Asset Maintenance Account 2,047,424$ 970,961$780,289$
130 91392‐Laguna Lake Dredging and Sediment Management Project Implementation 44,204$41,106$3,097$
131 91397‐Open Space ‐ Annual Asset Maintenance Account 273,254$168,695$91,593$
132 91435‐LOVR Interchange Landscape (91435)454,970$357,795$97,176$
133 91439‐Mission Plaza Restroom Replacements and Enhancements 449,825$132,601$92,099$
134 91503‐California Taft Roundabout 1,412,538$ 121,642$1,203,517$
135 91506‐Groundwater Well Development Program (91506)4,641,041$ 1,499,340$ 2,543,647$
136 91532‐City Hall Landing Repair (91532)21,580$‐$ 21,580$
137 91534‐ERP Acquisition (91534)2,335,264$ 2,107,633$ 30,511$
138 91560‐Annual Public Art Funding (91560)36,467$31,266$4,807$
139 91561‐Public Art Master Plan (91561)40,000$37,103$2,798$
140 91562‐Parks and Recreation Interior Office Rehabilitation 605,000$410,923$14,471$
141 91566‐Water Treatment Plant Energy Efficiency 15,211,994$ 14,255,289$ 525$
142 91572‐Parks & Recreation HVAC 2017 (91572)17,806$15,278$2,529$
143 91574‐Multisite Energy Management (91574)232,600$150,940$71,870$
144 91578‐Pest Control (91578)17,500$7,120$ 10,380$
145 91581‐Fire Station Rollup Door (91581)14,790$3,610$ 11,180$
146 91583‐Radio Handhelds (91583)102,291$‐$ 102,291$
147 91584‐Community Safety Emergency Response Communication Equipment 1,336,682$ 901,270$411,540$
148 91590‐Police Interceptor SUV (91590)57,300$57,010$(106)$
149 91607‐2015 Traffic Safety Report Improvements (91607)205,000$22,487$157,783$
150 91608‐Active Transportation Plan 140,000$139,893$107$
151 91609‐Broad Street Corridor Access Improvements 452,778$451,850$893$
152 91610‐Higuera Street Widening Bridge to Elks (91610)365,500$39,235$322,953$
153 91611‐Orcutt Tank Farm Roundabout Design (91611)280,479$276,883$3,596$
154 91612‐Neighborhood Traffic Improvements 293,702$85,205$193,535$
155 91613‐Prado Road Interchange 1,656,120$ 976,886$517,353$
156 91615‐Railroad District Boardwalk Replacement 300,976$295,155$5,820$
157 91616‐Street Lights ‐ Annual Asset Maintenance Account 217,500$84,836$115,176$
158 91617‐Whale Rock Pipe Assessment (91617)586,638$479,441$20,750$
159 91619‐Anholm Neighborhood Greenway Plan ‐ Phase 1 780,559$425,504$354,956$
160 91628‐Sewer Lift Station Repairs (91628)245,608$103,062$137,049$
161 91632‐Corp Yard Fuel Island Siding (91632)14,750$14,549$201$
162 91639‐Chorro/Murray Sewer Replacement (91639)444,000$90,561$352,970$
163 91643‐Corporation Yard Tenant Improvement (91643)31,797$23,022$8,775$
164 91647‐Fire Station 1 HVAC (91647)196,300$168,070$28,230$
165 91653‐Swim Center Co‐generation Plant (91653)85,000$1,501$ 83,500$
166 91681‐Parks Hydrate Station (91681)15,000$‐$ 15,000$
167 91682‐Electric Plan Submittal (91682)59,477$46,977$3,488$
168 91683‐North Broad Street Neighborhood Park 958,000$99,198$817,095$
169 91687‐Fire Station 3 Sewer Lateral Replacement (91687)18,000$‐$ 18,000$
170 91717‐LAN Tablet System (91717)34,100$25,230$8,870$
171 91718‐Whale Rock Auto Control Valves (91718)76,000$49,232$26,768$
172 91726‐WRRF Telemetry and Server Upgrade (91726)108,000$18,799$89,201$
173 91731‐WTP Chemical System Maintenance (91731)29,000$19,448$9,552$
174 91735‐Meinecke Murray Easement (91735)17,860$‐$ 17,860$
175 91739‐Sewer Inflow and Infiltration Reduction 1,026,866$ 516,530$510,335$
176 91740‐Sewer Utility Trench Repair (91740)98,982$69,274$23,544$
177 91742‐Hydraulic Model Update (91742)20,000$8,123$ 11,878$
Budget Document Pg. 106 Page 566 of 652
Table C21: Projects and Remaining Balances
Project Current Budget Actual Available
178 99110‐Laguna Lake Dredging (99110) 703,721$622,408$59,577$
179 99653‐WTP Major Equipment Maintenance 840,872$428,106$229,452$
180 99821‐LOVR at 101 and SLO Crk Bridge Widening 2016 (99821)934,753$8,895$ 925,858$
181 99837‐Open Space Acquisition 4,187,845$ 1,422,980$ 2,734,319$
182 298,860,119$ 147,838,109$ 90,722,434$
Budget Document Pg. 107 Page 567 of 652
Funding Source/Project 2022‐23 Budget
Amount
2022‐23 Revised
Amount Change
1 AASP Impact Fee Fund $130,000.00 $130,000.00 $0.00
2 91613 Prado Road Interchange $130,000.00 $130,000.00 $0.00
3 Developer Contribution $78,000.00 $78,000.00 $0.00
4 91503 California & Taft Roundabout $78,000.00 $78,000.00 $0.00
5 Federal HBP Grant $6,000,000.00 $6,000,000.00 $0.00
6 91252 Prado Road Bridge & Road Widening $6,000,000.00 $6,000,000.00 $0.00
7 General Capital Outlay $1,564,647.00 $1,564,647.00 $0.00
8 1000055 City Hall Meeting Room TI $0.00 $15,000.00 $15,000.00
9 1000056 Development Agreement ‐ City Share ‐$715,000.00 $715,000.00 $0.00
10 1000075 Major Facility Maintenance $300,000.00 $300,000.00 $0.00
11 1000503 Annual Public Art Maintenance and Projects $50,000.00 $50,000.00 $0.00
12 1000508 City Hall Lighting $15,000.00 $0.00 ($15,000.00)
13 1000518 Fleet Replacement: CDD $74,000.00 $74,000.00 $0.00
14 91252 Prado Road Bridge & Road Widening $410,647.00 $410,647.00 $0.00
15 Public Safety Equipment Fund $0.00 $135,000.00 $135,000.00
16 NEW Fire Department Extractors $0.00 $135,000.00 $135,000.00
17 Local Revenue Measure $18,763,050.00 $15,282,090.00 ($3,480,960.00)
18 1000027 Urban Forest Maintenance $175,000.00 $375,000.00 $200,000.00
19 1000029 Bridge Maintenance $100,000.00 $0.00 ($100,000.00)
20 1000030 Laguna Lake Golf Course Maintenance $20,000.00 $20,000.00 $0.00
21 1000031 Parking Lot Maintenance $255,000.00 $100,000.00 ($155,000.00)
22 1000032 Pedestrian and Bicycle Pathway Maintenance $200,000.00 $150,000.00 ($50,000.00)
23 1000033 Playground Equipment Replacement $100,000.00 $100,000.00 $0.00
24 1000052 Buchon‐Santa Rosa Intersection Improvements $250,000.00 $0.00 ($250,000.00)
25 1000055 City Hall Meeting Room TI $130,000.00 $245,000.00 $115,000.00
26 1000057 Development Related Park Improvements $815,000.00 $815,000.00 $0.00
27 1000063 Fire Hydrants $40,000.00 $40,000.00 $0.00
28 1000073 Transportation Safety & Operations $30,000.00 $30,000.00 $0.00
29 1000074 IT Replacement $564,777.00 $564,777.00 $0.00
30 1000075 Major Facility Maintenance $293,200.00 $253,200.00 ($40,000.00)
31 1000157 Banner Arms, Bench Arm Rests, Signs $25,000.00 $25,000.00 $0.00
32 1000500 CIP Project Delivery Augmentation $1,000,000.00 $116,540.00 ($883,460.00)
33 1000501 Bob Jones Trail and RRST Solar Lighting $1,350,000.00 $1,350,000.00 $0.00
34 1000502 Active Transportation Plan Implementation $505,000.00 $505,000.00 $0.00
35 1000503 Annual Public Art Maintenance and Projects $92,500.00 $92,500.00 $0.00
36 1000513 Electric Vehicle Charging Station at Various Facilities $100,000.00 $100,000.00 $0.00
37 1000516 Fire Station 3&4 Remodel Space Study and Design $75,000.00 $75,000.00 $0.00
38 1000519 Fleet Replacement: Parks and Recreation $103,000.00 $103,000.00 $0.00
39 1000520 Fleet Replacement: Public Works $168,000.00 $168,000.00 $0.00
40 1000522 Major Facility Replacements $300,000.00 $300,000.00 $0.00
41 1000526 Parks and Rec General Plan Implementation $200,000.00 $200,000.00 $0.00
42 1000532 Roundabout Public Art Installations $300,000.00 $300,000.00 $0.00
43 1000537 Transportation Monitoring & Modeling Update $70,000.00 $70,000.00 $0.00
44 1000553 Fleet Replacement: Police $235,000.00 $235,000.00 $0.00
45 1000554 Fleet Replacement: Fire $465,000.00 $465,000.00 $0.00
46 90346 Street Reconstruction & Resurfacing $3,325,000.00 $3,910,000.00 $585,000.00
47 90742 Storm Drain System Replacement $725,000.00 $550,000.00 ($175,000.00)
48 90849 Sidewalk Replacement and Installation $250,000.00 $250,000.00 $0.00
49 90943 Traffic Signs & Striping Maintenance $25,000.00 $25,000.00 $0.00
50 91252 Prado Road Bridge & Road Widening $146,573.00 $146,573.00 $0.00
51 91385 Park Major Maintenance & Repairs $160,000.00 $152,500.00 ($7,500.00)
52 91397 Open Space Maintenance $105,000.00 $105,000.00 $0.00
53 91439 Mission Plaza Concept Plan Implementation $1,035,000.00 $1,035,000.00 $0.00
Table C22: Projects by Funding Source
Budget Document Pg. 108 Page 568 of 652
Funding Source/Project 2022‐23 Budget
Amount
2022‐23 Revised
Amount Change
Table C22: Projects by Funding Source
54 91503 California & Taft Roundabout $2,720,000.00 $0.00 ($2,720,000.00)
55 91612 Neighborhood Traffic Improvements $75,000.00 $75,000.00 $0.00
56 91613 Prado Road Interchange $1,910,000.00 $1,910,000.00 $0.00
57 91616 Street Lights ‐ Annual Asset Maintenance $75,000.00 $75,000.00 $0.00
58 99837 Open Space Acquisition $250,000.00 $250,000.00 $0.00
59 MASP Transportation Impact Fee Fund $529,400.00 $529,400.00 $0.00
60 91613 Prado Road Interchange $529,400.00 $529,400.00 $0.00
61 Parking Fund $6,731,279.00 $7,719,479.00 $988,200.00
62 1000049 842 Palm Parking Structure Maintenance $400,000.00 $400,000.00 $0.00
63 1000050 871 Marsh Street Structure Maintenance $400,000.00 $400,000.00 $0.00
64 1000051 919 Palm Street Structure Maintenance $100,000.00 $100,000.00 $0.00
65 1000074 IT Replacement $4,279.00 $4,279.00 $0.00
66 1000075 Major Facility Maintenance $25,000.00 $25,000.00 $0.00
67 1000520 Fleet Replacement: Public Works $130,000.00 $130,000.00 $0.00
68 1000525 Parking Enforcement Equipment at Gate Entry $90,000.00 $90,000.00 $0.00
69 90435 Palm ‐ Nipomo Parking Structure $5,582,000.00 $5,582,000.00 $0.00
70 1000163 Parking Pay Station Installation $0.00 $988,200.00 $988,200.00
71 Parkland Development Impact Fees $3,395,026.40 $3,395,026.40 $0.00
72 1000057 Development Related Park Improvements $3,395,026.40 $3,395,026.40 $0.00
73 San Luis Obispo County $1,435,260.00 $1,435,260.00 $0.00
74 91613 Prado Road Interchange $1,435,260.00 $1,435,260.00 $0.00
75 SB1 $941,258.00 $941,258.00 $0.00
76 90346 Street Reconstruction & Resurfacing $941,258.00 $941,258.00 $0.00
77 Sewer Fund $6,623,483.00 $5,738,483.00 ($885,000.00)
78 1000062 Water Meters and Boxes $165,000.00 $165,000.00 $0.00
79 1000074 IT Replacement $19,358.00 $19,358.00 $0.00
80 1000075 Major Facility Maintenance $7,500.00 $7,500.00 $0.00
81 1000077 WRRF Major Maintenance $520,000.00 $370,000.00 ($150,000.00)
82 1000082 Wastewater Lift Station Rehabilitation: Silver City Lift Station $70,000.00 $0.00 ($70,000.00)
83 1000084 Sewer Maintenance Hole Cover Adjustments $25,000.00 $25,000.00 $0.00
84 1000521 Fleet Replacement: Utilities $505,000.00 $30,000.00 ($475,000.00)
85 1000527 Wastewater Collections System ‐ Point Repairs $50,000.00 $50,000.00 $0.00
86 1000539 Wastewater Collections System Improvements $3,860,000.00 $3,860,000.00 $0.00
87 1000550 WRRF And Wastewater Collection Shop $350,000.00 $350,000.00 $0.00
88 1000551 WRRF ‐ Digester Flare Upgrade $100,000.00 $100,000.00 $0.00
89 91219 WRRF Upgrade $426,625.00 $426,625.00 $0.00
90 91736 Infrastructure Renewal Strategy Report Update $250,000.00 $250,000.00 $0.00
91 91739 Inflow/Infiltration Reduction $250,000.00 $0.00 ($250,000.00)
92 91740 Trench Repairs‐ Sewer $25,000.00 $25,000.00 $0.00
93 NEW Chorro ‐Palm to Monterey Pipeline Replacement $0.00 $60,000.00 $60,000.00
94 State or Federal Grant $2,875,000.00 $2,875,000.00 $0.00
95 1000053 Bus Wash Replacement $450,000.00 $450,000.00 $0.00
96 1000102 Parking Lot Maintenance ‐ Bus Yard $500,000.00 $500,000.00 $0.00
97 1000505 Bus Replacements with EV $1,910,000.00 $1,910,000.00 $0.00
98 1000538 Vault Room Addition Design Study $15,000.00 $15,000.00 $0.00
99 Transit Fund $3,157.00 $253,157.00 $250,000.00
100 1000074 IT Replacement $3,157.00 $3,157.00 $0.00
101 NEW Tenant Improvements ‐1260 Chorro $0.00 $250,000.00 $250,000.00
102 Transportation Development Act TDA $45,000.00 $45,000.00 $0.00
103 1000502 Active Transportation Plan Implementation $45,000.00 $45,000.00 $0.00
104 Transportation Development Impact Fee $3,940,000.00 $3,940,000.00 $0.00
105 1000073 Transportation Safety & Operations $20,000.00 $20,000.00 $0.00
106 1000537 Transportation Monitoring & Modeling Update $45,000.00 $45,000.00 $0.00
Budget Document Pg. 109 Page 569 of 652
Funding Source/Project 2022‐23 Budget
Amount
2022‐23 Revised
Amount Change
Table C22: Projects by Funding Source
107 91252 Prado Road Bridge & Road Widening $3,875,000.00 $3,875,000.00 $0.00
108 Water Fund $5,215,253.00 $5,085,253.00 ($130,000.00)
109 1000034 Water Storage Tank Maintenance $1,355,000.00 $950,000.00 ($405,000.00)
110 1000052 Buchon‐Santa Rosa Intersection Improvements $150,000.00 $150,000.00 $0.00
111 1000062 Water Meters and Boxes $165,000.00 $165,000.00 $0.00
112 1000074 IT Replacement $13,753.00 $13,753.00 $0.00
113 1000075 Major Facility Maintenance $7,500.00 $7,500.00 $0.00
114 1000150 Sustainable Groundwater Management Act GSP $150,000.00 $150,000.00 $0.00
115 1000521 Fleet Replacement: Utilities $15,000.00 $15,000.00 $0.00
116 1000528 Recycled Water Broad Street ‐ Tank Farm to Aerovista $1,040,000.00 $1,040,000.00 $0.00
117 1000530 Recycled Water Tank $50,000.00 $50,000.00 $0.00
118 1000542 Water Treatment Plant Major Facility Maintenance $180,000.00 $275,000.00 $95,000.00
119 1000545 Waterline Replacements: California Ave ‐ Stafford to Mill $1,650,000.00 $1,650,000.00 $0.00
120 90649 Mid‐Higuera Bypass $100,000.00 $100,000.00 $0.00
121 91147 Trench Repairs‐ Water $200,000.00 $0.00 ($200,000.00)
122 91149 Water Valve Cover Adjustments $30,000.00 $30,000.00 $0.00
123 99653 Treatment Major Facilities Maintenance $109,000.00 $109,000.00 $0.00
124 NEW Johnson ‐Iris to Bishop Pipeline Replacement $0.00 $180,000.00 $180,000.00
125 NEW Recycled Water System Retrofits $0.00 $200,000.00 $200,000.00
126 Whale Rock Fund $671,121.00 $671,121.00 $0.00
127 1000074 IT Replacement $1,121.00 $1,121.00 $0.00
128 1000521 Fleet Replacement: Utilities $15,000.00 $15,000.00 $0.00
129 91335 Whale Rock Reservoir ‐ Major Facility Maintenance $145,000.00 $145,000.00 $0.00
130 91617 Whale Rock Transmission Pipeline $510,000.00 $510,000.00 $0.00
131 Zone 9 $100,000.00 $180,000.00 $80,000.00
132 1000046 Silt Removal $100,000.00 $130,000.00 $30,000.00
133 90649 Mid‐Higuera Bypass $0.00 $50,000.00 $50,000.00
134 Grand Total $59,040,934.40 $55,998,174.40 ($3,042,760.00)
Budget Document Pg. 110 Page 570 of 652
Major City Goals – Economic Recovery
Section 8: 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.
Strategy Updates:
Strategy 1.1: For all members of the Community
The groundwork for the majority of the actions in support of the DEI Major City Goal has been completed.
The Economic Development team is working closely with the DEI manager to establish next steps and
priorities. The completion date of the tasks has been pushed back and will continue to be adjusted as the
prioritization and execution are aligned in conjunction with the DEI manager.
Initially it was planned to update the Economic Development Strategic Plan (EDSP) in the early part of FY
2022-23. Due to several factors, including the unexpected, delayed return to normalcy after the COVID 19
pandemic and the REACH team securing funding to do a region-wide Comprehensive Economic Strategy
(CEDS) during the same period, staff recognized that it would be more effective to postpone the update
by six months to ensure the best possible outcome.
Strategy 1.2: Business Support
The City continues to support the economic recovery of the community through various initiatives
including, but not limited to:
-Allocation of the $500,000 in action 1.2.a-1 in support of local businesses through marketing and
promotional efforts like the activations in Mission Plaza, Buy Local Bonus, Mid-Weekend
promotion, Childcare grants as well as the new Chamber of Commerce program to assist the
relocation efforts for the spouses/significant others of new hires relocating to the area.
-The Support Local advertising program continued to provide benefit to the community through
on-going advertising through local and regional sources.
-Promotional work for the City to visitors and residents remains strong resulting in increased
visitation.
-The TIPP-FAST program, which fast tracks tenant improvement permits to support business
recovery, will continue. Forty-three (43) permits have been issued through the program within
one week of a complete application. In addition to expediting these projects, all tenant
improvement building applications have been supported through the City’s Tenant
For complete detail on goal strategies, stakeholders, task detail and expectations, please reference the
Adopted 2021-23 Financial Plan.
Budget Document Pg. 111 Page 571 of 652
Major City Goals – Economic Recovery
Improvement Fee Rebate Program. To date, rebates totaling $201,025 have helped reduce total
permit fees owed at permit issuance for applicants of commercial tenant improvement projects.
The Open SLO program Fitness in the Parks was concluded when businesses were allowed to fully reopen
back at end of summer with the lifting of the COVID-19 restrictions.
The Parks & Recreation Department provided additional support by expanding offerings to serve all
previous five school sites (C.L. Smith, Hawthorne, Pacheco, Sinsheimer, and Bishop’s Peak). Additional
programming has included expansion in support of the teacher workdays, minimum days, and academic
breaks. The division is growing its scholarship program to better serve disadvantaged families, thanks in
part to a stipend from the California Department of Social Services.
Strategy 1.3: Support Arts and Culture
Support of Arts and Culture in the City continues to move forward with the ongoing Public Art and PCC
programs as well as the new $75,000 grant program that was announced in Q4 of FY 2021-22. The City
partnership with SLO Museum of Art has resulted in one mural by an international artist and one "visiting”
sculpture art piece. Additional art pieces are slated for installation through the end of the fiscal year,
including the upcoming Tank Farm/Orcutt roundabout sculpture. Development of an map App will result
in opportunities for updated Downtown art walks.
Strategy 1.4: Downtown Vitality
The vitality of Downtown has been a major focus of the City team over the last 12 months and will
continue to receive additional support. Some of the key initiatives include the use of some of the $500,000
funding in action 1.2.a-1 to activate Mission Plaza with new programs every month of the year, using
$150,000 in City funding to “Light up Downtown” for the Holidays as well as investing significant resources
in the various Clean and Safe initiatives. The City has also invested infrastructure improvements in Mission
Plaza and in Downtown in general. The Parks and Recreation Department continues to collaborate with
Downtown SLO to streamline activities and events at Mission Plaza for holidays, artwork, and activities
(e.g., Santa’s Village, Skate Mission Plaza).
The long term Open SLO program is being finalized and is expected to come to Council in July of 2022.
To increase housing and vibrancy downtown, on November 11, 2021 the City Council approved
amendments to the Zoning Regulations to implement several Housing Element policies. The updates to
the Zoning Regulations went into effect on February 28, 2022.
After many years of working toward having the ability to track downtown vacancies, the City was able to
develop a database for tracking that Downtown SLO has agreed to update. During the height of the
pandemic the vacancy rate was above 12%. As of April, the rate was at 7%.
Strategy 1.5: Practicing Fiscal Sustainability
During FY 2021-22, staff have worked to maximize the use of the City’s Enterprise Resource Planning
System and Human Resources Information System to help maintain the City’s accounting and financial
information. Configuration changes resulted in fewer manual entries for employees’ pay, and self-service
open enrollment went live in FY 2021-22 which reduces use of paper forms. A Benchmark Compensation
Study was completed in February 2022 for unrepresented management and confidential employees as
Budget Document Pg. 112 Page 572 of 652
Major City Goals – Economic Recovery
well as employees in the San Luis Obispo City Employees’ Association (SLOCEA). The results of the study
have been incorporated into a three-year successor resolution for unrepresented staff, which was
adopted on April 19, 2022, and the City is currently in negotiations with SLOCEA for a successor
agreement, whose contract expires on June 30, 2022. Successor resolutions and agreements will align
with the City’s five-year forecast to ensure fiscal sustainability. To ensure the City is protected against
losses, staff have updated the language in many of its standard contracts and coverage requirements;
new software is being introduced to monitor compliance and ensure continuous protection. Additionally,
the City is offering preventative services for public safety personnel to reduce workers’ compensation
claims, including a functional mobility program for Fire employees and preventative mental health
services.
Strategy 1.6: Paying down unfunded pension liabilities
After postponing scheduled additional payments to CalPERs due to the uncertainties during the COVID-
19 pandemic, the City found itself in a solid financial condition at the beginning of 2022. At the FY 2021-
22 mid-year review, the Council therefore approved a lump-sum payment of $12.4 million dollars which
caught up three years of postponed payments. The long-term forecast considers continued annual
payments in addition to the required unfunded liability amount with a goal to pay-off the required
payments ahead of the 30-year schedule. The City’s funded rate stands at nearly 75% which is the highest
in the last 20 years.
Strategy 1.7: Investing in critical infrastructure
The City invests in critical infrastructure based on the approved 2021-23 Financial Plan that facilitate
economic recovery from the pandemic, enhance safety, address past commitments, partner with private
development projects that deliver housing, address core infrastructure maintenance needs and/or
provide positive impact towards the City’s Major City Goals. Included in the 2021-23 Financial Plan is a
robust Capital Improvement Plan that is currently being delivered and at the same time the City is
augmenting the CIP Engineering Program that delivers the majority of the Capital Improvement Plan.
Ensuring that critical infrastructure funding is used in the most efficient manner possible includes
determining whether partnering with agencies that provide similar services is of benefit to the
community. The Regional Transit Authority has just constructed a new transit facility adjacent to the City’s
transit facility. As the City’s transit facilities is aged and nearing the end of its lifespan, the City is currently
evaluating 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 or lower costs.
This evaluation is currently underway.
Budget Document Pg. 113 Page 573 of 652
Major City Goals – Diversity, Equity, & Inclusion
Section 8: Diversity, Equity, Inclusion
In response to our commitment to making San Luis Obispo a more welcoming and inclusive city for all,
continue to develop programs and policies to support diversity, equity, and inclusion initiatives and
advance the recommendations of the DEI Task Force.
Strategy Updates:
Strategy 2.1 – Establish Office of DEI
Most of the efforts required to establish the office of Diversity, Equity, and Inclusion (DEI) have been
completed. The DEI Manager was hired on February 17, 2022, who has been doing much of the
groundwork to establish and identify ongoing programming and engagement opportunities for the
community. Staff have been evaluating the needs of the office and identifying the best staffing structure
for optimal operational support, which includes interns and administrative support.
Strategy 2.2 – Develop & Implement DEI Strategic Plan
Given the robust workplan and the recent onboarding of the DEI Manager, strategic planning efforts have
been recast to begin in Q3 of FY 2022-23. This will also allow time to intentionally align strategic planning
with efforts related to Multicultural Center feasibility study. The DEI Manager has laid the groundwork for
submitting the City of San Luis Obispo to the Human Relations Commission municipality index for LGBTQ+
inclusion. This will provide staff with additional data and benchmarking that can contribute to the strategic
planning process in the next fiscal year.
Strategy 2.3 – Workforce Recruitment & Retention
A significant amount of work has been completed in partnership with the Human Resources Department
to advance DEI within workforce recruitment and retention. Job descriptions have been revised to
incorporate more inclusive language, as well as the addition of the following supplemental question to all
City job postings:
The City of San Luis Obispo is committed to cultivating diverse and inclusive environments in our
workforce and our community. It is the expectation that all staff will contribute to and be
committed to this effort. Do you agree with these conditions of employment?
A DEI resource page has been added to the new employee onboarding platform and a DEI-specific section
has been implemented into the Day of Welcome, an employee onboarding event. In reviewing
opportunities for further enhancements, three DEI-specific questions were also added to all employee
pre-evaluation forms. Human Resources will continue to provide employees with information on
resources and support for childcare, primary caretakers, and scheduling options. It will also review
For complete detail on goal strategies, stakeholders, task detail and expectations, please reference the
Adopted 2021-23 Financial Plan.
Budget Document Pg. 114 Page 574 of 652
Major City Goals – Diversity, Equity, & Inclusion
policies and guidelines on an ongoing basis to ensure they reflect the City’s commitment to Diversity,
Equity and Inclusion and DEI best practices.
Strategy 2.4 – Inclusive & Equitable Workplace
Staff have laid the groundwork for enhancing the DEI internal committee charter and developing a clear
scope of their efforts and impact across the organization. Key efforts from the committee have included
quarterly DEI newsletters and learning burst opportunities for all staff to discuss topics related to diversity,
equity, and inclusion. The DEI manager is working in partnership with Human Resources and the Centre
for Organizational Effectiveness to develop an introductory training for all staff that will be embedded
into the Foundations of Excellence training module. Additionally, the DEI Manager is set to deliver an
Inclusive Leadership training for the leadership team and is working to build out the DEI section of
Supervisor Toolkit with essential resources.
Strategy 2.5 – Community-based Policing and Restorative Practices
The Police Department (SLOPD) has continued to prioritize community-based policing practices through
a variety of new and continued efforts. State and federal mandates regarding protest response protocols
have been implemented, along with after action report recommendations. The Fire Department has also
launched a new Mobile Crisis Unit (MCU) that will send mental health professionals out with paramedics
to non-violent mental health distress calls without a police officer. The Community Action Team continues
to grow and be a successful model for addressing homelessness through a service response approach.
Additionally, the Police and Community Together (PACT) group has been reinstated and a five-year
strategic plan for SLOPD is set to launch in FY 2022-23 with a strong emphasis on DEI.
Strategy 2.6 – Cal Poly & Cuesta College Partnerships
A Memorandum of Understanding between Cal Poly’s Office of University Diversity and Inclusion and the
City, that outlines efforts to strategically align and collaborate on our DEI efforts, has been entered into.
Key aspects include a liaison intern, intentionally hosting DEI educational programs off campus and in the
City, and the leveraging of City space. Quarterly leadership roundtables are set to commence and include
Cuesta leadership. The DEI Manager continues to meet with key staff at both Cal Poly and Cuesta to
strengthen collaborations and increase access to City DEI initiatives.
Strategy 2.7 – Access, Inclusion, Support for Underrepresented Communities
Many efforts are either underway or have been initiated to increase access, inclusion, and support for
underrepresented communities. Some efforts include but are not limited to:
•DEI high impact grants expected to be disbursed in FY 2022-23 with an extended grant amount
of $300k to account for a missed cycle in FY 2021-22 due to the delayed onboarding of the DEI
Manager and the HRC transition to City Administration and IT. Intentional communication and
outreach efforts will be implemented to ensure maximum engagement by community
organizations.
•Grants-in-Aid (GIA) grants for FY2021-22 received an additional $100k from the State and Local
Fiscal Recovery Fund through the American Rescue Plan Act and are expected to go to Council
for adoption in May 2022. The additional funding more than doubled the number of organizations
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Major City Goals – Diversity, Equity, & Inclusion
to receive full funding and expanded support to organizations addressing multiple priority areas
within the GIA funding requirements.
• The City’s Community Academy has been launched for the first time since the pandemic and
robust outreach efforts were initiated to increase diversity of participants. A section specific to
DEI was also added to the curriculum.
• In partnership with City Administration communications staff the groundwork has been laid to
update City’s Public Engagement Manual (PEN) manual with a specific focus on inclusive outreach
strategies and best practices for reaching diverse constituents in the community.
• The DEI Manager has worked collaboratively with a Cal Poly student design team for a City
Multicultural Center to ensure findings from the student group contribute and support the launch
of an official feasibility study in FY 2022-23.
Strategy 2.8 – Community Education & Programming
The City’s Office for DEI launched a diversity speaker series that is free and open to the public. This series
is a quarterly opportunity for the community to engage with diverse speakers on topics related to equity,
justice, and inclusion. This series will inspire community connection, dialogue, and educational learning
rooted in cultural richness, innovative equity, and expansive inclusion. The first event in the series was
held in April 2022 and was a collaboration between Cal Poly, the Office of Sustainability, and the Diversity
Coalition.
Strategy 2.9 – Support & Attract Minority-Owned Businesses
In partnership with the City Administration staff in Economic Development and Tourism the groundwork
was laid for key efforts. Work has been initiated to develop a process for collecting data related to
identifying business owners via the business license & tax certificate application and renewal process. This
data will then provide the City with necessary information to begin engaging diverse business owners
through collaborative programs with the Chamber of Commerce and other key stakeholders. The
completion date of specific programs has been pushed back and will continue to be adjusted as the
prioritization and execution are aligned in conjunction with the DEI Manager.
Budget Document Pg. 116 Page 576 of 652
Major City Goals – Housing and Homelessness
Section 8: Housing and Homelessness
In order to expand housing options for all, continue to facilitate the production of housing, including the
necessary supporting infrastructure, with an emphasis on affordable and workforce housing. Collaborate
with local non-profit partners and the county, the state, and federal governments to discover and
implement comprehensive and effective strategies to reduce chronic homelessness.
Strategy Updates:
Housing
Strategy 3.1 - Implement the Housing Element
On November 2, 2021, the City Council adopted the Objective Design Standards (Housing Element
Program 6.22) for eligible housing project that qualify for ministerial review. The standards became
effective on January 7, 2022.
On November 11, 2021, the City Council adopted amendments to the Zoning Regulations. This update
included amendments to implement several Housing Element Programs (2.17, 5.5, 6.23, 8.18, and 8.23)
that streamline the development review processes for various housing projects. The updated regulations
became effective on February 28, 2022.
Staff is actively working on updating the Inclusionary Housing Ordinance (Housing Element programs 2.13
& 4.6). A preliminary recommendation, based on a nexus study and feasibility analysis, was presented to
the City Council on March 1, 2022. The Council provided feedback on the preliminary recommendation
and staff is currently working on a draft Inclusionary Housing Ordinance update.
Staff is updating Subdivision Regulations to implement Housing Element Program 6.20. The update will
include provisions for innovative and flexible subdivision options, including small lot and common interest
options in the R-1 zone and updates to existing flexible subdivision options in commercial and multi-family
zoning districts. This work will also address any identified concerns associated with SB-9 subdivisions. The
update is anticipated to be completed in the Fall of 2022.
Strategy 3.2 - Implement Inclusionary Housing Ordinance
This strategy is an ongoing effort. Development applications are regularly reviewed for compliance with
the Inclusionary Housing Ordinance. Staff engages with new applicants and developers with entitlements
to ensure affordable housing agreements and resulting project plans reflect requirements of the
ordinance. Recommendations and a public hearing on Inclusionary Housing Ordinance amendments
will be considered by the City Council in July 2022.
Strategy 3.3 - Below Market Rate Portfolio Management
For complete detail on goal strategies, stakeholders, task detail and expectations, please reference the
Adopted 2021-23 Financial Plan.
Budget Document Pg. 117 Page 577 of 652
Major City Goals – Housing and Homelessness
Staff provided an update to the City Council on March 1, 2022 regarding the onboarding process for the
City’s contracted Below Market Rate Housing Administer, Housekeys Inc. Housekeys, contracted in August
2021, constructed a web platform specific to the City, including accessibility for Spanish speaking
community members, and has scheduled in-person trainings in April and May 2022. As of March, 2022
Housekeys is fully launched, has started certifying and processing affordable units, and is working with
larger developers to facilitate administration of affordable units in the pipeline with various affordable
housing agreements.
Annual reporting and monitoring of below market rate housing units was accomplished by staff for
submittal to the State Department of Housing and Community Development on April 1, 2022.
Strategy 3.4 - Financial Management
Staff conducted the annual Community Needs Workshop to re-establish funding priorities for the City’s
Grants-in-Aid Program and Community Development Block Grants. The City has made $250,000 available
to the Grants-in-Aid Program to provide financial support to local non-profit organizations that provide
critical services to community members who are currently homeless or at-risk of becoming homeless.
These services are not limited to homeless prevention, but services that support that effort are prioritized.
CDD staff worked closely in collaboration with the Finance Department to track existing loans that the
City has provided to past affordable housing projects and loan commitments to future projects. This
collaboration allowed both departments to determine the funding availability within the Affordable
Housing Fund. Other information that was tracked included in-lieu fees, payoffs from the sale of equity-
share homes and BEGIN (first time homebuyer) loans. This information is now also reported on with the
City’s Annual Comprehensive Financial Report.
Strategy 3.5 - Advisory Body & Council meetings & support
On December 8, 2021, the Community Development presented to the Planning Commission on significant
new state legislation regarding the Housing Opportunity and More Efficiency (HOME) Act that went into
effect on January 1, 2022 (Senate Bill 9, Atkins), that gives homeowners the opportunity to add additional
units to their R-1 zoned property.
Staff provided housing information on social media regarding new affordable housing units available for
low-income residents at Courtyard at the Meadows in San Luis Obispo as well as information related to
temporary state rental protections and is scheduling monthly housing information blasts.
Homelessness
Strategy 3.6 - City Homelessness Team Coordination (Homelessness Response Manager)
An Interdepartmental Service Level Agreement has been drafted and is currently being reviewed by
Technical Specialist Group and Steering Committee.
Strategic Plan areas of focus were presented to Council on November 16, 2021 for review and approval.
The City Council approved further development under the five proposed areas of focus: 1) Data, 2)
Communications,3) Regional Cooperation, 4) Pilot Programs, and 5) Funding Opportunities. The
Homelessness Response Manager in Community Development Strategic Plan accomplishments include
the following:
Budget Document Pg. 118 Page 578 of 652
Major City Goals – Housing and Homelessness
1. Data: worked with IT to develop data platforms on GIS.
2. Communications: formalized communications structure with all impacted departments
comprehensive update to the Service Level Agreement and timely and responsive
communications to community concerns.
3. Regional Cooperation: established a strong presence with the County and non-profit partners
including the 5-Year Plan Steering Committee and 40 Prado coordination. Activated the County
of San Luis Obispo to take a more intentional and direct role in leading a comprehensive and
coordinated regional strategy.
4. Worked with CAT/PD and the County to overhaul the Safe Parking at Railroad Square and
converting to a permitted use; and procure contract amendments for the CAT and MCU.
5. Worked with Community Development staff to evaluate potential sites for Homekey funding and
a pallet structure pilot project with the county.
The City’s Homelessness Prevention and Assistance webpage has been updated to provide timely
information and resources to key groups: at-risk community members, unhoused/unsheltered people,
property owners, and helpers. Additionally, the webpage links relevant and localized news articles to
increase public awareness of City, County, and State initiatives.
The “For At-Risk Community Members” tab of the City’s Homelessness Prevention and Assistance
webpage lists resources and information related to rental assistance and eviction protection as related to
COVID-19. The City has recruited a Code Enforcement Safe Housing Technician who will focus on providing
low-income renters with information and resources on tenant rights and housing standards.
The City’s Homelessness Response Manager is currently serving on the Steering Committee for the
County’s 5-Year Strategic Plan for Homelessness and is advocating for clear regional goals and benchmark
expectations for each City within the County.
At Mid-Year, the City Council approved hiring an additional staff member on a contract basis dedicated
specifically to supporting the City’s Homelessness Response efforts. This position will assist the
Homelessness Response Manager in responding to public inquiries and supporting field operations staff.
Strategy 3.7 - Environmental Protection and Water Quality
Ranger Service has facilitated 186 environmental cleanups over the course of FY 21-22. Many of the clean-
ups occurred in flood zones and riparian areas along San Luis Creek (Bob Jones Bike Trail), Bianchi and
Matthews Open Spaces, and boundaries around Cerro San Luis Open Space. The Public Works
Department is responsible for encampment management in Parks, along the Railroad Right-of-way, and
under bridges. During the 2021-22 FY, staff has cleaned up 42 encampments with approximately 75% of
the cleanups being under bridges or adjacent to riparian areas.
The Office of Sustainability has been working with the California Conservation Corps (CCC) as part of the
Green House Gas Reduction Fund to remove dead material from the creek systems around the City.
Through the removal of dead material, non-native vines and weeds are also controlled to improve line of
site in the creek corridor and opening up new area restoration by native species and reducing the impact
from encampments from being established in these enhanced areas. Tree contractors are also part of the
creek clean-up during the winter to implement the City’s flood control program with selective removals
Budget Document Pg. 119 Page 579 of 652
Major City Goals – Housing and Homelessness
of dead and down material in the creek channel for capacity. These efforts support the Climate Action
Major City Goal, Pillar 6 where staff are planning and planting 10,000 trees by 2035.
Strategy 3.8 - Regional Engagement and Grant Management
The City’s Homelessness Response Manager is currently serving on the Steering Committee for the
County’s 5-Year Strategic Plan for Homelessness and is advocating for clear regional goals and benchmark
expectations for each city within the County to contribute to.
The City’s Homelessness Response Manager currently attends HSOC General Meetings as well as finance
and housing subcommittee meetings.
The Homelessness Response Manager and DEI Manager held an introductory meeting on March 18, 2022,
to discuss key cross-over areas, shared resources, and areas of strategic collaboration. They have
identified public and internal communications as a key strategy area that will require close coordination
and have set up regular check-in meetings to ensure ongoing streamlined efforts.
Strategy 3.9 - Community Action Team (CAT) and Downtown Bike Team Resources
The City has finalized a contract with Transitions Mental Health Association for a second CAT Behavioral
Health Specialist. Due to funding constraints and an exceptionally difficult recruitment environment, the
entry requirements for this position have been reduced from licensed mental health clinician to case
worker.
Strategy 3.10 Mobile Crisis Unit (MCU) Pilot Program Implementation
The City is in the process of finalizing a contract with Transitions Mental Health Association for an
additional MCU Behavioral Health Specialist. Due to funding constraints and an exceptionally difficult
recruitment environment due to labor shortages and the demanding social work related to street
outreach which required the team to rethink and adjust the entry requirements for this position from a
licensed mental health clinician to case worker.
San Luis Obispo Fire Department has hired an Emergency Medical Technician to serve on the MCU. They
onboarded on March 31, 2022 and are engaging in training as we prepare to recruit the Behavioral Health
Specialist counterpart.
Strategy 3.11 – Non-Profit Partner Funding Support
On March 1, 2022, the City Council received an update regarding State and Local Fiscal Recovery Fund
(SLFRF) through the American Rescue Plan Act for up to $3.5 million for eligible projects. On April 19,
2022, the Council approved using $2 million in SLFRF for the Anderson hotel in the amount of $1.7 million
and $300,000 to support a Transitions Mental Health Association project to provide eight homes for
homeless individuals with a mental illness via the No Place Like Home Grant. The funding will be provided
under subrecipient agreements to report on the use of funding to the U.S. Treasury.
A 25% expansion of the number of beds at the 40 Prado Homeless Services Center was accomplished.
Safe Parking opportunities were expanded at Kansas Avenue for the County and a use permit was
processed for the Safe Parking at Railroad Square. At the April 19, 2022 City Council meeting, the Council
will consider a $300,000 Affordable Housing Fund award to leverage No Place Like Home funding for the
Budget Document Pg. 120 Page 580 of 652
Major City Goals – Housing and Homelessness
eight-unit Transitions Mental Health Palm Street Studios project that provides supportive housing for
formally homeless residents.
Ongoing General Fund support has been allocated to CAPSLO for 40 Prado (includes safe parking,
warming center, operations support, and bus tokens). Additionally, on March 1, 2022, the City Council,
upon a recommendation from the HRC awarded $74,132 for 40 Prado through CDBG allocations.
Budget Document Pg. 121 Page 581 of 652
Major City Goals – Climate Action
Section 8: Climate Action, Open Space, and
Sustainable Transportation
To proactively address the climate crisis, continue to update and implement the Climate Action Plan for
carbon neutrality, including preservation and enhancement of open space and the urban forest, alternative
and sustainable transportation, and planning and implementation for resilience.
Strategy Updates:
Strategy 4.1 – Provide capacity to achieve Council's adopted goals
Strategy 4.1 includes actions to add staff, increase collaboration among staff, and provide outside
resources to allow staff to have the capacity to complete complicated climate action, open space, and
sustainable transportation tasks. In Fiscal Year (FY) 2021-22, the City has either completed or is on track
with all tasks in this strategy. These resources have been integral to the successes outlined below, with
notable contributions coming from the new Sustainability and Natural Resources Analyst, Ranger Services
staffing, and grant writing consultant support. An organizational assessment of the Urban Forest program
has been completed that provides recommendations for the appropriate levels of staff and support
services needed to maintain the existing urban forest, while also advancing sustainability objectives.
These recommendations are currently being reviewed and will be brought forward to Council for future
consideration. To ensure consistent maintenance and adequate oversight of City Open Space lands,
Ranger Service added one net new Ranger Maintenance Worker in July 2022 to maintain level of service
standards, and in August, converted four Ranger Specialist supplemental positions to full-time regular
permanent positions.
Strategy 4.2 - Continue to update and implement the Climate Action Plan for carbon neutrality.
The City continues its climate action approach to “implement while planning.” The update of the Climate
Action Plan, which will establish the 2023-25 climate work plan, is ahead of schedule, with adoption
planned for early 2023.
Implementation is generally on track, with numerous municipal operations projects, including lighting
retrofits, electric charging infrastructure for the transit yard, and electric fleet vehicle transitions. Notable
challenges include a nine-month delay in delivering fleet electric vehicle charging at the Parks and
Recreation and Utilities offices due to staffing and supply chain shortages, and an ongoing delay of the
solar projects due to their implementation being subject to completing the bus yard vehicle charging
project.
Community projects are on track with continued support of Central Coast Community Energy, an on-
schedule update to the Clean Energy Choice Program for New Buildings, and a new building retrofit pilot
For complete detail on goal strategies, stakeholders, task detail and expectations, please reference the
Adopted 2021-23 Financial Plan.
Budget Document Pg. 122 Page 582 of 652
Major City Goals – Climate Action
program all ongoing. One notable change is with the Community Electric Mobility Plan (4.2g). Due to lack
of sufficient capacity, a community-based organization was not able to lead this effort. In its place, the
City will directly initiate efforts to deploy electric vehicle chargers for public use.
Strategy 4.3 - Preserve and enhance open space and the urban forest.
Staff remain active with land conservation work in a variety of settings including a voluntary conservation
easement project at the Miossi Brothers La Cuesta Ranch, open space easements that are required for the
Froom Ranch Specific Plan, and also with the conservation easement associated with the remediation and
restoration of the Tank Farm Wetlands. The latter project was not originally envisioned to take place
during the 2021-23 Financial Plan period, and as a result the conservation plan update identified in the
work plan for the South Hills Natural Reserve is proposed to be delayed to the 2023-25 time period.
The City entered into a trail agreement with Cal Poly in November 2021 that allows for a connection
between the City’s Miossi Open Space property and Poly Canyon; Ranger Service began work on this new
trail segment in early 2022 following the rainy season and will continue through late spring / early
summer. Trail planning and environmental compliance measures were also completed in early 2022 to
allow for the installation of a trail network at Righetti Hill Open Space as part of the Orcutt Area Specific
Plan – this effort will create an entirely new open space within the City. Extensive fuel reduction efforts
and fence replacement have taken place in the Cerro San Luis Natural Reserve, as well as cattle grazing,
consistent with the updated Conservation Plan. Ranger Service continues to conduct Open Space
maintenance activities on an ongoing basis as outlined in the Open Space Maintenance Plan and ensure
compliance and stewardship through regular patrol. Ranger Service also created a series of public
information educational videos and will be welcoming kids back to Junior Ranger Camp this coming
summer.
Strategy 4.3 continues the theme of “implementing while planning.” The planning effort in partnership
with the Coastal San Luis Resource Conservation District to support soil health and capture carbon at
Johnson Ranch Open Space and City Farm is complete, with pilot implementation actions scheduled for
FY 2022-23. The Urban Forest Master Plan, tentatively titled the Community Forest Plan, is also underway,
with the expected completion moving back one year to the second quarter of FY 2023-24. In addition, the
City’s Tourism and Business Improvement District allocated 1% of its annual budget to dedicate to tree
planting efforts under its “Keys for Trees” initiative.
Trees are a major focus area at present, with the City recently completing an internal review and
organizational assessment with the assistance of Davey Resources Group on how to best manage and
maintain the urban forest, while also advancing measures in support of the 10,000 trees by 2035 goal.
The City’s partnerships with ECOSLO, as well as with other community groups and volunteers, such as
Rotary de Tolosa, has resulted in numerous new tree planting occasions, as well as reaching the three-
year success milestone for the oak trees that were planted at Johnson Ranch Open Space. While these
planning efforts are underway, the City is remaining focused on maintaining the urban forest and has
executed a multi-year agreement with West Coast Arborist for tree maintenance services.
Strategy 4.4 – Alternative and sustainable transportation
Budget Document Pg. 123 Page 583 of 652
Major City Goals – Climate Action
Implementation of the Active Transportation Plan is underway with several capital projects in the Tier 1
(highest priority) bicycle/pedestrian network recently reaching completion, including the following major
milestones:
•Broad/Woodbridge Pedestrian Hybrid Beacon – Completed Fall 2021
•Marsh/Higuera Protected Bike Lanes – Completed east and west of the downtown core in 2021,
with improvements within the downtown core to be completed summer 2022.
•Railroad Safety Trail (Taft to Pepper) Project – Completed early 2022.
Both the 2022 Pedestrian Crossing Improvements Project and Cerro San Luis Neighborhood Greenway
Project (previously referred to as “Anholm Greenway”) are in the final design phase, with construction
expected to begin in the summer and fall of 2022, respectively.
Planning and preliminary design efforts are progressing on several additional major Active Transportation
Plan Tier 1 projects, including:
•Higuera Street Complete Street Project – Includes addition of protected bicycle lanes and
enhanced pedestrian crossings on Higuera Street between Los Osos Valley Road and Marsh Street.
Project may include extension of protected bike lanes on Madonna Road between Higuera and
the Madonna Inn, pending approval from Caltrans. Staff pursuing Caltrans Grant in spring of 2022
to pursue additional funding.
•Foothill Boulevard Complete Street Project – Includes potential for protected bicycle lanes,
enhanced pedestrian crossings, and other corridor safety and speed reduction enhancements on
Foothill Boulevard from Patricia east to California Boulevard.
•Railroad Safety Trail (Tiburon to Orcutt Road) – Gap closure of the Railroad Safety Trail between
Orcutt/Laurel/Bullock intersection south to Tiburon Road. To be constructed by Bullock Ranch
development project, pending right-of-way agreement with Union Pacific Railroad.
Transit continues to be a key part of achieving the City’s Climate Action Plan and Genera Plan goals. Key
updates include:
•Transit electrification is underway, with the City’s first two all-electric buses to be delivered in
2022. The first bus is anticipated to arrive in late June 2022, and the second is scheduled for
delivery in Fall 2022. Concurrently, the City initiated a Capital project to install high power vehicle
chargers at the Bus Yard. Depending on construction and “on-boarding” (i.e., registration,
training, inspection,) the first bus could be in service as early as summer 2022. Transit
electrification is moving forward on an ad hoc basis.
•The City is also currently conducting a Transit Innovation Study to explore innovative options
including: on-demand deviated routes, micro-transit, bus rapid transit, a “free to the user”
ridership program, and other ideas.
•Given substantial COVID-19 impacts to ridership and labor shortages, the City has been unable to
make progress on shortening transit headways. The City is continuing to implement the Short-
Range Transit Plan, which is planned to be updated in FY 2022-23.
Budget Document Pg. 124 Page 584 of 652
Major City Goals – Climate Action
The “Resilient SLO” effort made substantial progress and the Climate Adaptation and Safety Element of
the General Plan, which will expand the traditional public safety document to include issues related to
local climate change impacts, is expected to be brought to Council in the first half of FY 2022-23.
Implementation efforts continue, as well, with substantial progress made in fuel management to prevent
wildfires, creek and tree management to prevent flooding, and microgrid and battery storage planning
and projects to support energy resilience. Social infrastructure is also a focus, with the Micro Communities
Collaborative successfully launching their community sustainability website platform as a major project
of the SLO Climate Coalition.
To provide increased flood protection and reduce the likelihood of property loss, the City has continued
efforts to maintain, replace and improve the City’s storm drainage infrastructure and creek system. The
storm drain culvert at Broad and Leff streets is scheduled to begin construction in May 2022. Additionally,
the replacement of the storm drain system at Funston at Lawton intersection is currently in design phase.
San Luis Obispo Creek at Pismo and Johnson streets is in the design phase for a bank stabilization project
where construction is scheduled for summer of 2023. Finally, the Mid-Higuera Bypass project is nearing
the completion of the design phase. The next step for this project entails property appraisals and
negotiations to secure the necessary easements for construction.
Ranger Service worked with Public Works to replace fencing at the Cerro San Luis Natural Reserve, repair
fencing at Irish Hills Natural Reserve and add new fencing to the Bob Jones Trail. Ranger Service recruited
and hired four supplemental Open Space Techs to support the City’s Fuel Reduction program, reducing
and removing fuels from the wildland urban interface (WUI) at locations such as Cerro San Luis, Bishop
Peak and Irish Hills.
The City continues to install hydration stations as a part of capital parks maintenance projects. Hydration
stations were installed at Sinsheimer Park, and installation is scheduled at the North Broad St.
Neighborhood Park in Fall 2022.
Strategy 4.5 – Planning and implementation for resilience
Budget Document Pg. 125 Page 585 of 652
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.Original: FY22 Q3
Updated: FY23 Q2
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.
Original: FY22 Q3
Updated: FY23 Q2
4 ERR c. Evaluate and potentially establish a City Leadership/Chamber of Commerce / Minority Business Owners’
roundtable.
Original: FY22 Q4
Updated: FY23 Q4
5 ERR
d. Research, explore and potentially utilize innovative practices such as micro-loans, targeted-sector
recruiting and promotion, City facilitated lending, grants, private support and crowdfunding to support
businesses owned by or serving underserved/underrepresented communities. The City will also leverage its
partner network, including the Chamber, Downtown SLO, REACH and others to support the DEI initiatives as
they relate to economic development including creation, retention and attraction efforts.
FY23 Q4
6 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
7 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.
Original: FY22 Q4
Updated: FY23 Q1
8 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.
Original: FY22 Q2
Updated: FY23 Q3
9 ERR h. Update the City's Economic Development Strategic plan Original: FY23 Q2
Updated: FY23 Q4
10 ERR i. Review the Economic Development program structure based on the outcome of the EDSP update. FY23 Q4
11 ERR j. Ensure adequate temporary and flex resources available to develop and execute required initiatives. Ongoing
12 1.2 Business Support
13 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
14 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)
Ongoing
15 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
16 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
17 ERR a-5. Evaluate the continuation and/or modification of the Open SLO program Fitness in the Parks.Complete
18 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
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 Document Pg. 126 Page 586 of 652
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
19 ERR a-7. Continue to promote the City to tourists, visitors and locals through the efforts of the TBID and the PCC. Ongoing
20 ERR a-8. Provide childcare programming to the community to enable residents to work and fuel the local
economy.Ongoing
21 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
22 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 Q4
Updated: FY23 Q1
23 ERR b-4. Improve efficiency and transparency in the permitting process through implementation of paperless
permitting, performance management reporting, and enhanced customer transparency tools.
Original: FY22 Q4
Updated: FY23 Q2
24 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
25 ERR b-6. Staff Resources to improve permitting efficiency and support development services program capacity Ongoing
26 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
27 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
28 1.3 Arts and Culture Support
29 ERR a. Support the recovery of Arts and Cultural activities throughout the City.Ongoing
30 ERR b. Support the recovery of Arts , Culture and Community programs through a PCC program similar to GIA. Ongoing
31 ERR c. Continue to support local community non-profit organzations through the Cultural GIA program facilitated
by the PCC. Ongoing
32 ERR d. Roundabout Public Art Installations Ongoing
33 1.4 Downtown Vitality
34 ERR a-1. Continue to partner with Downtown SLO to ensure the recovery and growth, and vitality of the
Downtown. Ongoing
35 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
36 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
37 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
38 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
39 ERR a-6. Support the restart of the various Downtown SLO activations like Farmers, Concerts in the Plaza and the
Holiday Parade. Ongoing
40 ERR a-7. Continue to promote the Downtown to tourists, visitors and locals through the efforts of the TBID and
the PCC. Ongoing
41 ERR
b-1. Update the Zoning Regulations to allow for more flexible administration of allowed uses, especially
downtown, to support desired pop-up, shared-resource and new business model approaches to facilitate
business opportunities in the community.
Original: FY23 Q2
Updated: FY23 Q4
42 ERR b-2. Look at flexible uses in private commercial parking lots to support desired pop-up, shared-resource and
new business model approaches to facilitate business opportunities in the community. Complete
43 ERR c-1. Support Arts and Culture in the downtown while ensuring appropriate efforts are made to support DEI
through available programs.Ongoing
44 ERR c-2. Support the recovery of Arts and Cultural activities by working with new and existing community
partners.Ongoing
Budget Document Pg. 127 Page 587 of 652
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
45 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
46 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
47 ERR c-5. Support creation and partnership of a Downtown Mural Program with Downtown SLO and SLOMA.Ongoing
48 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
49 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
50 ERR d-11. Expansion of maintenance to ensure parking structures and adjoining areas remain safe, clean and
orderly (see above for fiscal impact)Ongoing
51 ERR d-12. Parking structure maintenance at 842 Palm, 871 Palm, and 919 Palm.Ongoing
52 ERR d-13. City Hall lighting: Project has design funding allocated year two of the 2021-23 Financial Plan with
construction funding the preceeding year.
Original: FY23/24
Updated: FY23/25
53 ERR d-2. Replace the existing Mission Plaza Restrooms in compliance with Mission Plaza Concept Plan and Council
Direction.FY23 Q4
54 ERR d-3. Construct the new Palm/Nipomo structure in coordination with SLO REP theatre.FY24 Q1
55 ERR d-4. Continue with the City banner program.Ongoing
56 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
57 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
58 ERR d-7. Investigate opportunities to develop a Downtown Wi-Fi Mesh.Ongoing
59 ERR d-8. Expansion to gateless parking structure to improve the customer access and experience when visiting
downtown.
Original: FY22/23
Updated: FY23 Q4
60 ERR d-9. Assist with the continuation of Open SLO parklets and courtesy curbside pick up locations Ongoing
61 ERR e-1. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors and homelessness
support. Ongoing
62 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
63 ERR e-3. Continue to provide public safety presence in the downtown. Includes costs of Downtown Bike Patrol,
Sergeant, and Officers)Ongoing
64 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
65 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
66 ERR e-6. Evaluate a plan to reestablish a downtown sub station for public safety. (Potential of adding to Mission
Plaza Project)Ongoing
67 ERR e-7. Track hours worked (regular and overtime hours) by the downtown sergeant and downtown officers and
tracking crime statistics.Ongoing
68 ERR
e-8. Downtown safety enhancements - Anti-Vehicle Bollards have been purchased, branded, and
implemented on the north and south Higuera Street entrance to Farmer's Market. Public Works staff
recently met with the manufacture to discuss some of the limitations, and will be meeting with public safety
in early April for concurrence of the full closure. Staff expects to have the remainder of the Farmer's Market
entrances implemented by the end of FY22 Q4.
FY22 Q4
69 ERR e-9. Mission Plaza Railing Replacement FY22 Q2
70 1.5 Practicing fiscal responsibility
Budget Document Pg. 128 Page 588 of 652
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
71 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
72 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
73 ERR c. Negotiate successor agreements with employee groups in alignment with Council adopted Labor Relations
Objectives.Ongoing
74 ERR d. Complete benchmark compensation survey for SLOCEA, Management, and Confidential groups.Complete
75 ERR e. Continue to monitor and reduce liability and workers’ compensation claims through actions aimed at
reducing liability and workers’ compensation costs. Ongoing
76 ERR f. Injury Reduction Programs, Compliance Software, Onboarding Software, and transitioning to electronic
files Ongoing
77 1.6 Paying down unfunded pension liabilities
78 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
79 1.7 Investing in critical infrastructure
80 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
81 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
82 ERR c. Administrative Costs to Support Investment in CIP (Office modifications, Interns)Ongoing
83 2.1 Establish Office of DEI
84 DEI a. Design DEI Administration, Function, and Operations of the Office Complete
85 DEI b. Develop DEI Base Operating Budget Complete
86 DEI c. Identify and secure office space (2000/mo @ 7 mos Y1, 12 mos Y2)Complete
87 DEI d. Develop positions; Hire Staff Complete
88 DEI e. Hire Diversity position - 1.0 FTE FY22 Q2
89 DEI
f. Hire -DEI Administrative Support - .5 FTE Original: FY22 Q3
Updated: FY23 Q1
90 DEI
g. Hire CivicSparks Fellow - Y2 - .75 FTE Original: FY22 Q3
Updated: FY23 Q2
91 DEI h. Hire Interns - Cal Poly, Cuesta, community candidates - .25 FTE - 2 positions Y1 @ midyear / 2 - Y2, full
year FY22 Q3
92 DEI i. Consultant - DEI SME - 360 total hours Ongoing
Budget Document Pg. 129 Page 589 of 652
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
93 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
94 DEI k.Implementation of prioritized activities – internal and community-based Ongoing
95 DEI l. Support DEI efforts throughout each department Ongoing
96 DEI m. Coordinate activities of the DEI Employee Committee Ongoing
97 DEI n. Community-based outreach, education, programming Ongoing
98 DEI o. DEI High Impact and GIA grant administration and management Ongoing
99 DEI p. Cal Poly & Cuesta collaborations Ongoing
100 DEI q. Support the HRC Ongoing
101 2.2 Develop & Implement DEI Strategic Plan
102 DEI
a. Conduct needs, priority, and resource assessments. Create comprehensive DEI initiatives and programming
for the organization and community. Original: FY22 Q4
Updated: FY23 Q4
103 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 Complete
104 DEI
c. Present comprehensive plan to City Council for Adoption Original: FY22 Q2
Updated: FY23 Q4
105 DEI
d. Create project designs and implementation plans. Identify applicable qualitative and quantitative metrics
to measure impact of DEI projects and overall DEI program Original: FY22 Q2
Updated: FY23 Q3
106 DEI e. Begin implementation of prioritized programs and projects; scoped as resources allow. To be determined
through Strategic Planning process.Ongoing
107 2.3 Workforce Recruitment & Retention
108 DEI a.Improve DEI-Focused Recruitment, Screening, Hiring Practices Ongoing
109 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
110 DEI c. Provide DEI-focused screening and interviewing training to personnel and panels - supported by consultant,
2.1.4.g Ongoing
111 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
112 DEI e. Conduct Pay Equity Audit Ongoing
113 DEI f. Examine Policies and Programs to Support for Primary Caretakers Ongoing
114 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
115 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
116 DEI i. Expanded Recruitment Services Expenses to Augment HR Complete
117 DEI j. Fire: Recruit Academy Support and Intern Program - enhance DEI recruitment efforts Ongoing
118 2.4 Inclusive & Equitable Workplace
119 DEI
a. Develop and Adopt Diversity Statement for the Organization Original: FY22 Q3
Updated: FY23
Q1.
120 DEI b. Assist Departments in infusing DEI into their programs, policies, and practices in relevant and practical
ways Ongoing
121 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
122 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
123 DEI e. DEI-related Staff Development / Training Ongoing
124 DEI f. Implement a DEI module in new hire onboarding FY23 Q2
Budget Document Pg. 130 Page 590 of 652
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
125 DEI g. Provide training and other learning opportunities for all levels. E.g. inclusive leadership, cultural
competency, assessments, speakers, self-study, etc. Ongoing
126 DEI h. Continue Clarity Collective training as foundation training - ASSIGNED / RESOURCED TO HR Ongoing
127 DEI i. Training for Council, Commission, Advisory Board – tailored for roles, Brown Act, etc.Ongoing
128 DEI
j. Complete a planning study for gender-inclusive restroom and sleeping facilities for Fire Stations 3 and 4.
Proceed with design work pending results of study.Original: FY23 Q4
Updated: FY24 Q2
129 2.5 Community-based Policing and Restorative Practices
130 DEI a. Implement After Action Report recommendations Complete
131 DEI b. Review and implement Governor’s recommendations regarding protests when issued Complete
132 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
133 DEI
d. Review new Police Station building program and budget for opportunities to reduce costs to preserve
resources for community service investments Original: FY22 Q2
Updated: FY22 Q3
134 2.6 Cal Poly & Cuesta Partnerships
135 DEI a. Solidify relationships and collaborations Ongoing
136 DEI b. CP Office of University Diversity and Inclusion (OUDI) and City DEI Office/City Manager Leadership
quarterly planning meetings Ongoing
137 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
138 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
139 DEI e. Explore opportunities and build collaborations with Cuesta College Ongoing
140 DEI f. Provide City facilities as available to campus DEI programs delivered to and in the community Ongoing
141 DEI g.Utilize interns from Cal Poly and Cuesta within the Office of DEI Ongoing
142 2.7 Access, Inclusion, Support for Underrepresented Communities
143 DEI a.High Impact DEI Grants Ongoing
144 DEI b. GIA Grants Ongoing
145 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
146 DEI e. Support feasibility study for Multicultural Center; provide City liaison/staff support FY23 Q4
147 DEI f. Contribute to planning / feasibility study FY23 Q4
148 DEI
g. Update City's formal Public Engagement & Noticing (PEN) procedures as well as other public outreach,
input efforts to increase diverse participation. Develop tactics and cost to implement Original: FY23 Q4
Updated: FY23 Q1
149 DEI h. City 101 / Community Academy to increase understanding / access / participation in City government Ongoing
150 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
151 DEI j. Community Academy – second stage, longer program. Partner with Chamber, others. Test demand,
develop. Pilot Y2 FY23 Q4
152 DEI
k. Develop “Undocu-Friendly” logo for City documents, as allowable by law (cost of internal resources)Original: FY22 Q4
Updated: FY23 Q1
153 DEI l. BIPOC youth artists' public art project. Feature work that provides a fuller representation of all
communities. Artists are stipended. Pilot in Y2 - ASSIGNED & RESOURCED TO P&R FY23 Q4
154 DEI
m. Park major maintenance and repairs specific to Cheng Park improvements and Mission Plaza railing
improvements. Original: FY22 Q4
Updated: FY23 Q4
Budget Document Pg. 131 Page 591 of 652
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
155 DEI n. Parks Major Maintenance - ADA Transition Plan Implementation Ongoing
156 2.8 Community Education & Programming
157 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
158 DEI b. Utilize proven providers rather than City develop program. City serves as coordinator, sponsor, convener,
etc. Ongoing
159 DEI c. Determined by interest, guidance by BIPOC, other URMs, DEI committee, HRC + public input, etc. Ongoing
160 2.9 Support & Attract Minority-Owned Businesses
161 DEI
a.Establish a process for the City to recognize and promote Minority-owned businesses Original: FY22 Q4
Updated: FY23 Q2
162 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.
Original: FY22 Q4
Updated: FY23 Q2
163 DEI
c.Establish a City Leadership/Chamber of Commerce / Minority Business Owners’ roundtable.Original: FY22 Q4
Updated: FY23 Q4
164 DEI
d. Research, explore and potentially utilize innovative practices such as micro-loans, targeted-sector
recruiting and promotion, City-facilitated lending, grants, private support and crowdfunding to support
underserved/underrepresented communities. Leverage City's partner network, including the Chamber,
Downtown SLO, REACH and others to support the DEI initiatives as they relate to economic development
including creation, retention and attraction efforts.
FY23 Q4
165 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.Ongoing
166 DEI
f. Establish a process for the City to recognize and promote Minority-owned businesses Original: FY22 Q4
Updated: FY23 Q2
167 3.1 Implement Housing Element
168 HH a. Inclusionary Housing Ordinance (HE programs 2.13 & 4.6)Original: FY23 Q3
Updated: FY23 Q1
169 HH b. Flexible Density Program (HE Program 2.15)FY23 Q3
170 HH c. Develop Objective Design Standards & Update Development Review Process (HE 6.22 & 6.23)Complete
171 HH d. Zoning Regulations Update - Housing (HE 5.5, 8.18, 8.23, 2.17 and AB 2345)Complete
172 HH e. Subdivision Regulations Update (HE 6.20)FY23 Q1
173 HH f. Missing Middle Housing (SB9 - HE 5.4)Original: FY23 Q2
Updated: FY23 Q1
174 HH f-2. Missing Middle Housing (SB10 - HE 5.4)Original: FY23 Q2
Updated: FY23 Q4
175 HH g-1. Additional Housing Element Program Implementation (HE 2.16)FY23 Q2
176 HH g-2. Additional Housing Element Program Implementation (HE 2.18)Complete
177 HH g-3. Additional Housing Element Program Implementation (HE 3.10, 4.7 & 4.8)Ongoing
178 HH h. Regional Coordination (HE Chapter 4)ongoing
179 HH i. Housing Element Program Implementation (Chapter 3)ongoing
180 HH
j. Construct Prado Road Creek Bridge Replacement & S. Higuera/Prado Road intersection reconstruction,
adding protected bicycle lanes, sidewalks and a bicycle protected intersection, as recommended in the Active
Transportation Plan.
Original: FY24 Q1
Updated: FY24 Q2
181 HH
k. Complete construction of the Prado Road Interchange project, providing more efficient connectivity for
motor vehicles and transit service (reducing VMT), and providing physically-separated facilities for bicycles
and pedestrians, as recommended in the Active Transportation Plan.
Original: FY25 Q1
Updated: FY25 Q2
Budget Document Pg. 132 Page 592 of 652
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
182 HH l. Development related park improvements specific to Laguna Lake and Orcutt Area. FY23 Q4
183 HH m. CDD Fleet Replacement Ongoing
184 3.2
185 HH a. Development review project referrals ongoing
186 3.3
187 HH a. Inventory Management; Monitoring; Escrow services; Homebuyer & rental services; BEGIN/FTHB ongoing
188 3.4 Financial Management
189 HH a. CDBG Program Administration ongoing
190 HH b. GIA Progarm Administration ongoing
191 HH c. Affordable Housing Fund Administration ongoing
192 HH d. Grant research; applications; coordination ongoing
193 3.5 Advisory Body & Council meetings & support
194 HH a. Reports, Community meetings, presentations (does not include time associated with tasks identified
herein)ongoing
195 HH b. HRC liasion ongoing
196 3.6 Homelessness Team Coordination
197 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
198 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.
Original: FY22 Q3
Updated: FY23 Q1
199 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
200 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
201 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
202 HH f. Housing and Homelessness City Staff ongoing
203 3.7 Environmental Protection and Water Quality
204 HH a. Environmental clean-ups in creek and open space areas associated with abandoned personal property and
trash (Parks & Rec)Ongoing
205 HH b. Environmental clean-ups in creek and open space areas associated with abandoned personal property and
trash (Parks & Rec)Ongoing
206 HH c. Environmental clean-ups in City Parks and public spaces associated with abandoned personal property and
trash (Public Works)Ongoing
207 HH d. Environmental clean-ups in City Parks and public spaces associated with abandoned personal property and
trash (Public Works)Ongoing
208 3.8 Regional Engagement and Grant Management
209 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
210 HH b. Attend HSOC & PACT meetings, support City seat on the Commission, and report status of agenda items
back to staff ongoing
211 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
212 3.9 Community Action Team Resources
213 HH a. Expand the current Community Action Team by adding an additional social worker position.ongoing
214 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
215 HH c. Continue to provide public safety services by utilizing the downtown bike team.ongoing
216 3.10 Mobile Crisis Unit Pilot Program
Budget Document Pg. 133 Page 593 of 652
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 a. Pair a crisis worker with an Emergency Medical Technician (EMT) to provide non-emergency response and
care to unhoused community members.
Original: FY22 Q3
Updated: FY22 Q4
218 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
219 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
220 3.11 Non-Profit Partner Support
221 HH a. Support non-profit partners in pursuing funding resources, such as CARES Act and Project Homekey grants.ongoing
222 HH b. Support a 25% expansion of the number of beds at the 40 Prado Homeless Services Center.Complete
223 HH c. Continue to expand Safe Parking opportunities and support coordinated regional efforts for Safe Parking,
transitional housing, and other shelter resources.ongoing
224 HH d. Ongoing General Fund support to CAPSLO for 40 Prado (includes safe parking, warming center, operational
support)ongoing
225 HH e. Bus Token in-kind program to CAPSLO ongoing
226 HH f. General Fund low income utility subsidies Ongoing
227 HH g. Federal CDBG Grant for social services (Provided to CAPSLO to help fund Homeless Services Center
operations)ongoing
228 4.1 Provide Sustainability Resources to achieve Council's Adopted Goals
229 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
230 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
231 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
232 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 Year 1 for minor office retrofits to support the office of
sustainability
Ongoing
233 CA e. Hire a CivicSpark Fellow for one year to initiate, complete, and begin implementing a municipal solid waste
reduction initiative.Complete
234 CA f. Continue grant writing consulting support to ensure focused and competitive proposals for state, federal,
and private grants. Ongoing
235 CA h. Orient the Green Team to support "Lead by Example" implementation, "Resilient SLO" implementation,
and all-staff educational efforts.Ongoing
236 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
237 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
238 CA k. Continue to monitor the status of the Integrated Waste Management Authority (IWMA) Polystyrene
Ordinance and respond as needed and appropriate.Complete
239 4.2 Continue to update and implement the Climate Action Plan ("CAP") for carbon neutrality
240 CA
a. Complete the Biennial Climate Action Plan Update, as called for by CAP Administrative Action 3.
Original: FY23 Q2
Updated: FY23 Q3
Budget Document Pg. 134 Page 594 of 652
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MCG Task Completion Date
241 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
242 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
243 CA d. Update the Clean Energy Choice Program for New Buildings for consistency with the 2022 California
Building Code update, as called for by CAP Green Buildings task 1.1.FY23 Q2
244 CA
f. Initiate a new grant program to catalyze energy efficiency and decarbonization retrofit projects in existing
buildings that will also serve as demonstration and showcase projects, in support of CAP Green Buildings task
2.1.
FY23 Q4
245 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.FY24 Q3
246 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
247 4.3 Continue preservation, maintenance, and enhancement of the City's open space and urban forest
248 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
249 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.
Original: FY22 Q2
Updated: FY23 Q2
250 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
251 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
252 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
253 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.
Removed
254 CA g. Implement priority projects and actions at Cerro San Luis Natural Reserve consistent with the updated
Conservation Plan.ongoing
255 CA
h. Update the existing South Hills Natural Reserve Conservation Plan (2007), including a contemporary
natural resources inventory, mapping, policy review, and identification of land stewardship needs and
priorities.
2023-25
256 CA i. Implement priority projects at South Hills Natural Reserve consistent with the updated Conservation Plan.2023-25
257 CA j. Create the Righetti Hill Open Space Conservation Plan in order to guide the long-term protection and
appropriate public use of this new City Open Space property.FY23 Q4
Budget Document Pg. 135 Page 595 of 652
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
k. Implement priority projects at Righetti Hill Open Space consistent with the Conservation Plan.
Original: FY23 Q4
Updated: FY23/25
259 CA l. Complete installation of adopted trail systems and establish regular Ranger Service patrol at Miossi Open
Space.
Original: FY23 Q4
Updated: FY22 Q4
260 CA m. Complete installation of adopted trail systems at the Waddell Ranch addition to the Irish Hills Natural
Reserve. FY23 Q4
261 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
262 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
263 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
264 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
265 4.4 Alternative and sustainable transportation
266 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.Original: FY22 Q3
Updated: FY23 Q2
267 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.
Original: FY22 Q4
Updated: FY23 Q2
268 CA
c. Prepare a Transit Innovation Study to provide a blueprint to guide the transition to increased service
frequency, electrification and feasibility of no-fare service for students, seniors, and others as called for in
CAP Connected Communities tasks 4.2, 4.3, and 4.4.
Original: FY23 Q1
Updated: FY23 Q2
269 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
270 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
271 CA f. Construct sidewalk repairs and new ADA curb ramps to improve access and safety for pedestrians,
particularly those with mobility challenges.Ongoing
272 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
Budget Document Pg. 136 Page 596 of 652
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
273 CA
h. Construct the Cerro San Luis 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
Original: FY22 Q4
Updated: FY23 Q1
274 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.Original: FY22 Q3
Updated: FY23 Q1
275 CA j. Complete construction of the California/Taft Roundabout, reducing congestion and auto emissions and
improving access and safety for bicycles, pedestrians and drivers.FY23 Q4
276 CA k. Install new streetlights throughout the city Ongoing
277 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
278 CA
m. Widen Higuera Street from Bridge to Elks to address collision trends by providing a center left-turn lane
and improve bicycle facilities. Original: FY23 Q2
Updated: FY23 Q3
279 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
280 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 Q3
281 CA p. Continue advancing the electrification of the SLO Transit vehicle fleet, including electrification of buses and
bus charging infrastructure. Ongoing
282 CA
q. Replace SLO Transit bus shelters to maintain a quality environment for new and future transit users.Original: FY23
Updated: FY22 Q4
283 CA r. Fund two Transportation Interns to assistance with implementation of sustainable transportation projects
and programs.Ongoing
284 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
285 CA t. Preserve and repair pavement surface within SLO Transit Bus Yard FY22 Q4
286 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
287 CA
v. Street Reconstruction and Resurfacing: Implement the City's Pavement Management Program, repairing
pavement surfaces along roadways throughout the city while leveraging opportunities for safety and
multimodal street improvements.
Ongoing
288 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
289 CA
x. Development Agreements: Fund the City's share of costs associated with public infrastructure to be
constructed by private development projects per reimbursement agreements for the following projects:
- Avila Ranch -- City share of Buckley Road Extension Class I Path
- 600 Tank Farm -- City share of Tank Farm/Santa Fe Roundabout, Santa Fe Road Extension, and Design &
Right-of-Way for Tank Farm Class I Path
FY23 Q4
290 4.5 Planning and implementation for resilience
291 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.
Original: FY22 Q4
Updated: FY23 Q1
292 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
293 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
Budget Document Pg. 137 Page 597 of 652
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
294 CA
d. Replace or repair Open Space fencing that is currently in disrepair at Cerro San Luis Natural Reserve, Irish
Hills Natural Reserve, Bowden Ranch Open Space, and the Bob Jones Trail. (Includes existing Creek and Flood
Protection Staffing resources)
FY23 Q4
295 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
296 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
297 CA
g. Support development of the "Micro Community Collaborative" (MCC) initiative with SLO Climate Coalition,
which includes a 1) web platform for community members to learn how they can complete their own
sustainability initiatives, and 2) coordinating support to advertise the web platform and support communities
of practice throughout the city.
FY23 Q4
298 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
299 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
300 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
301 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
302 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
303 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
304 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.
Original: FY22 Q2
Updated: FY22 Q3
305 CA
o. Project: Ludwick Community Center - Roof and Solar Replacement (This funding provides for capital
maintenance of faculties that will reduce unplanned repair costs and optimize energy use by providing
planned equipment replacements and building shell sealing. Benefits of proper infrastructure maintenance
reduces the cost of major repairs, increases energy efficiency, and ensures the facilities remain in functional
condition.)
Original: FY24 Q2
Updated: FY24 Q3
306 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.
Complete
307 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.
Complete
308 CA
r. Sustainable Groundwater Management Act (SGMA) Groundwater Sustainability 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
Budget Document Pg. 138 Page 598 of 652
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
309 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 Document Pg. 139 Page 599 of 652
Section 9: Department Updates
The next section provides an update on each of the City’s ten operating Departments, including
Departmental Goals and Performance Measures.
Budget Document Pg. 140 Page 600 of 652
Department Updates Administration and IT
Administration and Information Technology Department
Department Summary and Changes from Financial Plan
The Administration and Information Technology Department is responsible for providing information and
recommendations to the City Council, implementing Council policies and programs and managing the day
to day operations of the City. It is also the lead department charged with overseeing the implementation
of several of Council’s Major City Goals. The department is organized by the Office of the City Manager,
Office of the City Clerk, Office of Economic Development and Tourism, Office of Sustainability and Natural
Resources, Office of Diversity, Equity and Inclusion, and the Office of Information Technology.
In February, Administration and IT welcomed the City’s first Diversity, Equity and Inclusion (DEI) Manager
who will continue to advance DEI priority initiatives in the City organization and community. Several
projects have already been completed including a Memorandum of Understanding between Cal Poly’s
Office of Diversity and Inclusion and the City that outlines efforts to strategically align and collaborate on
DEI efforts. A new DEI section was added to the City’s Legislative Platform and a community speaker series
was launched. Looking ahead to the 2022-23 fiscal year, DEI high impact grants will have an extended
grant amount of $300,000 to account for the missed cycle due to the delayed onboarding of the DEI
Manager.
The City’s Economic Development Program continued to focus on the recovery from the impacts of the
pandemic. Initially it was planned to update the Economic Development Strategic Plan (EDSP) in the early
part of the 2022-23 fiscal year. Due to several factors, including the unexpected, delayed return to
normalcy after the COVID-19 pandemic and the REACH team securing funding to do a region-wide
Comprehensive Economic Strategy (CEDS) during the same period, staff determined that it would be more
effective to postpone the update six months to ensure the best outcome possible. The City’s Tourism
Program through the Tourism Business Improvement District (TBID) continues to be successful in the
development and management of the City’s tourism brand through advertising, public relations,
community partnerships, and creative content. The City’s Community Promotion program through the
Promotional Coordinating Committee (PCC) accomplished the implementation of the modified Grants in
Aid (GIA) program including the addition of community workshops focused on advancing sustainability
and inclusivity in events. Additionally, the PCC developed a public art promotional plan to support the
implementation of the Public Art Master Plan.
The City’s Communications Program has been more active than ever, utilizing more graphics and videos
to communicate information as well as new features including staff highlights and City meeting
summaries. The number of news releases distributed will likely not reach the 2021-22 target, but the
City’s overall reach has expanded due to the increased use of additional channels such as social media
and direct emails which do not always have a corresponding news release. As part of the 2022-23 fiscal
year, the Communications Program will develop a crisis communications plan for the City, update the
Public Engagement and Noticing (PEN) Manual, and develop a communications plan to be implemented
in the 2023-25 Financial Plan.
The Office of Sustainability and Natural Resources has been active with preparation of the Climate Action
Plan 2022 Update including a public engagement process, participating on the Resilient SLO climate
Budget Document Pg. 141 Page 601 of 652
Department Updates Administration and IT
adaptation planning process together with the Community Development Department, the Clean Energy
Program for New Buildings update and the Better Buildings SLO retrofit program, as well as activating the
Green Team for implementation of the Municipal Climate Action Plan. Staff are also continuing work on
a suite of conservation easement projects that are anticipated to permanently protect valuable open
space and natural resource values in areas throughout the City’s Greenbelt. Other key work items have
included completion of the carbon sequestration study for Johnson Ranch Open Space and City Farm in
partnership with the Coastal San Luis Resource Conservation District and progress towards the Urban
Forest Master Plan.
The City Clerk’s Office completed an annual training for Advisory Body Members, ensured compliance
with several City-wide regulatory mandates and is prepared to implement hybrid meetings for City
Council, and Planning Commission in fiscal year 2022-23. The Clerk’s Office is also prepared and ready to
conduct the November 8, 2022, Municipal Election for Mayor and two Council Member seats.
Rounding out the department is Information Technology which provides the network and information
technology infrastructure, support, training, policy and technology strategic planning. The Information
Services (IS) Team is working on three Cityworks-related projects: Whale Rock addition to Cityworks,
Velosimo Springbrook-Cityworks integration, and IT Pipes upgrade. The IS Team is also revamping the
“Web GIS” to improve sharing of information and enhance collaboration among several different
departments and other agencies. The Network Services (NS) Team added additional redundancy to
backups to protect from ransomware and other threats, which accounts for the increase in data backed
up.
The department is not proposing any work program changes from the Financial Plan and will continue its
contribution to the City’s strategic goals and departmental objectives.
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 2021-22
Target
2021-22
Projected
Actual
2022-23
Target
Provides City-wide
communications to the
community.
Strategic Goal: Citywide
Communications
Open City Hall Participant
Satisfaction Rating 90% 94% 90%
# of City News Releases 1 150 115 175
1 Actuals for FY21 includes COVID-19 County Press Releases sent by the City. From FY15 through FY20, the City
averaged 143 City News Items per year and the program is now investing more in additional communication channels
such as social media and direct emails which do not always have a corresponding news release.
Budget Document Pg. 142 Page 602 of 652
Department Updates Administration and IT
Objective Measure 2021-22
Target
2021-22
Projected
Actual
2022-23
Target
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 173,000 335,000 173,000
Number of GIS layers maintained 905 920 905
Economic Stability
Strategic Goal: Economic
Recovery and Stability
Contacts with businesses regarding
starting, expanding, and/or staying
in the City
75 822 75
One-time funds used for direct aid to
local businesses and non-profits $500,000 $500,000 3 $250,000
Supports our commitment to
sustainability and provides
open space resources to the
community.
Strategic Goal: Climate
Action, Open Space, and
Sustainable Transportation
# of Green Team 4 Meetings 10 10 10
# 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
Strengthens the City’s
commitment to advancing
Diversity, Equity and
Inclusion
Strategic Goal: DEI
# of City-wide DEI Trainings Offered 5 10 22 12
Funds for High-Impact DEI Grants
Awarded 6 $150,000 $0 $300,000
2 At the time of writing there were approximately 66 contacts and based on the average number of contacts per
month we will end slight ahead of the target.
3 Due to the delayed conclusion of the pandemic and timing issues approximately $50,000-$75,000 of the funds may
be carried over to FY 2022-23 to complete projects developed in 2021-22.
4 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.
5 Includes DEI intro/info sessions held in July and Augut 2021 with almost all functional teams. “City-wide” trainings
will increase once the DEI program is fully established.
6 FY 2022-23 DEI high impact grants will have an extended grant amount of $300,000 to account for the missed grant
cycle in FY 2021-22.
Budget Document Pg. 143 Page 603 of 652
Department Updates City Attorney
City Attorney Department
Department Summary and Changes from Financial Plan
The attorneys and administrative staff of the City Attorney Department continue to provide sound,
thorough legal advice and services to the City Council, advisory bodies and City staff to support legal
compliance and reduce exposure to liability; to advance most, if not all, Major City Goals and other
important City objectives; and to maintain the core department objectives of completing efficient and
reliable document review; providing and/or managing qualified counsel; and coordinating the
administrative citation appeals hearing, claims review, and public record request legal review processes.
The 2021-23 Financial Plan was adopted with the short-term goal of keeping the department staffed in a
manner sufficient to maintain the necessary level of service delivery while launching, participating in, and
concluding a department organizational assessment. The temporary and contract supplemental staff of
the department have done an excellent job of quickly getting up to speed, asking good questions, and
supporting the department’s functions throughout an assessment process which has, unfortunately,
dragged on months past its estimated completion. At mid-year, Council approved the addition of three
regular staff positions based on the draft recommendation of the assessment and doubling the number
of full-time, regular staff assigned to the department. Recruitment for the first of those three positions
has begun and everyone is excited to begin onboarding and mentoring long-term, regular staff.
While the Financial Plan had been constructed intending to transition new staff in January 2022, and a
delayed organizational assessment was not foreseen, the department intends to meet the challenge of
this delay and begin onboarding new staff in June 2022. Various temporary support functions have been
implemented to make the onboarding/transition process manageable - for the time being, code
enforcement will be handled by outside counsel, who provides similar services for other local cities, which
will allow the department attorneys to focus on larger, more complex issues and avoid time wasted
waiting in court for hearings to be called; the part-time temporary Assistant City Attorney, who has been
with the City for several years, will continue in a part-time role, but hopefully work on assignments that
utilize his experience and strengths; and new matters and work efforts will continue to be analyzed for
efficient completion by outside counsel and funded, when applicable, by developer or applicant funds.
Litigation and claims have intensified during the year, including challenges to housing development
approvals, cannabis regulatory actions, and police civil rights actions. Despite overwhelming success in
defending the City against a variety of meritless cases, the management and support for the City’s defense
has demanded an unfortunately disproportionate level of staff and attorney time, and public financial
resources. Regardless of the time and attention such matters have required, staff have continued to
provide legal advice and support to Council and staff throughout the organization to help advance, or
bring to completion, dozens of important projects, including:
•The implementation of SB 1383’s solid waste mandates and reorganization of the Integrated
Waste Management Authority, which required the drafting and review of the joint powers
agreements, ordinances, franchise agreement amendments, and rate setting documents.
•Negotiation with the County regarding satisfaction of RTA’s conditions of approval related to
future construction of the Elks Lane realignment.
•Reached a significant milestone in the Citywide Contract Templates project by drafting and
updating seven new contract templates to be used Citywide, developing staff training materials,
Budget Document Pg. 144 Page 604 of 652
Department Updates City Attorney
and creating a Contracts SharePoint site where all City staff can access approved templates and
training materials.
• Drafted and negotiated the agreement for the City’s nearly $4 million grant to the SLO Reparatory
Theatre to assist in the construction of SLO Rep’s new facility.
• Assisted Planning staff with completing the City’s 6th Cycle Housing Element.
• Amendments to the City’s cannabis regulations
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.
Strategic Goals Measure
2021-22
Target/
Expected
Volume
2021-22
Projected
Actual
2022-23
Target/
Expected
Volume
Timely and Responsive
legal advice and
support
Strategic Goal:
Department Objectives
Administrative Citation Appeals
Received by the City 150 117 120 1
Appeals closed without need of a
hearing 2 25 35 25
City assisted corrections to defective
appeals to allow access to hearing 15 19 15
City facilitated hearings on the record
without need for personal appearance
by Appellant
50 29 40 3
# of hearing days scheduled 7 11 7
Legal Training &
Compliance
Strategic Goal:
Department Objectives
# of Council, Staff, and Advisory Body
legal trainings, legal updates, and
compliance advisory sessions
12 6 4 12
Municipal Litigation &
Prosecution
Management
Strategic Goal:
Department Objectives
Percentage of Claims Resulting in
Litigation <5% 9%5 <5%
Liability Claims Against the City
Reviewed/Managed 70 67 70
1 The exponential increase in appeals that occurred related to the enforcement of COVID-19 health orders (April 2020 to Summer
2021) appears to have subsided so, target being lowered closer to previous year amounts
2 Closed in some way that did not include a decision being issued (e.g. withdrawn by appellant, untimely filed, voided by the
issuing department)
3 The reduced volume of appeals received will translate into fewer that can be decided without a hearing so, reduction made to
this target as well
4 The ongoing time and attention demanded by the organizational assessment and the delay in bringing that effort to a close (so
its staffing and other recommendations could be implemented) has reduced the amount of time available for planning and
presenting these legal training sessions.
5 This high percentage is from six cases. Five of those are: a person injured during after-hours, reckless use of a City park; an unfair
labor practices charge; a writ petition to force the City to permit a disqualified cannabis business applicant; damage done to a
gas main during a contractor’s work for the City; and a writ to force the issuance of a permit for a yard structure built in violation
of the building code. The sixth lawsuit was known to not involve the City but was filed to include it anyway out of the plaintiff’s
abundance of caution. The City was recently dismissed from the case following production of discovery responses that supported
its non-involvement.
Budget Document Pg. 145 Page 605 of 652
Department Updates Community Development
Community Development Department
Department Summary and Changes from Financial Plan
The Community Development Department includes the Administration, Housing Policy and Programs,
Planning, Engineering, and Building & Safety divisions which develop, implement, and track guiding
policies in the City's General Plan. Plans for new construction are reviewed through planning applications
to ensure compliance with City standards and policy objectives. Construction is supported through
implementation of zoning, building, and engineering codes and through coordination with a wide variety
of City departments. The Community Development Department provides service to the community
directly at its public counter and services offered on‐line on the City’s website. The department helps
maintain the health and safety of the community directly through code enforcement activities, and
indirectly by guiding the City's urban form from concept to construction.
All divisions within the department have done an exceptional job of handling high workload with a few
experiencing numerous employee vacancies. Some of these areas of consistent or increasing workload
include reviewing planning applications, public improvement projects, code enforcement violations,
building inspections, and building permits. Additionally, the department processed numerous agreements
for the City’s affordable housing portfolio, created Objective Design Standards, updated the Zoning
Regulations, and made significant progress on updating the Inclusionary Housing Ordinance and
developing the Homelessness Strategic Plan.
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 2021-22
Target
2021-22
Projected
Actual
2022-23
Target
Affordable housing production
Strategic Goal:
Housing
Number of affordable housing units
secured through entitlements or
construction
50 112 1 50
Provide Excellent Customer Service
Strategic Goal:
Other Department Objectives
Customer survey response positivity
rate 95% 91% 80%2
1 The number of affordable housing units that have been secured is higher than anticipated due to the sporadic
timing in the entitlement process that is hard to project. 94 of these units are from a single development project
that received a land dedication to produce 100% affordable housing units and a density bonus.
2 Reducing due to a discrepancy with the initial target and changing to the Customer Satisfaction Score (CSAT)
standard.
Budget Document Pg. 146 Page 606 of 652
Department Updates Community Development
Objective Measure 2021-22
Target
2021-22
Projected
Actual
2022-23
Target
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
85%
85%
85%
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.
75% 78% 75%
Building Inspections
Strategic Goal:
Economic Stability
Percent of inspections performed the
next working day 85% 96% 90 3%
3 Increasing target based on success of next‐day inspections.
Budget Document Pg. 147 Page 607 of 652
Department Updates Finance
Finance Department
Department Summary and Changes from Financial Plan
The Finance department is tasked with safeguarding the City’s resources and fiscal health by
implementing financial policies, procedures, and reporting systems to serve the citizens and enable
operating departmens to achieve their objectives. Finance plays a key role in the City’s Economic Stability
and Recovery Major City Goal by developing strategies to reduce pension unfunded liabilities and
enhancing the City’s financial system to support accurate and timely accounting processes. With the
passage of Measure G-20, the City’s budget increased by about $15 million annually, requiring two full-
time staffing positions to be added with the Financial Plan to help right-size the department resources
with the growth and service demands of the City organization.
For the first time in over two years, the department is fully staffed and looks forward to redistributing
workload which will help staff deliver on core services and objectives more efficiently. The department
continues to make progress on its strategic goals such as improving the Oracle ERP and HCM systems in
coorindation with IT. The City was also able to make it’s planned $12.4 million additional downpayment
to CalPERs which will help achieve the City Council directed goal to reduce the pension unfunded liabilities.
On May 17th, the Council adopted a resolution updating the City’s Purchasing Policy including
considerations for a Local Preference and Sustainability in procurement.
The department is not proposing any changes from the Financial Plan and will continue its contribution to
the City’s strategic goals and departmental objectives.
Performance Measures
Objective Measure 2021-22
Target
2021-22
Projected
Actual
2022-23
Target
Enables & enhances transparency,
accountability & integrity.
Strategic Goal: Fiscal Policies
# of calendar days following year-end until
CAFR is issued 170 180 170
# of audits/reviews conducted/ # of
additional agreed upon procedure audits
performed
2/2 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 debt per capita (General Fund) $44 $42.4 $42.3
Twelve-month total rate of return/City
portfolio 3% -0.76%1 3%
1 Based on the February 2022 Investment Report. While ultimately the City aims for a long-term rate of return of 3%,
market volatility can cause swings from year to year. This was especially true during the pandemic years due to the
Fed’s monetary policy to assist economic activity and recovery. The 3-year average is currently 2.7%. As a
government entity, the City’s primary investment objective is to achieve a reasonable rate of return on public funds
rather than the maximum generation of income, which could expose the City to unacceptable levels of risk.
Budget Document Pg. 148 Page 608 of 652
Department Updates Fire
Fire Department
Department Summary and Changes from Financial Plan
In addition to providing exceptional and compassionate emergency response, the Fire Department
embraces inclusive fire prevention and education strategies that include fire and life safety inspections,
plan review services, fire/arson investigation, fire safety and public safety education, and disaster
preparedness classes. The Department’s vision is to be a progressive organization that leads the
community in public safety and preparedness demonstrated through an unwavering commitment to the
protection of lives, property, and the environment. The service provided will be of the highest quality
recognized against local, state, and federal standards.
The fire department has six major programs to ensure the community continues to receive exceptional
service: Fire Administration, Emergency Response, Fire Prevention, Fire Training, Fire Apparatus Fleet
Service and Emergency Management. At mid-year of fiscal year 2022, the City Council funded two new
positions to support the Emergency Management and Fire Prevention programs; one full-time emergency
manager and one half-time fire inspector, and also authorized the use of the public safety equipment fund
to purchase needed rescue equipment for Emergency Response. The Emergency Manager position was
funded through the Local Revenue Measure as disaster preparedness was identified as a community
priority and the half-time Fire Inspector cost was offset through over-realized fire and life safety
inspection program revenue.
The department is not proposing any additional changes from the adopted 2022-23 budget that was
adopted with the 2021-23 Financial Plan and will continue its contribution to the City’s strategic goals and
departmental objectives.
Continued on next page
Budget Document Pg. 149 Page 609 of 652
Department Updates Fire
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 2021-22
Target
2021-22
Projected
Actual
2022-23
Target
Deliver Timely Emergency
Response to ensure rapid care and
hazard mitigation.1
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.
4:00 5:59 4:00
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.
7:00 8:31 7:00
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.
1:00 1:38 1:00
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.
2:00 3:11 2:00
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.
4:00 5:20 4:00
Provide timely service to the
development community.
Strategic Goal: Housing
% of Fire Department Development
Review activities
completed within published cycle times.
80% 69%2 80%
1 While the Fire Department did not meet the response time performance targets in 2021-22, the target remains
unchanged in 2022-23 due to National Fire Protection Association recommended standards. The fire department is
working to implement process improvements based on data analysis to help improve turnout times. Additionally,
COVID-19 call screening and additional PPE requirmenets have impacted the speed of both call processing times and
turnout times. Fire department staff will continue to work with Police Department staff to help improve call
processing time. Travel time is the most difficult time to improve in the short term as they are impacted by road
construction, traffic, roadway design changes, and expanded response zones due to annexations in the southern end
of the City.
2 The Fire Department expects the development review perfmornace measure to increase substantially with the
addition of a ½ time fire inspector that should be filled before August 2022.
Budget Document Pg. 150 Page 610 of 652
Department Updates Human Resources
Human Resources Department
Department Summary and Changes from Financial Plan
The mission of the Human Resources (HR) Department is to help employees realize their full potential so
they can effectively serve the community. HR provides support throughout the organization on benefits
administration and compensation, recruitment, labor relations, performance management, training and
development, and legal compliance. HR also is responsible for promoting wellness, safety, and risk
management to support a healthy and safe workplace and reduce costs related to injuries and illness.
As approved in the 2021-23 Financial Plan, four FTEs have been added to the HR department to address
the complexities of a growing organization. The additional positions will enable HR to continue to meet
the City’s recruitment and retention goals and anticipated timelines. Fortunately, staff, who have been
hired to date, have helped to provide the capacity to oversee compliance with COVID-19 responsibilities
during a surge in cases at the beginning of 2022, and to respond to the largest volume of turnover the City
has experienced in over 20 years. In a six-month period, 25% of the organization shifted for reasons evenly
divided among resignations/retirements, promotions/transfers, and to fill new positions. Since the
beginning of the fiscal year, over 3,000 applications were received, more than 100 recruitments took
place, and nearly 120 employees were onboarded. During this time, staff expanded the onboarding
process by offering a variety of trainings for employees in the City’s Leadership and Learning Academy,
created a Supervisor Toolkit to set up new leaders for success and hosted Quarterly Management
Meetings. The City recently went live with employee self-service for Open Enrollment to reduce the use
of paper forms and further improve the process and maximize the use of technology.
Staff completed a Benchmark Compensation Study for the City’s unrepresented Management and
Confidential groups and the San Luis Obispo City Employees’ Association (SLOCEA). The results of the
study have been incorporated into a three-year successor resolution for unrepresented staff and are
incorporated into negotiations discussions with SLOCEA as the existing Memorandum of Agreement
expires on June 30, 2022. The Department also concluded its search for the City’s first Diversity, Equity,
and Inclusion Manager. Staff, in partnership with the DEI Manager, have made progress on many
strategics included in the DEI major city goal.
Due to the increased demands for recruitment and onboarding new staff members across the
organization, the percentage of on-time employee evaluations did not achieve the target for FY 2021-22;
however, is still at 80% of on-time evaluations. Higher value workers’ compensation and liability claims
required a transfer from the Insurance Fund to cover related expenses; however, the Insurance Fund was
structured to manage such fluctuations and remains robust. Staff will continue to seek ways to reduce
workers’ compensation claims costs and recently initiated a Company Nurse program so when staff are
injured, they can seek immediate assistance from a health care professional. In addition, the functional
mobility program for firefighters has continued throughout the pandemic with specialized training to
minimize work-related injuries. Since the program began in fiscal year 2018-19, the department has seen
a 40% decrease in days lost from work. Specifically, days lost from work has declined from 769 days from
fiscal year 2018-19, to an average of 315 days in the subsequent three fiscal years.
Overall, the Department focused on and achieved its highest priority goals and will operate within the
parameters of the approved Financial Plan for the remainder of the 2021-2023 budget cycle.
Budget Document Pg. 151 Page 611 of 652
Department Updates Human Resources
Performance Measures
Objective Measure 2021-22
Target
2021-22
Projected
Actuals
2022-23
Target
Integrated HR Services
(Strategic Goal)
Average days between injury and workers’
compensation claim filed. 4 4 3
Achieved lower severity of workers’
compensation claims than the risk pool Yes Yes Yes
Liability claims payments under the Self-
Insured Retention amount. Yes Yes Yes
Employee Development &
Growth
(Strategic Goal)
Percentage of on-time employee performance
evaluations 95% 80% 95%
Percentage of internal promotions 40% 42% 40%
Training sessions coordinated 35 35 35
Engaged and Aware Culture
(Strategic Goal)
Number of policies communicated 5 60 1 5
Informational sessions coordinated 80 300 90
1 Throughout the COVID-19 pandemic and due to the influx of hiring, Human Resources staff have communicated
significantly more policies than targeted. The communicated policies included the ever-changing rules for
employees related to COVID-19 compliance and onboarding supervisors and employees to the organization.
Budget Document Pg. 152 Page 612 of 652
Department Updates Parks and Recreation
Parks and Recreation Department
Department Summary and Changes from Financial Plan
The Parks and Recreation Department is committed to providing quality parks and facilities (such
as the SLO Swim Center, Damon‐Garcia Sports Complex, and Laguna Lake Golf Course) where
recreation programs, special events, activities for youth and seniors, cultural and educational
opportunities occur in an effort to encourage wellness and develop community through leisure,
cultural, and social pursuits. The Department also protects and preserves the City’s natural
resources and open spaces.
The Community Services Division has returned to hosting in‐person community events. Given the
resource‐intensive nature of the SLO Triathlon, as well as a reduction in participant registrations,
the City will discontinue hosting the event. This will allow Community Services staff to reallocate
staff resources previously dedicated to the SLO Triathlon toward weekly community building and
more cost‐effective neighborhood pop‐up events at local parks and neighborhoods. The
Community Services Division will also be adding a series of five‐week summer sports camps
during the summer months (mid‐June thru mid‐August)and expand to year‐round Youth Sports
clinics, add a “Concerts at the Jack House” series, and the return of the Monster Skate series at
Santa Rosa Park.
As approved at Mid‐Year, this spring, Parks and Recreation will be hiring a full‐time Community
Services Coordinator to support enhanced senior programming, oversee the Community Gardens
program, manage the expanding Contract Class program, and support the Community Services
division. The Department will also be hiring a Volunteer Services Coordinator position (full‐time,
contract position) in FY2022‐23 to manage a citywide volunteer program to ensure consistent
marketing, recruitment, tracking of hours, risk management, recognition events, and centralized
program area support, as well as providing coordination with local service groups, academic and
other community partners.
Changing needs at San Luis Coastal Unified School District have impacted Youth Services
programming in FY2021‐22. Staff has gradually expanded offerings to serve all previous five
school sites (C.L. Smith, Hawthorn, Pacheco, Sinsheimer, and Bishop’s Peak). Additional
programming has included expansion in support of the teacher workdays, minimum days, and
academic breaks. The division is growing its scholarship program to better serve disadvantaged
families, thanks in part to a stipend from the California Department of Social Services.
The Laguna Lake Golf Course will increase service by adding course marshal shifts to better
provide customer support and security. Additionally, due to an aging facility, supplemental
maintenance worker shifts are added to support the overall maintenance of the course (the Golf
Budget Document Pg. 153 Page 613 of 652
Department Updates Parks and Recreation
Maintenance Crew Coordinator has had to fill in for supplemental shifts in FY 2021‐22).
Rainstorms in the winter damaged the Golf Pro Shop, rendering it unoccupiable as of December
2021. An abatement, remediation and repair project is scheduled to conclude by October or
November 2022. The course welcomed a new concessionaire, Zen Dogs, which will provide a new
revenue stream, as they initially operate out of their food truck and eventually serve customers
out of the Golf Pro Shop upon its reopening.
Aquatics programming continues to return to normal operations with the lifting of pandemic
guidelines, as well as increased staff recruitment efforts scheduled in FY2022‐23. The division will
expand programming with recruitment of a new Special Swim Instructor for warm water
exercises.
Ranger Service has expanded its educational programming in FY2021‐22 with more
environmental education videos, Ranger‐led interpretive hikes, and expanding to add a third
session of the Junior Ranger camp, all of which the division expects to sustain in FY2022‐23.
Additionally, in FY2022‐23, Ranger Service will be opening the new Righetti Open Space to the
public and unveiling new trails in Irish Hills Open Space and Miossi Open Space (including a
connection to the Poly Canyon trail). The division has experienced challenges in hiring and
training part‐time open space techs to support the fuel management and wilderness urban
interface (WUI), which may continue in FY2022‐23.
The Public Art Program has had much success through the Department’s partnership agreement
with San Luis Obispo Museum of Art (SLOMA) with the addition of the two murals, temporary
sculptures, and the upcoming Tank Farm/Orcutt roundabout sculpture. Major sculpture
maintenance projects are also in the works (Flames of Knowledge and Oh Great Spirit). The next
phase of the Utility Art Box projects is scheduled to begin in late spring/early summer 2022.
Budget Document Pg. 154 Page 614 of 652
Department Updates Parks and Recreation
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 2021-22
Target
2021-22
Projected
Actual
2022-23
Target
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 20* 16 20
# of non‐profit permitted Facility
Uses 120 60 120
# of program registrations 3,200 2500 3,500
# of program offerings 300 325 320
# of childcare spots filled/offered 1085 /1085 1150 1100 /1100
# of children receiving subsidy
51 CAPSLO
27 City
scholarship
44 CAPSLO
27 City
scholarship
51 CAPSLO
27 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 6
8 6
# of updated or new parks and
amenities in process 4
4 5
Creates and fosters a sense of community
through citizen involvement
Strategic Goal: Maximize Community
Resources & Collaborations (P&R Strategic
Plan Goal)
# of volunteers/hours 100/400hrs
50/300
hours
400/1200hrs
# of temporary Public Art or
Cultural Art Events 5
5 5
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 6,700
6,260 6,900
# of Facebook followers 4,890
3,890 4,300
# of Virtual Program Offerings 15
1 15
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
61
62
63.5
# of staff hours dedicated to fuel
reduction
2,500
1665
2,500
# of encampment site clean‐ups
removed from Open Spaces
60
268
60
*The Department held fewer Community Events due to COVID restrictions.
Budget Document Pg. 155 Page 615 of 652
Department Updates Police
Police Department
Department Summary and Changes from Financial Plan
The Police department is responsible for maintaining a safe city by working in partnership with the
community. Goals of the department are to protect life and property, prevent and reduce crime, and
improve the quality of life for residents and visitors alike. The department has two bureaus; Administrative
Services and Operations. Administrative Services includes the following work divisions: Administration,
Investigations, Communications, and Records. The Operations bureau includes Patrol, Traffic Safety, and
Neighborhood Outreach.
The department plays a supporting role in the following Major City Goals for the 2021-23 Financial Plan:
Economic Recovery, Resiliency & Fiscal Sustainability, Diversity, Equity & Inclusion, Housing and
Homelessness, and Climate Action, Open Space and Sustainable Transportation. A significant achievement
in FY 2021-22 has been hiring new employees to fill several department vacancies primarily in dispatch
and patrol. Since September 2021, the department has hired fifteen employees in total.
The department is not proposing any changes from the Financial Plan and will continue its contribution to
the City’s strategic goals and departmental objectives.
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 2021-22 Target 2021-22
Projected Actual 2022-23 Target
Reduce Crime
Strategic Goal: Economic
Recovery, Department Mission
# of total Part I Crime
by year.1 1,825 2,069
(actual for 2021
calendar year)
2,050
Provide safe roadways for
pedestrians, vehicles, and
bicyclists. # of total traffic
collisions.2
Vehicle: 500 Vehicle: 399 Vehicle: 450
Pedestrian: 30 Pedestrian: 32 Pedestrian: 25
Bicycle: 42 Bicycle: 36 Bicycle: 35
1 Part 1 Crimes include: homicide, forcible rape, robbery, aggravated assault, burglary, and motor vehicle theft. Figures shown
represent calendar year. The increase in Part 1 crime is directly attributed to low crime data in 2020 due to COVID-19, and
changes in jail booking and bail policies that reduced the ability of Law Enforcement to book criminals in County Jail.
2 Traffic Collision data is shown by calendar year.
3 Grant funding was capped to only allow 8 traffic enforcement operations in 2021-2022. The initial estimate of 15 operations
was based on the funding received in the prior grant year.
Budget Document Pg. 156 Page 616 of 652
Department Updates Police
Objective Measure 2021-22 Target 2021-22
Projected Actual 2022-23 Target
Strategic Goal: Patrol
Objectives, Department
Mission
# of targeted
enforcement
operations conducted
under the Office of
Traffic Safety Grant per
year
DUI Checkpoints: 2 DUI Checkpoints: 2 DUI Checkpoints: 2
DUI Saturation
Patrols: 30
DUI Saturation
Patrols: 28
DUI Saturation Patrols:
24
Traffic Enforcement
Operations: 15
Traffic Enforcement
Operations: 3 8
Traffic Enforcement
Operations: 12
Motorcycle Safety
Enforcement: 2
Distracted Driving
Enforcement: 7
Distracted Driving
Enforcement: 10
Bicycle &
Pedestrian
Enforcement: 6
Bicycle & Pedestrian
Enforcement: 5
Bicycle & Pedestrian
Enforcement: 6
Reduce Homeless related Calls
for Service through proactive
engagement.
Strategic Goal: Economic
Recovery, Department Mission,
Patrol Objective
# calls related to
homelessness 3 7200 7441 7000
# of unique individuals
contacted by CAT 600 541 600
# of Family & Agency
Reunification 60 27 35
# of Local Permanent
Housing 28 18 31
# of major camp
cleanups 10 34 4 12
# of Mental
Health/Substance
Abuse Treatment
Referrals
160 124 130
3 All stats related to homelessness are based on calendar year.
4 Total for major clean ups represents data from City Parks and Public Works; all clean ups involved the City contractor 2M.
Budget Document Pg. 157 Page 617 of 652
Department Updates Public Works
Public Works Department
Department Summary and Changes from Financial Plan
The mission of the Public Works Department is to preserve and enhance City infrastructure for an
accessible, safe, and inclusive community experience. This is accomplished through two focuses: providing
safe mobility options and the continued enhancement and maintenance of the City’s infrastructure. The
mission of the department is rooted in ensuring a high quality of life, community safety, health, and
wellness. Progress toward this goal is illustrated in the department’s performance measures.
Staff exceeded most of the FY2021-22 goals despite constraints brought about by the COVID-19 Pandemic
and organizational transitions. The CIP Project Engineering program successfully managed the 2021
Downtown Paving project and continued to deliver priority capital projects despite being short-staffed
and the recent expansion of the capital budget due to the passage of Measure G20. To expand the capacity
of the CIP Project Engineering team, four new positions were approved with the FY2021-22 Mid-Year
report. In addition to these positions staff is requesting one more position intended to expand the capacity
of the Department’s Transportation Planning and Engineering program to deliver capital projects. This
position will take over the supervisory duties related to Signal Maintenance thereby increasing the
available time for Transportation Planning and Engineering program to assist with the planning, design
and construction of capital projects. Since the onset of the pandemic, staff has continued delivering
capital projects, managed the OpenSLO program, and worked on the development of a new permanent
program for parklets. Additional staff support is needed to continue these previously mentioned work
efforts and adding a maintenance supervisor to assist with Signal Maintenance duties will reduce demands
on the Transportation Planning and Engineering Program and provide support for the Signal Maintenance
Program. The additional maintenance supervisor is included as an SOBC for Council’s consideration
and shown on page 21.
Similarly, the Department’s maintenance divisions have continued to perform their primary functions in
addition to increased maintenance in the downtown associated with higher use due to the COVID-19
pandemic and the City’s focus on “clean, safe, and beautiful”. To support these efforts, additional
positions were approved in the FY2021-22 Mid-Year report to expand the capacity of the Streets and
Sidewalk Maintenance division to ensure downtown cleanliness and safety. The maintenance divisions
have also been working through supply chain and inflationary issues that have resulted in higher costs and
longer lead times than originally anticipated. The Department has sought to offset unforeseen constraints
and seize opportunities to ensure the continued pursuit of its mission throughout the first year of the
2021-23 Financial Plan, however, a similar set of circumstances is anticipated in FY2022-23.
Performance Measures on next page
Budget Document Pg. 158 Page 618 of 652
Department Updates Public Works
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 2021-22 Target 2021-22
Projected Actual
2022-23
Target
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 71(1) 74
Bicycle network in total
miles (Class I/II/III/IV)12.4/28.9/24.6/2.1 12.1/29.3/25.0/1.2 14.7/31/24.8/4
Street miles maintained 135 135 137
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 20,250 14,000(2)
i 20,500
Total acreage of park
inventory 583 585 585
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 $59M $66M $64M
1 After pavement maintenance work is completed, the roadway’s PCI increases to approximately 100.
The City’s PCI average will increase after completion of this summer’s pavement maintenance project
which will be completed in pavement area 5 and 6 which is approximately 20% of the City’s roadways.
2 The Urban Forest Services Program recently complete an audit of the Urban Forest in the Streets and
Parks setting. The urban forest number of managed trees has been aligned with maintenance program
scope of service. Many trees in the City’s open space have been removed from the Urban Forest Services
maintenance metrics as these trees are maintained by the Parks and Recreation Departments Ranger
Services Program.
Budget Document Pg. 159 Page 619 of 652
Department Updates 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 2021-22
Target
2021-22
Projected
Actuals
2022-23
Target
Manage Assets Responsibly &
Transparently
Strategic Goal: Public Stewardship
Grant and partnership
dollars to be obtained to
offset rates 1
$4,454,168 $3,304,040 $1,395,000
Minimize number of
Customers Shut-Off for
Nonpayment 2
500 150 450
Average Infrastructure
Asset Age (years)3 20.42 20.1 19.92
Connecting the Community to High
Quality & Reliable Service
Strategic Goal: Public Service
# Unplanned Service
Interruptions 4 0 42 5 0
# of Sewer Lateral
Replacements including
Offsets
100 105 100
Recycled Water Delivered
(AF) 300 285 325
Foster Leadership, productivity, and
opportunity for personal and
professional growth.
Strategic Goal: Workforce
% of New Hire Safety
Trainings Conducted
100%6 100% 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
Community 7
170 251 200
1 Based on reimbursement and disbursement of actual project costs as of April 2022. $1,395,000 was initially
expected in FY 2021-22 but due to project timing is expected to be captured in FY 2022-23.
2 Both 2019-2020 and 2020-2021 are artificially low due to the Covid-19 shut-off moratorium. In 2018-2020 (a typical
year), there were 533 shut-offs for non-payment.
3 Average asset age from City fixed assets data. This should decrease each year as assets are replaced.
4 Includes water main and service line outages; and sanitary sewer overflows.
5 Average of 53 service interruptions annualy across the past three years.
6 Goal is to have all safety trainings conducted for all new employees within their first three months of employment.
7 Includes Facebook posts, blog posts, email bulletins, groundbreaking event, quarterly project reports, the Resource,
website news articles, and bill inserts.
Budget Document Pg. 160 Page 620 of 652
Section 10 Appropriation Limit
Section 10: Appropriation Limit
The City’s appropriation limit is based on the Gann Spending Limit Initiative, a State constitutional
amendment adopted by the voters on June 6, 1979 and amended in 1990 with Proposition 111. It is
anchored in the State Constitution under Article XIIIB.
The limit restricts appropriations from tax revenues by State and local governments. Under its provisions,
no local agency can appropriate proceeds of taxes in excess of its “appropriation limit”. Excess funds may
be carried over into the next year. However, any excess funds remaining after the second year must be
returned to taxpayers by reducing tax rates or fees; a majority of the voters may approve an override to
increase the limit.
The City’s appropriation limit is calculated by considering population growth and cost of living as allowed
under Proposition 111.
Appropriation Limit 2022-23 - Calculation
Factors Ratio Formula
A)Prior Year Appropriation Limit $79,470,558
B) Adjustment Factors
1.Population Change1 0.28% 0.0028
2.Cost of Living Increase 2 7.50% 1.0750
3.Combined Factor 7.79% 1.0779 B1*B2
Adjusted Limit $85,666,375 A*B3
The following summarizes changes in the City’s appropriation limit and appropriations subject to the
limit for the past ten years as well as the appropriation limit for 2022-23. A positive variance indicates
that the City’s appropriations are lower than the allowable limit.
Fiscal
Year
Limit Base Cost of
Living
Factor
Population
Factor
Appropriation
Limit
Appropriations
Subject to
Limit
Variance
2013-14 51,423,500 5.12% 0.52% 54,337,500 40,104,100 14,233,400
2014-15 54,337,500 8.69% 0.09% 59,112,600 36,642,900 22,469,700
2015-16 59,112,600 4.97% 0.78% 62,534,500 46,067,700 16,466,800
2016-17 62,534,500 5.63% 0.60% 66,451,500 49,397,200 17,054,300
2017-18 66,451,500 1.20% 0.92% 67,867,633 50,036,391 17,831,242
2018-19 67,867,633 1.88% 0.35% 69,383,546 51,142,315 18,241,231
2019-20 69,383,546 6.37% 0.24% 73,981,290 50,127,692 23,853,598
2020-21 73,981,290 1.92% -0.04%75,373,410 48,342,410 27,031,416
2021-22 75,373,410 5.11% 0.31% 79,470,558 52,362,031 27,108,458
2022-23 79,470,558 7.50% 0.28% 85,666,375 65,610,162 20,056,213
1 State of California Department of Finance https://dof.ca.gov/wp-
content/uploads/Forecasting/Demographics/Documents/PriceandPopulation2022.pdf
2 State of California Department of Industrial Relations, Consumer Price Index, January 2021 – January 2022
https://www.dir.ca.gov/oprl/CPI/CPICalculator/CpiCalculator.aspx
Budget Document Pg. 161 Page 621 of 652
Page 622 of 652
R _____
RESOLUTION NO. _____ (2022 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ADOPTING THE FISCAL YEAR 2022-23
BUDGET
WHEREAS, in accordance with San Luis Obispo Charter Section 802, the City
Manager has submitted the 2021-23 Financial Plan to the Council for review and
consideration consistent with established budget and fiscal policies; and
WHEREAS, the City Council adopted the 2021-23 Financial Plan on June 1, 2021
and appropriated the budget for 2021 -22; and
WHEREAS, pursuant to Section 804 of the City Charter, the City Council must
adopt the 2022-23 Budget by June 30, 2022 in order for the appropriations to be in place
when the 2022-23 fiscal year begins on July 1, 2022.
WHEREAS, an updated fiscal forecast was presented to Council with the 2021-22
Mid-Year Review and due to significant increases in revenue forecasts, Council took
action on February 15, 2022 to appropriate additional funding into the 2021-22 Budget
and approved changes to the 2022-23 budget; and
WHEREAS, the City Council approved wage and benefit changes for
unrepresented and confidential employees on April 19, 2022 to provide competitive
compensation in line with the City’s compensation philosophy and has set parameters for
the San Luis Obispo City Employees’ Association; and
WHEREAS, the 2022-23 Supplemental Budget includes the parameters and
compensation changes approved by the Council; and
WHEREAS, the City has an Insurance Fund policy that states that within the
Insurance Fund, a self-insured retention (SIR) will be set aside to cover expenses
associated with claims from the Excess Liability Insurance program and the SIR will be
funded based on a 75% confidence level of the previous five -year average claims
experience; and
WHEREAS, the City has received notification that its required contribution for
2022-23 will be higher than the amount adopted with the 2021-23 Financial Plan; and
WHEREAS, the voters approved the Gann Spending-Limitation Initiative on
November 6, 1979 and Proposition 111 on June 5, 1990, which establish and define
annual appropriation limits on state and local governmen t agencies; and
WHEREAS, regulations require that the governing body of each local agency
establish its appropriations limit and annual factors by resolution.
Page 623 of 652
Resolution No. ____ (2022 Series) Page 2
R _____
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The 2022-23 Financial Plan Supplement and budget is hereby
approved and that the operating, debt service, and capital improvement plan budget for
the fiscal year beginning July 1, 2022 and ending June 30, 2023 is hereby appropriated
as presented in the 2021-23 Financial Plan Supplement – 2022-23 Budget.
SECTION 2. The additional required contribution for 2022-23 above what was
adopted in the Financial Plan will be covered by the Insurance Fund Balance.
Page 624 of 652
Resolution No. ____ (2022 Series) Page 3
R _____
SECTION 3. The City’s appropriation limit and annual adjustment factors for
fiscal year 2022-23 are adopted as follows:
On motion of ___________________, seconded by _______________________,
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted on ___________, 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
Appropriations Limit 2021-22 $79,470,558
Consumer Price Index 7.50%
Population Factor: County Population Growth 0.28%
Compounded Percentage Factor (multiplicative not additive) 1.025%
Appropriations Limit 2022-23 $85,666,375
Page 625 of 652
Page 626 of 652
ARPA Funds – Ad Hoc Subcommittee
Wednesday, March 21, 2022
Council Hearing Room
4:30 to 5:30 pm
Subcommittee: Mayor Stewart, Councilmember Shoresman
Staff: Derek Johnson, Brigitte Elke, Michael Codron
Agenda Items
1.American Rescue Plan Act – A brief review and Council action to-date 15 min
2.Funding options and uses under Final Rule 30 min
3.Review of timeline for adoption with the 2022-23 Financial Plan Supplement 5 min
4.Next steps 10 min
Attachment C
Page 627 of 652
ARPA Funds – Ad Hoc Subcommittee
Wednesday, April 20, 2022
Council Hearing Room
5:15 to 6:15 pm
Subcommittee: Mayor Stewart, Councilmember Shoresman
Staff: Derek Johnson, Brigitte Elke, Miguel Guardado
Agenda Items
On March 21, 2022, the subcommittee met to review the opportunities afforded under the
State and Local Fiscal Recovery Funds (ARPA) to consider allocation of $1.5 million in available
funds.
The subcommittee members wanted to receive additional information on two topics:
1. Broadband coverage and possible investments 30 min
This agenda contains the information provided via an email on March 23, 2022. Staff will
present additional information including maps, coverage, and economic information during
the meeting.
2. Premium Pay 30 min
Attached is a summary of the responses received from the California Cities list serve
for fiscal officers. Staff will be available to address any questions.
Page 628 of 652
ARPA Funds – Ad Hoc Subcommittee
Broadband Infrastructure & High-Speed Conduit
Short-term – Start the conversation and assess the need
•We take as a base layer our existing map of city-owned and Digital West communication
and fiber conduits (map that Derek shared).
•We contact Charter and AT&T and ask if they can share their high-speed internet
coverage maps within the City of SLO and add them as layers on top of our map.
•The city GIS team will create a layer utilizing American Community Survey data.
Long-term – Solidify processes and policies to achieve success
•Conduct a Broadband and Policy Study to develop a plan.
Once we have the above short-term information, IT will be able to identify areas where we might
have pockets of unserved families based on economic indicators. Additionally, based on the
analysis of the data collected, staff will locate proximity level of effort to extend our existing
infrastructure into those areas. If we cannot attain the coverage information from Spectrum and
AT&T, one can speculate that Spectrum has our City well covered with high-speed internet
connectivity. From what we can tell, AT&T’s fiber roll-out is limited and they primarily still offer
DSL services.
Why this approach?
A study would identify which areas of the City of San Luis Obispo qualify as unserved and
underserved Internet Communities. We know there is a lack of competition for actual high-
speed internet. Those not able to pay the higher prices of good reliable internet service may
qualify as unserved or underserved in our community.
As defined by the FCC, high-speed internet is anything over 25 megabytes per second (MBps)
download and 3 MBps upload. Conversations are happening at the federal level to revisit what
is actual high-speed internet. Many families struggled with this level of bandwidth during the
pandemic and the FCC is considering modifying the definition to be 100 MBps download and 20
MBps upload.
Why use American Community Survey data?
The most recent decennial census consisted of a short form, which included basic questions
about age, sex, race, Hispanic origin, household relationship, and owner/renter status. After the
2000 Census, the long-form became the ACS, and this survey continues to collect long-form-
type information each year. The ACS data includes the basic short-form questions and detailed
questions about population and housing characteristics.
The 2020 ACS data was originally planned for a December 2021 release, but due to the
COVID-19 pandemic, the data was just released on March 17th, 2022. Information gathered is:
•Potential ACS Variables useful for San Luis Obispo
•Computer & Internet Usage
•Food Stamp/Supplemental Nutrition Assistance Program
•Poverty Status of Households
Page 629 of 652
•Rent asked
•Educational Attainment
•Income in past 12 months
•Occupation status (employed or not)
Our ability to plot this information on a map would provide information on where to concentrate
our effort of conduit and fiber optic cable build-out. This is important as we currently have only
focused on a partnership with Digital West. Our existing partnership could be leveraged to help
us reach and provide affordable internet to unserved and underserved residents. Digital West is
now part of Wave Communications, and they offer an affordable internet package. Expanded
City conduit and fiber infrastructure might also entice other players to partner with the City,
increasing resident choice, particularly for unserved and underserved residents.
I would recommend setting aside $500,000 of ARPA funds to begin the implementation of
conduit and fiber once unserved and underserved neighborhoods are identified by either our
internal analysis or that of the overall broadband study. In parallel we can cross reference
existing city projects with areas identified as unserved and underserved. Where there is a
nexus, we can utilize ARPA funding to install conduit. Installing conduit alongside planned
projects greatly reduces the cost of installation.
Why conduct a City broadband study?
Conducting a broadband and policy study will create a broadband master plan which will guide
the City over the next ten years with a defined process and set of policies for installing conduit
and fiber across the City for future services. We do not have the expertise or resources in-house
to conduct this ourselves.
The current market model is not working as telecoms and internet service providers are
unwilling to commit the capital resources to expand their existing networks. Cities have been
able to fill this gap by expanding conduit and fiber infrastructure throughout their communities,
which they can then lease back to private companies to run the networks.
A broadband study would take seven to nine months to complete and has an estimated cost of
$100,000.
Page 630 of 652
ARPA Funds – Ad Hoc Subcommittee
State and Local Fiscal Recovery Funds – Premium Pay
American Rescue Plan Act (ARPA) Local Fiscal Recovery Funds may be used to provide
premium pay to eligible workers performing essential work during the COVID -19 public
health emergency or to provide grants to third-party employers with eligible workers
performing essential work.
These are workers who have been and continue to be relied on to maintain continuity of
operations of essential critical infrastructure sectors, including those who are critical to
protecting the health and wellbeing of their communities.
Workers who are covered by premium pay include:
•Staff at nursing homes, hospitals, and home care settings;
•Workers at farms, food production facilities, grocery stores, and restaurants;
•Janitors and sanitation workers;
•Truck drivers, transit staff, and warehouse workers;
•Public health and safety staff;
•Childcare workers, educators, and other school staff; and
•Social service and human services staff.
The Final Rule defines essential work as work involving regular in-person interactions or
regular physical handling of items that were also handled by others. A worker would not
be engaged in essential work and, accordingly, may not receive premium pay, for
telework performed from a residence.
The table on the second page reflects the data received from the Cal Cities list serve for
fiscal officers. Further information on the administration of pay provided to grocers and
pharmacy are provided following the table. The list serve request garnered interest and
several entities requested to receive the information including Cal Cities itself as many
jurisdictions are still reviewing their options.
We also wanted to provide the subcommittee with information regarding the City’s
appreciation pay given to each employee and the average corresponding dollar amount
it represents:
Supplemental $ 522.31
Police $ 1,422.41
Management $ 1,530.00
Fire $ 1,326.84
SLOCEA $ 914.17
Confidential $ 739.82
Page 631 of 652
City PP
Y/N
Approach
Victorville N used for city buildings
Fremont N all revenue loss
Mill Valley N no additional information given
Hawaiian
Gardens
N no additional information given
Arroyo Grande N no additional information given
Brawley Y Lump sum for all employees / $2,500 and $1,000
respectively
Ridgecrest Y $1,000 FTE / $500 part-time (no salary increases since
2008)
La Mesa Y first round: $2,500 per FTE / $1,000 for part-time
second round: $500 stipend / additional $500 if proof of
full vaccination status is provided per CDC guidelines.
Alhambra Y 7% of base salary
Santa Maria Y $10,000 / all employees / all employees were back after
an initial 2 weeks.
Oxnard Y Grocery/Pharmacy - $1,000 if worked at least 3 months
during the first 12 months of the pandemic – see detail
below.
Port Hueneme Y Grocery/Pharmacy - $1,000 if worked at least 3 months
during the first 12 months of the pandemic
Suisun City Y $6/hr to Police & Fire / $4/hr to safety dispatchers /
$2/hr to other non-safety employees
Chico Y $4,000 non-safety / $6,000 safety - overall $1.8 million
Town of Fort
Jones
Y $2,000 per full time employee in each 2021 and 2022
(total $4,000)
Exeter Y $10,000 each employee from Revenue Loss / received
$2.5 million overall
Waterford Y $15,000 for each of their 20 employees. All were at work
from day one.
Hollister considering lump sum
Hawthorne considering $1,000 to $2,000 per employee
San Marino considering as part of negotiations
Oxnard Program Administration
They defined eligible employees as anybody who worked a minimum of three consecutive
months during the time from March 2020 to March 2021 to receive $1,000. It did not
matter whether the person worked three or twelve months as they did not prorate the
amount. They used their business license database to determine the stores and 70 were
deemed eligible for the program.
They first intended to establish a portal for employees to sign up. Ultimately, they were
Page 632 of 652
able to work with the grocers and pharmacies to facilitate the program.
Large grocers and drug stores (Vons, Ralphs, Costco, CVS etc.) – 20 in total They
entered into sub-recipient agreements and sent one check to each business for
dissemination to their employees. They will have to report to the city in accordance with
U.S. Treasury requirements, so Oxnard can in turn report out to Treasury.
Small independent shops – 50 in total
The owners of the stores provided the list of eligible employees and
communicated with their staff as to the program and required steps to receive the pay.
Employees had to sign in via a city-established portal and confirm eligibility and
provide contact information. Each employee then received the payment directly via
check.
They do not yet have a final tally since the program is ongoing.
They did not work through the unions as they did not want them to have an opportunity
to “market” membership.
Page 633 of 652
Pharmacy Address Type
C V S/Pharmacy #17619 11990 LOS OSOS VALLEY RD Chain
Costco Wholesale #741 1540 FROOM RANCH WAY Chain
CVS Pharmacy #9662 3960 BROAD ST Chain
CVS/Pharmacy #9345 717 MARSH ST Chain
CVS/Pharmacy #9873 1300 MADONNA RD Chain
Von's #2306 3900 BROAD ST Chain
Pharmerica Drug Systems, LLC 873 RICARDO CT Chain
Rite Aid #05820 1251 JOHNSON AVE Chain
Rite Aid #5822 765 E FOOTHILL BLVD Chain
Img Rx Slo, Inc. 77 CASA ST STE 205 Local
Integrated Health Concepts, Inc. 720 AEROVISTA PL STE B & D Local
Grocery Address Type
California Fresh Brands Slo, LLC 771 E FOOTHILL BLVD Chain
Grocery Outlet Of San Luis Obispo 1314 MADONNA RD Chain
Lassens Natural Food & Vitamins LLC 896 E FOOTHILL BLVD Chain
Sprouts Farmers Market 313 MADONNA RD STE A Chain
Trader Joes Company #41 3977 S HIGUERA ST Chain
Whole Foods Market 1531 FROOM RANCH WAY Chain
Smart & Final #913 1321 JOHNSON AVE Chain
PAQ, Inc. (Food 4 Less) 3985 S HIGUERA ST Chain
Ralphs #656 201 MADONNA RD Chain
San Luis Oriental Market 1255 MONTEREY ST STE C Local
Natural Foods Co-op Of Slo 2494 VICTORIA AVE Local
SLO Veg 225 TANK FARM RD STE A4 Local
Market Address Type
Cost Plus World Market 325 MADONNA RD #47 Chain
Target Store T-2759 11990 LOS OSOS VALLEY RD Chain
Gus's Grocery 1638 OSOS ST Local
Lincoln Market And Deli 496 BROAD ST Local
Sidewalk Market & Deli 1401 OSOS ST STE A Local
Liquor Store Address Type
7-ELEVEN #2133-27835D 692 MARSH ST Chain
7-Eleven #25115B 552 CALIFORNIA BLVD STE A Chain
Beverages & More, Inc. 1502 FROOM RANCH WAY Chain
Cork 'n Bottle Liquor 774 E FOOTHILL BLVD Chain
SLO Beverage N More, Inc. 158 HIGUERA ST STE E Local
Campus Bottle Shop 290 CALIFORNIA BLVD Local
Laurel Lane Market and Liquor 1291 LAUREL LN Local
Sandy's Deli & Liquor, Inc. 586 HIGUERA ST Local
Ad-Hoc Committee Meeting - April 27, 2022
Page 634 of 652
Oxnard Program:
Total program funding available: $2.5 million
Do you have a cut-off date for people to request the pay?
Yes. For both categories, it was 30 days once they had the basics ironed out and needed either
the return of the subrecipient agreement or employees self-attesting through the portal. The
portal was shut down after 30 days.
Was there a requirement that employees live in Oxnard or do most of them live in your
jurisdiction anyway?
No, since all of them served Oxnard residents regardless of where they themselves lived.
Did you apply any administrative cost as allowable under final rule?
No, they don’t ever recover admin cost; not even for other grants.
How many employees will receive the pay and how many do you expect to pay directly?
They estimate about 450 direct checks will be issued. They do not know the final tally yet for the
direct payments. However, they have 20 chain stores.
Do you have any idea about the time investment from the city organization?
The largest investment is in getting the program up and running, contacting the organizations,
and receiving the employee information. Also, the development of the subrecipient agreements
and the execution thereof was time consuming.
What was the cost for the development of the portal?
They used a Google form therefore it was important to only have mailing information to confirm
since this is not a secure environment. Hence the collaboration of the stores and store owners is
essential to receive the base data and contact information.
Page 635 of 652
Page 636 of 652
R _____
RESOLUTION NO. _____ (2022 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE ALLOCATION OF
$13,564,467 IN STATE & LOCAL FISCAL RECOVERY FUNDS IN
ACCORDANCE WITH THE U.S. TREASURY FINAL RULE
WHEREAS, in March 2021, the U.S. Congress approved the American Rescue
Plan act with $1.9 trillion in funding; and
WHEREAS, the State & Local Fiscal Recovery Fund, dedicated to aiding state,
county, and local governments in counteracting the effects of COVID-19, received $350
million in funding; and
WHEREAS, the City of San Luis Obispo was appropriated $13,564,467 of which
it has received $6,782,234 in July 2021 and will receive the remaining $6,782,234 in July
2022; and
WHEREAS, the City of San Luis Obispo experienced tremendous revenue loss in
2020 due to the COVID-19 pandemic; and
WHEREAS, the City invested heavily to support the community and businesses
through the pandemic and recover from the effects of the lock-down; and
WHEREAS, the City desires to support the population most affected by the
pandemic with housing; and
WHEREAS, the pandemic has shown that the City does not have even access to
broadband and high-speed internet throughout the community, putting certain areas at a
disadvantage.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The City will claim the, under Final Rule allowable, $10 million in
revenue loss and dedicate the funding as follows:
1. $9.9 million toward the City’s infrastructure investment fund to backfill high-priority
infrastructure and to counteract adverse trends and unforeseen circumstances
brought on by the pandemic.
2. $100,000 for grants to health & human services programs/projects via the HRC
grants-in-aid program.
SECTION 2. The City will invest the remaining $3,564,467 in accordance with the
U.S. Treasury Final Rule as follows:
Page 637 of 652
Resolution No. ____ (2022 Series) Page 2
R _____
1. $600,000 to study and improve the broadband coverage in San Luis Obispo.
2. $2,964,467 toward affordable housing for at-risk population or very low to
extremely low-income classes most impacted by Covid-19.
On motion of ___________________, seconded by _______________________,
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted on ___________, 202 2.
______________________________
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 638 of 652
O ______
ORDINANCE NO. ____ (2022 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING TITLE 10, CHAPTER 52 (PARKING
METERS), OF THE SAN LUIS OBISPO MUNICIPAL CODE
WHEREAS, California State law provides, in Vehicle Code Section 22508, that
cities must establish parking meter and parking payment center rates by ordinance; and
WHEREAS, the parking program needs to continue to be self-sufficient for its
financial commitments; and
WHEREAS, to address the economic impacts of the COVID-19 pandemic to the
downtown business community, the parking program suspended collection of revenues,
deferred parking rate increases, and used reserve funding to maintain parking operations
during the pandemic; and
WHEREAS, the parking program is pursuing a loan for the construction of a fourth
public parking structure; and
WHEREAS, the fourth public parking structure represents a significant financ ial
investment that requires an increase to established hourly rates before construction of
the new structure commences; and
WHEREAS, the Council considered the parking revenue enhancement strategies
presented as part of the 2022-23 Supplemental Budget staff report and held a public
meeting which included review and discussion of the proposed changes to the paid
parking rates; and
WHEREAS, the adoption and implementation of these paid parking rates are
necessary to offset the construction costs of the new public parking structure and to
maintain the fiscal solvency of the Parking Enterprise Fund.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Section 10.52.010 (Paid Parking zone - Rates) of the San Luis
Obispo Municipal Code is hereby amended as follows:
10.52.010 Paid Parking zone—Rates.
A. Within the area enclosed by a solid line on the parking rate zone map (Exhibit
A) the parking of vehicles on streets or in municipal parking lots may be control led
and regulated with the aid of parking meters as defined in section 10.04.110 and/or
parking payment centers as defined in section 10.04.120.
Page 639 of 652
Ordinance No. _____ (2022 Series) Page 2
O ______
B. Within the dotted area designated on the parking rate zones map (Exhibit A)
the base rate for parking on streets or in municipal parking lots in the lower rate
zone shall be one dollar and twenty-five cents per hour effective July 1, 2021.
B. C. Within the cross-hatched area designated on the parking rate zones map
(Exhibit A) the base rate for parking meters on streets or in municipal parking lots
shall be one dollar and fifty cents per hour effective January 2, 2023. The rate in
this area shall increase to three dollars per hour effective July 1, 2023.
C. D. Within the grey-shaded area designated on the parking rate zones map
(Exhibit A), the base rate for parking meters on streets or in municipal lots shall be
two dollars effective January 2, 2023. The rate in this area shall increase to four
dollars per hour effective July 1, 2023. The rate in this area shall increase to five
dollars per hour effective July 1, 2025.
D. E. The tier-based parking rates, which allow a customer to extend their parking
session beyond the posted number of hours, are as follows:
1. Tier 1: The base hourly rate per rate zone
2. Tier 2: The Tier 2 rate is effective for one additional hour beyond the Tier 1 time
and is 50% above the Tier 1 rate rounded up or down to the nearest twenty-
five cent increment whichever is closer.
3. Tier 3: The Tier 3 rate is effective after expiration of the Tier 2 hour(s) and is
50% above the Tier 2 rate rounded up or down to the nearest twenty -five cent
increment whichever is closer.
E. F. Signage for the tier-based parking rates reflects the number of hours a vehicle
may park at the base hourly parking rate (Tier 1) before subsequent tiered rates
take effect.
1. 1+ parking rate: Parking up to one hour at the base hourly parking rate before
Tier 2 is in effect.
2. 2+ parking rate: Parking up to two hours at the base hourly parking rate before
Tier 2 is in effect.
3. 3+ parking rate: Parking up to three hours at the base hourly parking rate before
Tier 2 is in effect.
4. 4+ parking rate: Parking up to four hours at the base hourly parking rate before
Tier 2 is in effect.
F. G. The Public Works Director may periodically adjust the hourly parking rates
on any block or set of blocks within the areas designated on the parking rate zones
map (Exhibit A) during the time of operation as detailed in section 10.52.020 up to
and including 120% of the effective hourly rate based on the observed occupancy.
Hourly parking rates shall be adjusted not more than every 30 days.
Page 640 of 652
Ordinance No. _____ (2022 Series) Page 3
O ______
(Ord. 1683 § 1 (Exhs. A, B), 2020: Ord. 1635 § 1 (Exh s. A, B), 2017: Ord. 1620 §
1 (Exh. A), 2015; Ord. 1568 § 1, 2011: Ord. 1552 § 2, 2010; Ord. 1532 § 2, 2009;
Ord. 1492 § 1, 2006: Ord. 1233 § 1, 1993: Ord. 1194 § 1, 1991: Ord. 1099 § 1,
1987: prior code § 3213)
SECTION 2. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court
of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or
enforcement of the remaining portions of this ordinance, or any other provisions of the
city' s rules and regulations. It is the city' s express intent that each remaining portion
would have been adopted irrespective of the fact that any one or more subdivisions,
paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.
SECTION 3. Environmental Determination. These amendments to Title 10
Chapter 52 of the City of San Luis Obispo Municipal Code do not constitute a “Project”
under California Environmental Quality Act (CEQA) Guidelines Sec. 15378.
Page 641 of 652
Ordinance No. _____ (2022 Series) Page 4
O ______
SECTION 4. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final
passage, in The New Times, a newspaper published and circulated in this City. This
ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the ____ day of ______, 2022, AND FINALLY ADOPTED by
the Council of the City of San Luis Obispo on the ____ day of ____, 2022, on the following
vote:
AYES:
NOES:
ABSENT:
________________________________
Mayor Erica A. Stewart
ATTEST:
______________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 642 of 652
Ordinance No. _____ (2022 Series) Page 5
O ______
Exhibit A
Page 643 of 652
Page 644 of 652
R ______
RESOLUTION NO. ______ (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
LUIS OBISPO, CALIFORNIA, ESTABLISHING PARKING RATES
FOR THE CITY’S PARKING STRUCTURES
WHEREAS, the City of San Luis Obispo wishes to maintain effective usage of its
public parking structures; and
WHEREAS, the parking fund needs to continue to be self-sufficient for its financial
commitments; and
WHEREAS, to address the economic impacts of the COVID-19 pandemic to the
downtown business community, the parking program suspended collection of revenues,
deferred parking rate increases, and used reserve funding to maintain parking operations
during the pandemic; and
WHEREAS, the parking program is pursuing a loan for the construction of a fourth
public parking structure; and
WHEREAS, the fourth public parking structure represents a significant financial
investment that requires an increase to established rates before constru ction of the new
structure commences; and
WHEREAS, the Council considered the parking revenue enhancement strategies
presented as part of the 2022-23 Supplemental Budget staff report and held a public
meeting which included review and discussion of the proposed changes to the parking
structures rates; and
WHEREAS, the adoption and implementation of these paid parking rates are
necessary to offset the construction costs of the new parking structures and to maintain
fiscal solvency of the Parking Enterprise Fund; and
WHEREAS, the Comprehensive Fee Schedule will be updated to reflect all new
and updated fees becoming effective July 1, 2023.
NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. As approved by City Council in Resolution No. 11252 (Series 2021),
effective July 1, 2022, the first sixty minutes of parking in the City’s parking structures free
of charge shall be eliminated. A fifteen minute grace period shall be provided upon entry
into all parking structures before the hourly parking structure rates apply.
SECTION 2. Effective July 1, 2023, all hourly parking structure rates shall increase
to $3.00 an hour, including Sundays.
Page 645 of 652
Resolution No. _____ (2022 Series) Page 2
R ______
SECTION 3. Effective July 1, 2023, the maximum daily parking structure rate shall
be to $12.00 per day. Daily parking is considered any entry after 12:00 AM and
corresponding exit by the same vehicle before 12:00 AM within the same day.
SECTION 4. Effective July 1, 2023, the rate for lost tickets in the parking structures
shall be $12.00 per ticket, including Sundays.
SECTION 5. Effective July 1, 2023, the overnight parking structure rate shall be
$15.00 per day. Overnight parking is considered any entry before 12:00 AM by a vehicle
on a given day and corresponding exit after 12:00 AM by the same vehicle on a different
given day.
SECTION 6. Effective July 1, 2023, the hourly validation program parking
structure rate shall be $2.00 per hour.
Page 646 of 652
Resolution No. _____ (2022 Series) Page 3
R ______
SECTION 7. Environmental Determination. The establishment of parking
structures rates and fees do not constitute a “Project” under CEQA Guidelines Sec.
15378.
Upon motion of ___________________, seconded by_____________________,
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was passed and adopted this ____ day of ___________, 2022.
___________________________
Mayor Erica A. Stewart
ATTEST:
_____________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
________________________________
Teresa Purrington
City Clerk
Page 647 of 652
Page 648 of 652
R _____
RESOLUTION NO. _____ (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING MODIFICATIONS TO THE
PARKING CITATION PENALTY SCHEDULE
WHEREAS, State law provides, in Vehicle Code Section 40203.5, that cities shall
establish the amount of parking penalties, fees, and surcharges; and
WHEREAS, State law authorizes the City to recover administrative fees, parking
penalties, fees and collection costs related to civil debt collection, late payment penalties,
and other related charges; and
WHEREAS, the parking program establishes parking penalties that are, to the
extent possible, similar to parking penalties adopted by other issuing agencies within the
county; and
WHEREAS, Government Finance Officers Association best management practice
for fines and penalties recommend that fines and penalties be regularly reviewed and
updated and at a minimum every five years; and
WHEREAS, the City wishes to provide safe, secure, and convenient parking for all
users of the City’s parking facilities; and
WHEREAS, the parking program establishes parking penalties that are
proportional to the violation in an effort to deter certain parking behaviors; and
WHEREAS, parking citation fine amounts listed in Section 1 below are out of date
and no longer are effective at deterring certain behaviors; and
WHEREAS, the Council considered the parking revenue enhancement strategies
presented as part of the 2022-23 Supplemental Budget staff report and held a public
meeting which included review and discussion of the proposed changes to the parking
citation penalty schedule.
NOW THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Effective July 1, 2022, the City’s parking citation penalty schedule
shall be modified as set forth below and as reflected in Exhibit A:
1. Increase unlawful to park after session is expired violation (SLOMC 10.52.050)
from $40 to $45; and
2. Increase no standing, stopping, or parking within intersection violation (CVC
22500(a)) from $40 to $60; and
3. Increase no standing, stopping, or parking on the roadside of a vehicle stopped,
parked, or standing at the curb violation (CVC 22500(h)) from $33 to $60.
Page 649 of 652
Resolution No. _____ (2022 Series) Page 2
R ______
SECTION 2. Environmental Determination. The establishment of parking
structures rates and fees do not constitute a “Project” under CEQA Guidelines Sec.
15378.
Upon motion of ___________________, seconded by_____________________
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was passed and adopted this ____ day of ___________, 2022.
__________________________
Mayor Erica A. Stewart
ATTEST:
_____________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 650 of 652
Resolution No. _____ (2022 Series) Page 3
R ______
EXHIBIT A
CITY OF SAN LUIS OBISPO PENALTY SCHEDULE
EFFECTIVE JULY 1, 2022
CODE & SECTION DESCRIPTION CURRENT
PENALTY
PROPOSED
PENALTY
PROPOSED
PENALTY &
LATE FEE
SLMC 10.12.050 INTERFERENCE WITH POLICE/AUTHORIZED OFFICER 93 93 123
SLMC 10.14.030 OBEDIENCE TO TRAFFIC CONTROL DEVICES 58 58 88
SLMC 10.14.090 UNAUTHORIZED PAINTING ON CURBS 58 58 88
SLMC 10.34.020 OVERNIGHT CAMPING (10pm - 6 am)100 100 130
SLMC 10.36.020 STOPPING OR STANDING IN PARKWAYS PROHIBITED 40 40 70
SLMC 10.36.030 STOP/STAND/PARK IN VIOLATION OF CHAPTER 33 33 63
SLMC 10.36.040 NO PARKING ZONE - PROHIBITED PARKING - Also Taxi Zone (d)60 60 90
SLMC 10.36.050 USE OF STREETS FOR STORAGE OF VEHICLES PROHIBITED 75 75 105
SLMC 10.36.070 REPAIRING OR GREASING VEHICLE ON PUBLIC STREET 23 23 53
SLMC 10.36.080 WASHING OR POLISHING VEHICLES 23 23 53
SLMC 10.36.090 PARKING ADJACENT TO SCHOOLS 23 23 53
SLMC 10.36.100 PARKING PROHIBITED ON NARROW STREETS 23 23 53
SLMC 10.36.110 PARKING ON GRADES 23 23 53
SLMC 10.36.120 UNLAWFUL PARKING - PEDDLERS, VENDORS 23 23 53
SLMC 10.36.130 EMERGENCY PARKING SIGNS 23 23 53
SLMC 10.36.140 LARGE/COMMERCIAL VEHICLE PARKING NEAR INTERSECTION 23 23 53
SLMC 10.36.150 NIGHT TIME PARKING OF LARGE VEHICLES 33 33 63
SLMC 10.36.160 NIGHT TIME PARKING OF VEH/OPERATING AIR/REFRGERATION 23 23 53
SLMC 10.36.200 PARKING IN A RESIDENTIAL PERMIT PARKING AREA 40 40 70
SLMC 10.36.230 PERMITS - DISPLAY OF PERMITS 28 28 58
SLMC 10.36.235 NO PERMIT LOT 45 45 75
SLMC 10.40.010 TIMED PARKING 10 MINUTES TO 10 HOURS (Overtime Parking)50 50 80
SLMC 10.40.020 BACKING INTO PARKING SPACE PROHIBITED 40 40 70
SLMC 10.40.040 PARKING PARALLEL ON ONE-WAY STREETS 21 21 51
SLMC 10.40.050 DIAGONAL PARKING 21 21 51
SLMC 10.40.060 PARKING SPACE MARKINGS 45 45 75
SLMC 10.40.070 NO STOPPING ZONE 21 21 51
SLMC 10.40.080 ALL NIGHT PARKING PROHIBITED (3-5am)38 38 68
SLMC 10.44.020 CURB MARKINGS TO INDICATE NO STOPPING 23 23 53
SLMC 10.44.030 EFFECT OF PERMISSION TO LOAD/UNLOAD IN YELLOW ZONE 53 53 83
SLMC 10.44.040 EFFECT OF PERMISSION TO LOAD/UNLOAD IN WHITE ZONE 40 40 70
SLMC 10.44.050 STANDING IN ANY ALLEY 33 33 63
SLMC 10.44.070 DISABLED PARKING 338 338 368
SLMC 10.48.010 CERTAIN VEHICLES PROHIBITED IN CENTRAL DISTRICT 58 58 88
SLMC 10.48.020 ADVERTISING VEHICLES 33 33 63
SLMC 10.48.030 ANIMAL DRAWN VEHICLES 33 33 63
SLMC 10.48.040 TRUCK ROUTES 88 88 118
SLMC 10.48.050 COMM VEHICLES PROHIBITED FROM USING CERTAIN STREETS 88 88 118
SLMC 10.48.060 MAX.GROSS WT LIMITS OF VEHICLES ON CERTAIN STREETS 88 88 118
SLMC 10.52.040 PARKING METER-OPERATIONAL PROCEDURES 23 23 53
SLMC 10.52.050 UNLAWFUL TO PARK AFTER METER TIME HAS EXPIRED 40 45 75
SLMC 10.52.070 IMPROPER USE OF METER 15 15 45
SLMC 10.52.080 PARKING METERS/STANDARDS PROPER USE 15 15 45
SLMC 10.52.110 MOTORCYCLE SPACES 15 15 45
Page 651 of 652
Resolution No. _____ (2022 Series) Page 4
R ______
CITY OF SAN LUIS OBISPO PENALTY SCHEDULE
EFFECTIVE JULY 1, 2022
CODE & SECTION DESCRIPTION CURRENT
PENALTY
PROPOSED
PENALTY
PROPOSED
PENALTY &
LATE FEE
CVC 21113(a)VEHICLE OR ANIMAL ON PUBLIC GROUNDS-MOVING 116 116 146
CVC 21113(b)VEHICLE OR ANIMAL ON PUBLIC GROUNDS-PARKING 33 33 63
CVC 21113(c)DRIVEWAYS, PATHS, PARKING FACILITIES ON GROUNDS 33 33 63
CVC 21211(a)STOPPING/STANDING/PARKING CLASS I BIKE PATH 60 60 90
CVC 21211(b)STOPPING/STANDING/PARKING CLASS II BIKE PATH 60 60 90
CVC 22500(a)STOPPING/STANDING/PARKING: WITHIN INTERSECTION 40 60 90
CVC 22500(b)STOPPING/STANDING/PARKING: ON A CROSSWALK 60 60 90
CVC 22500(c)STOPPING/STANDING/PARKING: BETWEEN SAFETY ZONE 60 60 90
CVC 22500(d)STOPPING/STANDING/PARKING: W/IN 15' FIREHOUSE ENTRANCE 60 60 90
CVC 22500(e)STOPPING/STANDING/PARKING: PUBLIC/PRIVATE DRIVEWAY 40 40 70
CVC 22500(f)STOPPING/STANDING/PARKING: ON SIDEWALK 40 40 70
CVC 22500(g)STOPPING/STANDIN/PARKING: ALONG OPPOSITE OBSTRUCT 33 33 63
CVC 22500(h)STOPPING/STANDIN/PARKING: ON ROADWAY SIDE OF VEHICLE 33 60 90
CVC 22500(i)IMPROPER PARKING IN BUS ZONE 288 288 318
CVC 22500(j)STOPPING/STANDIN/PARKING: IN TUBE OR TUNNEL 33 33 63
CVC 22500(k)STOPPING/STANDIN/PARKING: UPON BRIDGE EXCEPT AUTH 33 33 63
CVC 22500(l)IMPROPER PARKING IN WHEELCHAIR ACCESS 288 288 318
CVC 22500.1 STOPPING/STANDING/PARKING: FIRE LANE 120 120 150
CVC 22502(a)CURB PARKING -RIGHT WHEELS MORE THAN 18 INCHES FROM CURB 40 40 70
CVC 22502(b)(2)PARKING OPPOSITE DIRECTION OF TRAFFIC 40 40 70
CVC 22502(e)CURB PARKING -LEFT WHEELS MORE THAN 18 INCHES FROM CURB 40 40 70
CVC 22504(a)UNINCORPORATED AREA PARKING 33 33 63
CVC 22505(a)PARKING ON HIGHWAY WHERE SIGN POSTED 33 33 63
CVC 22505(b)POSTED NO PARKING - STATE HIGHWAY 33 33 63
CVC 22507 UNLAWFUL PARKING 33 33 63
CVC 22507.8 (a)PARKING IN SPACE FOR DISABLED 338 338 368
CVC 22507.8 (b)PARKING IN SPACE FOR DISABLED - OBSTRUCT/BLOCK 338 338 368
CVC 22507.8 (c)(1)PARKING IN SPACE FOR DISABLED - ON LINES MARKED 338 338 368
CVC 22507.8 (c)(2)PARKING IN SPACE FOR DISABLED - CROSSHATCHED LINES 338 338 368
CVC 22511.1 (a)UNLAWFULL TO PARK UNLESS EV CHARGING 45 45 75
CVC 22511.7 DISABLED ZONE 338 338 368
CVC 22512 VEHICLED UNATTENDED 116 116 146
CVC 22513 TOW CARS-PARKING FREEWAY 33 33 63
CVC 22514 FIRE HYDRANTS 70 70 100
CVC 22515(a)UNATTENDED VEHICLES-SET BRAKE 33 33 63
CVC 22515(b)UNATTENDED VEHICLES-SET BRAKE MOVING 33 33 63
CVC 22516 LOCKED VEHICLE 116 116 146
CVC 22517 OPENING AND CLOSING DOORS 116 116 146
CVC 22520.5 VENDING ON FREEWAY RIGHT OF WAY 116 116 146
CVC 22520.5(a)VENDING ON FREEWAY RIGHT OF WAY 116 116 146
CVC 22521 ILLEGAL TO PARK ON RR TRACKS 33 33 63
CVC 22522 PARKING NEAR SIDEWALK ACCESS RAMPS 288 288 318
CVC 22523(a)VEHICLE ABANDONMENT- On Highway 283 283 313
CVC 22523(b)VEHICLE ABANDONMENT 283 283 313
CVC 22650 UNLAWFUL REMOVAL OF UNATTENDED VEHICLE 116 116 146
CVC 40225*PROCESSING OTHER VEHICLES *10
CVC 40226*FAILURE TO DISPLAY DISABLED PLACARD ADMIN FEE *25
CVC 5204(a)*CURRENT TAB IMPROPERLY ATTACHED *25
LATE PAYMENT PENALTY 30
*Fine or fee amounts are set by the Uniform Bail & Penalty Schedule or by specific CVC section
All other fine amounts set by City Council pursuant to CVC 40203.5
Page 652 of 652
1010 Marsh St., San Luis Obi:
(805) 546-8208 . FAX (W
PROOF OF PUBLICATION
(2015.5 C.C.P,)
S'TATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a resident
of the county aforesaid; I am over the age of
eighteen years, and not a party interested in the
above entitled matter. I am the principal clerk
of the printer of the New Times, a newspaper
of general circulation, printed and published
weekly in the City of San Luis Obispo, County
of San Luis Obispo, and which has been
adjudged a newspaper of general circulation by
the Superior Court of the County of San Luis
Obispo, State of California, under the date of
February 5, 1993, Case number CV72789: that
notice of which the annexed is a printed copy
(set in type not smaller than nonpareil), has been
published in each regular and entire issue of said
newspaper and not in any supplement thereof on
the following dates, to -wit:
in the year 2022
I certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at San Luis Obispo, California, this day
2 Cz of —ZI-1�2022.
Patricia Horton, N•tu Times Legals
'e-A eo
RECEIVED
MAY 3I 2022
S;* 0 CITY CLERKJ
A,6in :l p... o .W.M1 1 MG A,(.,m/*rf MC Olfic011USNlESS/11ublic :Joriusinrnor of put•
Proof o
—T;. SAN LUIS OBISPO CITY COUNCII
NOTICE OF PUBLIC HEARING
The San Luis Obispo City Council invites all intereste
parsons la attend a public hearing on Tuesday, June 7
2022 all 6:00 P.M. held in flte Council Chambers at Cil
Hall, 900 Palm Street, San Luis Ohispo. Please note Iha
loom participation will not he supported, as this will 61
an in•Persan meeting. Meetings can be viewed ramotell
on Govornmenl Access Chanool 20 or streamed live iron
the City's You7ube channel at I i . Public
comment prior to the start of the meeting, may be subminar
in writing via U.S. Mall delivered to the City Clerk's office n1
9W Palm Street, San Luis Obispo, CA 9340€ or by email to
email uni�1 cIIY49.
PUBLIC HEARING ITEM:
The City Council will consider adopting the 2022-23
Supplemental Budget. Per the City Charter, Articiti
XIII, Section 602, the City Council must appropriate a
budget for the upcoming fiscal year by July 1 st. The
City's budget policy allows for ;I two-year budget to be
adopted. However, the appropriation of funding is only
given for one fiscal year, necessitating an annual budget
hearing for subsequent appropriation. Consistent with
the City's two-year budgetary process, the 2022-23
Budget presented for adoption was prepared using
the adopted 2021-23 Financial Plan as its foundation.
However, unlike n typical budget cycle, the City's fiscal
forecast changed so drastically after initial adoption In
June 2021 that Council adopted changes to the 2021-22
as well as the 2022-23 budget with the Mid -year Review
on February 15, 2022.
Forrnore faiforrnatiar+ contact Natalia Harnafr,
Pni10051 Sudgirt Anal€ f; far the City's
Finance OepantnBntar (805J 781-7128 or by
email, rflrafnelwociryorg,
A public hearing to introduce an Ordinance amending
Title 10, Chapter 52 (Parking Meters), of the Municipal
Code to modify the on -street and surface parking
hourly rates and establish paid parking in the upper
Monterey Street area. This item also includes two
proposed Resolutions to: I1 establish parking rates for
the City's Parking Structures, which will go into effect on
July 1, 2023, and 2) approve modifications to the Parking
Citation Penalty Schedule to increase fine amounts
for three different parking violations (expired parking
session, parking within an intersection, and parking .i
roadside of vehicle).
For RIM iftfamtabon, conracr Alpxander Fuclls
Perking SaNisas supemsai, for file Clty's parking
Aivision attW)l781.75M a byemag
afuchsawocrfyurp.
H1e City Council may also discuss aliter hearings or
)usiness hems before or after the Items listed above. If you
:holie nge the proposed project in court, you may ba Nnitmr
❑ raising only those issues You or someone also raised at
he public hearing described in this notico, or in written
wraspondencc daliveredto the City Ccunc11 at. or prinrto,
ha public hooring.
:ouncil Agenda Reports for ?Iris meeting will be available
ar raview ono weak in advance of the meating date on
to City's website, under the Public Meeting Agendas web
age: t13IpS16nn7S48ilty,D1g[
Please cell the City
lerkrs Office sl {gflyj 781 7100 for more information. The
ity Council maeting will be televised live on Chahar Cabo
ha Final20 and five sltesming an the City's YouTube channel
W4tUWk 21e,ci r.
lay 26, 2022