HomeMy WebLinkAboutItem 6a. Setting the Stage for the 2023-25 Financial Plan and the Strategic ScanCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: November 10, 2022
TO: Mayor and Council
FROM: Brigitte Elke, Finance Director
VIA: Derek Johnson, City Manager
SUBJECT: Item 6a – 2023-25 Financial Plan – Setting the Stage and the Strategic Scan
The Council Agenda Report for Item 6a, scheduled on November 15, 2022, mentioned
that, due to its length and wealth of information, the staff presentation would be distributed
ahead of the City Council meeting. The early distribution should allow the public and the
City Council the opportunity to review the information before the meeting.
The presentation (Attachment A) includes the “Strategic Scan” material that was first
introduced as part of the financial planning process in FY 2018 -19. The scan contains
important statistical information pertaining to social, economic, and environmental factors.
It addresses issues pertinent to the delivery of City services and provides important
context for decision making through the budget process. The scan is not exhaustive of all
data relevant to the City and its program and service delivery but is intended to illustrate
indicators that should be considered when establishing the new two-year budget.
Attachment:
A – Setting the Stage and Strategic Scan PowerPoint
Page 487 of 697
Setting the Stage for the 2023-25 Financial PlanNovember 15, 20221Page 488 of 697
Recommendations21. Receive and discuss the following framework in preparation for the 2023-25 goal-setting andFinancial Plan process:a. FY 2022-23 1stquarter resultsb. 2021-23 Adopted Major City Goalsc. General Plan and Climate Action Plan Updated. Setting the stage framework includingcore servicesand ascan of strategic indicatorsfor all major funds.e. Introduce a recommended approach tothe budgeting and management of theCapitalImprovement Plan (CIP) and receive Council feedback (Attachment D)2. Adopt a resolution entitled,“AResolution of the City Council of the City of San Luis Obispo,California, approving an amendment to the 2022-23 BudgetAllocation”to appropriate $40,000 oftheCity’sGeneral Fund Unassigned Fund Balance into operating budget to contributeto theHousing Trust Fund and correction tothe 2022-23 Appropriations Limit.Page 489 of 697
3Page 490 of 697
Community Priorities Surveywww.slocity.org/OpenCityHallNovember 14th- December 15thCommunity's opportunity to help shape the City's Major City GoalsPage 491 of 697
Community ForumLudwick Community CenterJanuary 26, 2023, 6PMCommunity's opportunity to help mold how the City will implement the potential Major City GoalsPage 492 of 697
Purpose of Setting the Stage and the Strategic Scan6Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionTake a look at the financial standing after Q1 of the current fiscal yearProvide updates on the current Major City Goals and other strategic goalsReview the City’s core servicesProvide context on how new goals and initiatives fit in with the City’s responsibility to deliver core servicesHelp Council determine strategic priorities for the 2023-25 Financial Plan Provide a Strategic Scan of important statistical information that provides important context for decision making through the budget processPage 493 of 697
72022-23 1stQuarter Financial ReviewWhere are we nowQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 494 of 697
82022-23 1stQuarter Financial ReviewQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ Conclusion22 Million in Revenues (YTD)$34 Million in OpEx (YTD)3 MCG Tasks Completed in Q14 CIP Projects Completed in Q1General Fund Q1 Status•Revenues and expenditures for all funds are track as anticipated•Current salary savings due to vacancies and expired SLOCEA agreementPage 495 of 697
9What does the current picture mean for financial planning?The upsideStrong Q1 sales and transaction tax remittalsRecord high TOT continues into Q1The downsideConsumer confidence is declining, and many signs point to a slowdown in tourism activity and consumer spendingCannabis tax and fee budget will need to be adjusted at mid-yearQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 496 of 697
General Plan & Other Strategic Plan Updates10Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 497 of 697
General Plan Programs Summary11 LAND USE ELEMENT - 73 CIRCULATION ELEMENT - 69HOUSING ELEMENT - 65NOISE ELEMENT - 8CONSERVATION AND OPENS SPACE ELEMENT - 68SAFETY ELEMENT - 34PARKS AND RECREATION ELEMENT - 41WATER AND WASTEWATER ELEMENT -38396Total Programs• The City’s General Plan is composed of a “building block” hierarchy of goals, objectives, policies, and programs. •Monitoring the City’s progress inimplementing General Plan programs assists with decision making in ongoing pursuit of the adopted planand implementation of the City’s vision.Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionTotal% complete% ongoingLAND USE ELEMENT 73 26% 74%CIRCULATION ELEMENT 69 10% 87%HOUSING ELEMENT 65 15% 85%NOISE ELEMENT 8 25% 75%CONSERVATION AND OPENS SPACE ELEMENT 68 15% 85%SAFETY ELEMENT34 21% 79%PARKS AND RECREATION ELEMENT41 12% 85%WATER AND WASTEWATER ELEMENT38 8% 89%Page 498 of 697
Climate Action Plan12Nearly every foundational action in the 2020 Climate Action Plan is implemented or is in progressWork to date has reaffirmed the 2020 Climate Action Plans goals and actions and historic federal and state funding will enable rapid implementation of the next implementation phase2023-27 Work Program, which includes the 2022 Climate Action Progress Report will be presented to Council on December 13, 2022 and is available for public review on the City website.Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 499 of 697
Other Major Strategic Efforts Underway DEI Strategic PlanEconomic Development Strategic PlanHomelessness Strategic Plan13Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionCurrently being scopedIn ProgressReleased for RFPTentative May 2023Actively draftingPresent to Council February 2023Parking and Access PlanSpring of 2023Page 500 of 697
2021-23 Major City Goals14Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 501 of 697
15Economic Recovery, Resiliency and Fiscal Sustainability•Many new initiatives that came out of the pandemic•A “pulse” survey executed to gather data to help develop the Economic Development related DEI initiatives•Added a 3rd fulltime Ambassador downtown (1.2a-6)•TBID Mid-week promotion which resulted in 421 qualified stays•Most Major City Goal efforts were funded on a one-time basis in 2021-23Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ Conclusion$54,000in funding to incentivize additional childcare start-ups (1.2a-8)$119,000in grants to non-profit and arts organizations (1.2)$45,000 to help facilitate talent relocation and retentionPage 502 of 697
Climate Action, Open Space, and Sustainable Transportation Adopted policy requiring all-electric new buildingsstarting in 2023Conducted 17 stakeholder and community meetings and hosted the SLO Climate Party Purchased first all-electric fleet vehiclesCompleted key Active Transportation Plan projectsincluding the Orcutt Road Roundabout and Railroad Safety Trail.Opened the new trail at Miossi Open Space that advances conservation easement projects throughout the Greenbelt16Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 503 of 697
17Diversity, Equity, and InclusionLaunched Community Diversity Speaker Series Expanded staffing of DEI office to include a DEI Management FellowExpanded inclusive language in hiring and recruitment documents and embedded DEI component to employee self-evaluationsDEI embedded into Legislative PlatformExpanded internal DEI committee workplan and objectivesQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionHRCembedded DEI into purpose and goals for 2023-25$300,000in grants to non-profit organizations MOUexecuted between Cal Poly & the City to advance DEIPage 504 of 697
18Housing and HomelessnessQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionHousing•Develop Objective Design Standards & Update Development Review Process (3.1c)•Support a 25% expansion of the number of beds at the 40 Prado Homeless Services Center (3.11b)•Zoning Regulations Update - Housing (3.1d)Homelessness•Pair a crisis worker with an Emergency Medical Technician (EMT) to provide non-emergency response and care to unhoused community members (MCU). (3.10a)•Created an ongoingHomelessness Response Manager position •$1.7 million from the State and Local Fiscal Recovery Fund allocation for the Anderson hotel•$300,000 to support Transition Mental Health Association to provide eight homes for homeless individualsPage 505 of 697
Setting the Stage Framework19Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 506 of 697
FTE Count*150.5238.570.2520Public SafetyInternal ServicesCommunity ServicesOrganizational StructureQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ Conclusion*Permanent, ongoing employees only. Does notinclude contract or temporary staff.Page 507 of 697
How does the City fund its services? (General Fund)Based on 2022-23 Budget21Top 4 revenue sources:Sales & Use TaxLocal Revenue MeasureProperty TaxTransient Occupancy TaxOther Tax & Franchise RevenueFees for ServiceGrants & Subventions*Interfund Transfers770%11%19%100%Local Revenue Measure G-20 surpassed Property Tax as the City’s #1 source of revenue in FY 2020-21.Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ Conclusion*Excludes ARPA FundingPage 508 of 697
Capital, Debt, Insurance22$21.2 million$2 millionCapitalDebt$4.3 millionInsuranceQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ Conclusion19% of budget2% of budget4% of budgetPage 509 of 697
23Special ProjectsMajor City GoalsEmergent needs63 Core Programs & ServicesInfrastructure maintenanceChildcareDevelopment ServicesStreet and ParksPublic SafetyHow does the City fund its services? (General Fund)$83 Million Operating Budgetused to fundThe City’s priority is to provide core services. New initiatives and one-time strategic goals overlapcore services. If additional resources (revenue) are not available, tradeoffs are necessary.Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionCapital, Debt, Insurance transfersPage 510 of 697
24Department Budgets, Core Programs and Program StructuresQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 511 of 697
Police ServicesPublic Safety25$20.8 million19% of budget60 Sworn Police Officers, 91 total staff Responded to over 37,000 calls for service in 2021. 14% increase from 2020.AdministrationPatrol, Downtown Bikes, Community Action TeamInvestigationsDispatch & RecordsNeighborhood OutreachTraffic SafetyCore ServicesGeneral Fund RevenueQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 512 of 697
Fire ServicesPublic Safety26Emergency Response(Staffed)Hazard Prevention(Staffed)Training ServicesFire Apparatus Services(Staffed)Fire Station Facility SupportDisaster Preparedness & AssistanceCore ServicesFi$14.5 million13% of budgetFire Admin(Staffed)4 Stations / 45 Firefighters. 59.5 total staffResponded to over 6,000 calls for service YTD in 2022. On schedule for a 15% increase from 2021.General Fund RevenueQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 513 of 697
$10.4 million9% of budgetAdministration and Information TechnologyOffice of the City CouncilOffice of the City ManagerOffice of Economic Development and TourismOffice of Sustainability and Natural Resources ProtectionOffice of the City ClerkOffice of Information TechnologyOffice of Diversity, Equity and InclusionCore Services$300,000 Allocated to Non-profits to Advance DEI in the Community42 Eligible Applications and $1.5M in RequestsDirect Support to 21 OrganizationsInternal Services27General Fund RevenueQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ Conclusion38.75 FTE StaffPage 514 of 697
City AttorneyInternal Services28$1.3 million1% of budgetLegal Review of all Contracts and Other DocumentsAdvice to City Council, Advisory Bodies, StaffSupport for all Major City GoalsManagement of Defense of the City (Claims and Litigation)Advice re Development, Planning and ProgramsProcessing and Coordination of Admin Cite AppealsPublic Record Requests (Advise Staff and Review Records)Core Services6 Full-time Regular Staff2 Contract/ Temp StaffAll City Legal Advice, Answers, and ReviewQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 515 of 697
Human ResourcesInternal Services29Human Resources AdministrationBenefitsClassification and CompensationTraining and DevelopmentRisk Management, Safety, WellnessLabor RelationsPerformance ManagementRecruitmentCore Services11 Full-Time Regular StaffSupport for 542 Regular & Supplemental Staff Serving the Community$1.7 million1.5% of budgetGeneral Fund RevenueQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 516 of 697
Internal Services$2.3 million2% of budget30FinanceFinance AdminAccounting/ AP/ PayrollBudgetPurchasingRevenue ManagementSupport Services/ Non-DeptCore Services15.5 FTE PositionsTreasury with Revenue, Debt, InvestmentAccounting AP, Payroll, Audit, AssetsGeneral Fund Revenue$2.9 million2.5% of budgetDepartment BudgetNon-departmentalQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 517 of 697
Community Services31Community Services Group AdministrationCSG Admin / Solid Waste & Recycling ProgramCommunity DevelopmentParks & RecreationPublic WorksUtilities$0.5 millionGeneral Fund RevenueCommunicationCollaborationEfficienciesAdministrative Support to Core ServicesQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ Conclusion0.5% of budgetCSG Admin (2.5 FTE)Solid Waste & Recycling(2 FTE)$317K0.3% of budgetAB 939/SB 1383 RevenuePage 518 of 697
Community DevelopmentCommunity Services3239 FTE PositionsIncreased DevelopmentIncreased Housing OpportunitiesCore Services$6.7 million6% of budgetGeneral Fund RevenueAffordable HousingDevelopment ReviewPolicy Development and Long-Range PlanningBuilding Permits / InspectionsCode Enforcement / Neighborhood ServicesCore ServicesQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 519 of 697
Park MaintenanceSwim Center MaintenanceUrban Forest ServicesFacility MaintenanceStreets & Sidewalk MaintenanceTraffic Signals & Street LightingFleet ServicesCIP Project EngineeringTransportationFlood ControlParking ServicesTransit OperationsPublic WorksCommunity Services3394 FTE12 Divisions 71 MCG TasksCore Services$16.1 million15% of budgetGeneral Fund RevenueQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 520 of 697
Parks & RecreationCommunity Services34Ranger ServiceSportsSpecial EventsGolfChildcareAquaticsPublic ArtCore Services30FTE and 33,800Supplemental Staff Hours$997,873 Operating BudgetP&R Blueprint for the Future: 2021-2041$5.3 million5% of budgetGeneral Fund RevenueQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 521 of 697
Utilities -Water FundQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ Conclusion1.87BGallons of WaterDeliveredCommunity Services35Total Budget: $28.3 MillionPage 522 of 697
Utilities -Sewer Fund 1.09BGallons of WastewaterTreated90MGallons of Recycled WaterDeliveredQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionCommunity Services36Total Budget: $20.6 MillionPage 523 of 697
Parking Fund: Core Services37Enforcement of State and Local RegulationsOperation & Maintenance of Three (3) Parking StructuresOperation & Maintenance of Nine (9) parking lots & 1,000+ parking metersAdministration and planning of parking permit programsCommunity Services2022-23 Expenditure Budget*$4.4 million2022-23 Revenue Projection$6.5 million* Operating budget only. Excludes debt service and capital ($10.8 million)Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 524 of 697
38Parking Fund –Deferred Projects Now UnderwayCultural Arts District Parking StructureGroundbreaking Phase 1A Anticipated WinterAdditional Centralized Pay Stations in Railroad/Monterey Areas andCredit Card Capable Street MetersAccess & Parking Management Plan (Adoption Anticipated Spring 2023)Rate Increase Begins January 2023 through July 2025Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 525 of 697
-$20M-$10M$0M$10M$20M$30M$40M$50M$60M 2023-24 2024-25 2025-26 2026-27 2027-28TOTAL REVENUESTOTAL EXPENDITURESUNRESERVED FUND BALANCE39Previous Parking Fund Forecast with NoRate IncreasesFund Balance becomes negative in 2024-25Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionCommunity ServicesPage 526 of 697
$0M$10M$20M$30M$40M$50M$60M 2023-24 2024-25 2025-26 2026-27 2027-28 TOTAL REVENUES TOTAL EXPENDITURES UNRESERVED FUND BALANCE40Parking Fund Forecast with approved Rate Increases and Program AdjustmentsUnreserved fund balance is depleted during construction of parking structure but is offset by debt service and replenished in outer yearsQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ Conclusion 2025-26 2026-27 2027-28Community ServicesPage 527 of 697
Transit41Safe, reliable transportation for seniors, students, working professional, and visitors2022-23 Expenditure Budget*$8 million2022-23 Revenue Projection*$11.1 millionCommunity Services* Includes some unsecured grant fundingQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 528 of 697
42Transit Fund - Grants will help advance the CIPSignificant Grant Funding1. American Rescue Plan Act ($12.3M)2. SLO Regional Transit Authority ($4.9M)Capital Projects 1. Electric Bus Purchases (up to 6)2. EV Infrastructure Construction3. Transit Center Rehabilitation4. Bus Stop Improvements5. Office Space Remodel to Enhance Customer ServiceQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 529 of 697
Strategic Scan43Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 530 of 697
44•Development Activity•Parks & Recreation•Public Works•Utilities and water usage•Police Services•Fire ServicesCity DemographicsHousing & HomelessnessSocial, Economic, EnvironmentalCore Service Indicators•Population change•Unemployment•Job Growth•Inflation•Housing Demographics•Cost of living•Homelessness in our Community•Homelessness & City Operations•Diversity, Equity Inclusion Data•Climate Change and the Economy•Economic Activity/ City InvestmentsUnderstanding Decision Making and the Effects on the City’s FutureGoalMeet decisionmakers’ need for strategic information to stimulate practical solutions to long-term challenges facing the City StrategyAnalyze demographic, economic, social, and environmental trends to anticipate challenges and provide realistic solutionsQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 531 of 697
4%3%3%8%29%14%8% 8%4%6%8%4%2%Under 5 5 to 9 10 to 14 15 to 19 20 to 24 25 to 34 35 to 44 45 to 54 55 to 59 60 to 64 65 to 7475 to 84 85 and overAge DistributionThe population of SLO City45Population Change from 2010City of SLO: 5.4% State: 5.3%Current Population47,545Population Change from 2020City of SLO: 1.0% State: -0.8%Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionBased on census dataPage 532 of 697
46Unemployment Rate by Geographical AreaUnemployment Averages:City of SLO: 2.5% (1.5% margin of error) County of SLO: 2.3%California: 3.9%National: 3.5% (0.1% margin of error)At height of pandemic, unemployment was ~8%, it has fully recovered and remains very low. 3-7% >12% 7-12% <3% Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 533 of 697
A closer look at job growth47•Payrolls Q4 2020 to 2021 •City of San Luis Obispo grew 4.5% •Statewide 6.3% growth •Job growth in San Luis Obispo•Small firms growing by +3.3% •Mid-size firms -1.7%•Large firms +0.3%.Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 534 of 697
48USD Inflation since 1970-2%0%2%4%6%8%10%12%14%16%1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 20208.3%Inflation greatly impacts both the City’s revenues and expenditures2015 Cost$25,4012022 Cost$33,130+ wait timeFord F-150 (Asset #1526)Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 535 of 697
49Diversity, Equity and Inclusion DemographicsWomen-owned firms28%Men-owned firms72%Minority-owned firms15%Nonminority-owned firms85%SLO CITY BUSINESSES BY OWNERSHIP TYPE(2021)Source: “U.S. Census Bureau QuickFacts: California; San Luis Obispo City, California.” Census Bureau QuickFacts, www.census.gov/quickfacts/fact/table/CA,sanluisobispocitycalifornia/PST045219. Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ Conclusion6.50%1.70%15.90%0.50%4.20%40.20%35.20%2.30%0.40%5.10%0.00%5.50%18.80%70.10%Black or African American alone, percentAmerican Indian and Alaska Native alone, percentAsian alone, percentNative Hawaiian and Other Pacific Islander alone, percentTwo or More Races, percentHispanic or Latino, percentWhite alone, not Hispanic or Latino, percentPOPULATION BY RACE (2021)CaliforniaSan Luis Obispo City, CaliforniaCity of San Luis ObispoPage 536 of 697
50Diversity, Equity and Inclusion Demographics: The City Organization1%4%1%14%8%72%City of SLO Workforce Racial/Ethnic Demographics American Indian or AlaskaNativeAsian or Pacific IslanderBlack or African AmericanHispanicNot disclosedWhiteFemale 29%Male 70%Not Disclosed 1%CITY OF SLO WORKFORCE GENDER DEMOGRAPHICS Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 537 of 697
51Why Diversity, Equity, and Inclusion Matters?Racially diverse leadership leads to better performance78% of workers think that a DEI commitment offers a competitive advantage in the recruitment and retention process The City must foster a workplace where all employees feel valued and respected.For the OrganizationCouncil has made a commitment to making San Luis Obispo a welcoming, inclusive and safe community.The city declared racism a public health crisis in 2020Social and economic inequality is embedded in our systems and culture, and that recovery must integrate deep structural changes.In the CommunityThe Federal Economic Development Agency has declared Equityas their #1 for all Comprehensive Economic Development Strategies (CEDS) that seek federal funding. The state expanded its Bureau of Environmental Justice to have a greater focus on advancing racial equity and justiceAt the State & Federal LevelQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 538 of 697
52Climate Change and the EconomyUrgencyClimate disruptions will continue to be a source of economic volatility.Federal, state, and the City all have near term (10-15 year) deep decarbonization goalsOpportunity•Unprecedented financial resourcesare on their way. In 2022 alone, California and the federal government committed over $425 billion to a low carbon transition.•Additional substantial federal and state grant resources are expected.The Future of SLOWith these resources available, the City can achieve its goals by drawing down these resources and deploying projects and programs at speed and scale in our community.The Central Coast could become a renewable energy hub that would support a vibrant green tech/cleantech entrepreneurial environment.Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 539 of 697
53Economic Activity and Local Investment010203040506070Vacant Businesses –Downtown SLOData from Downtown SLO•Vacancy rates downtown are decreasing/plateauing• Without the City’s investment, economic development would have been set back.•Faster than expected recovery of TOT and sales & transaction tax revenue is partially due to the City investments in recovery and resiliency. Buy Local Bonus Program$868,522 in direct local spendingTwo rounds of Childcare investment ($95K direct)70-100+ additional childcare slots in SLO CityQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 540 of 697
54Key Takeaways from the Central Coast Economic ForecastQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionThe future of San Luis Obispo is largely dependent on the City continuing to attract and retain a diverse talent pool.More housing, specifically affordable and multi-family housing, is crucial for economic growth and stability.Younger workers are moving to inland communities where housing is more affordable.Page 541 of 697
55HousingYearOwner Occupied Housing Unit RateMedian Value of Owner-Occupied Housing UnitsMedian Gross RentMedian Household IncomePer Capita Income200038.0% $278,800 $724 $31,926 $20,386201037.6% $588,400 $1,153 $40,812 $26,204202041.1% $662,300 $1,611 $58,546 $36,232Average cost of housing has increased 130% whereas per capita income has increased by 78%Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 542 of 697
56HousingRenting in San Luis Obispo3%11%29%29%12%6%9%0% 5% 10% 15% 20% 25% 30% 35%Less than $500$500 to $999$1,000 to $1,499$1,500 to $1,999$2,000 to $2,499$2,500 to $2,999$3,000 or morePercentage of UnitsRent Cost (dollars)Rent Average (per person), 202035.0 percent or more of income59%30.0 to 34.9 percent of income5%25.0 to 29.9 percent of income11%20.0 to 24.9 percent of income8%15.0 to 19.9 percent of income9%Less than 15.0 percent of income8%Rent as a percentage of household income (GRAPI), 2020Majority of renters in San Luis Obispo spend more than 35% of their income on rent$1,000 to $1,499$1,500 to $1,999Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 543 of 697
57Point in Time Count (PIT) -HomelessPopulation Totals:Homelessness in our Community•The PIT indicates a slight decreasein homelessness in SLO City compared to 2019. •However, this data is representative of a single night and may vary based on weather conditions, resource availability, etc. Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 544 of 697
58Homelessness and City OperationsPolice Reports Taken Involving Homeless PersonsHomeless Calls for ServiceConsistent calls for service and subsequent reports filed show the impact that homelessness has on City resources including first responders.Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 545 of 697
59New Ongoing Resources Towards Homelessness:Mobile Crisis Unit & the Community Action Team•MCU is a new program offering Crisis Support and resources in nonemergency situations such as mental health, substance abuse and chronic homelessness•Both MCU and CAT provide services beyond emergency response: Build Trust, Provide Care, Offer Resources, Free up Emergency Personnel7441578173127TOTAL CALLS RELATED TO HOMELESSNESSUNIQUE INVIDUALS CONTACTEDFAMILY & AGENCY REUNIFICATIONLOCAL PERMANENT HOUSING PLACEMENTMENTAL HEALTH, SUBSTANCE ABUSE TREATMENT REFERRALSCAT STATS 2021Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 546 of 697
60Development in the CityBuilding Inspections ConductedIncreasing to record high levelsDevelopment Permit Applications ReceivedMany large development projects occurring in the City. Lower development permit applications than the peak FY 2020, but still high.Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 547 of 697
61The City as a Childcare ProviderParks & RecreationOverall, the childcare waitlist has grown as demand increases among the different types.Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 548 of 697
62Parks & Recreation Aquatics & Instructional ClassesAquatics programs have grown overall usage, and new and existing instructional class offerings continue to fill at high rates.Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 549 of 697
63Public WorksTransit & TransportationThe Transit Program anticipates an increase in ridership from previous years following the COVID-19 pandemic. Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 550 of 697
64Water Usage in the CityGallons Per Capita DailySlightly decliningRecycled Water (Acre-Feet)IncreasingWater/Sewer Customer AccountsIncreasing due to new unitsFrom FY21 to FY22 the City increased annual recycled water delivered by59%.Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 551 of 697
65UtilitiesConsiderations for the 23-25 Financial Plan1. Ongoing drought is resulting in increased State-mandated water conservation and water use efficiency regulations, despite stable conditions locally.2. Industry-specific rises in costs (i.e. chemicals, electricity, capital project delivery)3. General inflationAvailable City Water Supply(Acre-Feet, End of FY)Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ conclusionPage 552 of 697
66Police: Calls for Service vs. Staffing•Calls for serviceincreased 14% in 2021 from 2020 and 32% since 2009. Staffing decreased4% over the same period.•Only 42 of the 60 sworn positions were actively working shifts (on average) in 2021-22 due to:•Vacancies/recruitment•Workers’ compensation leave•General time off (trainings, vacation, sick leave)Year over Year Calls for Service/Officer StaffingQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 553 of 697
67Police Department: Other Challenges•Mandatory training for officers has increased and will continue to as a result of legislative changes related to policing.•Currently, 8 hours of Crisis Intervention Training (CIT) is required for all officers –the goal of the department is to increase this to 20 hours and as a result officers would acquire the status of “Mental Health Peace Officer”.•Public Safety Equipment Replacement Fund: Increase in costs for police protective equipment. New equipment is needed such as AEDs for vehicles and rifle rated vests for all police officers.Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 554 of 697
68A full-service all-risk fire department offering fire suppression, specialty rescue, hazardous materials mitigation, and paramedic advanced life support.2021 Count2022 YTD Count6256 7935Total Unit Responsesmore units committed = less resources for other calls6,013 Calls for Service in 2022 YTD15% increase from 2021•158 Fires•3,467 Medical Emergency•652 Service Calls•Remaining: rescues, false alarms, hazardous conditionsQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ Conclusion26% Increase in Unit Responses to IncidentsPage 555 of 697
CIP Budgeting Approach and Other Recommendations69Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 556 of 697
70CIP Budget Approach•Use of ‘Funding Buckets’ for Asset Maintenance and Asset Replacement projects•Funding Buckets group like projects•Notrecommended for New Asset projects (typically large scale, “legacy” projects)•Governance•Purchasing policy•Budget adjustment process•CIP reporting•Policy language (previewing for January adoption)Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 557 of 697
71FleetFacilitiesOpen Space & Natural Areas PreservationParking & TransitParks, Urban Forestry & Public ArtStreets, Bridges & Multimodal TransportationCreek & Flood ProtectionInformation TechnologyWater Resources, Treatment & DistributionWastewater Collections & TreatmentAsset Maintenance/ Replacement ProjectsQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 558 of 697
CIP Budget Approach- Current vs. RecommendedCurrent ApproachRecommended Approach72Project TypeProjectTaskCouncil Budget AppropriationStaff discretion to move budget between tasksProject TypeFunding “ Bucket “ProjectTaskCouncil Budget AppropriationStaff discretion move budget between projectsPage 559 of 697
73Current Budget Appropriation ProcessBudget appropriation to individual projectsProject # Project FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-261000503 Annual Public Art Maintenance & Projects $ 142,500 $ 142,500 $ 40,000 $ 40,000 $ 40,000Small Public Art Projects $ 102,500 $ 102,500 $ 0 $ 0 $ 0Utility Box Beautify $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000Public Art Annual Asset Maintenance $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,0001000030 Laguna Lake Golf Course Maintenance $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,0001000532 Roundabout Art Installations $ 300,000 $ 300,000 $ 200,000 $ 200,000 $ 200,0001000027 Urban Forest Maintenance $ 315,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000Urban Forest Maintenance $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000Urban Forest Master Plan $ 140,000 $ 0 $ 0 $ 0 $ 01000033 Playground Equipment Replacement $ 110,000 $ 100,000 $ 700,000 $ 800,000 $ 1,175,000DeVaul Ranch Playground $ 60,000 $ 0 $ 375,000 $ 0$ 0 Vista Lago Mini Park Playground $ 50,000 $ 0 $ 250,000 $ 0 $ 0Laguna Hills Playground $ 0 $ 0 $ 75,000 $ 0 $ 750,000Mitchell Park Playground $ 0 $ 100,000 $ 0 $ 750,000 $ 0Playground Equipment Replacement $ 0$ 0 $ 0 $ 50,000 $ 350,000French Park Playground Equipment Replacement $ 0 $ 0 $ 0 $ 0 $ 75,00091385 Park Major Maintenance & Repairs $ 1,835,000 $ 160,000 $ 1,000,000 $ 690,000 $ 840,000Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 560 of 697
74Parks, Urban Forestry & Public Art1000503-Annual Public Art Maint & Projects1000030-Laguna Lake Golf Course Maint91385- Park Major Maint & Repairs1000033-Playground Equipment Rep1000532-Roundabout Art Installations1000027-Urban Forest Maint$$$Example: Parks, Urban Forestry & Public Art bucket for Asset Maintenance projects•Estimated cost for individual projects determines recommended bucket amount•Staff would have discretion to use bucket amount to fund all projects within the bucketBudget appropriation to bucketRecommended New Approach to Budget AppropriationPage 561 of 697
75Benefits of Funding Bucket ApproachEnables the City to be nimbler in responding to cost overruns, as well as changes to project prioritization to deliver projectsProjects are priced closer to when they are initiated, rather than during budget developmentStaff has additional time to develop project scopes which will result in more accurate and complete project scopesQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 562 of 697
76CIP Budget Approach –Funding Bucket Governance•Purchasing Policy requires Council authorization to award construction contracts over $200,000•Staff will be in front of Council regularly for projects, providing opportunity for Council to provide direction •Budget adjustment process•Forces consideration of overall CIP•CIP reporting •Provided to REOC and Council quarterly•Focus on project status and expenditures from buckets•Policy languageQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 563 of 697
77Changes to Existing Policies•Clarifies role of Project Managers•Clarifies role of CIP Review Committee•Outlined recommended new approach of City Council appropriation of funding to Asset Replacement and New Asset projects to "funding buckets"New Policies•Identifies and defines project types•Requires use of Project Request Forms•Establishes ongoing criteria used by CIP Review Committee to prioritize projects for funding•Limits creation of new projects off-cycle to those that address emergency needs•Establishes the process staff must follow to process administrative budget adjustments within a "funding bucket"•Requires staff to publish CIP reports on a quarterly basisDeletion of Existing Policies•Eliminates policy that requires project phases to be listed as objectives in department program narratives (this is not current practice)CIP Budget Approach –Policy ChangesQ1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 564 of 697
78• Appropriate $40,000 of the City’s General Fund Unassigned Fund Balance into operating budget to contribute to the Housing Trust Fund.•Correction to the 2022-23 Appropriations Limit:Council Agenda Report: Recommendation #2PreviouslyadoptedAppropriations Limit 2022-23 (R-11332)$85,666,375CorrectedCalculationAppropriations Limit 2021-22$79,470,558 Consumer Price Index (revised)7.55%Population Factor: County Population Growth0.28%Compounded Percentage Factor (multiplicative not additive)1.025%AppropriationsLimit 2022-23 (revised)$85,706,220 Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 565 of 697
Conclusion: Planning for 2023-25Good Fiscal ManagementPublic EngagementQuality ServicesContinued commitment to…Many challenges, many opportunities, many efforts and endeavors ahead79Page 566 of 697
Recommendations801. Receive and discuss the following framework in preparation for the 2023-25 goal-setting andFinancial Plan process:a. FY 2022-23 1stquarter resultsb. 2021-23 Adopted Major City Goalsc. General Plan and Climate Action Plan Updated. Setting the stage framework includingcore servicesand ascan of strategic indicatorsfor all major funds.e. Introduce a recommended approach tothe budgeting and management of theCapitalImprovement Plan (CIP) and receive Council feedback (Attachment D)2. Adopt a resolution entitled,“AResolution of the City Council of the City of San Luis Obispo,California, approving an amendment to the 2022-23 BudgetAllocation”to appropriate $40,000 oftheCity’sGeneral Fund Unassigned Fund Balance into operating budget to contributeto theHousing Trust Fund and correction tothe 2022-23 Appropriations Limit.Q1 ReviewStrategic Plan UpdatesSetting the Stage FrameworkStrategic ScanOther/ ConclusionPage 567 of 697
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Department: Finance
Cost Center: 2002
For Agenda of: 11/15/2022
Placement: Business
Estimated Time: 60 minutes
FROM: Brigitte Elke, Finance Director
Prepared By: Natalie Harnett, Principal Budget Analyst
SUBJECT: SETTING THE STAGE FOR THE 2023-25 FINANCIAL PLAN AND THE
STRATEGIC SCAN
RECOMMENDATION
1. Receive and discuss the following framework in preparation for the 2023-25 goal-
setting and Financial Plan process:
a. Review of FY 2022-23 1st quarter results (Attachment A)
b. Status of the 2021-23 Adopted Major City Goals; and
c. General Plan and Climate Action Plan Update (Attachments B&C); and
d. Setting the stage framework including core services and a scan of strategic
indicators for all major funds.
e. Introduce a recommended approach to the budgeting and management of
the Capital Improvement Plan (CIP) and receive Council feedback
(Attachment D)
2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of
San Luis Obispo, California, approving an amendment to the 2022 -23 Budget
Allocation” to appropriate $40,000 of the City’s General Fund Unassigned Fund
Balance into operating budget to contribute to the Housing Trust Fund and
correction to the 2022-23 Appropriations Limit.
POLICY CONTEXT
The City of San Luis Obispo utilizes a two -year financial planning process to create its
budgets. The fundamental purpose of the City’s budget process is to link, through public
engagement and strategic deliberation, the interests of the community to the available
financial resources to achieve the desired outcomes. The process allows the City Council
to engage the community in identifying Major City Goals for the City while also providing
information and education regarding the City’s core services and programs, including the
day-to-day work and responsibilities carried out by City employees to support residents’
quality of life.
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REPORT-IN-BRIEF
This “Setting the Stage” meeting is the first of a several meetings designed to help Council
create strategic priorities and budget recommendations for the 2023 -25 Financial Plan.
This report along with the presentation to be provided at the meeting include current work
program updates, and useful background information, that may assist decision making
down the line.
The report includes an update on the FY 2022-23 first quarter budget results (Attachment
A), Major City Goals, the General Plan & Specific Plans (Attachment B), the Climate
Action Plan (Attachment C), and an overview of the City’s currently programmed core
services provided by all departments. It also supplies an overview on important statistical
information and strategic indicators.
The report also introduces proposed changes to the budgeting and management of the
CIP. The purpose of the changes is to increase project delivery efficiencies and allow
more budget adaptability and flexibility throughout the financial plan period. Attachment
D outlines the proposed changes.
Lastly, the report includes a recommendation to adopt a resolution to amend the current
year budget (Attachment E). The recommendation will appropriate $40,000 from the
General Fund unassigned fund balance into the Community Development Department
budget to fund the City’s contribution to the Housing Trust Fund. This budget line was
inadvertently left out during budget development. The draft resolution also makes a minor
correction to the 2022-23 Appropriations Limit1.
DISCUSSION
FY 22-23 Q1 Review
As of September 30, 2022, operating revenues and expenditures trend on target with past
years’ first quarters. Except for Cannabis Tax, all - major tax revenues remain very strong
and are exceeding projections for the year. Given the waning of consumer confidence
and threats of a looming recession, a strong first quarter could help offset a potential
slowdown later in the fiscal year. The cannabis tax revenue and operator license fee
budgets will need to be lowered by about $500,000 to reflect fewer businesses in
operation than what was assumed in the budget. The City will likely open the 3rd and last
retail license following the next round of policy updates in March 2023.
1Voters 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 government
agencies.
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Table 1: Year-to-date Revenue by Fund
*Includes special revenue funds
Overall expenditures are also tracking as expected. Staffing expenses are the best
indicator of budget consumption because they track in a linear function while non -staffing
costs are often obligated (via purchase orders) at the beginning of the year and can be
quite “lumpy”. First quarter actuals show that staffing budgets for all major funds were on
average 20% consumed. This number is slightly below the quarter threshold (25%) and
can be attributed to an expired SLOCEA agreement as well as numerous vacancies
throughout the departments.
The quarterly reports are also an opportunity for staff to provide important operational or
capital project updates. One of the major updates this quarter was the City’s ability to
secure the purchase of a 2022 Pierce Arrow Type 1 Pumping Fire Engine to replace
Engine 4. The vehicle was originally budgeted in FY 2023-24, but Council approved the
accelerated replacement of the vehicle with the 2021-22 Fourth Quarter Financial Report.
The expediated purchase was prudent because the existing engine was having a
multitude of mechanical issues and the supplier, South Coast Fire Equipment happened
to have the engine available immediately. Many fleet replacements have been delayed
over 18 months. Although the cost was over the threshold that requires Council approval,
this purchase fell under a “sole source” justif ication and was subsequently approved by
the City Manager on October 25, 2022 and will have saved the City over $60,000 and
accelerating the purchase over $100,000 compared to purchasing as originally
programmed in the 2023-25 Financial Plan. The purchase order was made with South
Coast Fire Equipment, the sole provider of Pierce engines in this region.
The 2022-23 first quarter Financial Report (Attachment A) contains a more detailed
update for all major funds and Major City Goal and CIP updates.
Major City Goal Update
Economic Recovery, Resiliency and Fiscal Sustainability (ERR&FS): During the first
quarter of FY 2022-23, the City continued to make substantial progress on the ERR&F
MCG. Some key achievements were:
Fund Q1 Actuals %
Received Total Budget Q1 Actuals %
Received
Variance
from prior
year
General Fund*19,324,764$ 20%105,135,342$ 22,015,256$ 21%13.9%
Water Fund 5,186,017$ 21%26,036,569$ 5,578,487$ 21%7.6%
Sewer Fund 3,918,338$ 17%19,218,757$ 3,845,425$ 20%-1.9%
Parking Fund 1,421,963$ 26%5,830,750$ 1,866,772$ 32%31.3%
Transit Fund 168,376$ 4%10,436,738$ 1,290,946$ 12%666.7%
Grand Total 30,019,459$ 18%166,658,156$ 34,596,886$ 21%15%
2021-22 2022-23
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1. Releasing $119,000 in grants to non-profit and arts organizations,
2. Providing an additional $54,000 in funding to incentivize additional childcare start-
ups and $45,000 to help facilitate talent relocation and retention.
3. Conducting a “pulse” survey to gather data to help develop the Economic
Development related Diversity, Equity, and Inclusion (DEI) initiatives.
4. A permanent program to support outdoor dining is in the process of being
implemented after Council approval at the end of FY 2022 -23 with eight complete
applications received by deadline and four pending and likely to go forward.
5. Executing a revised agreement to enhance Clean & Safe for FY 2022-23, which
includes a commitment for additional fundraising from Downtown SLO to provide
additional resources to add a third full-time Ambassador.
6. The Tourism Business Improvement District implemented the Summer mid-
weekend promotion to attract visitation to SLO Monday through Thursday
(resulted in 421 qualified stays).
7. The creation of the Support Local strategy and paid media plan for FY 2022 -23
through the City’s Promotional Coordinating Committee. This program includes
the continuation of the neighborhood campaign and five seasonal campaigns to
promote local shopping. The initial campaign ran during the first quarter which
promoted back to school shopping.
Diversity, Equity, and Inclusion (DEI): The City is committed to supporting diversity,
equity, and inclusion in its operations and in the community. The Office of DEI was set up
in FY 2021-22 and has taken the lead on the related major city goal work program. Council
efforts to embed key tenets of diversity, equity, and inclusion in its Meta Goal and in
declaring racism a public health crisis in 2020 have established a pressing need to identify
continued efforts to foster a community and workplace where all people feel valued,
respected and that they have access to the necessary resources to ensure their success.
The Major City Goal workplan was rooted in:
1. Developing and implementing strategies, programs and policies that build a
workplace culture and community of inclusion, fairness and belonging for all.
2. Involving marginalized communities and diverse voices in program development
and delivery.
3. Partnering with proven community providers and utilize best practice models to
maximize effectiveness and impact of initiatives.
4. Identifying and tracking measurable results as the City progresses in maturing
diversity and inclusion efforts.
Key accomplishments have included:
1. Managing the DEI high Impact Grant program.
2. Establishing the City’s Diversity Speaker Program.
3. Establishing an MOU with Cal Poly to align the City’s DEI strategies.
4. Embedding DEI into the HRC purpose and mission.
5. Managing the internal DEI committee.
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Expanding efforts with economic development to support minority and women owned
business, developing expanded educational opportunities across the organization, and
Council approved most of the program’s current budget as an ongoing resource.
Subsequently, the DEI office will continue its work in making the City a more welcoming
and equitable City for all, even if it is not included as a MCG in the next financial plan .
However, at the state and federal level DEI is increasingly being emphasized as a
foundational element in work efforts that impact all departments across the City and it is
pertinent that DEI remains a priority in all efforts to continue the momentum bui lt from the
initial MCG workplan.
Climate Action, Open Space, and Sustainable Transportation: The Climate Action
Major City Goal is a comprehensive collection of programs and projects that includes staff
capacity building, community climate action plan implementation, “Lead by Example”
carbon neutral municipal operations plan implementation, and related work including
open space conservation and maintenance, implementation of the Active Transportation
Plan, solid waste innovation, and ongoing climate ada ptation and community resilience
work.
This Major City Goal (MCG) is generally on track, with substantial policy and project
accomplishments including:
1. Clean Energy Program for New Buildings adoption
2. Active transportation project delivery
3. Release of public review drafts of the Climate Adaptation and Safety Element of
the General Plan and Climate Action Plan 2023-27 Work Program.
The City’s commitment to climate action via Major City Goals has set the stage to rapidly
deploy new federal and state financial resources. These resources will allow the City to
implement climate solutions at speed and scale over the next four years to make
substantial progress towards the adopted goal of carbon neutrality by 2035. More
information about Climate Action Plan implementation, which includes open space and
sustainable transportation, is available later in the report and in Attachment C.
Housing and Homelessness: This MCG is very broad in scope and includes 11 specific
strategies. All of the recent accomplishments a nd ongoing efforts can be found in the
2022-23 Budget Supplement.
On the housing side, accomplishments include:
1. Adopting Objective Design Standards and amendments to the Zoning Regulations
in FY 2021-22.
2. 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.
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On the homelessness side, accomplishments include:
1. Council approval of $1.7 million from the State and Local Fiscal Recovery Fund
allocation for the Anderson hotel.
2. $300,000 to support Transition Mental Health Association to provide eight homes
for homeless individuals.
3. A 25% expansion of the number of beds at 40 Prado Homeless Services Center.
4. A crisis worker paired with an Emergency Medical Technician to provide non -
emergency response and care to unhoused community members.
Many of the Housing and Homelessness MCG programs were initially funded as pilot
programs for only the two financial plan years. At the 2021-22 Mid Year Review, Council
decided to fund some of these programs and services such as the Mobile Crisis Unit and
the Homeless Response Manager ongoingly. Given that housing and homelessness
continue to be a community priority, staff expect to continue many of its efforts in the
2023-35 Financial Plan.
General Plan Update
Why Report on the Status of General Plan Programs?
The City’s General Plan is composed of a “building block” hierarchy of goals, objectives,
policies, and programs. Goals and objectives are direction-setting and describe desirable
conditions and preferred outcomes as they are applied to specific situations. Policies are
typically more specific statements that guide decision-making while the defined programs
are actions that implement goals, objectives, and policies. As such, monitoring the City’s
progress in implementing General Plan programs assists with decision making in ongoing
pursuit of the adopted plan and implementation of the City’s vision. Attachment B provid es
a summary of the status of all General Plan Implementation programs by element as well
as key “area” plans.
As presented in greater detail in Attachment B, of the 396 individual implementation
planning programs in the General Plan, 98% or 392 are compl eted or have been
integrated into the City’s ongoing and day-to-day operations. This is a 4% increase since
the last update provided as part of the 2021-23 Financial Plan.
Council adopted an update to the City’s Housing Element in November 2020. The State
requires jurisdictions to establish timeframes for implementation of programs that are
needed to comply with State goals for low-income housing and to “affirmatively further
fair housing.”
Climate Action Plan
The City has been implementing ambitious sustainability and climate action work since
the 2017-19 Financial Plan. In 2020, Council adopted the Climate Action Plan (CAP) for
Community Recovery, which established the goal of community-wide carbon neutrality by
2035 and adopted supporting sector specific goals. In 2021, the City also adopted the
Lead by Example plan, which established the goal of carbon neutral municipal operations
by 2030 and describes capital projects and operational programs required to achieve the
goal.
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Staff and the community have been busy implementing both plans with notable
achievements in clean energy, green buildings, active transportation, organic waste
diversion, low emissions transit, and nature-based carbon sequestration efforts. As
directed in the CAP staff are preparing an update that proposes implementation tasks for
the next four years (aligned with the 2023-25 and 2025-27 Financial Plans). 2
An overview of the implementation status of the 2020 CAP, a description of the
forthcoming 2023-27 CAP Work Plan, and a summary of the opportunities provided by
unprecedented Federal and State funding and regulatory alignment are provided in
Attachment C.
Other Major Efforts
Other major efforts underway and consistent with the adopted MCGs include the
development of a DEI Strategic Plan, an Economic Development Strategic Plan, and a
Homelessness Strategic Plan. The DEI strategic plan is in the process of being scoped
and is expected to go to Council in April 2023. Staff released the Request for Proposals
for the Economic Development Strategic Plan on October 1st and the project is targeted
to be completed by the end of April 2023. Staff is actively drafti ng Homelessness Strategic
Plan and plans to present the draft at the February 7, 2023, Council meeting. These
strategic planning efforts will be important as the City Council evaluates goals and
objectives for the 2023-2025 time period.
Setting the Stage Framework
The City of San Luis Obispo is a full-service city that provides public safety, public utilities,
and general government services. Like most municipalities, the City is faced with
balancing rising costs with limited resources while continuing to provide excellent levels
of service to its residents. 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 inf rastructure.
The 2023-25 Financial Plan allocations will depend on the economic forecast. City staff
will be attending the Central Coast Economic Forecast on Friday, November 4, 2022. A
high-level economic forecast that includes key takeaways from the Central Coast
Economic Forecast, the JP Morgan Market update, the City’s sales tax consultant, and
other credible sources will be provided during the January 10, 2023 “Budget Foundation”
presentation. These forecasts will be harmonized with the 2 nd quarter revenue results to
create updated five-year forecasts for the City’s major funds and presented to the City
Council as part of mid year budget on February 7, 2023.
2 The Public Review Draft progress report is available for review and comment from November 2 through November
22 at www.slocity.org/climateactionplan
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The General Fund
With the infusion of American Rescue Plan Act’s State and Local Fiscal Recovery Fund
allocations and new revenue from Measure G -20, the City’s General Fund was able to
maintain a healthy financial condition throughout the pandemic and to date. Moving into
the 2023-25 Financial Plan, the City now faces the uncertainties with a looming recession,
record high inflation, CalPERS losses, supply shortages, and labor market challenges.
The City’s annual operating budget for the General Fund totals about $83 million and
includes 54 programs spanning from Building and Safety, Development Review,
Emergency Response, Aquatics, Youth and Senior Services, Police Patrol, Traffic Safety,
Streets & Sidewalk Maintenance, Transportation Planning and the Urban Forest to
Accounting, Purchasing and City Administration. Many of these work programs are
multifaceted – they provide core services to the community, execute General Plan
programs, and also contribute to Major City Goals that are determined by the City with
each financial plan. The General Fund’s budget is divided into those programs as
illustrated below:
The “Setting the Stage” phase of goal setting is meant to provide Council with an update
on the available resources and the cost of providing services to the community at current
levels. This will help prepare Council and the community in its decision-making process
for potential trade- offs from current core services to adjust for new programs and services
with the new Financial Plan. Updated long-term forecasts based on 2021-22 audited year-
end results and the first six-month activity of the current fiscal year will be provided at the
Mid-Year review on February 7th, 2023.
Water Fund – Setting the Stage
The Water Fund supports the infrastructure and operations necessary to provide high
quality water services with minimal service disruption. Nearly 60% of the Water Fund’s
operating budget goes to water supply related costs. The remaining operating budget
supports water treatment, water distribution, water administration and engineering, water
resources, and utility billing functions.
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In all, the Water division delivers about 1.87 billion gallons of potable water each year to
the City and Cal Poly. These services support the community’s health, well-being, and
quality of life. To maintain adequate levels of service, rates must be suffi cient to cover
operations, capital asset maintenance, and improvements as well as debt obligations,
and prudent reserve levels for unforeseen funding needs.
What lies ahead:
There are two primary challenges in the Water Fund’s immediate future. First, the County
of San Luis Obispo is currently on pace for the fourth driest year of 128 years on record.
While water supplies are secure, ongoing drought conditions can result in decreased
water use within the community and can result in loss of revenue. Staff is closely
monitoring revenues and expenditures to this fund on a monthly basis. Second, inflation
and resulting rises in industry-specific material costs are significantly, driving up the costs
of operating these facilities. Specifically, chemical costs, electricity costs, and capital
project delivery costs have all increased rapidly in the pas t few years and are expected
to remain high during the next budget cycle.
On March 28, 2022, Governor Newsom enacted Executive Order N-7-22, which activates
drought contingency measures for local water suppliers. In the next year the City should
anticipate the following:
1. A reduction in water sales revenue as the community curtails water consumption.
2. Increased advertising and educational costs associated with increased public
outreach around water conservation and drought.
3. The hiring of additional supplemental staff, which was approved as part of the
budget supplement, to support increased workloads related to the mandated
drought response.
While revenues are tracking with previous fiscal years, recent inflation and rising material
costs have also increased the cost of providing water services. The department
implemented an approved 3.5% rate increase on July 1, 2022 (Resolution No. 11257)
and is currently conducting a rate cost of services study (consistent with the Financial
Plan planning cycle) to determine the rates that will be required to maintain essential
water operations. In the 2021-23 Financial Plan, an additional 3.5% rate increase was
projected for July 2023, but given inflationary increases and other industry specific cost
increases, this is likely too low.
Sewer Fund – Setting the Stage
The Sewer Fund supports the infrastructure and operations necessary to provide high
quality sewer services with minimal service disruption. The operating budget supports
water resource recovery, wastewater collection, wastewater administration and
engineering, environmental programs, and utility billing.
In all, the Sewer division treats over 1.09 billion gallons of wastewater and delivers about
90 million gallons of recycled water. To maintain adequate levels of service, rates must
be sufficient to cover operations, capital asset maintenance and improvements, debt
obligations, and prudent reserve levels for unforeseen funding needs.
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What lies ahead
There are two primary challenges in the Sewer Fund’s immediate future. First, the
completion of the Water Resource Recovery Facility (WRRF) upgrade will substantially
change day-to-day operations. New baseline budgetary and operating parameters are
being established and will need to be refined over time to operate the new plant with both
opportunities and needs given new systems and technology. Second, inflation and more
extreme rises in industry-specific material costs have increased the costs of conducting
operations. Specifically, chemical costs, electricity costs, and capital project delivery costs
have all increased rapidly in the past few years and are expected to remain high during
the next budget cycle.
The completion of the Water Resource Recovery Facility (SLO Water Plus) upgrade will
change the how the City treats wastewater. Staff have worked diligently to predi ct
changes in costs and operations, but the extent of changes will not be fully realized until
the facility is online and is ultimately licensed by the State of California. For example, the
new facility will utilize ultraviolet light to disinfect wastewate r, increasing electricity
demands but significantly reducing chemical needs. During the upcoming transition to the
upgraded WRRF, an increase of operational staff demands may be needed. A full
organizational assessment will be conducted to align operation al and capital needs with
staffing.
While revenues are tracking with previous fiscal years, recent inflation and rising material
costs have also increased the cost of providing wastewater services. The department
implemented an approved 3.5% rate increase on July 1, 2022 (Resolution No. 11257)
and is currently conducting a rate cost of services study to determine the rates that will
be required to maintain essential water operations. In the 2021-23 Financial Plan, an
additional 3.5% rate increase was projected for July 2023, but given inflationary increases
and other industry specific cost increases, this is likely too low.
Parking Fund – Setting the Stage
The Parking Program has been working to “catch up” on many capital projects and
programmatic efforts that were deferred during the pandemic due to revenue shortfalls
and the reprioritization of resources. Beginning in Fiscal Year 2022 -23, staff anticipate
revenue levels to return to pre-pandemic levels. As a result, the Parking Fund will be
supporting many capital projects as well as the day-to-day activities of the program.
Major projects and work efforts over the next couple of years include the ground -breaking
of the Cultural Arts District Parking Structure. After many years of planning, it is
anticipated that the Phase 1A of the project will break ground in December of 2022, with
vertical construction beginning in fall of 2023. While the parking fund has experienced
construction cost increases, staff will be working to secure funding (loan) to offset the
upfront cost of the structure. To balance the uptick in service delivery and capital projects,
rate increase have been adopted and will go into effect January 2023, with additional rate
increase in future years (R-11334). Consistent with prior Council direction, any rate
increases will be evaluated along with the Parking and Access Studies and determine
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how best to approach Council’s stated goal if possible, of preserving a portion of “free”
time for cars in the parking structure. As a reminder, the 75 minute “free” parking is set
to expire on July 1, 2023.
Parking is currently working to adopt and implement the Access and Parking
Management Plan that establishes the parking policies and programs that will be applied
across the City. The community input phases took place during October 2022, and final
adoption is anticipated in March 2023. Parking is also focused on additional centralized
pay station installations in the Railroad and Upper Monterey areas, as well as the
implementation of credit card capable street meters.
Transit Fund – Setting the Stage
The Transit Fund has more recently seen an increase in ridership following the COVID -
19 pandemic and anticipates a return to a more normal level of ridership in the coming
years. The program is working to complete and implement a Transit Innovations Study
which will address the feasibility of new technology, bus stop enhancements, and will
evaluate innovative service delivery methods as well as the feasibility, benefits, oper ating
and capital costs and funding sources of enhanced service. Following consultant analysis,
the Transit program is continuing to carry out services above and beyond other service
providers in the region.
The Transit Fund will be managing increased capital projects and expenditures due to
significant grant funding ($12.3 million in American Rescue Plan Act funds for operations
and $4.9 million in funding from the San Luis Obispo Regional Transit Authority for bus
replacements). This will result in electric bus purchases, EV infrastructure construction,
transit center rehabilitation and improved bus stops, office space remodel, and street
improvements to support the transit system. Two busses will be electrified by January
and six more are anticipated. Electric buses are anticipated to begin service in Spring
2023.
In addition, Transit will be focused on negotiations and contract management with First
Transit and Cal Poly, the ongoing management of complex fiscal analysis including fund
forecasting, grant reporting, and farebox studies as well as increased communications
and customer service support to rebuild and increase ridership levels consistent with
City’s long term mobility goals and objectives.
The Strategic Scan
The “Strategic Scan” was introduced as part of the financial planning process in FY 2018 -
19. The scan provides an in-depth presentation of important statistical information
pertaining to social, economic, and environmental factors. It addresses issues pert inent
to the delivery of City services and provides important context for decision making through
the budget process. The scan is not exhaustive of all data relevant to the City and its
program and service delivery but is intended to illustrate indicators that should be
considered when establishing the new two-year budget. The presentation will be provided
via will cover:
Page 579 of 697
Item 6a
Basic demographics
Public safety statistics
Partnerships: Local, Federal, State
The City as an employer
The local job market & unemployment data
Department workload and trends
Development services activity
Industry forecasts
Housing and homelessness data
Emergent economic, social, or
environmental information
CalPERS update
The “Setting the Stage” presentation, including the strategic scan, will be published as
agenda correspondence prior to the Council meeting on November 15 th.
CIP Budgeting and Management – Recommended Changes (Attachment D)
As discussed in the FY 2022-23 Budget Supplement, supply chain issues and cost
escalation have significantly impacted the delivery of the City’s capital projects. The actual
project costs have varied greatly from the adopted budgets. To provide staff with flexibility
to adjust the budgets of individual capital projects, staff is recommending that the City
Council appropriate funding for Asset Maintenance and Asset Replacement costs in the
CIP budget at a ‘funding bucket’ level, rather than at the individual project level.
The new approach addresses two main challenges with delivering CIP projects:
1. Reduces staff time required to shift budget between projects. The CIP project
budgets shown in the Financial Plan are estimates developed during the biennial
financial planning process and are based on a conceptual project that is subject to
design, permitting, field testing, etc. Developing project budgets closer to when
they are initiated allows for more accurate cost estimates for actual delivery.
Currently, if a project is under-funded, staff must seek Council approval to
reappropriate budget from other projects or from the Capital Reserve or postpone
or eliminate the project.
2. Promotes getting projects done. Project budgets will be appropriated when the
project is ready to start as opposed to at budget adoption, thus prioritizing the
delivery of projects. CIP delivery is currently constrained (and will be for the
foreseeable future) by several different factors, including staffing constraints,
supply chain issues, and construction cost escalation. Having $300,000 assigned
to a delayed project is not only a poor investment of City funds but also hobbles
other projects that are ready to begin but may not have sufficient budget allocated.
Since most of the CIP is Local Revenue Measure funded, staff met with the Revenue
Enhancement Oversight Commission (REOC) to introduce the proposed changes on
September 22, 2022. They were generally supportive of the changes but requested
follow-up information about the “checks and balances” and some examples of what future
reports might look like. Staff will be returning to the REOC on December 8, 2022, with
that information. The purpose of introducing this with Setting the Stage is to receive
Council feedback on the approach. If Council and the Revenue Enhancement Oversight
Commission (REOC) are supportive, a finalized policy recommendation will be prepared
for adoption at the January 10th Budget Foundation meeting.
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Item 6a
Recommendation – Amendment to 2022-23 Budget (Attachment E)
The City Council identified Housing as a Major City Goal and one of the action items
identified in the work plan was the continued use of the City’s Affordable Housing Fund
(AHF) to support the San Luis Obispo County Housing Trust Fund’s (HTF) operating
expenses. The HTF is a Community Development Financial Institution that provides
financing, technical assistance, and advocacy to increase the supply of affordable
housing in the City.
The HTF provides funding for affordable housing projects, including property acquisition,
construction, and refinancing. HTF staff also serve as a resource to City staff working with
developers on affordable housing projects. In the 2019 -21 Financial Plan, the City Council
approved an ongoing transfer of $40,000 from the AHF to General Fund to be used to
support the operating expenses of the HTF. Although the $40,000 was transferred from
the AHF to the General Fund in FY 2022 -23, the corresponding expenditure budget was
not allocated; therefore, the funding currently resides in General Fund Unassigned Fund
Balance.
Correction to 2022-23 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 2022 -23
Appropriation was calculated and adopted by Council on June 7, 2022 with the 2021 -23
Financial Plan Supplement. During the City’s annual audit, the auditors found that the
Consumer Price Index (CPI) used to calculate the limit was incorrectly rounded. The CPI
used was 7.5% when it should have been 7.55%. Staff recalculated number and City
appropriated proceeds of taxes remain well below the appropriation limit.
Previous Council or Advisory Body Action
Council reviewed and approved the 2023-25 Financial Plan calendar in preparation for
the 2023-25 goal-setting process on October 4, 2022.
Public Engagement
Public comment on this item can be provided to the City Council through written
correspondence prior to the meeting and through public testimony at the meeting.
Previously adopted Appropriations Limit 2022-23 (R-11332) $85,666,375
Corrected Calculation
Appropriations Limit 2021-22 $79,470,558
Consumer Price Index (revised) 7.55%
Population Factor: County Population Growth 0.28%
Compounded Percentage Factor (multiplicative not additive) 1.025%
Appropriations Limit 2022-23 (revised) $85,706,220
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Item 6a
CONCURRENCE
The City’s internal Financial Plan Steering Committee concurs with the recommendations
included in this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: No Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:
Funding Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
Unassigned Fund
Balance3
$301,000 $40,000 $261,000 $40,000
State
Federal
Fees
Other:
Total $301,000 $40,000 $261,000 $40,000
The only recommendation that has a fiscal impact in this agenda item is Recommendation
#2. The City transfers $40,000 from Affordable Housing Fund to the General Fund
annually for the purpose of funding the HTF. Because staff excluded the corresponding
expenditure budget line in the 2022-23 adopted budget, the funding is still in the General
Fund unassigned fund balance. Although, appropriating the expenditure budget now will
reduce the unassigned fund balance to $261,000, the five-year forecast is still balanced.
ALTERNATIVES
The Council could direct staff not to adopt the budget amendment for 2022 -23
Budget Allocation. This is not recommended because supporting the Housing Trust
Fund is in line with current Major City Goals and was already approved as a n ongoing
expense with the 2019-21 Financial Plan.
3 2022-23 Supplemental Budget: Table G-5 General Fund Long Term Forecast (Page 23, line 43).
Page 582 of 697
Item 6a
ATTACHMENTS
A - FY 2022-23 Q1 Report
B - General Plan & Specific Plan Update
C - Climate Action Plan Update
D - Capital Improvement Plan Process Improvements
E - Draft Resolution – Amendment to the 2022-23 Adopted Budget
Page 583 of 697
Page 584 of 697
Financial Report Page 1
First Quarter Financial Report
Fiscal Year 2022-23
Introduction
This financial report provides an overview of the City’s financial position through the first quarter of fiscal
year 2022-23 (July 1 - September 30, 2022) for the General Fund and the City’s four enterprise funds. It
also provides an update on the status of the City’s Capital Improvement Program (CIP) projects and City’s
adopted Major City Goals. Notable milestones or trends within the first quarter are addressed and
detailed throughout the document. The report is divided into the following sections:
General Fund Update
As of September 30, 2022, operating expenditures trend on target with past years’ first quarters.
Revenues have almost entirely recovered to pre-pandemic levels. The City is also on track to meet its
overall revenue forecast for 2022-23.
1
1 General Fund Update
2
Enterprise Funds
Update
3 Major City Goal
Update
4 Capital Improvement
Plan Update 6 Outlook and
Conclusion
22 Million in
Revenues
(YTD)
$34 Million
in OpEx
(YTD)
3 MCG
Tasks
Completed
in Q1
4 CIP
Projects
Completed
in Q1
5 Fund Balances & Other
Quarterly Updates
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Financial Report Page 2
General Fund Revenue
Sales and Use Tax (including Measure G): The actuals listed above are for July and August remittals from
the California Department of Tax and Fee Administration (CDTFA). While these are a good indicator of
actual receipts; the City will have a clearer picture when it receives the September amount and any first
quarter “cleanup” in November. The FY 2022-23 forecast assumed 3.8% growth in sales tax revenue over
the FY 2021-22 budget. Based on the year-to-date numbers, growth is about 1.5% higher than the
assumption, but it is too soon to say if this is indicative of any longer-term trend. This was due to many
new transaction tax measures adopted throughout the state (including our own) and a backlog in the
CDTFA system.
Property Tax: The City receives most of its property tax revenue in the 3rd and 4th quarters of the fiscal
year. The County recently sent the City updated property tax estimates and the currently adopted budget
is still in line with the new estimates.
Transient Occupancy Tax (TOT): The central coast had a remarkably busy tourism summer. The first
quarter of TOT remittals reflect the high demand for hotels and homestays, with July setting an all-time
record high of $1.3 million in TOT. However, August showed an 8% decline over the prior year. Other
indicators that can be used to analyze trends are Average Daily Rate (ADR) and Occupancy Rate (Occ).
Both indicators show almost no change from the prior year. Although the start of the year looks promising,
the City’s tourism program along with the countywide tourism office expect to see a decline in FY 2022-
23. When and to what degree it declines remains uncertain, but with the budget adoption, staff consider
a slow-down and budget TOT accordingly.
Table 1: General Fund Revenues Q1 Actuals %
Received Total Budget Q1 Actuals %
Received
Variance
from prior
year
Tax & Franchise Revenue
1 Sales and Use Tax (July-Aug)3,748,186$ 20%21,789,000$ 3,945,734$ 18%5.3%
2 Local Revenue Measure G (July-Aug)4,849,726$ 20%27,049,000$ 5,114,415$ 19%5.5%
3 Property Tax 541,073$ 3%20,746,387$ 311,029$ 1%-42.5%
4 Safety Prop 172 91,695$ 27%497,000$ 99,220$ 20%8.2%
5 Transient Occupancy Tax 3,062,114$ 42%8,636,000$ 3,490,625$ 40%14.0%
6 Utility User Tax 657,317$ 12%5,544,000$ 1,397,746$ 25%112.6%
7 Business Tax 2,784,624$ 115%2,889,000$ 3,108,125$ 108%11.6%
8 Cannabis Tax 156,419$ 12%1,400,000$ 244,581$ 17%56.4%
9 Franchise Fees 186,950$ 12%1,606,000$ 207,841$ 13%11.2%
10 Gas Tax (Special Revenue Fund)327,690$ 27%1,245,024$ 339,663$ 27%3.7%
11 SB1 Gas Tax (Special Revenue Fund)164,687$ 18%1,049,877$ 176,565$ 17%7.2%
12 Total Tax & Franchise Revenue 16,570,482$ 20%92,451,288$ 18,435,543$ 20%11%
13 Development Review 1,145,320$ 18%6,145,665$ 1,734,393$ 28.2%51.4%
14 Parks & Recreation 443,318$ 28%1,978,920$ 377,831$ 19.1%-14.8%
15 Fire 282,691$ 20%1,576,322$ 329,467$ 20.9%16.5%
16 Police 113,638$ 18%638,597$ 93,182$ 14.6%-18.0%
17 Business Licenses (Incl Cannabis)530,449$ 73%655,911$ 598,226$ 91.2%12.8%
18 Other Revenue 168,391$ 13%1,020,630$ 159,518$ 15.6%-5.3%
19 Grants & Subventions 70,474$ 668,008$ 287,097$ 43.0%307.4%
20 Total 19,324,764$ 20%105,135,342$ 22,015,256$ 21%14%
2021-22 2022-23
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Financial Report Page 3
Utility User Tax (UUT): Year-to-date UUT revenue is tracking higher than it did in FY 2021-22 because of
a change in collection and administrative responsibilities to a third-party vendor, HDL which caused a
delay in last year’s collection. Current year actuals are on trend with years prior to FY 2021-22. Staff will
continue to monitor monthly UUT remittals and adjust the budget at mid-year if necessary.
Business Tax: The City collects business taxes at the beginning of the fiscal year and they are based on the
gross receipts of the previous calendar year. FY 2022-23 business tax revenues are significantly higher
than the previous year because FY 2021-22 receipts were based on 2020, the year hardest hit by the
pandemic. When looking back to FY 2019-20 as the base year, business tax revenue grew by about 6.4%
or an average of approximately 3.2% per year. This is more than the City had assumed in its projections
but is in line with the spike in economic activity that is reflected in sales and tourism taxes.
Cannabis Tax: Monthly cannabis tax revenue has stayed very consistent since the second retail location
opened in April 2022. Given that the third retail business did not open as expected, staff will need to
adjust the budget and forecast at mid-year. The new FY 2022-23 projection is forecasted to be around $1
million.
Franchise Fees: These are fees on privately owned utility companies and other businesses that use the
City's infrastructure during daily business. The fees are calculated based upon contracts with the
businesses. The City has collected all of the fees expected as of Q1 and is on track to meet its budget
projection for the year.
Gas Taxes: Both the Highway User Tax (line 10) and the SB1 Road Maintenance and Rehabilitation
Apportionment (line 11) are tracking as expected. The budget for FY 2022-23 is based on information
provided by the State. This revenue is a fee per gallon and not based on gas prices.
Development Review: The revenues in Development Review are trending higher than the previous year
primarily due to building permit and infrastructure plan check/inspection revenues. More building permits
were issued compared to the same time last year with a higher average valuation per building permit.
With respect to infrastructure, the first quarter revenues included the collection of subdivision
improvement plan review fees for two large development projects located in the City.
Police: Police revenue is lower than last year for a couple of reasons. The first being a problem with the
Parking division issuing permits in some residential areas. Therefore, officers were only giving warnings
(as opposed to citations) for the first quarter in these areas. This issue has been resolved and the losses
from Q1 will have only a minor impact on the overall revenue picture. The second reason is that some
annual invoices were billed earlier in the year last year, inflating the Q1 actual. By mid-year, these
variances should smooth out and the department is on track to meet its current forecasts.
Fire: Fire Department related revenues are on track with the projections and in the same position that
they were at last year (20% of budget). The reason for the increase in actual revenue over the prior year
is due to an increase to the Cal Poly annual agreement amount as well as an increase in Fire Plan Check &
Inspection revenue which is line with development activity trends mentioned in the Development Review
section above.
Parks & Recreation: Parks and Recreation saw a 15% decrease in revenue from the first quarter of FY2021-
22. This is due to a shift in the timing of childcare registration costs from July to May and June of 2022.
Since FY 2023-24 childcare registration will occur in April through June of FY 2022-23, there should not be
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Financial Report Page 4
any impact to the annual budget. Additionally, the summer camp programs were restructured to
supplement San Luis Coastal Unified School District’s no-cost, full day summer school programming. This
reduced operating hours (and revenue) for the Department's summer camp program, but also resulted in
temporary salary savings.
Business and Cannabis Licenses: Business licenses fees are on track with projections. Business licenses
are renewed at the beginning of the fiscal year; therefore, most of the revenue for the year has been
collected. An update on the number of renewed licenses is provided in Section 5 of this report. The
cannabis operator license fee budget was developed based on the projected number of businesses that
would be open this year. Two businesses did not open as anticipated; therefore, the budget will need to
be reduced by about $90,000 at mid-year.
Other Revenue/ Grants & Subventions: Grant revenues fluctuate from year-to-year based on availability
and award success. The “Other Revenue” category includes things like interest revenue, lease revenue,
and miscellaneous revenue that is not department specific. In most cases, the City has just not received
these revenues yet which is why the percent received is low. This category also includes “net zero”
revenues that are offset by expenditures. Although the year-to-date amount is lower than last year, staff
expect to receive the projected revenue by year-end.
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Financial Report Page 5
General Fund Expenditures
Overall expenditure trends track with the adopted budget. The graphs below include first quarter
consumption for FY 2022-23 compared to budget. The “Total Expenditures & Obligations” column includes
both costs that have already been incurred and costs that are obligated on purchase orders.
Table 2 - Expenditures by Type:
Expenditure Type Initial Budget
Budget
Adjustments
& Carryover
Total
Budget
Total
Expenditures/
Obligations
%
Consumed
Staffing $54,336,034 $583,457 $54,919,491 $12,296,212 22%
Contract Services $7,946,644 $3,176,312 $11,122,956 $5,838,042 52%
Other Operating Exp $6,094,224 $1,317,226 $7,411,450 $2,895,219 39%
Utilities $2,963,728 $162,213 $3,125,941 $1,199,672 38%
Unfunded Liability1 $11,853,918 $0 $11,853,918 $11,853,918 100%
Grand Total $83,194,548 $5,239,208 $88,433,756 $34,083,062 39%
There are no significant variances to point out in the General Fund. It is expected that contract services
and other operating expenses may track above 25% because annual purchase orders are set up at the
beginning of the year and the funds are considered “Obligated” from that point forward. Staffing should
track at a consistent level and 22% is consistent with expected expenditure levels.
Table 3: Expenditures by Department:
1The City paid the entire CalPERs unfunded liability payment at the beginning of the year. This saves the City
approximately $300,000 when compared to the monthly payment option.
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Financial Report Page 6
Enterprise Fund Update
Utilities: Water and Sewer Funds
The tables below include first quarter actuals for FY 2022-23 compared to the projection. The “Total
Expenditures & Obligations” column includes both costs that have already been incurred and costs that
are obligated on purchase orders.
Revenue: Due to utility billing timings, revenues reflect roughly two months of revenue. Relative to
projected revenues for fiscal year 2022-23, first quarter revenues put the Utilities department on track to
hit revenue targets. Relative to the fiscal year 2021-22 revenue actuals, water revenue is trending higher,
and sewer revenue is trending lower. Water revenue is trending higher for two reasons:
1. Rates were increased by 3.5% on July 1, 2022 (Resolution No. 11257)
2. The Utilities department delivered 3.2 million more gallons of recycled water in the first quarter
of fiscal year 2022-23 than fiscal year 2021-22
Sewer revenues are trending lower because Cal Poly sales were substantially higher in fiscal year 2021-
22. Cal Poly had drained a tank in August 2021 that resulted in 1.48 million additional gallons of billable
outflow.
Expenditures: There are no significant variances to point out at this time. It is normal and expected that
contract services and other operating expenses track above 25% because annual purchase orders are set
up at the beginning of the year and the funds are considered “Obligated” from that point forward. Staffing
Table 4: Water/Sewer Fund
Revenue Q1 Actuals %
Received Total Budget Q1 Actuals %
Received
Variance from
prior year
Water Fund 5,186,017$ 21%26,036,569$ 5,578,487$ 21.4%7.6%
Sewer Fund 3,918,338$ 17%19,218,757$ 3,845,425$ 20.0%-1.9%
Total 9,104,355$ 20%45,255,326$ 9,423,912$ 21%4%
2021-22 2022-23
Table 5: Expense Type by Fund Initial Budget Budget
Adjustments Total Budget
Total
Expenditures &
Obligations
% Consumed
Water Fund
Staffing 4,270,177$ (6,720)$ 4,263,457$ 958,015$ 22%
Contract Services 665,420$ 210,824$ 876,244$ 454,484$ 52%
Other Operating Expenditures 12,175,243$ 443,564$ 12,618,807$ 9,314,130$ 74%
Utilities 691,085$ 7,040$ 698,125$ 243,410$ 35%
Unfunded Liability 698,149$ -$ 698,149$ 698,149$ 100%
Water Fund Total 18,500,074$ 654,709$ 19,154,782$ 11,668,188$ 61%
Sewer Fund
Staffing 4,167,076$ 101,394$ 4,268,470$ 905,525$ 21%
Contract Services 863,361$ 324,524$ 1,187,885$ 706,481$ 59%
Other Operating Expenditures 1,741,111$ 262,160$ 2,003,271$ 1,285,435$ 64%
Utilities 937,710$ 4,713$ 942,423$ 173,889$ 18%
Unfunded Liability 722,419$ -$ 722,419$ 722,419$ 100%
Sewer Fund Total 8,431,676$ 692,791$ 9,124,467$ 3,793,748$ 42%
2
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Financial Report Page 7
should track at a consistent level and the actuals seen above are due to staffing vacancies and subsequent
savings during staffing transitions.
Parking Fund
The tables below include first quarter actuals for FY 2022-23 compared to budget projection. The “Total
Expenditures & Obligations” column includes both costs that have already been incurred and costs that
are obligated on purchase orders.
Revenue: Parking revenues have recovered back to “normal”. FY 2021-22 revenues were particularly low
because of staffing shortages and lack of resources needed to enforce parking. Additionally, the parking
structure control systems were not functioning correctly which led to some lost revenue. In FY 2022-23,
the combination of increased foot traffic downtown, more consistent staffing levels, expanded
enforcement hours, and properly functioning technology have greatly improved the revenue picture for
parking.
Expenditures: There are no significant variances to point out at this time. It is normal and expected that
contract services and other operating expenses track above 25% because annual purchase orders are set
up at the beginning of the year and the funds are considered “Obligated” from that point forward. Staffing
should track at a consistent level and the actuals seen above are due to staffing vacancies and subsequent
savings during staffing transitions.
Transit Fund
The tables below include first quarter actuals for FY 2022-23 compared to the projection. The “Total
Expenditures & Obligations” column includes both costs that have already been incurred and costs that
are obligated on purchase orders.
Table 6: Parking Fund Revenue Q1 Actuals %
Received Total Budget Q1 Actuals % Received Variance from
prior year
Parking Fund 1,421,963$ 26%5,830,750$ 1,866,772$ 32%31.3%
Total 1,421,963$ 26%5,830,750$ 1,866,772$ 32%31%
2021-22 2022-23
Table 7: Expenditure by Type Initial Budget Budget
Adjustments Total Budget
Total
Expenditures &
Obligations
% Consumed
Staffing 1,689,924$ -$ 1,689,924$ 306,294$ 18%
Contract Services 584,065$ 243,327$ 827,392$ 561,714$ 68%
Other Operating Expenditures 401,525$ 20,782$ 422,307$ 141,362$ 33%
Utilities 221,933$ -$ 221,933$ 53,446$ 24%
Unfunded Liability 227,997$ -$ 227,997$ 227,997$ 100%
Parking Fund Total 3,125,444$ 264,108$ 3,389,552$ 1,290,813$ 38%
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Financial Report Page 8
Revenue: This year, the City received a state grant for low carbon transit that was not receive last year.
Additionally, the City received its Q1 TDA payments earlier this year, leading to a variance when compared
to the prior year. There was also an update to the Cal Poly service contract which increased the Local Bus
Fare amount for Q1. Transit won’t receive most of its Federal and State reimbursements until the end of
the fiscal year.
Expenditures: There are no significant variances to point out at this time. The Transit Fund’s largest
operational cost is for annual transportation services through its provider, First Transit. Since this purchase
order has been set up for the year, most (86%) of the Contract Services budget has been obligated. The
budget reflects the full service at pre-pandemic level. Transit is striving to restore bus service at pre-
pandemic levels. However, due to driver shortages, the City's transit service is operating at reduce levels.
First Transit is diligently recruiting drivers. Though First Transit has made progress in hiring drivers, the
driver count is still below the driver requirement to operate the full schedule. Staff will be addressing this
issue with discretionary grant funds to attract drivers and to achieve full service.
Table 8: Transit Fund Revenue Q1 Actuals %
Received Total Budget Q1 Actuals % Received Variance from
prior year
Federal 0$ 0%7,248,297$ -$ 0%-100.0%
Local (Bus Fare)173,916$ 23%850,000$ 194,947$ 23%12.1%
Other Revenue/ Interest Revenue (5,539)$ -85%297,500$ 344,183$ 116%-6313.5%
State -$ 0%2,040,941$ 751,816$ 37%
Total 168,376$ 4%10,436,738$ 1,290,946$ 12.4%666.7%
2021-22 2022-23
Table 9: Expenditure by Type Initial Budget Budget
Adjustments Total Budget
Total
Expenditures &
Obligations
% Consumed
Staffing 276,639$ -$ 276,639$ 45,739$ 17%
Contract Services 2,992,743$ 311,968$ 3,304,711$ 2,832,062$ 86%
Other Operating Expenditures 684,513$ 37,855$ 722,368$ 581,390$ 80%
Unfunded Liability 29,477$ -$ 29,477$ 29,477$ 100%
Transit Fund Total 3,983,371$ 349,823$ 4,333,194$ 3,488,668$ 81%
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Financial Report Page 9
Major City Goal Update
Table 10: Major City Goal Tasks with Completion Dates in FY 2022-23 Q1
On track Problems emerged with no solution yet
Task delayed or potential setbacks with workable solutions
StrategyTask
StatusCompletion
Date
Updated
Completion
Date
Comments (if applicable)
Economic Recovery, Resiliency & Fiscal Sustainability
1.2
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
business recovery.
FY23 Q1 Completed
Council Adopted an Outdoor Dining/
Parklets ordinance (O-1716) on July 19,
2022.
1.4 d-13. City Hall lighting FY23 Q1 FY24 Q4 Completion Date Updated. Project delayed
due to staffing constraints.
1.7
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.
FY23 Q1 Completed Presented to City Council as a Study Session
on August 18, 2022.
Diversity, Equity, Inclusion
2.1
h. Hire Interns - Cal Poly, Cuesta, community
candidates - .25 FTE - 2 positions Y1 @ midyear /
2 - Y2, full year
FY23 Q1 FY23 Q2
The office of DEI recentely hired a
management fellow to support the staffing
structure. Following that hire staff have
evaluated the need for interns and plan to
begin hiring process in January of 2023.
2.7
m. Park major maintenance and repairs specific
to Cheng Park improvements and Mission Plaza
railing improvements.
FY23 Q1 FY23 Q3
Staff are working on final design
documents. Expect to advertise the project
during November. Estimate completion of
the project by end of Q3 (spring)
Housing and Homelessness
3.1 e. Subdivision Regulations Update (HE 6.20)FY23 Q1 FY23 Q4
Two vacant Associate Planner positions and
a gap in hiring a Cannabis Coordinator have
delayed the delivery of this work effort.
Climate Action, Open Space and Sustainable Transportation
4.4
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.
FY23 Q1 Completed
3
Page 593 of 697
Financial Report Page 10
CIP Update – Completed and Ongoing
Table 11: Completed and Ongoing Construction Projects
See next page for the status of major legacy projects in design.
ID#Project
Current
Construction
Status
Approximate
Project Budget
Expended
(as of 10/25/22)
Estimated
Construction
Completion Date
Additional Comments
1 Tank Farm Road and Orcutt
Roundabout Complete $ 4,776,311 Complete
2 Area 6 and 7 Curb Ramps Complete $ 880,783 Complete
3 Silt Removal 2022 Complete $ 285,110 Complete
4 2583 Greta Storm Drain Repair Complete $ 128,428 Complete
5 Verde/Luneta/Ramona/Broad
Sewer Replacement
Construction
Ongoing $ 1,967,027 Q2 FY 22-23
6 2022 Roadway Sealing Construction
Ongoing $ 2,923,384 Q2 FY 22-23
7 Groundwater Contamination
Characterization Project
Construction
Ongoing $ 825,488 Q2 FY 22-23 Grant funded.
8 40 Prado Bus Shelter Relocation Construction
Ongoing $ 76,005 Q2 FY 22-23
9 Fire Station 2 Bathroom Remodel Construction
Ongoing $ 72,280 Q2 FY 22-23
10
Fire Station 1 and Fleet
Maintenance Roofing
Replacement
Award Phase $ 58,550 Q2 FY 22-23
11 Santa Rosa at Montery
Intersection Improvements
Construction
Ongoing $ 920,102 Q3 FY 22-23 Project in suspension until January
2023, due to material delays.
12 Cultural Arts District Parking
Structure Phase 1A Advertising $ 2,261,026 Q3 FY 22-23
Budget reflects expenditures to date
on entire project. Only Phase 1A is in
the advertising phase.
13 City Hall Meeting Room Tenant
Improvements Award Phase $ 20,307 Q3 FY 22-23
14 Walnut and Morro Strom Drain
Repair Advertising $ - Q3 FY 22-23 No budget has been expended becuase
design was done in house.
15 Parks and Recreation Office
Rehabilitation
Construction
Ongoing $ 558,945 Q4 FY 22-23
Construction is substantially
completed, with staff occupying the
offices. Project will be complete once
delayed furniture and other materials
are recieved.
16 Calle Joaquin Lift Station
Replacement
Construction
Ongoing $ 6,545,344 Q1 FY 23-24
17 Wastewater Resource Recovery
Facility Upgrade
Construction
Ongoing $ 120,926,133 Q2 FY 23-24
18
Water Treatment Plant Generator
Improvement Project at Facility
98
Advertising $ 41,169 Q4 FY 23-24
Completed & Ongoing Construction Capital Projects (July 1, 2022 - September 30, 2022)
4
Page 594 of 697
Financial Report Page 11
Table 12: Status of Major and Legacy Projects in Design
ID#Project Current Status
Approximate
Project Budget
Expended
(as of 10/25/22)
Estimated
Construction Start
Date
Additional Comments
1 Cheng Park Revitalization Design Phase $ 49,000 Q3 FY 22-23
2 North Broad Street
Neighborhood Park Design Phase $ 179,260 Q4 FY 22-23
3 North Chorro Neighborhood
Greenway Design Phase $ 857,507 Q4 FY 22-23 This project was previously known as
the 'Anholm Greenway'.
4 Mission Plaza Restrooms and
Kiosk Cafe Design Phase $ 443,638 Q2 FY 23-24
5 Cultural Arts District Parking
Structure Phase 2 Design Phase $ 2,261,026 Q2 FY 23-24
Budget reflects expenditures to date
on entire project. Phase 2 of the
project is currently in the design phase.
6 Mid-Higuera Bypass Design Phase $ 695,401 Q3 FY 23-24 The majority of the project is funded
with County Zone 9 funding.
7 Prado Road Bridge and Road
Widening Design Phase $ 2,161,281 Q1 FY 24-25
8 California and Taft Roundabout Design Phase $ 275,572 Q2 FY 24-25
Right of way acquisition has delayed
this project. Due to delays, funding for
this project was reduced to pay for the
2022 Roadway Sealing project which
came in signficantly over budget. This
project is planned to be re-funded in
the 2023-25 Financial Plan.
9 Prado Road Interchange
Project
Approval/Env.
Document
Phase (PAED)
$ 1,305,772 Q2 FY 25-26
10 Public Safety Center Planning and
Entitlements $ 187,944 Q2 FY 25-26
Status of Major and Legacy Projects in Design
Page 595 of 697
12
Fund Balances
The fund balance is the fund balance at the beginning of the fiscal year plus the difference between
revenues and expenditures. The beginning fund balance represents the residual funds brought forward
from the previous year (ending balance). In the case of the enterprise funds, the “Working Capital” is a
shown below. Working Capital is equal to the fund’s current assets minus current liabilities. The total
balance includes reserved or restricted amounts.
Table 13: Fund Balance/Working Capital by Fund
101 - General Fund $ 19,665,073
601 - Water Fund $ 25,655,380
602 - Sewer Fund $ 41,205,584
611 - Parking Fund $ 13,895,890
621 - Transit Fund $ 1,308,205
Q1 Update on Business License and Other Permit Renewals
Annual business licenses and various permit renewals and fees are due to the City in the first quarter of
the fiscal year. Staff were successful in collecting most of the renewals by the due date (July 31, 2022).
Delinquent customer accounts are now subject to late fees and/or administrative fines. The table below
shows an update on where the City is at with collection of these license and permit renewals as of October
31, 2022.
Table 14: License/ Permit Type Renewed Delinquent
Business Licenses 8,389 274
Business Licenses – Homestays 132 3
Fire Permits 237 45
Industrial User Permits 258 28
Outlook and Conclusion
All the City’s major funds began FY 2022-23 in good financial standing. While revenue trends are looking
favorable, most economists are signaling some degree of downturn that will begin either in late 2022 or
early 2023. The establishment of the revenue stabilization reserve will help hedge against any sudden
fluctuation, but Council will need to carefully consider the economic uncertainties when preparing for the
2023-25 Financial Plan. Not only has the City’s cost of doing business increased due to inflation and supply
shortages but its core services have expanded over the past few years. New programs such as the Office
of Diversity, Equity, and Inclusion as well as many of the Housing and Homelessness efforts are now part
of the City’s base budget. Updated long-term forecasts that consider revenue trends and expenditure
impacts will be presented to Council at the February 7, 2023 Mid-Year review.
6
5
Page 596 of 697
General Plan Update
October 2022
The purpose of this report is to supply a summary of the status of all General Plan implementation
programs. These programs are actions that implement goals, objectives and policies. As such, checking
our progress in implementing General Plan programs is an excellent way of checking our progress in
achieving General Plan goals and objectives. Based on the information, there was approximately a 4%
increase in programs that were completed or integrated into operations since the last update provided as
part of the 2021-23 Financial Plan. For complete detail on the General Plan and all its elements visit the
Community Development General Plan page here.
Program Count by Element
LAND USE ELEMENT - 73
CIRCULATION ELEMENT - 69
HOUSING ELEMENT - 65
NOISE ELEMENT - 8
CONSERVATION AND OPENS SPACE ELEMENT - 68
SAFETY ELEMENT - 34
PARKS AND RECREATION ELEMENT - 41
WATER AND WASTEWATER ELEMENT -38
35%42%
22%
Low Medium High
Programs Categorized by Difficulty
396
Total Programs
98%
Completed or integrated
in ongoing operations
Page 597 of 697
General Plan Elements
Land Use Element: There are 73 Land Use programs are in place, of which 26% are complete. These
programs set forth a pattern for the orderly development of land within the City's planning area. This
pattern should be based on residents' preference and on protection of natural assets unique to the
planning area. The Element also describes the expected level of population growth resulting from
construction of the kinds of housing units included in the plan, as well as the kinds of new commercial
and industrial development that are responsive to the City's economic needs.
Circulation Element: There are 69 circulation programs are in place, of which 10% are complete.
These programs recognize implications of land use policy on all modes of movement and sets up
policies, standards, and implementation measures that work with the Land Use Element update and
address both existing and potential circulation opportunities and deficiencies.
Housing Element: There are 65 Housing Element programs are in place, of which 15% are complete.
The City updated the Housing Element in December 2020. The changes to housing policies and
programs reflect the changing needs, resources, and conditions in the community, and respond to
changes in state and federal housing law.
Noise Element: There are 8 Noise Element programs in place, of which 25% are complete. These
policies supply the proper protections needed to allow development and mixture of compatible uses
while protecting residents and land uses from noise impacts.
Conservation / Open Space: There are 68 Conservation / Open Space programs in place, of which
15% are complete. These programs address protection of open space amenities and resources in
detail. The Land Use Element works with this element and incorporates concepts such as clusteri ng
and buffering open space areas to enhance their protection.
Safety Element: There are 34 Safety Element programs in place, of which 21% are complete. These
programs find hazards that influence the locations and types of land uses proposed. The Land Use
and Safety Elements share several safety topics. The Land Use Element update adds to the Safety
Element through the inclusion of safety through environmental design concepts and to airport safety
policies and programs.
Parks & Recreation Element: There are 41 Parks & Recreation Element programs in place, of which
12% are complete. This program supplies active recreation areas and facilities that are essential to
neighborhoods. The Land Use Element works to incorporate parks and recreation into the larger land
use alternative sites and enhance integration of these resources into neighborhoods.
Water & Wastewater Element: There are 38 Water & Wastewater Element programs in place, of
which 8% are complete. These programs supply policies and programs to support adequate services
to the community. The Land Use Element includes alternatives that are in keeping with the services
available and ensures that infrastructure is sized appropriately to serve future service needs and
planning.
Page 598 of 697
Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.
LAND USE ELEMENT
1 Growth Management
1.14.1
The City will monitor reports from the County “resource
management system” and advocate for adherence to that
system.
O L CD/UT
1.14.2
The City shall advocate and help arrange quarterly
coordination meetings among planning directors of local
jurisdictions to discuss regional issues.
OL CD
1.14.3.
The City will participate with the County in reviewing and
providing input on County projects and general plan
amendments that have potential to impact the City or be
inconsistent with City policies.
OMCD
1.14.5
The City shall maintain a memorandum with the County,
pledging that neither agency approve a substantial
amendment to its plan for San Luis Obispo's planning area
without considering the recommendation of the other agency
CCD
1.14.6
The City shall prepare and maintain a Planning Area Map in
the General Plan. The City will establish and maintain
County concurrence for the map, which applies to the City’s
Planning Area outside the urban reserve.
OL CD
1.14.7
The City shall maintain a development fee program that
covers costs associated with City services and facilities.
Periodic review of the fees collected will ensure they are
adequate to cover City costs.
OHCD
2.1 Conservation and Development of Residential
Neighborhoods
2.10.1.
The City shall review, revise if deemed necessary, and
actively enforce noise, parking, and property-development
and property-maintenance standards.
OMCD
2.10.2.
The City shall implement, and regularly review and update
property-maintenance regulations focused on proper
enclosure of trash, appearance of yards and buildings from
the street, and storage of vehicles.
OL CD
2.11.1
The City shall evaluate student housing preferences and
consider revising development standards to better meet
them in multifamily housing near campus.
OMCD
2.11.2.
The City shall review, and revise, if deemed desirable, its
standards for multifamily housing so that apartments will
provide usable open space and storage similar to the
requirements for condominiums.
CCD
2.12.
The City shall adopt special development standards to guide
addition of dwellings within Downtown residential areas to
implement Policy 2.8.
CCD
2.13.
The City will consider new regulations, for Low-Density and
Medium-Density Residential areas, to require special review
for (1) incompatibly large houses, (2) replacement or infill
homes in existing neighborhoods, and (3) accessory
buildings with plumbing facilities allowing easy conversion to
illegal second dwellings.
CCD
2.14.
The City shall implement Neighborhood Wellness Action
Plans to help residents preserve and enhance their
neighborhoods.
CCD
2.15.
The City will evaluate alternatives to the current maximum
number of dwelling units per acre (based on bedroom count)
and height, parking, and setback standards, to regulate
residential building intensity, and bulk and mass. Floor area
limits will be considered.
CCD
Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete
CD1.14.4
The City shall seek County Board of Supervisors approval
amending the County Land Use Element to make it
consistent with this element. The City will work with the
County during updates of the County's plan for the San Luis
Obispo planning area
OM
Page 599 of 697
Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.
Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete
2.16.The City shall evaluate the potential to use portions of City-
owned parking lots and structures for residents’ parking.O H CD/PW
2.17.
The City shall require new housing projects in the Downtown
area to provide residents with information and services to off-
set vehicle needs, such as providing transit passes,
providing space for hourly car rental services, and providing
on-site bicycle storage facilities.
O H CD/PW
2.18.
The City shall evaluate the potential for development fees to
fund new parking spaces in an additional parking structure
for residents of new housing projects in the Downtown core.O H CD/PW
3 Commercial & Industrial Development
3.9.
The City shall amend its Zoning Regulations to implement
the changes included in the 2014 General Plan update
program.
CCD
3.10.
Zoning Regulations and Community Design Guidelines will
include measures such as location and shielding of
mechanical equipment; location of truck loading, trash
collection areas, and loudspeakers; noise attenuation
measures along property lines to prevent unacceptable
noise exposure for residential areas or other noise-sensitive
uses.
CCD
3.11.
The City shall investigate ways to encourage more cohesion
between the existing shopping centers on Madonna Road.O M CD/ADM
3.12.
The City shall amend the Community Design Guidelines to
address transitions between neighborhood commercial
development and adjacent residential neighborhoods.
CCD
3.13.
The City shall review zoning regulations to consider allowing
visitor-service uses in office zones adjacent to community
commercial zones in the Downtown and adjacent to
Monterey Street between Johnson and Santa Rosa.
OHCD
3.14.
The City will investigate emerging technologies and trends
to evaluate whether updates to zoning regulations are
needed.
CCD
3.15.
The City shall implement appropriate strategies for business
retention and expansion with a focus on those providing
head-of-household jobs.
OHADM
3.16.
The City shall provide zoning incentives and investigate a
program coordinating commercial and industrial
development for the provision of child care and elder care
for workers.
CCD
4 Downtown
4.25.
The City shall consider features of "A Conceptual Physical
Plan for the City’s Center" (Downtown Concept Plan) in the
approval of projects in the Downtown, recognizing that the
plan is a concept and is intended to be flexible.
OHCD
4.26.
The City shall undertake a study of visual resources within
the Downtown core area to identify potential locations for
new public-owned open places with access to views of
important scenic resources. The City will consider
acquisition of one or more of these open places as
resources permit.
OHCD
4.27.
The City shall explore the full or partial closure and re-design
of Broad Street between Palm and Monterey Streets, and
Monterey Street between the two connections with Broad
Street to effectively extend, either permanently or for special
events.
O H CD/PW
4.28.The City shall modify zoning regulations to allow efficiency
units and variable density in the Downtown Core.CCD
4.24.The City shall update the Downtown Concept Plan by 2016
and shall regularly update the plan as required to address
iifi th i ffti thD t
CCD
Page 600 of 697
Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.
Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete
4.29.
The City shall work with the Downtown businesses and
residents, the BID, and Chamber of Commerce to manage
impacts from downtown drinking establishments, and if
necessary, enact additional regulations to ensure that the
late night environment in and near Downtown is safe and
pleasant.
O M CD/PD
4.30.The City shall develop a master plan for San Luis Obispo
Creek in the Downtown area.O H CD/ADM
4.31.
The City shall prepare an inventory of uses in the Downtown
Core. Particular attention shall be given to identifying uses
at the street level as these uses directly impact the
pedestrian experience and vibrancy of the Downtown. This
information shall be used to target business support and
attraction.
OMCD
4.32.
The City shall incorporate into its zoning regulations specific
criteria for evaluating use permits for bars/taverns, night
clubs and late night drinking establishments.CMCD
4.33.
The City will modify its Community Design Guidelines to
enhance Safety and Crime Prevention through
Environmental Design.
O M CD/PD
4.34.
The City, working with the Downtown Association,
businesses, landlords, and residents will consider
emergency callboxes at strategic locations in the Downtown.OMPD/ADM
4.35.
The City working with the Downtown Association, Downtown
businesses and residents shall develop a program to
encourage lighted storefronts and street frontages
throughout the night.
OL PD/ADM
4.36.All specific plans shall identify design features utilized to
enhance public safety.O L CD/PD
4.37.
The City shall conduct a nighttime safety audit of key areas
of the City to see where deficiencies in environmental design
may exist and should be improved. Key Areas should be
defined as areas experiencing higher crime than City
average by SLOPD.
OMPD
5 Public & Cultural Facilities
5.3.
The City shall continue to work to develop a plan for meeting
additional space needs in the Downtown. The City shall
work with the County to coordinate site selection, building
design, circulation and utility services, parking, trip reduction,
and funding.
OHCD/PW/A
DM
5.4.
The City, Cal Poly, and the Foundation for the Performing
Arts will jointly manage the performing arts center on the Cal
Poly campus.
OMADM
5.5.The City shall undertake a study of its surplus facilities for
possible reuse by cultural and non-profit groups.OMADM
5.6.The City shall consider incentives to support establishment
of social service facilities in the city.OMADM
6 Resource Protection
6.2.1.
The City shall prepare and maintain geographic information
systems-based maps of the city, the urban reserve, and the
planning area to guide in land use designations and decision-
making.
O M CD/IT
6.2.2
The City shall seek to protect resource areas deemed
worthy of permanent protection by fee acquisition,
easement, or other means.
O M CD/ADM
6.5.1.
Subdivision approval in hillside planning areas shall include
designation of "sensitive sites," which shall be subject to
architectural review.
OL CD
6.5.2.
The City shall create and maintain a GIS layer to accurately
document development limit lines as they are applied in the
General Plan.
O L CD/IT
Page 601 of 697
Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.
Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete
6.5.3.
Consistent with the Community Design guidelines, all hillside
areas are considered sensitive sites, and architectural
review is required for new development. The Community
Development Director will screen all proposals to identify
any which do not need architectural review.
OL CD
6.7.1.
The City shall ensure new development complies with the
City’s flood plain ordinance, setbacks, specific plans, and
design standards to minimize flood damage and flood plain
encroachment.
O L CD/PW
6.7.2 The City shall administer the National Flood Insurance
Program standards.O L CD/PW
6.7.3
The City shall notify owners of creeks and adjacent
properties in advance of work, and use care in any needed
removal of vegetation.
OL PW
6.7.4
The City shall evaluate the feasibility of establishing a
financing district or districts to address flood concerns in
affected areas.
OHPW
7 Airport Area
7.13.
The City shall continue to work with the County and regional
airlines to assure that regional airline services are continued
and expanded to adequately serve the needs of the
population in the service area of the airport.
OMCD
7.14.
The City will annex the Airport area denoted in the Airport
Area Specific Plan and accommodate incremental
development consistent with the growth management
policies, including those concerning adequacy of resources
and services and development paying its own way.
OHCD
7.15.
In approving development proposals, the City will assure
that Airport Area properties noted in the Airport Area Specific
Plan secure protection for any on-site resources identified in
the Conservation and Open Space Element. To help
maintain the greenbelt, properties shall also secure open
space protection for any contiguous, commonly owned land
outside the urban reserve. If it is not feasible to obtain
protection for such land, fees in lieu of dedication shall be
paid when the property is developed.
OL ADM
7.16.
The City shall create an Airport Overlay Zone to reflect the
boundaries of the San Luis Obispo County Regional Airport
Land Use Plan within the City limits. The purpose of the
Airport Overlay Zone is to codify airport compatibility criteria
in areas for which the City may override the Airport Land
Use Commission determination to ensure compliance with
the requirements of the California State Aeronautics Act
(Cal. Pub. Utilities Code, Section 21670, et. seq.)
CHCD
7.17.
The City shall update its Zoning Regulations to address
allowable uses and development standards for areas the
City may override a determination of inconsistency. Zoning
regulations shall be consistent with the requirements of the
State Aeronautics Act, use guidance from the Caltrans
Airport Land Use Planning Handbook and comply with
related state and federal requirements relating to airport land
use compatibility.
CHCD
7.18.
The City shall review of General and Specific Plans and
Amendments, Zoning ordinance or amendments, or Building
code changes within the San Luis Obispo County Regional
Airport Land Use Plan boundary. As well as including
referral to the Airport Land Use Commission as specified in
Section 21676(b) of the Public Utilities Code for a
determination of consistency with the San Luis Obispo
County Airport Land Use Plan.
OMCD
8 Special Focus Areas
Page 602 of 697
Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.
Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete
8.3.
The City will review and update Ordinance 1130 and involve
residents to ensure that neighborhood concerns are
addressed.
CCD
8.4.
The City will update the Mid-Higuera Area Plan for this multi-
block commercial area to reflect current needs and changes
that have occurred since the 2001 plan was adopted. OL CD
8.5.
The Caltrans site is planned for redevelopment from a
Caltrans office and yard complex to a mixed use
development. Commercial uses will be described under the
Tourist Commercial designation, and redevelopment plans
shall consider the suitability of realignment of the
Madonna/South Higuera intersection. The site should be
developed to serve as a gateway into the community, with
consideration of additional open space uses, retention and
rehabilitation of the Master List historic structure, and
retention of Heritage Trees on the site. The site shall also
include a park site north of Madonna Road.
O M CD/ADM
8.6.
Lands behind the General Hospital building that are inside
the City’s Urban Reserve line will be designated as Public
(for existing public facility) and a range of residential uses
(Low Density and Medium Density Residential) and will
include the ability to support residential care, transitional
care use, and other residential uses consistent with the
adjacent areas. The remaining site outside the City’s Urban
Reserve line will remain as Open Space. The City shall seek
to secure permanent protection of the open space outside of
the urban reserve line as part of any development proposal.
C CD/ADM
8.7.
The City shall implement the South Broad Street Area Plan
to create a safe, attractive and economically vital
neighborhood with a mix of complementary land uses.
OL CD
8.8.
The Madonna Inn Area includes land west of Highway 101
on the lower slopes of San Luis Mountain and the northeast
slopes of the foothill bordering Laguna Lake Park. This area
may be developed further only if surrounding hillsides
including area outside the Urban Reserve Line are
permanently protected as open space.
O H CD/ADM
8.9.
The 38-acre area of the Sunset Drive-in Theater / Prado
Road Area should be further developed only if flooding can
be mitigated without significant harm to San Luis Obispo
Creek. Once flooding, access, and agricultural preservation
issues are resolved, the area would be suitable for
development as a mixed use development with a mix of
Commercial uses. Permanent open space shall be required.
A full assessment of the Drive-in Theater site’s potential as a
historic resource will need to be evaluated and addressed.
Bicycle connectivity for this area is an important component
for future development.
OHCD/PW/A
DM
8.10.
The Pacific Beach area is planned for redevelopment from
current use as a continuation school, school office and park
uses to commercial retail uses along Los Osos Valley Road
and Froom Ranch Road and the remaining site maintained
under a Park designation.
OM
8.11.
Development of Calle Joaquin Auto Sales Area is suitable
for commercial mixed use and other uses in the Tourist
Commercial designation. Development of the area must
address preservation of and transition to the agricultural
parcels/uses to the northwest; connectivity to the Dalidio
Ranch area; view shed preservation; and treatment as a
gateway to the City visible from Highway 101.
OL CD
Page 603 of 697
Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.
Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete
8.12.
Flooding and access issues must be resolved for the LOVR
Creekside Area prior to developing Medium High Density
Residential. Agricultural Designations must be maintained
along the west side of site. Compatibility with adjacent
residential areas to the east will be required. Permanent
protection of the adjacent San Luis Obispo Creek will need
to be addressed. The south side of the site will need to
accommodate relocation of LOVR right-of-way and changes
related to the planned Highway 101 interchange.
O H CD/PW
8.13.
The Broad Street at Tank Farm Road Site will be used as a
mixed use site and provide a strong commercial presence at
the intersection. Areas along the creek on the western edge
of the site will be appropriately buffered to provide creek
protections. Attention to connectivity, safety and comfort of
bicycle and pedestrian circulation will be especially important
in the development of this corner.
C CD/PW
8.14.
In regards to the Cal Fire / Cal Poly-owned property on
Highway 1, the City shall collaborate with Cal Poly in
updating the Master Plan for development of campus
property. The master Plan shall address sensitive visual
and habitat resources, circulation issues, impacts to City
services, transition and potential impacts to surrounding
neighborhoods.
OHCD
8.15.
Future development of the North Side of Foothill (Bishop
Knoll) shall address open space requirements under
Policy 1.13.8 and open space buffers in accordance with
Conservation and Open Space Element Policy 8.3.2. The
steep hillside should be dedicated as Open Space and
residential lots grouped at the bottom of the hill closer to
Foothill. Development shall provide a parking lot and trail
access to Bishops Peak. Circulation connectivity shall be
provided to Los Cerros Drive as feasible. Density shall be
limited to 7 units / acre.
OL CD/PW/A
DM
8.16.
Future development of the Alrita Properties shall address
hillside planning requirements under Policy 6.4.7C.
Additional analysis will need to occur in the LUCE EIR to
evaluate potential water service issues, and additional
analysis is needed to determine if the City’s water
distribution system can adequately serve development in
this area. Density shall be limited to 7 units/acre as modified
for slope under the Zoning Ordinance.
O M CD/UT
CIRCULATION ELEMENT
2 Traffic Reduction
2.2.1.
In coordination with county agencies, the City shall support
efforts in establishing county-wide trip reduction programs.OMPW
2.2.2.The City shall maintain and where cost effective to improve
a trip reduction plan for City employees.OL PW/HR
2.2.3.
The City shall work with employers to establish a voluntary
commuter benefit options program that provides commute
options for employees.
OL PW/HR
2.2.4.
The City shall continue to work with Cal Poly, Cuesta
College, and other educational institutions to provide
incentives to all students, faculty and staff to use alternative
forms of transportation.
OMPW
3 Transit Service
3.2.1.
The City shall continue to implement the Short Range
Transit Plan (5-year time frame) and coordinate with
SLOCOG on implementing the Long Range Transit Plan (20-
year time frame).
OHPW
3.2.2.The City shall make available bulk rate transit passes to all
groups.CPW
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3.2.3.
The City shall work with the San Luis Obispo Regional
Transit Authority (RTA) to maintain and expand commuter
bus service to and from the City of San Luis Obispo during
peak demand periods.
OHPW
3.2.4.
The City shall coordinate with the San Luis Obispo Regional
Transit Authority (RTA) to evaluate the benefits and
drawbacks of consolidated service.
OMPW
3.2.5.
The City shall develop and maintain a comprehensive
marketing and promotion program to reach individual target
audiences.
OMPW
3.2.6.
The City shall update its Short Range Transit Plan to
evaluate adding mass transit stops at the high school and
the middle school.
CPW
3.2.7.When evaluating transportation impacts, the City shall use a
Multimodal Level of Service analysis.OL PW
3.2.8.The City shall work with other agencies to develop a
regional transit center downtown.OL PW
4 Bicycle Transportation
4.2.1.
The City shall evaluate a bike share program in coordination
with Cal Poly and other educational institutions.OMPW
4.2.2.
The City shall maintain and regularly update its Bicycle
Transportation Plan as needed to reflect changes in state
law and/or future conditions consistent with the objectives,
policies and standards of this Circulation Element. Future
revisions to the Bicycle Transportation Plan shall consider
Safe Routes to School
OHPW
4.2.3.
The City shall work with Cal Poly and Cuesta College to de-
emphasize the use of automobiles and promote the use of
alternative forms of transportation in their master plans.OMPW
4.2.4.
The City shall revise its zoning regulations to establish and
maintain standards for secured bicycle parking and ancillary
facilities.
C CD/PW
4.2.5.
The City should obtain railroad right-of-way and easements
to establish a separated bike path and pedestrian trail
through San Luis Obispo.
OHPW
4.2.6.
The City shall maintain its GOLD level award designation as
a Bicycle Friendly Community and pursue a gold level
designation.
OMPW
4.2.7.
The City shall collaborate with SLO County to coordinate
planning and development of county bikeways to support a
regional bicycle network.
OMPW
4.2.8.
The City should consider expanding and maintaining its
bicycle licensing program to address bicycle loss, theft, and
safety problems.
OMPW
5 Walking
5.2.1.
The City shall adopt and regularly update a Downtown
Pedestrian Plan to encourage walking and to expand
facilities that provide pedestrian linkages throughout the
Downtown. The plan shall include pedestrian safety
assessments in accordance with State and Federal
guidelines.
OHPW
5.2.2.
Areas outside of the Downtown, the City shall implement its
program for installation of a continuous and connected
pedestrian network giving areas with the heaviest existing or
potential pedestrian traffic priority in funding.
OHPW
5.2.3.The City shall continue to implement its annual program of
enhancing existing curbs with ADA compliant ramps.OMPW
5.2.4.
The City shall continue to coordinate with SLOCOG and
local schools to pursue Safe Routes to School programs and
grant opportunities.
OL PW
5.2.5.
The City shall consider the benefits and costs of
consolidating the Bicycle Transportation Plan with a citywide
Pedestrian Plan.
OMPW
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6 Multi-Modal Circulation
6.2.1.
As funding permits the City shall biennially complete a traffic
count program for pedestrians, bikes, vehicles and transit to
maintain and update its database of transportation
conditions and to evaluate the state of the transportation
system.
OMPW
7 Traffic Management
7.2.1.
Those traffic programs identified in the Circulation Element
that have the greatest potential to reduce traffic increases
shall have priority for implementation.
OHPW
7.2.3.
On a bi-annual basis, as funding permits the City shall
implement an ongoing and comprehensive transportation
monitoring program.
OHPW
7.2.4.
The City shall regularly, as funding permits, conduct a travel
behavior survey of residents to estimate their use of different
types of transportation.
OMPW
7.2.5.
The City shall work with the County to jointly develop and
adopt design and construction standards for streets within
the City's Urban Reserve.
OMPW
7.2.6.The City shall revise its Subdivision Regulations to include
right-of-way and design standards.O H CD/PW
7.2.7.
The City shall adopt an access management policy to
control location, spacing, design and operation of driveways,
median openings, crosswalks, interchanges and street
connections to a particular roadway including navigation
routes to direct traffic to preserve the safety and efficiency of
the transportation system.
OL PW/CD
7.2.8.
The City shall cooperate with State and regional agencies in
evaluating the effectiveness of high occupancy vehicle
(HOV) lanes on State highways.
OL PW
7.2.9.
The City shall develop and adopt guidelines that implement
Policy 7.1.4 concurrent with the 2015-17 Financial Plan.CPW
9 Street Network Changes
9.2.1.The City will establish building setback lines for routes listed
on Table 5.OL PW
9.2.2.
The City shall ensure that changes to Prado Road (Projects
1, 2, and 19 on Table 5) are implemented in a sequence
that satisfies circulation demands caused by area
development. Sponsors of development projects that
contribute to the need for the Prado Road interchange or
overpass will be required to prepare or fund the preparation
of a Project Study Report.
OHPW
9.2.3.
The City shall adopt and regularly update a plan and
standards for the installation and maintenance of
landscaped medians, parkways, signs, utilities, street
furniture, sidewalks and bicycle lanes. Within the Downtown,
street amenities shall be consistent with the Downtown
Pedestrian Plan design guidelines.
OHPW
9.2.4.
The City will evaluate complete street designs to maximize
the shared right of way for all users as a method of
achieving an overall objective for the Conceptual Physical
Plan of the City's Center to improve the pedestrian
environment in the downtown.
O H CD/PW
9.2.5.
As part of any proposal to further develop the Dalidio-
Madonna Area, the alignment and design of extensions of
Froom Ranch Way connecting with Prado Road (west of
Route 101) shall be evaluated and established if consistent
with the Agricultural Master Plan for Calle Joaquin Reserve.
OHPW
9.2.6.
The City shall promote the creation of “streetscapes” and
linear scenic parkways or corridors that promote the city’s
visual quality and character, enhance adjacent uses, and
integrate roadways with surrounding districts.
OMPW
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10 Truck Transportation
10.2.1.
Trucks should turn off motors when parked. The City shall
work with the Air Pollution Control District (APCD) for
guidance in establishing standards that address air and
noise pollution from idling trucks.
OMPW
10.2.2.
The City's Home Occupation Permit Regulations should be
amended to ensure that commercial trucks are not used to
make regular deliveries to home occupations in residential
areas.
C CD/PW
10.2.3.The City shall continue to provide reserved commercial truck
loading zones in appropriate downtown areas.OMPW
10.2.4.The City shall adopt an ordinance regulating the movement
of heavy vehicles.LPW
11 Air Transportation
11.2.1.
The City shall work with the County Airport to encourage the
use of quieter and more environmentally sensitive aircraft.OHADM
11.2.2.
The City shall work with the County Airport to support the
further development of airport facilities and attract additional
passenger airline services.
OMADM
11.2.3.
The City shall work with the County Airport to pursue funding
opportunities, such as Airport Improvement Program grants.MADM
11.2.4.
The City shall work with the County Airport Land Use
Commission to complete updates of the Airport Land Use
Plan for the San Luis Obispo County Airport in regard to
significant changes in noise, adjacent land impacts, and
safety zones.
CCD
12 Rail Transportation
12.2.1.
The City supports maintaining and increasing daily train
service connecting San Luis Obispo with points north and
south, with departures and arrivals in the morning, mid-
afternoon and evening.
OL PW/ADM
12.2.2.
The City shall support San Luis Obispo Council of
Governments in evaluating the feasibility of passenger rail
service to connect points within the county.
OL PW
12.2.3.
The City shall coordinate railroad facility infrastructure
maintenance with the Union Pacific Railroad and the Public
Utilities Commission. In addition, the City shall work with the
Air Pollution Control District and others to discourage idling
train engines in San Luis Obispo.
OMCD
12.2.4.
The City shall monitor and respond to changes, or proposed
changes in passenger and freight rail traffic that may impact
the safety and well-being of residents of the community
including the transport of combustible materials.
OMPW
12.2.5.The City shall discourage the transportation of oil and other
combustible hydrocarbons through the City.OL ADM
13 Parking Management
13.2.1.
The City shall maintain and regularly update its Access and
Parking Management Plan (every 5 years) including parking
demand reduction strategies and consider emerging best
practices.
OMPW
13.2.2.The City shall regularly monitor the use of public parking in
the downtown.OMPW
13.2.3.
The City shall coordinate with SLOCOG during periodic
updates to SLOCOG’s Park and Ride Lot Development
report to evaluate the need for and location of park-and-ride
lots to serve commuters.
OL PW
13.2.4.
The City shall only approve construction of additional public
parking structures after considering the findings and results
of a parking supply and demand study.
OHPW
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13.2.5.
The City shall continue to work with the Downtown
Association to evaluate the use of curb space in the
downtown and identify opportunities for creating additional
parking spaces.
OMPW
13.2.6.The City shall continue to operate the downtown trolley as a
parking management tool to reduce congestion.OHPW
14 Neighborhood Parking Management
14.2.1
Upon request from residents or other agencies, the City will
evaluate the need for neighborhood parking permit
programs or other parking management strategies in
particular residential areas.
OL PW
14.2.2.The City will investigate the feasibility and desirability of
establishing parking financing districts.OHPW
15 Scenic Roadways
15.2.1.
The City will participate with Caltrans, the County and other
cities to establish a program for enhancing the visual
character of the Highway 101 corridor consistent with the US
101 Aesthetic Study for San Luis Obispo County.
OMPW
15.2.2.
The City shall revise its Community Design Guidelines to
incorporate concern for the protection of views and vistas
from scenic roadways.
OHCD
15.2.3.
The City shall adopt a street corridor landscaping plan for
scenic roadways. Indigenous species will be used unless
shown to be inappropriate.
OMPW
15.2.4.
Both the City and the County should enforce an amortization
program for the removal of billboards along scenic
roadways.
OMCD
16 Circulation Element Implementation, Program Funding
and Management
16.2.1
Transportation Work Program shall be regularly updated as
part of the City Financial Plan, and must be consistent with
the Circulation Element. Will cover a five-year period, shall
be updated to include modified projects and costs if
warranted.
OMPW
16.2.2 The City shall update its multimodal transportation impact
fee ordinance in accordance with State Law (AB1600).CCD
16.2.3
Prior to implementation of a project identified in this element,
the City shall reevaluate its need and include an analysis of
alternatives that can achieve the desired results at lower
costs and with less environmental impacts.
OMPW
16.2.4.
Major development proposals to the City will include displays
of the proposal's interfaces with nearby neighborhoods, and
indicate expected significant qualitative transportation
effects on the entire community.
OL PW/CD
HOUSING ELEMENT
1 Safety
1.5
Continue to improve unsafe, unsanitary, or illegal
housing conditions, barriers to accessibility, energy
efficiency, or unsafe neighborhoods annually, by: 1)
using Federal, State, and local housing funds, such as
Community Development Block Grant Funds, and 2)
proactively promoting neighborhood wellness through
Code Enforcement’s Neighborhood Service Program.
OMCD
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1.6.
Continue code enforcement to expedite the removal of
illegal or unsafe dwellings, to eliminate hazardous site
or property conditions, and resolve chronic building
safety problems. Code Enforcement staff shall
continue to provide property owners and tenants with
information on how to rectify violations, who to contact
in Code Enforcement for assistance, and other
resources that may be pertinent to the citation.
OMCD
1.7.
Continue to support local & regional solutions to
homelessness by funding programs such as Maxine Lewis
and Prado Center.
O H CD/ADM
2 Affordability
2.5.
Continue to manage the Affordable Housing Fund so
that the fund serves as a sustainable resource for
supporting, at a minimum, 4 new affordable housing
developments during the planning period. The fund
shall serve as a source of both grant funding and
below-market financing for affordable housing projects;
and funds shall be used to support a wide variety of
housing types at the following income levels: extremely
low, very low, low, and moderate, but with a focus on
production efficiency to maximize housing benefits for
the City’s financial investment, and to support high-
quality housing projects that would not be feasible
without Affordable Housing Fund support
OMCD
2.6.
Review existing and proposed building, planning,
engineering and fire policies and standards every year
to determine whether changes are possible that could
assist the production of affordable housing, or that
would encourage preservation of housing rather than
conversion to non-residential uses, provided such
changes would not conflict with other General Plan
policies. Such periodic reviews will remove regulations
within 2-6 months that have been superseded, are
redundant, or no longer needed.
OMCD
2.7.
Continue to prioritize procedures that speed up the
processing of applications, construction permits, and
water and sewer service priorities for affordable
housing projects. City staff and commissions shall give
such projects priority in allocating work assignments,
scheduling, conferences and hearings.
OHCD / PW
/ UT
2.8.
Coordinate an annual public and private
sector meeting to discuss and encourage the
development of housing that meets the
City’s housing needs.
OMCD
2.9.
Assist with the issuance of tax-exempt bonds, tax
credit financing, loan underwriting or other financial
tools to help develop or preserve at least 20 affordable
units annually through various programs.
CHCD
2.10
Update the Affordable Housing Standards to include
Homeowners’ Association (HOA) fees and a standard
allowance for utilities in the calculation for affordable
rents and home sales prices within two years of
adopting the Housing Element.
OMCD
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2.11.
In conjunction with the Housing Authority and other
local housing agencies, continue to provide on-going
technical assistance and education to tenants, property
owners and the community at large on the need to
preserve at-risk units as well as the available tools to
help them do so.
OMCD
2.12.
In conjunction with housing providers and the
residential design community, continue to provide
planning services as requested by the public, builders,
design professionals and developers regarding
strategies to achieve affordable housing and density
bonuses.
OHCD
2.13.
Update the Inclusionary Housing Ordinance, including
Table 2A, based on findings and recommendations in
the 2020 Affordable Housing Nexus Study and conduct
further feasibility analysis in order to evaluate the City’s
ability to provide affordable housing in the proportions
shown in the Regional Housing Needs Allocation, per
Policy 2.4.
CMCD
2.14.
Continue to support density bonuses for residential
projects above the state density bonus allowance of
35% to promote the development of units for extremely
low, very low, and low-income households.
OMCD
2.15.
Evaluate a flexible density pilot program and initiate an
update of the Zoning Regulations and Community
Design Guidelines to incorporate flexible density
development options in Downtown Core and portions
of Upper Monterey and Mid Higuera Special Focus
Areas to support the production of 50 smaller
residential units (150 to 600 square feet) per year
during the planning period.
OMCD
2.16.
Create and make available to interested parties an
informational packet that explains SB 35 streamlining
provisions and eligibility within two years of Housing
Element adoption.
OL CD
2.17.
In order to provide adequate sites for lower income
households on non-vacant and vacant sites previously
identified in the Housing Element (Table E-2), the City
will, within one (1) year of the adoption of the Housing
Element Update, allow developments (including mixed-
use projects) that include at least 20 percent of the
residential units as affordable to lower income
households, by right (no discretionary review).
OMCD
2.18
Utilize objective design standards to allow residential
uses by right (no discretionary review) for those
developments (including mixed-use projects) that
include at least 20 percent of the residential units as
affordable to low-income households.
OMCD
3 Housing Conservation
3.6.
Continue to encourage the creation of dwellings in the
Downtown Core (C-D Zone) and the Downtown
Planning Area by continuing the “no net housing loss”
program, consistent with Chapter 17.142 (Downtown
Housing Conversion Regulations) of the Zoning
Regulations.
OL CD
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3.7.
Continue to identify residential properties and districts
eligible for local, State or Federal historic listing in
accordance with guidelines and standards help
property owners repair, rehabilitate and improve
properties in a historically architecturally sensitive
manner.
OL CD
3.8.
Continue to monitor and track affordable housing units
at-risk of being converted to market rate housing
annually and verify that tenants are properly noticed
and aware of their rights. Provide resources to support
the Housing Authority, and local housing agencies,
purchase and manage at-risk units.
OMCD
3.9.
Work annually with non-profit organizations, faith-
based organizations, or the Housing Authority of the
City of San Luis Obispo to encourage rehabilitation of
residential, commercial, or industrial buildings to
expand extremely low, very low, low or moderate
income rental housing opportunities.
OMCD
3.10.
In order to mitigate the loss of affordable housing units,
replacement housing units shall be provided for sites
identified in the site inventory when any new
development (residential, mixed-use or non-residential)
occurs on a site that has been occupied by or
restricted for the use of lower-income households at
any time during the previous five years. This
requirement applies to: non vacant sites and vacant
sites with previous residential uses that have been
vacated or demolished (see Government Code, section
65583.2, subdivision (g)(3), and Government Code,
section 65915, subdivision (c)(3)).
OMCD
4 Mixed-Income Housing
4.5.
Review new development proposals for compliance with
City regulations and revise projects or establish conditions of
approval to implement the mixed-income policies.
OL CD
4.6.
Amend the Inclusionary Housing Ordinance to require
that affordable units in a development be of similar
size, number of bedrooms, character and basic quality
as the non-restricted units in locations that avoid
segregation of such units, including equivalent ways to
satisfy the requirement. Also evaluate adjusting the
City’s allowable sales prices for deed-restricted
affordable units per a variety of unit types.
CCD
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4.7.
The City shall support Affirmatively Further Fair
Housing (AFFH) by: •Facilitating public education and
outreach by providing informational flyers on fair
housing and reasonable accommodation at public
counters and on the City’s website. Information will be
included with utility billing at least once per year.
•Training staff, elected officials, and appointees on
issues of disparity, structural racism, and inequality
through the City’s Diversity, Equity and Inclusion (DEI)
Program. •Implementing language standards and
procedures for providing equal access to City services
and programs to all residents, including persons with
limited proficiency in English. •Deed-restricting units to
provide affordability and reduce displacement.
•Supporting new technologies and/or products such as
modular housing construction to reduce costs and
increase access to housing. •Distributing information
regarding tenant rights and Fair Housing resources as
part of Code Enforcement’s response to housing code
enforcement issues.
OMCD
4.8.
Continue to distribute information regarding Fair
Housing by providing up to date information online and
brochures at the front desk, providing educational
materials to tenants, property owners and property
managers, and making public service announcements
(including but not limited to the City’s News page,
social media sites, and newspaper ads) every year.
OHCD
5 Housing Variety and Tenure
5.4.
Evaluate and implement “missing middle” housing
types (e.g. duplex, triplex, quadplex, cottages, etc.) to
increase housing options in the City within three years
of adopting the Housing Element.
OMCD
5.5.
Update the Zoning Regulations to allow mixed-use
development within Service Commercial (C-S) and
Manufacturing (M) zones without a use permit within
one year of the adoption of the Housing Element.
CCD
6 Housing Production
6.10.
Maintain the General Plan and Residential Growth
Management Regulations (SLOMC 17.88) exemption for
new housing in the Downtown Core that is enforce ably
restricted for extremely-low, very low, low- and moderate
income households.
OL CD
6.11.
Continue to allow flexible parking regulations for housing
development, especially in the Downtown Core and possibly
use city parking facilities by Downtown residents, where
appropriate guarantees limit occupancies to persons without
motor vehicles or who provide proof of reserved, off-site
parking.
O M CD/PW
6.12.
Continue to evaluate, every two to three years within the
planning period, to develop and implement incentives to
encourage additional housing in the Downtown, Upper
Monterey, and Mid-Higuera Special Focus Areas, particularly
in mixed-use developments.
OMCD
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6.13
Consider General Plan amendments, as projects are
proposed, to rezone commercial, manufacturing, or
public facility zoned areas for higher-density, infill or
mixed-use housing, where compatible with surrounding
development. Group requested rezones so that as
many as possible can be considered consistent with
Government Code §65358, that allows a general plan
to be amended four times during any calendar year.
OHCD
6.14.
Continue to provide City resources, including $40,000
annually for operational support, to support the SLO
County Housing Trust Fund’s efforts to provide below-
market financing and technical assistance to affordable
housing developers to construct or preserve five
affordable housing units per year in the City of San
Luis Obispo.
OMCD
6.15.
Meet every other year during the planning period with
other public and private agencies to identify excess,
surplus, and underutilized parcels for residential
development.
OMCD
6.16.
Incentivize 20 affordable housing developments per
year during the planning period consistent with SLOMC
Affordable Housing Incentives.
CMCD
6.17.
Financially assist in the development of 20 housing
units per year that are affordable to extremely low, very-
low, low- and moderate income households during the
planning period using State, Federal, and local funding
sources, with funding priority given to projects that
result in the maximum housing benefits for the lowest
household income levels.
CMCD
6.18.
Actively seek and collaborate with non profit housing
providers to (jointly) apply for three revenue sources
each year during the planning period, including State,
Federal and private/non-profit sources, and financing
mechanisms to financially assist with the development
of housing affordable to extremely low, very low and
low or moderate income households.
OMCD
6.19.
Review the Affordable Housing Incentives (Chapter
17.140, SLOMC) and Zoning Regulations every two
years during the planning period and update to ensure
density bonus incentives are consistent with State
Law.
OHCD
6.20.
Evaluate and update the Subdivision Regulations,
within three years of Housing Element adoption, to
support small lot subdivisions, ownership bungalow
court development and other alternatives to
conventional subdivision design
OMCD
6.21
Continue to submit the Housing Element Annual
Progress Report (APR) to the State Department of
Housing and Community Development and the
Governor’s Office of Planning and Research on or
before April 1 st of each year for the prior calendar
year, pursuant to Government Code Section 65400.
OMCD
6.22.
Update the City’s municipal code to expand objective
design standards within one year of the adoption of the
Housing Element Update.
CHCD
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6.23.
Update the development review process and expand
the thresholds of each review level (minor, moderate,
and major) to eliminate or reduce the number of public
hearing required for housing projects within one year of
adopting the Housing Element.
CMCD
7 Neighborhood Quality
7.10.
Continue to utilize a diverse range of outreach
methods, including email notifications, the City’s
website and social media accounts, and neighborhood
outreach meetings to ensure residents are aware of
and able to participate in planning decisions affecting
their neighborhoods early in the planning process.
O M CD/ADM
7.11.
Continue to work directly with neighborhood groups
and individuals to address concerns pertaining to
neighborhood needs, problems, trends, and
opportunities for physical improvements.
O M CD/PD
7.12.
Continue to fund neighborhood improvements, including
sidewalks, traffic calming devices, crosswalks, parkways,
street trees and street lighting to improve aesthetics, safety
and accessibility.
OHCD / P&R
/ PW
7.13.
Continue the City’s Neighborhood Services and Code
Enforcement programs to support neighborhood
wellness.
O M CD/PD
7.14.
Evaluate and update the Community Design
Guidelines to provide site design standards for
developments with 11 or more residential units to
include outdoor amenities such as the following:
outdoor visiting and gathering spaces, places to
exercise or recreate, and spaces reserved for edible
landscape or community gardens.
O M CD/PD
8 Special Housing Needs
8.11.
Continue to provide resources that support local and
regional solutions to meet the needs of the homeless
and continue to support, jointly with other agencies,
shelters and programs, such as Housing First and
Rapid Rehousing, for the homeless and displaced
individuals and families.
OMCD
8.12.Continue the mobile home rent stabilization program to
minimize increases in the cost of mobile home park rents.OL CD
8.13.
Support opportunities within the City suitable for tenant-
owned mobile-home parks, cooperative or limited
equity housing, manufactured housing, self-help
housing, or other types of housing that meets special
needs.
OMCD
8.14 Advocate developing more housing and refurbishing
campus housing at Cal Poly University.OMCD
8.15.Work with Cal Poly University Administration to secure
designation of on-campus fraternity/sorority living groups. O L CD/ADM
8.16
Continue to support “good neighbor programs” with Cal
Poly State University, Cuesta College, the City and
local residents. The programs should continue to
improve communication and cooperation between all
groups about student housing in residential
neighborhoods.
O M CD/PD
8.17.
Provide public educational information at the Community
Development Department public counter on universal design
concepts for new and existing residential dwellings.
OL CD
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8.18.
Review and amend the Zoning Regulations within one
year of Housing Element adoption to ensure
compliance with: 1) the Supportive Housing
Streamlining Act (AB 2162) to allow supportive housing
a use-by right in zones where multi-family and mixed
uses are permitted, including nonresidential zones
permitting multifamily uses, if the proposed
development meets specified criteria; and 2) AB 101,
to allow Low Barrier Navigation Centers by-right in all
residential zones, areas zoned for mixed uses, and
nonresidential zones permitting multifamily uses.
CCD
8.19.
Continue to look for partnership opportunities with non-
profit housing developers and service providers to
acquire four vacant, blighted, or underutilized
properties (land, retail or commercial space, motels,
apartments, housing units, mobile home parks) during
the planning period for conversion into affordable
permanent and supportive housing for homeless
persons and families.
OL CD
8.20.
Actively seek and collaborate with non profit housing
providers to (jointly) apply for two revenue sources
each year during the planning period for State,
Federal, and local funding sources to financially assist
with the development of housing for persons with
developmental disabilities.
OMCD
8.21.
Continue to coordinate monthly with the County
Department of Social Services, Homeless
Services Oversight Council (HSOC), social
service providers, and non-profit organizations
to identify, evaluate, and implement strategies to
reduce the impacts of homelessness on the City.
OL CD
8.22.
Work with other jurisdictions to advocate for State
legislation that would: 1) provide funding to help Cal
Poly University provide adequate on campus student
housing, and 2) allow greater flexibility for State
universities and community colleges to enter into
public-private partnerships to construct student
housing.
O L CD/PD
8.23.
Update Zoning Regulations, within one year of Housing
Element adoption, to be consistent with the Employee
Housing Act; including: 1) Update Table 2-1 to allow
employee and farmworker housing by right within the
Open Space and Conservation (C/OS) and Agriculture
(AG) zones consisting of no more than 36 beds in a
group quarters, or 12 units or separate rooms or
spaces designed for use by a single-family or
household, and 2) remove Chapter 17.148 - High-
Occupancy Residential Use Regulations.
CCD
9 Sustainable Housing, Site, and Neighborhood Design
9.6.
Continue to educate planning and building staff and citizen
review bodies on energy conservation issues, including the
City’s energy conservation policies and Climate Action Plan.
Staff shall work with applicants to achieve the City’s energy
conservation goals.
O M CD/ADM
9.7.
Continue to provide assurance of long-term solar access for
new or remodeling housing and for adjacent properties,
consistent with historic preservation guidelines.
OL CD
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9.8.
Implement Climate Action Plan programs to increase
production of “green” housing units and projects and require
sustainable and/or renewable materials, water and energy
technologies.
OMADM/CD
9.9.
Continue to promote building materials reuse and recycling
in site development and residential construction, including
flexible standards for use of salvaged, recycled, and “green”
building materials. Continue the City’s construction and
demolition debris recycling program (Chapter 8.05 -
Municipal Code)
O L CD/UT
9.13.
Continue to support programs for sustainable home
improvements such as solar panels, heating and cooling
systems, water conservation and energy efficient windows.OMCD
NOISE ELEMENT
1.12.Review public and private development proposals for Noise
Element conformance.OL CD
1.13.Require noise studies early in the review process when
project noise may exceed allowable limits.OL CD
1.14.Assure that noise mitigation measures are carried-out during
construction.OL CD
1.15.Monitor compliance with mitigation measures after project
completion.OL CD
1.16.
The city will work with the California Highway Patrol and the
County Sherriff`s Office to enforce loud vehicle exhaust
systems and sound amplification systems.
CL PD
1.17.The city will purchase and pursue alternatives to the use of
noisy equipment for city operations.OL ADM
1.18.The City will periodically review and update the Noise
Element.OHCD
1.19.The City will make the Noise Guidebook available to anyone
involved in project design and review.CMCD
CONSERVATION AND OPENS SPACE ELEMENT
2 Air
2.3.1.Employ best available practices in City operations.OMADM
2.3.2.Consult with APCD on significant development proposals.OL CD
2.3.3.Promote alternative transportation/land use strategies.OL CD
2.3.4.Provide alternative transportation incentives.OMPW
2.3.5.Amend the General Plan as needed to achieve air quality
goals.OMCD
3 Cultural Heritage
3.6.1.Promote public awareness of cultural resources through
activities, including tours & clean-up events.OMADM
3.6.2.Provide financial assistance and incentives for historic
preservation.O H CD/ADM
3.6.3.Expand ARC guidelines to address specific guidance for
new buildings in historic districts.CCD
3.6.4.Prepare post-disaster historic preservation standards.OMCD
3.6.5.Assist the CHC in preparing archaeological resource
guidelines.CCD
3.6.6.
Provide cultural resource awareness public educational
programs, which display artifacts which illuminate past
cultures.
CADM
3.6.7.Encourage partnering for preservation.OL CD
3.6.8.Promote adaptive reuse of historic buildings.OL CD
3.6.9.Rehabilitate and maintain City-owned adobes and historic
structures.OHADM/PW/
CD
3.6.10.Implement Cultural Heritage Committee Whitepaper.CL CD
4 Energy
4.6.1 Promote efficient City energy use.OMADM
4.6.2 Manage City operations for energy self-reliance.OHADM
4.6.3.Promote Sustainable design in City facilities.OMADM
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4.6.4.Reduce obstacles to energy conservation.OMCD
4.6.5.Encourage sustainable employee commuting practices.OL HR
4.6.6.Promote energy conservation education.OMADM
4.6.7.Administer State Building Energy Standards.OL CD
4.6.8.Encourage energy-efficient design in private development
projects.OL CD
4.6.9.Address solar access in new development.OMCD
4.6.10.Retrofit City facilities for energy savings.OHPW/UT
4.6.11.Seek financial assistance for energy efficiency
improvements in City facilities.OL PW/UT
4.6.12.Monitor energy use in City facilities and prepare biannual
report for City Council.OMADM
4.6.13.Prepare energy conservation plan for City facilities.OMADM
4.6.14.Adopt green building standards.CCD
4.6.15.Consider City-owned green energy utility.CHADM
4.6.16.Promote technology and energy conservation businesses.OL ADM
4.6.17.Require solar power for new dwellings.CL CD
4.6.18.Seek Air Pollution Control District support for maintaining air
quality.OL CD
5 Materials
5.5.1.Use materials efficiently in City operations (computer
technology and copying)OMADM
5.5.2.Promote City materials reuse and recycling.OMADM/UT
5.5.3.Coordinate waste reduction and recycling efforts.OMADM
5.5.4.Use materials with reduced environmental impacts in City
operations and facilities.OMADM
5.5.5.Maintain inventory of recycling businesses and services.OL UT
5.5.6.Expand City public information efforts on energy and
materials conservation goals.OL ADM
5.5.7 Encourage energy efficiency and Green Building in new
development.OL CD
5.5.8.Ensure new development projects include space for
materials recycling/storage.OL CD
7 Natural Communities
7.7.1.Protect natural communities.OMADM
7.7.2.Implement the Natural Communities policies from program.CADM
7.7.3.
Participate in any area-wide planning efforts such as Habitat
Conservation Plans under the U.S. Endangered Species
Act.
OL ADM
7.7.4.
Participate in environmental review conducted by other
agencies for projects that could affect natural communities
in the San Luis Obispo planning area.
O L CD/ADM
7.7.5.Develop and maintain current benchmark information on
habitat types and conditions.OMADM
7.7.6.Replace invasive non-native vegetation with native
vegetation.OMADM
7.7.7.Preserve ecotones through changes to or conditions on new
development.OL ADM
7.7.8.Protect wildlife corridors through changes to or conditions on
new development.OL ADM/FD
7.7.9.Adopt creek setback requirements.CCD
7.7.10.Implement natural communities’ policies through the Tree
Committee.OL PW
8 Open Space
8.7.1. Protect open space resources.OHADM &
P&R
8.7.2. Enhance and restore open space.OHADM &
P&R
9 Views
9.3.1.Locate and design public facilities and utilities consistent
with General Plan.OMPW
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9.3.2.Update community design guidelines to address views from
scenic routes.OMCD
9.3.3.Maintain and apply Sign Regulations consistent with the
General Plan.OMCD
9.3.4.Conduct environmental and architectural review consistent
with General Plan.OMCD
9.3.5.Require visual assessments for projects affecting important
scenic resources and views from public places.OL CD
9.3.6.Determine that view blockage along a scenic roadway is a
significant impact.OL CD
9.3.7.Review development in unincorporated County for
consistency with General Plan.OL CD
9.3.8.
Advocate State and County scenic highway designations
and protective programs for scenic routes connecting San
Luis Obispo with other communities.
OL CD
9.3.9.
Place underground existing overhead utilities, with highest
priority for scenic roadways, entries to the City, and historic
districts.
OL PW
9.3.10.Prohibit billboards.CCD
9.3.11.
Remove existing billboards through amortization, conditions
of development approval and grants for enhancing open
space and transportation corridors.
OMADM
9.3.12.
Preserve the Morros, in cooperation with other government
agencies, non-profit land trusts and property owners.OMADM
9.3.13.
Establish and maintain a program of describing and
monitoring view sheds within and adjacent to City limits to
establish a photographic baseline of visual setting.
O M ADM/IT
10 Water
10.3.1.Efficient water use OHUT
10.3.2.Maintain Water quality OHUT
SAFETY ELEMENT
8 Hazardous Trees
8.1.Identify and maintain or remove hazardous trees for City
property and assist property owners.OMPW
8.2.5.B Review emergency response plans of utilities and
transportation agencies.OL FD
9 Avoiding and Preparing for Emergencies in General
9.2.Maintain and annually update emergency response plan.OMFD
9.3 Evaluate fire-flow and identify deficiencies.CUT/FD
9.3.A.Meet response-time objective of four minutes.OHFD
9.3.B.Set response-time objective for Public Works.CPW
9.3.C Set response-time objective for Utilities.CUT
9.4.A.Train fire fighters, police, building inspectors, public works, &
utilities staff.OMFD
9.4.B.Train building & planning staff in lessons from previous
disaster areas.O L CD/FD
9.4.C.Conduct non-nuclear disaster-response exercises.OL FD
9.5.Obtain information about specific location & type of fire &
toxic hazards.OL FD
9.6.A.Participate in periodic regional disaster-response drills.O L HR/FD
9.6.B.
The city will review the hazard assessment studies and
emergency response plans of utilities and transportation
agencies.
LFD
9.6.C.Work w/CalTrans on hazardous materials approved routes
and related safety precautions.OL FD
9.7.Establish emergency operation center in Fire Station 1 and
backups sites.OMFD
9.8.Expand and keep current safety-related information.OL FD
9.9.Keep Multi-hazard Emergency Response Plans current.OL FD
9.10.Work with other jurisdictions on mutual-aid & automatic-aid
agreements.OL FD
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9.11.Prepare for post-disaster recovery.OMFD
9.15.A.Develop program to familiarize residents with fire hazards
and appropriate responses.OMFD
9.15.B.Promote efforts of the Fire Safe Council.OL FD
9.15.C.Continue CERT training program.OMFD
9.15.D.Support education programs for lower grades to teach fire
hazards.OMFD
9.16.Help organizations that provide emergency outreach &
education.OL FD
9.17.Encourage & participate in individual home inspection
programs.OMFD
9.19.A.Identify & evaluate facility hazards for City owned property.CPW
9.19.B Establish routine code inspections for commercial, industrial,
public-assembly, & group housing.CCD
9.19.C.Establish complaint-based code compliance for all buildings.CCD
9.19.D Implement City-adopted program on Unreinforced masonry
buildings.CCD
9.19.E.Provide outreach program for earthquake bracing of wood-
frame buildings.OL CD
9.20.Administer zoning, subdivision, & Architectural standards
consistent with police & fire recommendations.OL CD
9.21.Fire, police, public works, & utilities review development
applications for safety objectives.OL CD
9.22.A Maintain & administer building regulations in conformance
with State requirements.OL CD
9.33.B.Maintain & administer fire regulations in conformance with
State requirements.OL FD
9.23.Conduct fire & hazardous materials inspections in
commercial, industrial, & multifamily buildings.OMFD
PARKS AND RECREATION ELEMENT
3 Parks and Recreation Facilities
3.14.2.Partner with schools and other joint users to renovate
existing sports fields.O H P&R
3.14.5.As space becomes available, additional fields will be added
in the vicinity of Damon-Garcia Sports Complex.O H P&R
3.16.2.Acquire property and construct a community center.O H P&R
3.16.3.Update & improve indoor facilities.O H P&R
3.17.1.Implement the revised Laguna Lake Park Master Plan.O H P&R
3.18.1.1.Implement the revised Sinsheimer Park Master Plan.O H P&R
3.18.1.2. Construct a therapy pool at the SLO Swim Center.C P&R
3.19.1.Continue the Playground Equipment Replacement Program.O L P&R
3.19.2.Pursue joint use of SLO High School swimming pool.O H P&R
4 Parks and Recreation Activities
4.2.2.1.Regularly evaluate demand and need and modify as
appropriate.O L P&R
4.2.2.2.Conduct periodic public evaluations of services.O L P&R
4.2.2.3.Regularly publicize recreational opportunities.O L P&R
4.2.2.4.Consider needs of underserved groups.O M P&R
4.2.4.Avoid offering recreation activities classes or activities that
unnecessarily duplicate commercial programs.O L P&R
4.2.8.Collaborate with groups providing high risk programs in
open space areas.O M P&R
4.3.2.1.Recruit at-risk youth to participate in activities.O L P&R
4.3.2.2.Collaborate with other agencies in serving at-risk youth.O L P&R
4.3.3.1.Evaluate services to determine benefits O L P&R
Accommodate schedules of working people. 4.3.3.2.O L P&R
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Prioritize new activities from results of public input.
5 Financing
5.1.1.Develop collaborative fee exchange with S.L.C.U.S.D.O M P&R
6 Implementation
6.0.1.Continue to improve existing fields.O H P&R
6.0.2.Transition from multi-use to single use fields.O H P&R
6.0.3.Develop joint use agreements with other agencies in
addition to schools.O M P&R
6.0.4.Develop new programs to not conflict with existing field use.O L P&R
6.0.5.Ensure athletic fields are provided within new residential
development.O M P&R
6.0.6.Consider additional fields for needs not addressed with
Damon Garcia fields.O H P&R
6.1.1.Upgrade Recreation Center to provide interim community
center.O H P&R
6.1.2.Secure funding for a therapy pool to be located at the SLO
Aquatics Center.C P&R
6.1.3.Consider revenue enhancement to fund new community
center.O H P&R
6.2.1.Construct mini-parks at Purple Sage Drive and at Marsh &
Santa Rosa.C P&R
6.2.2.Support neighbor efforts to develop mini-parks.O H P&R
6.3.1.Acquire open space property to construct trails.C P&R
6.3.2.Use a variety of techniques to acquire open space.C P&R
6.3.3.Design new parks so they can connect to recreational trails.O H P&R
6.3.4.Connect existing parks & open space with trails.O H P&R
6.4.1.Schedule "unmet needs" projects through the CIP process.O L P&R
6.4.2.Look for alternatives to address unmet needs projects.O L P&R
6.5.1.Complete implementation of existing master plans, such as
those for Sinsheimer and Laguna Lake Parks.O H P&R
WATER AND WASTEWATER ELEMENT
A 2 Water Management (Multi-Source Water Supply)
A 2.3.1 Work cooperatively on regional water issues & resource
planning.OL UT
A 2.3.2.Participate with SLO County in Integrated Regional Water
Management Plan.OL UT
A 2.3.3.Participate with other appropriate agencies in controlling
invasive species which could impact water supplies.OMUT
A 2.3.4.Work with agencies to minimize water quality impacts.OMUT
A 2.3.5.Continue to work with SLO County-operation of Salinas
Reservoir & Nacimiento project.OL UT
A 2.3.6.Complete sanitary surveys for Salinas & Whale Rock
reservoirs every five years.OMUT
A 3 Water Management (Water Resource Availability)
A 3.3.1.Provide water resource update to Council as part of annual
report.OL UT
A 3.3.2.Update safe annual yield computer model for Salinas &
Whale Rock reservoirs following drought periods.CUT
A 3.3.3.Monitor ongoing research for potential long term impacts to
water supplies from climate change.OMUT
A 4 Water Management (Siltation)
A 4.3.1.Work with other agencies to implement Best Management
Practices to reduce siltation.OL UT
A 4.3.2.Continue education & outreach to owners in watersheds to
reduce siltation.OL UT
4.3.6.OMADM/
4.3.3.3.O M P&R
Continue to maintain publicly accessible open space trails.
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A 4.3.3.Consider periodic siltation studies at each reservoir.MUT
A 4.3.4.Provide annual update on siltation to Council.OL UT
A 5 Water Management (Water Supply Accounting and
Demand Projection)
A 5.3.1.Provide annual update on water supply & demand
projections to Council.OL UT
A 5.3.2.Conduct periodic updates to water development impact
fees.OHUT
A 5.3.3.Prepare Urban Water Management Plan every five years.CMUT
A 5.3.4.Prepare water supply assessments for large new
developments.OMUT
A 5.3.5.Analyze water efficiency program impacts to overall
reduction in water demand.OMUT
A 6 Water Management (Water Conservation)
A 6.3.1 Work with SLO County water agencies to identify
cooperative water efficiency measures.OL UT
A 6.3.2.Participate in state & regional water conservation efforts.OL UT
A 6.3.3.Implement Water Shortage Contingency Plan as required.OMUT
A 7 Water Management (Recycled Water)
A 7.3.1.Expand recycled water distribution system.OHUT
A 7.3.2.Review development projects to ensure recycled water is
used appropriately.OL UT
A 7.3.3.Present annual recycled water use as part of annual report
to Council.OL UT
A 7.3.4.Consider delivery of recycled water to customers outside
City limits.CUT
A 7.3.5.Continue to explore potable reuse consistent with statewide
regulations.OL UT
B 2 Wastewater Management (Wastewater Service)
B 2.3.1.Expand capacity in collection system and Water
Reclamation Facility.OHUT
B 2.3.2.Evaluate wastewater flows of proposed projects.OMUT
B 2.3.3.Conduct periodic updates to wastewater development
impact fees.OHUT
B 3 Wastewater Management (Wastewater Treatment)
B 3.3.1.Prepare & implement Water Reclamation Facility master
plan.OHUT
B 3.3.2.Work cooperatively on regional water quality issues.OL UT
B 4 Wastewater Management (Collection System)
B 4 3.1.Investigate cost-effective methods for reducing infiltration
and inflow to the wastewater collection system.OL UT
B 4.3.2.Provide education and outreach regarding infiltration and
inflow.OL UT
B 4.3.3.Support retrofit of sewer laterals to reduce infiltration and
inflow.OMUT
B 4.3.4.Update Sewer System Management Plan to maintain its
applicability.OMUT
B 4.3.5.Maintain master plans for wastewater service to developing
areas of City.OMUT
B 4.3.6.Review development proposals to ensure necessary
infrastructure is in place.OL UT
B 4.3.7.Provide a Pretreatment Program pursuant to Clean Water
Act.OMUT
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1 2.2.2a Development subject to 20 ft setback from
creek. OCD
2 2.2.2b Development subject to 30 ft. setback from
wetland habitat OCD
3 2.2.2c Development subject to 20 ft. setback from
riparian/wetland mitigation areas & fenced. OCD
4 2.2.3a Create 1.94 acres of wetland & 2.76 acres
of riparian enhancement. OADM
5 2.2.3b Allow filling of .78 acres of isolated
agricultural wetland seeps on hill. CADM
6 2.2.4a Allow .12 acres of creek fill for 3 bridge
crossings. CADM
7
2.2.4b All creek channel modifications to comply
with Drainage Design Manual & any other
required permits from Army Corps or Fish and
Game.
OCD
8 2.2.5a Plant native species between trails/rec
features and wetland/riparian habitat OADM
9 2.2.5b Provide educational signage re: wetland &
creek habitats on public trails and OS. OADM
10 2.2.9a City will manage Righetti Hill open space
in accordance with City Standards. OADM
11
2.2.9b City will provide & maintain access to
Righetti Hill. City will development a management
plan consistent with COSE.
OADM
12
2.2.10a Landowner maintains right to existing
structures & will manage parcel consistent with
Open Space standards.
OCD
13
2.3.3a 16.3 acres of active & passive parkland to
be provided with development. City will pursue 4
acres of joint use with SLCUSD with new school
development nearby.
O H P&R
14 2.3.3b 12-acre park to be developed: 10 acres to
be dedicated w/Phase I development O H P&R
15 2.3.3c 2.5 acre junction park to be developed
when impact fees are available. O M P&R
16 2.3.3d 1.5 acres of linear park to be developed
w/bike path adj to storm water basin. O M P&R
17 2.3.3e 4 acres of park to be provided by a joint
use facility when elementary school is developed. O H P&R
18 2.3.4a Subdivisions may provide parkland in lieu
of fee payment if findings can be made. OCD
19 2.4.1a 20 ft landscaped setback from Orcutt and
Tank Farm Roads. OPW
20 2.4.1b Parcels adjacent to Tank Farm & Orcutt
are sensitive sites & require ARC review. OCD
21 2.4.1c ARC shall review landscape plans - cluster
trees and screen views of new structures. OCD
STATUS OF ORCUTT AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
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22
2.4.1d Buildings on sensitive parcels shall not
include 2nd story unless 2nd floor is set back by
50 ft.
OCD
23
2.4.1e PC shall review design of sensitive lots
during subdivision review to ensure views are
maintained
OCD
24 2.4.1f ARC design review of units along Tank
Farm & Orcutt for compatibility & views of hill OCD
25 2.4.1g E street residences shall not be visible
from Orcutt/Tank Farm intersection OCD
26 2.4.1h R-1 subdivision at west base of Righetti
Hill - preserve views from D street to hill OCD
27 2.5.1a Implement environmental mitigation
measures with entitlements as appropriate. OCD
28 3.2.19a Provide public plaza/seating areas
adjacent to A/B streets intersection. OPW
29 3.2.19 b Commercial use to occupy ground floor
of primary commercial area. OCD
30
3.2.19c Provide commercial development
incentives: additional story, parking reduction,
exemption from OASP add-on fees.
OCD
31 3.2.24a Right-to-farm ordinance notification for
real property transfers. OCD
32
3.2.24b Ag activities to be phased out by project
build-out. Existing uses legally-established subject
to Non-conforming uses under Zoning Code.
OCD
33 3.3.4a City will support affordable housing in area
through state and local density bonus incentives. OCD
34 3.4.1a Geotech study required for each project
site prior to development. OCD
35 3.4.1b All structures & development shall meet
appropriate codes (Building & Transportation). OCD
36 3.4.2a Sites not previously surveyed shall
conduct a Phase I site assessment. OCD
37
3.4.2b Environmental assessment reqd prior to
public access or development for buildings
associated with ag uses and 55 gallon drums in
plan area.
OCD
38 3.5.2a-h Performance standards for airport
compatibility. OCD
39 4.1.1a Encourage architectural styles: Craftsman,
CA Bungalow, CA Mission themes OCD
40 4.1.1b Design Standards for R-1 and R-2
districts. OCD
41 4.1.1c Design Guidelines for R-1 and R-2
districts. OCD
42 4.1.1d Design Standards for R-3 and R-4
development OCD
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43 4.1.1e Design Guidelines for R-3 and R-4
development OCD
44 4.1.2a Residential design - use local streets to
enhance neighborhood atmosphere OCD
45 4.1.2b Design features (porches, entryways,
yards) to strengthen connections. OCD
46 4.1.2c Encourage universally accessible entries
to residences. OCD
47 4.2.3a Traffic calming design for intersection of A
and B streets OPW
48
4.2.3b Mixed use commercial area near
intersection of A&B streets to have 2 public
plazas. Adjacent buildings to be 2 stories tall.
OCD
49 4.2.3c Southern part of intersection of A&B
streets to be landscaped. OPW
50 4.2.4a Building setbacks from A Street defined O CD
51 4.2.4b Trees in tree wells for whole mixed use
area OPW
52
4.2.4c Mixed-use building facades, materials,
entries, windows to be consistent with one
another.
OCD
53 4.2.1a Use figures 3.1 and 3.2 when reviewing
intersection plans for A and B streets OPW
54 4.2.1b Height ordinance allowed to be relaxed to
enable architectural features. OCD
55 4.3.4a Final landscape plan to include details &
not use invasive non-native plant species. OCD
56 4.3.4b List of plants not be planted in OASP. O CD
57 4.4.3a OASP lighting standards - style, height,
efficiency, shielding, type, etc. OCD
58 4.5.1a 160 ft wide distance buffer from train
tracks to residential areas. OCD
59 4.5.1b Add landscaped berm or sound wall where
buffer is not adequate for noise. OCD
60 4.5.1c Orient residential uses and outdoor areas
away from railroad tracks. OCD
61 4.5.1d Put parking lots between residence and
railroad tracks. OCD
62 4.5.1e Locate sensitive uses within residences
away from tracks. OCD
63 4.5.1f Use insulating construction to reduce
noise. OCD
64 4.5.2a Set outdoor activity areas 80' back from
Orcutt and Tank Farm Rd to reduce noise. OCD
65 4.5.2b Locate sensitive uses within residences
away from roads. OCD
66 4.5.2c 60 ft wide distance buffer from Orcutt and
Tank Farm Rd to residences. OCD
67 4.5.2d Use insulating construction to reduce
noise. OCD
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Difficulty to Complete
68
4.7.2 Building placement & construction to
maximize passive systems for heating, cooling &
lighting.
OCD
69 4.7.2b Use shade, skylights, daylight controls, &
glazing to maximize energy savings. OCD
70
4.7.2c Residential developments of >5 units/non-
residential uses >5,000 sq ft shall comply with
green building criteria
OCD
71
4.7.2d 5% of all single family units shall use
photovoltaics. Increase this percentage by 4%
each year.
OCD
72 4.7.3a Energy star compliant appliances required
for dwellings. OCD
73 4.7.3b Use CFLs where possible. O CD
74
5.1.1 Orcutt Rd to have a continuous 2-way left-
turn lane, Class II bike lane, & curb/gutter
between Johnson and Tank Farm.
OPW
75 5.1.2 Tank Farm to be widened at D St,
Brookpine & Wavertree w/left turn lanes. OPW
76 5.1.3 Tank Farm/Orcutt intersection realignment
to be completed in Phase I. OPW
77 5.2.1 Collector streets will be single lane of travel
in each direction. OPW
78
5.2.2 A St. shall have Class II bike lanes &
separated sidewalks & no parking (except
adjacent to neighborhood commercial area) on
both sides.
OPW
79 5.2.3 B St. development standards. O PW
80 5.2.4 C St. development standards. O PW
81 5.2.5 D St. development standards. O PW
82 5.2.6 Bullock Ln to be extended to connect with
traffic circle at B & C streets. OPW
83 5.2.7 Traffic circle to be built at B and C street
intersections. OPW
84 5.2.8 Shared driveway access for A, B, C, & D
streets ok. Limited private drives ok. OPW
85 5.3.1 E St development standards O PW
86 5.3.2 Allow alley area to count towards net site
area for density determination. OCD
87 5.4.1 Bus routes, stops & pullout areas to be
determined by City transit. OPW
88 5.5.1 Bike trail connections descriptions O PW
89 5.5.2 Neighborhood park bike trail path
description OPW
90 5.5.3 Tank Farm & Orcutt Road bike paths and
bike bridge over Industrial Way OPW
91 7.2.2a Circulation & road widths shall
accommodate Fire Dept. emergency access. OPW
92
7.2.2b Public fire hydrants reqd. Adequate water
volumes to support fire hydrants for fire protection
needs.
OPW
Page 625 of 697
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
STATUS OF ORCUTT AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
Status as of October 2022
Difficulty to Complete
93 7.2.2c Buildings shall have fire sprinkler systems
per SLOFD requirements. OFD
Page 626 of 697
STATUS OF MID-HIGUERA AREA ENHANCEMENT PLAN
Complete Lead
No. Program Summary or Ongoing Low Medium High Dept.
1
Plant native veg along creek. Acquire land on fwy
side of creek & property on east side of creek
between City prop & Marsh Street bridge for open
space (Crk-a)
OHADM
2 Improve open space at south end of Brook St.
(PPO-d) OMADM
3 Acquire CalTrans property & develop park (PPO-
a) O H P&R
4 Modify or replace Marsh St bridge if desirable to
align w/Higuera- Marsh (Flood-a) O HPW
5 Install bypass overflow channel parallel to creek
on City-owned OS (Flood-b) O HPW
6 Coordinate other flood-planning improvements
(Flood-c.) OHPW
7 Widen Higuera to four lanes w/bike lanes &
median & mid-block turns (Circ-a) O HPW
8 Realign Bianchi Ln w/ High St. (Circ-b)
O HPW
9 Realign Pacific St. Close Walker St. Landscape
Walker closed area (Circ-c) O HPW
10
Parker St- CGS, trees, benches, lighting.
Higuera - trees, lighting & benches. Madonna-
landscaped median. Underground utilities &
remove billboards (Circ-d) O
HPW
11 Extend Brook St. w/Caltrans site (Circ-e)
O HPW
12 Install bikeway along creek with bridge (Crk-b)
O HPW
13
Construct ped path on east side of creek. Add
benches, public art & interpretive displays &
bridges (Crk-c) O
HPW
14 Establish a Mid-Higuera Area parking committee
& consider parking assessment dist (Pkg-a) OMPW
15 Restripe street spaces & reduce driveway ramps
(Pkg-b) OMPW
16 Review shared use parking & expand to distribute
parking (Pkg-c) OMHPW
17 Lease or purchase 2 public parking lots (Pkg-d)
O HPW
18 Acquire & improve public parking near
Archer/Walker/Higuera & Parker/High (Pkg-e) O HPW
19 Complete street improvements including ped
amenities (Pkg-f) O HPW
20 Establish in-lieu parking fee for the Mid-Higuera
Area (Pkg-g) O HPW
21 Add transit stops w/shelter, benches & signage
for the Mid-Higuera area. (Pub-a & Pub-b) OMPW
22 Develop mini-plaza at Walker (PPO-b)
O HPW
23
Provide info kiosks at strategic places for peds as
part of the Mid-Higuera Enhancement Plan. (PPO-
c) O
HPW
24 Acquire & maintain OS along creek & install
bridges & imps (PPO-e) O HPW
Status as of October 2022
Difficulty to Complete
Page 627 of 697
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
1 Install traffic signals at Upham (4.1B) C PW
2 Use CIPs & economic revitalization tools to
promote area (2.9C) OHADM
3 Limit noise & emissions from engine idling
between 10pm and 6am (3.1M) OMCD
4
Ped Circulation Plan, Bike Transp. Plan,
Circulation Element, and RR District Plan to be
consistent (2.7B)
OCD
5 Identify code violations & work with owners to
correct (2.8C) OCD
6 Rehabilitate historic SP Freight warehouse (1.11)
- 4 construct phases & roof repair completed CPW
7
Install Curb, gutter, boardwalk & trees along
Santa Barbara, High, Roundhouse, Emily & South
Street (4.1D)
OHPW
8 Clearly communicate with property owners,
railroad & ops staff (3.1I) OL CD
9 Encourage added public telephones or
emergency call boxes (2.7E) OMCD
10 Install pedestrian crosswalks at Leff & Upham
streets (4.1A) O PW
Upham Crossing C
Leff Crossing OM
11 Widen Santa Barbara Street from Broad to
Upham - including left turn pocket (4.1C) CPW
12 Install standard gauge railroad track to display of
historic railroad cars (1.12) O HPW
13 Install historic markers & improved walk of history
describing RR features (1.14) OHCD
14 Public access to RR bikeway provided with Villa
Rosa development (1.17) o HPW
15 Consider MU zone to allow broader range of uses
(2.9D) CCD
16 Consider CDBG funds for business loans and
rehabilitation grants (3.1K) OHCD
17 Enforce property screening & maintenance along
ROW (3.1N) OHCD
18 Rehabilitate historic water tower to 1940s
condition & update historic marker (1.6) OHCD
19 Evaluate assessment district to pay for
undergrounding utilities (3.1O) OMPW
20 Construct bikeway on land adjacent to Johnson
Ave for Southbound bicyclists (1.1) O HPW
21 Install bridge off Johnson Ave for bikeway north
to Cal Poly (1.2) O HPW
22 Install pedestrian bridge over RR linking Fairview
with Penny Lane (1.3) O HPW
STATUS OF RAILROAD DISTRICT PLAN IMPLEMENTATION PROGRAMS
Status as of October 2022
Difficulty to Complete
Page 628 of 697
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
STATUS OF RAILROAD DISTRICT PLAN IMPLEMENTATION PROGRAMS
Status as of October 2022
Difficulty to Complete
Install bikeway & trail linking east side of RR
tracks to signal on Johnson @Lizzie St (1.4) O HPW
-Partially complete with shared-use path through
French Hospital Campus between Iris St &
Johnson/Lizzie intersection
24 Install new bikeway along both sides of RR ROW
(1.5) OHPW
- Partial improvements completed, significant
improvements still remain
25 Expand passenger loading zone in parking lot
north of depot (1.7) O HPW
26
Install textured concrete paving & crosswalks,
ped lighting, trees & signage @ Leff and Osos
(1.8)
OMPW
27 Plant palm trees on 50-100 ft centers (1.9)
OMPW
28
Acquire land & construct a multi-modal transit
center with parking, shelter, restrooms, info, bike
storage, lockers etc (1.10)
O HPW
29
Install street paving, curb, gutter, wood
sidewalks, street trees, lighting, & signage on
Railroad Ave, Osos, Santa Barbara, High, Emily
and Roundhouse Streets (1.13)
OHPW
- Santa Barbara Street improvements complete;
other improvements remain
30 Install bikeway between Alphonso and Emily
streets (1.15) O HPW
31
Install ped/bike crossing for access from
Stoneridge/Lawrence Dr./Villa Rosa
neighborhoods to Sinsheimer Park (1.16)
O HPW
32 Improve bike/ped undercrossing to Sinsheimer
Park (1.18) OHPW
33
Install bikeway linking RR bikeway with Augusta
/Southwood Drive neighborhood through creek &
park areas (1.19)
OHPW
34 Replace/repair fencing, remove trash & install
landscaping along fence line (1.20) OMPW
35 Encourage expanded parking & staging area for
bikes (1.21) OHPW
36
CIPs to install improvements at Emily,
Roundhouse, High, Church, Santa Barbara &
Osos for paving, curbs, lighting, boardwalks,
signage & trees (2.7C)
OHPW
- Partially complete, with paving, curb, gutter
sidwalk along most of these streets. Railroad
sidewalks complete along Santa Barbara.
37 Consider special engineering standards for
district public improvements (2.7D) CPW
- Standards now include railraod sidewalks and
sign posts.
38 Improve traffic circ-expand public transit,
bikeways, & widen Santa Barbara (3.1H) OMPW
23
Page 629 of 697
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
STATUS OF RAILROAD DISTRICT PLAN IMPLEMENTATION PROGRAMS
Status as of October 2022
Difficulty to Complete
- Santa Barbara Street improvements 90%
complete; other improvements remain
39 Improve passenger loading facilities at depot
parking area (3.1J) OHPW
40 Use RR parking lease funds to improve parking
enforcement, & lot appearance (3.1L) OMPW
41
Install additional traffic signage and street lighting,
where considered necessary at pedestrian
crossings to improve sight distance (4.1E)
OMPW
Page 630 of 697
STATUS OF AIRPORT AREA SPECIFIC PLAN
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
1 Establish joint RTA bus stop on S. Higuera &
Tank Farm Rd (AASP 6.3E) CPW
2 Management program for area creeks required
with minimum setbacks of 35 ft. (AASP 3.3.1) OADM
3 Develop remediation actions for Chevron site to
preserve natural resources (AASP 3.3.4) CADM
4 Establish mitigation bank within Chevron property
to serve AASP & MASP areas (AASP 3.3.5) CADM
5
Develop public access levels compatible with
maintaining habitat for Chevron property (AASP
3.3.6)
OADM
6 Restore creek areas (AASP 3.3.7) O ADM
7 Retain open space corridor to allow movement of
wildlife on Chevron property (AASP 3.3.8) OADM
8
Maintain wildlife corridors south from AASP
toward Indian Knob & Davenport Hills by obtaining
greenbelts and working with County (AASP
3.3.9P)
OADM
9 Enlarge wetland connection between areas north
and south of Tank Farm Rd (AASP 3.3.10) OADM
10 City will manage acquired open space land to
preserve habitat (AASP 3.3.11) OADM
11 City will pursue MOU for privately owned open
space lands to preserve habitat (AASP 3.3.12) OADM
12 In lieu fee for development not able to dedicate
land for open space (AASP 3.3.14) OADM
13 Expansions of URL will secure open space (AASP
3.3.15) OADM
14 Resource management activities compatible with
airport operations (AASP 3.3.17) OADM
15 Expand wetland north of Tank Farm w/Chevron
project (AASP 3.3.18) OADM
16
50 ft wetland setback required through
subdivision, development, & public facilities
(AASP 3.3.3)
OCD
17 Require development to dedicate land or
easements for greenbelt (AASP 3.3.13) OCD
18 Locate bike paths outside creek setback area
(AASP 6.3H) OPW
19 Bike lanes shall meet or exceed CA DOT & City
design standards (AASP 6.3I) OPW
20
Require bike lanes as part of frontage
improvements for development. Require bus
stops as part of development improvements
where appropriate (AASP 6.3G)
OPW
21 Establish timed transfer point on Margarita Rd
(AASP 6.3D) O LPW
Status as of October 2022
Difficulty to Complete
Page 631 of 697
STATUS OF AIRPORT AREA SPECIFIC PLAN
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
Status as of October 2022
Difficulty to Complete
22
Development to provide street furniture or
passenger amenities such as transit stops,
shelters, pads, trash receptacles, etc. (AASP
6.3L) O
MPW
23 Amend Bicycle Transportation Plan to include
Airport area facilities (6.3F) C PW
24 Limit access to creek side environment between
Broad St. and Santa Fe Rd (AASP 3.3.2) O HADM
25 Access & interpretive info for historical resources
(AASP 3.3.16) OHCD
26
TIF funds used for new buses to serve AASP.
Bus stops provided by adjacent development
(AASP 6.3C) O
HPW
27 Amend Circulation Element to expand truck route
network (AASP 6.3A) C PW
28 Connect bike lanes at intersections in the Airport
Area (AASP 6.3J) OMPW
29 Establish a CIP program to include bikeways not
part of Airport development (AASP 6.3K) OMPW
Page 632 of 697
STATUS OF MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
1 1.1a Hills to be dedicated to City & protected. C ADM
2 1.1b Livestock grazing may be limited & City will
manage hillside vegetation. OCD
3 1.1c Previously graded road to Telecom facilities
will be relocated. OCD
4
1.2.a Acacia Creek corridor shall be 100 ft wide
exclusive of sports fields & will be replanted with
riparian plants.
OCD
5
1.2.b Swales emerging from hills will have open
space corridors 50 ft wide & fenced near
developed areas.
CCD
6 1.2c Lower swales thru neighborhood park will be
accessible for play O H P&R
7
1.3 Riparian and seasonal wetlands which are
shown as development areas will be replaced in
kind within MASP.
O ADM/P
W
8
1.4a MASP development to detain peak storm
water flows on-site. Shallow basins are preferable
to deeper ones.
OCD
9 1.5a Protect ag land elsewhere in URL or
greenbelt. OCD
10 1.6a Provide 10-acre neighborhood park, and 16
acre improved sports field. O H P&R
11 1.6.1a Neighborhood Park req's including
equipment and landmark feature. O H P&R
12 1.6.1b Some seating, cooking & small child play
space to be partly enclosed. O H P&R
13
1.6.2 Greenspace and play fields mainly semi-
natural vegetation, with large trees only at edges
& possibility of community gardens.
OADM
14 1.6.3 Greenways for cycling & walking paths. O PW
15
1.6.4 Sports fields to accommodate active
recreational uses & include on-site parking.
Shielded night lighting.
C P&R
16
2.1.1 Low Density Residential areas for SFRs
only. No churches, schools or secondary
dwellings.
OCD
17 2.1.2 Density will be 7-9 dwellings/acre O CD
18 2.1.3 Lot dimensions are regulated by Table 2 O CD
19 2.1.4 A-C - setbacks and building/parking
orientation OCD
20
2.1.5 Each dwelling shall have 2 off-street
parking spaces - one covered. & alley access
standards
OCD
21
2.2.1 Medium density residential areas -detached
houses on small lots or groups of detached
dwellings on larger lots
OCD
22 2.2.2 Medium Density shall be 8-16
dwellings/acre. OCD
Status as of October 2022
Difficulty to Complete
Page 633 of 697
STATUS OF MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
Status as of October 2022
Difficulty to Complete
23 2.2.2 a-e Lot dimension table & standards for
Med Density OCD
24 2.2.4 Med Density Building form - setbacks and
architecture OCD
25 2.2.5 Parking to be located at rear. Alley access
standards and special setbacks if located in front. OCD
26
2.3.1 Med-High Density Res for attached
dwellings or PUDs. No churches or schools
allowed.
OCD
27 2.3.2 Med-High Density will be 13-18 units/acre. O CD
28 2.3.3 Lot dimensions per Table 4 O CD
29 2.3.4 a&b Setbacks and architectural criteria O CD
30 2.3.5 Parking to be located at rear. Alley access
standards and special setbacks if located in front OCD
31
2.4.1 High-Density Residential - allow a mix of
densities and ownership. Churches and Schools
not allowed
OCD
32 2.4.2 High-Density Residential density will be 19-
24 units/acre OCD
33
2.4.3 Lots to be developed as a single parcel or
condo however it may be divided into two land
parcels to allow for affordable housing.
OCD
34
2.4.4 a-c High Density building form - setbacks,
arch character and porches or other outdoor
space.
OCD
35 2.4.5 Parking requirements and location O CD
36
2.5.1 Neighborhood commercial uses = CN zone
except no uses larger than 5,000 sq ft, schools,
services stations
OCD
37 2.5.2 CN Density shown in Figure 5 O CD
38 2.5.3 CN lot dimensions & size minimums O CD
39 2.5.4 a-f CN Building Form (coverage, height,
setbacks, FAR, size, architectural character OCD
40 2.5.5 CN parking required 1/500 sq ft. & 1/300 sq
ft for bikes OCD
41 2.6.1 Business Park uses - master-planned
campus-type development. OCD
42 2.6.1a BP Office - small offices and mixed use. O CD
43
2.6.1b BP General - R&D, Light manufacturing,
business services. Allowed uses listed by
approval level.
OCD
44 2.6.1c BP- Outdoor - landscaped parking, storage,
employee recreation areas OCD
45
2.6.1d BP- prohibited uses = carnivals,
convalescent hospitals, dwellings, homeless
shelters, schools or public assembly uses
OCD
46 2.6.2 BP employee density not to exceed 40
persons/acre OCD
47 2.6.3 BP parcel sizes & dimensions O CD
Page 634 of 697
STATUS OF MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
Status as of October 2022
Difficulty to Complete
48 2.6.4 BP vehicle access will be loops or grid
extensions. NO driveways on Prado Rd. OPW
49
2.6.5a-i BP site and building design (FAR,
Orientation, outdoor space, setbacks, parking lots,
heights, massing, entries, & materials)
OCD
50 2.6.6a-d BP Continuity of landscape space O CD
51 2.6.7a-d BP parking requirements & design O CD
52
2.6.8a-b BP Landscape screening required for
loading, waste collection, utilities & mechanical
equipment
OCD
53 2.6.10 BP Outdoor employee amenity areas are
required OCD
54
2.7.1 Special use area between hills and Broad
street (1.2 acres). House and grounds should be
preserved and uses may include residence; B7B,
hostel, museum, art or craft gallery with retail
sales, restaurant, retail sales of food, office for
sales of MASP properties or visitor info center.
OCD
55 3.1a Buildings to express human scale by
articulating mass OCD
56 3.1b Architectural styles in plan are encouraged O CD
57 3.1c Residential entries should be identifiable
from streets or ped walkways OCD
58 3.1d Universally accessible entries are
encouraged for all buildings OCD
59 3.1e All development is encouraged to have
outdoor space shielded from aircraft noise.OCD
60
3.2 Street trees to create sense of identity; focal
areas should be highlighted through trees and
planting; riparian corridors should have native
landscaping; and all landscaping should be water
efficient.
OCD
61 3.3 Lighting shall be energy efficient, avoid glare
and minimize illumination toward sky.OCD
62 3.4 Building form & placement to meet solar
exposure objectives. OCD
63 3.5 Public art to be encouraged at neighborhood
park & principal collector street entries.O H P&R
64
3.6 Dwellings & outdoor spaces to be separated
from Prado Rd by greenways, green space & BP
uses. Landscaped berm to be installed where
appropriate.
OCD
65 3.7 Fence and wall designs to comply with
community design guidelines OCD
66
4.2 a-g performance standards to ensure airport
compatibility including limitation on uses and
operations that might be dangerous; indoor noise
level requirements, avigation easement and
disclosure requirements
OCD
Page 635 of 697
STATUS OF MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
Status as of October 2022
Difficulty to Complete
67
5.0 Traffic calming features to be developed.
Streets & drives to provide access without
unnecessary paving
OPW
68
5.1 City will extend transit service into area as
roads are developed. Transit stops to include
turnouts, shelters, benches, trash receptacles &
real time arrival status displays.
OPW
69
5.2a New development shall include sidewalks,
ped paths, bike lanes and bike paths. Precise
alignments will be determined with subdivisions.
OPW
70
5.2b Bike path width, paving, signs and features
to comply with Bicycle Transportation Plan.
Proposed crossings may include features such as
pavement changes, signs or bulb-outs.
OPW
71
5.2c. Pedestrian and bike access to sports fields
will be by enhanced under or over crossing with
visibility for safety and sense of place
OPW
72 5.3a-I Streets to foster traffic volumes
appropriate for land uses and neighborhoods OPW
73 5.4 Alleys should be used where feasible O PW
74
5.5 Local streets will have bulb-outs at the end of
blocks and at mid-block for blocks longer than
500'.
OPW
75
5.7.1 Additional right-of-way for Broad Street to
accommodate bike lane, vertical curbs,
landscaped parkway, and center median.
OPW
76 5.7.2 Prado Road facilities, phasing and
construction requirements OPW
77 5.8 Traffic calming required - roundabouts, traffic
circles, intersection treatments, and bulb-outs. OPW
78 5.9 Street names to follow City requirements. O CD
79 6.3 Fire Dept. activated signal control devices
required for all intersections with traffic signals OPW
80
7.3.1 Subdivision plans must show detailed
solutions to storm water issues. Developers are
responsible for drainage facilities serving their
parcels.
OPW
81 7.3.2 All drainage facilities must comply with
NPDES & post construction runoff controls OCD
82
7.5 Each residence shall have one 2" conduit
connected with underground system to facilitate
future installation of high-speed data system.
OPW
83
7.7 All new power, telephone & cable lines to be
installed underground. All existing line facilities to
be underground at time of frontage construction.
OPW
84
7.8 Streets & utilities installations must be built to
ensure that later projects can build upon systems
that are appropriately sized and located.
OPW
Page 636 of 697
STATUS OF MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
Status as of October 2022
Difficulty to Complete
85
8.1a The area shall accommodate at least 2 sites
with a total capacity of 40 dwellings for HASLO to
provide affordable housing.
CCD
86
8.1b Residential area may be developed with
modular or manufactured dwellings that comply
with specific plan.
OCD
87
8.1c Affordable housing density bonuses
available in area designated in Fig 5 only due to
airport land use plan.
OCD
Page 637 of 697
Page 638 of 697
Page 1
ATTACHMENT C.
CLIMATE ACTION PLAN UPDATE
INTRODUCTION
In response to community priorities and Council direction, the City
has been implementing ambitious sustainability and climate
action work since the 2017-19 Financial Plan. In 2020, Council
adopted the Climate Action Plan for Community Recovery, which
established the goal of community wide carbon neutrality by 2035
and supporting sector specific goals. In 2021, the City also
adopted the Lead by Example plan, which established the goal of
carbon neutral municipal operations by 2030 and describes
capital projects and operational programs required to achieve the
goal.
Staff and the community have been busy implementing both
plans and are preparing an update that provides the 2023-27 CAP
implementation work plan.
This document provides an overview of the implementation status
of the 2020 Climate Action Plan, previews the forthcoming 2023-
27 CAP Work Plan, an d describes the opportunities provided by
Federal and State funding and regulatory alignment.
CAP IMPLEMENTATION STATUS
The 2020 CAP directs staff to provide an update on Climate
Action Plan implementation progress every two years. The initial
progress report was provided to Council in 2021 and the next
biennial report will be provided to Council in December of 2022
(concurrent with the proposed 2023-27 CAP Work Program,
discussed below).1,2 That report will provide a comprehensive
implementation status update for every action in the 2020 CAP.
Key implementation status items in that report include:
Diversity, Equity, and Inclusion and Climate Action:
Diversity, equity, and inclusion are core values for the City
and the Office of Sustainability has made a conscious
effort to center these considerations in all climate action
1 2021 CAP Progress Report:
https://www.slocity.org/home/showpublisheddocument/30891/6376445781 94470000
2 The Public Review Draft progress report is available for review and comment from November 2 through
November 16 at www.slocity.org/climateactionplan
Page 639 of 697
Attachment C. Climate Action Plan Update November 2022
Page 2
work. Since adoption of the 2020 CAP, the City has included equity as a core consideration
in every implementation project plan.
Clean and Green Electricity: On January 1, 2020, the City began receiving energy from
Central Coast Community Energy, formerly Monterey Bay Community Power, a
Community Choice Energy program that provides clean electricity, rate savings, and
community energy programs.
All-Electric New Buildings: In July 2022, Council adopted the Clean Energy Program for
New Buildings, which requires nearly all projects submitting building permits on or after
January 1, 2023, to be all-electric.
Natural Solutions and Carbon Sequestration: In Summer and Fall of 2022, the City
completed a soil carbon storage study with assistance from the Coastal San Luis
Resource Conservation District and began a pilot compost application project at Johnson
Ranch. The 1.2-acre pilot project leveraged Cal Poly’s distinguished faculty studying
carbon sequestration and soil health and prepared the City to expand the program to
include additional practices and sites in the SLO Greenbelt. The City’s initiative to plant
10,000 trees by 2035 is also underway and strong partnerships and volunteer networks
have been developed.
Lead by Example: Carbon Neutral Municipal Operations: Staff has completed nearly
all of the near-term (2021-24) tasks in the plan and are preparing to implement tasks
identified for 2023-25. Recent “Lead by Example” projects include:
o Lighting retrofits at both Palm Street parking garages, Fire Station 1, and City Hall.
o Installation of a large battery storage facility at the Water Treatment Plant.
o Installation of fleet electric vehicle chargers and delivery of the first all-electric fleet
vehicles.
o Completion of the City building and facility electrification plan, fleet electrification
transition plan, and microgrid pilot study (with physical implementation of all three
items set to begin in 2023).
Active Transportation: The City has made quick and impactful strides implementing the
Active Transportation Plan. Notable completed projects include the Railroad Safety Trail
Bridge connecting Phillips to Pepper Street, protected bike lanes on Marsh Street and
Higuera Street, and the pedestrian hybrid beacon on Broad Street at Woodbridge.
SB 1383 - Short-lived Climate Pollutants: Organic Waste Reductions: The City has
proactively worked towards compliance with SB 1383. On November 16th, 2021, the City
adopted an ordinance requiring all residents and businesses to utilize organic waste
collection services by 2022. The City also updated the solid waste and recycling sections
of the municipal code to require all residents and businesses to utilize organic waste
collection services.
2023-27 CAP WORK PLAN
The 2020 CAP also directs staff to update the Climate Action Plan ahead of every other Financial
Plan. The initial update will occur in January 2023 ahead of the 2023-25 Financial Plan. The 2020
CAP included a number of foundational actions that focused on plans, studies, and small pilot
programs. As a result of the successful implementation of the 2020 CAP and 2021 Lead by
Example Plan, the City’s proposed 2023-27 Work Plan will focus on deploying climate solutions
at the speed and scale needed to achieve its targets. This rapid deployment is substantially aided
by historic state and federal policy alignment and funding resources (described in more detail
Page 640 of 697
Attachment C. Climate Action Plan Update November 2022
Page 3
below). The Public Review Draft 2023-27 Work Plan is available for review at
slocity.org/climateactionplan from November 2 through November 22 and is expected to be
presented to Council for adoption on December 13, 2022. Figure 1 provides the CAP update
schedule through 2027.
Figure 1. Climate Action Plan Update and Implementation Schedule
NEW STATE AND FEDERAL RESOURCES AND POLICY
ALIGNMENT
In 2022, California ratcheted up its ambition and the Federal Government passed the most
ambitious climate legislation in US history. The state and federal approaches to climate action are
deeply aligned with the City’s approach, including in its focus on the interconnectedness of climate
action and environmental justice; electrification of fossil fuel appliances, equipment, and vehicles;
and conservation and management of natural and working lands. In 2023-25, the City will enter a
new period where all levels of government are moving in the same direction with unprecedented
funding available.
City Financial Implications
In 2022, California (2022 climate budget) and the federal government (Inflation Reduction Act,
Infrastructure Investment and Jobs Act, CHIPS Act) committed over $425 billion to climate
solutions that transition communities to low-carbon futures. This means substantial funding for
community programs including up to $20,000 available to income-qualified households for
transitioning to solar, clean electric appliances, and vehicles, and increased funding for
community infrastructure like transit and community resilience hubs.
Under the Inflation Reduction Act, cities are also able to receive the Investment Tax Credit for the
first time through direct payment. This means that starting in 2023, the City’s Lead by Example
projects will likely be eligible for direct federal funds that could amount to 30% of all solar and
battery storage projects, up to $7,500 for electric vehicles, and up to $40,000 for heavy-duty
equipment.
This funding is complementary to the substantial grant resources already being rolled out b y the
state of California. The grant funding environment is expected to be robust and could have major
Initiate full
2027 Climate
Action Plan
Update
(SPRING
2026)
2025-27 FP
Proposals
(JANUARY -
MAY 2025)
2023-25 FP
Proposals
(JANUARY -
MAY 2023)
Climate
Update
Council
Adoption
(JANUARY
2023)
CAP Update -
Public Review
Draft
(NOVEMBER
2022)
Page 641 of 697
Attachment C. Climate Action Plan Update November 2022
Page 4
benefits for City operations and community programs. Contemporary competitive sustainability
grants also tend to have explicit environmental justice or equity components, which could help
the City achieve its Diversity, Equity, and Inclusion goals.
Economic Development Implications
The value of the Inflation Reduction Act extends beyond the City’s climate goals. Rewiring
America estimates that if every eligible home in San Luis Obispo County took advantage of the
Inflation Reduction Act, by the end of 2030, that would result in over $700m in residential
electrification project investments, generating 1,246 direct and 4,337 total new jobs in San Luis
Obispo County.3 Building retrofits are challenging work that require skilled trades including
electricians and plumbers, among others. If the local workforce is developed and supported, the
Inflation Reduction Act could provide high quality jobs insulated from some of the volatility
possible in other employment sectors.
Additionally, the region could be a hotbed of sustainability entrepreneurship and innovation. With
substantial federal incentives and state support for offshore wind, extending Diablo Power Plant’s
operational life, and ongoing interest in renewable energy and energy storage, the green
tech/cleantech sector could play a role in supporting a robust economy through the decade.
Policy Implications
Two prominent examples of statewide ambitious climate action are the Air Resources Board’s
recent vote to develop a rule to begin phase out of fossil fuel appliances at retailers beginning in
2030 and a separately established rule to phase out fossil fuel vehicle sales entirely by 2035.
Similar phase outs are scheduled for fossil fuel buses and lawn and garden equipment. It is
unclear if, or how, regulations like these will affect the economic outlook for the City in 2023-25,
but they will certainly influence local and regional commerce through the end of the decade and
NEXT STEPS AND ONGOING IMPLEMENTATION
As illustrated in Figure 1, staff anticipates presenting the 2023-27 work program and 2021-22
CAP Progress Report to Council in December 2022. Concurrent with these planning and reporting
exercises, staff will continue to implement the CAP and the remainder of the 2021-23 Climate
Action, Open Space, and Sustainable Transportation Major City Goal.
3 https://map.rewiringamerica.org/states/california-ca/county/san_luis_obispo_county
Page 642 of 697
Attachment D
1
Proposed changes to the Budgeting and Management of the
Capital Improvement Plan
A. Background on the City’s Capital Improvement Program (CIP)
Per the City’s fiscal policies, all City construction projects and equipment purchases costing
$25,000 or more are included in the City’s adopted CIP. The five-year CIP is refreshed and
adopted as part of the budget with every Financial Plan and accomplishes several goals.
CIP 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 during the Community 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 Fiscal
Policies section of the 2021-23 Financial Plan1 including detailed information relative to both
the two-year Financial Plan and the five-year CIP forecast.
1 2021-23 Financial Plan, Pages 537-569. https://www.slocity.org/government/department-directory/finance/city-
budget
1. Background on the City’s Capital Improvement Program
2. CIP Process Improvements Made in Response to the Management Partners Study
3. Process Improvements for Budget Structure: CIP ‘Funding Buckets’
1. Benefits of the Approach
2. Checks, Balances, and Internal Controls
3. Policy Language Recommendation
4. Existing Purchasing Policy Requirements
5. CIP Project and Budget Reporting
6. The CIP Engineering program and the Capital Budget.
Page 643 of 697
2
The 2021-23 Financial Plan
includes funding for 115
construction projects
(inclusive of new assets,
asset replacements and asset
maintenance) that are
managed primarily by CIP
Engineering, Transportation,
Maintenance or Utilities
project managers.
City construction projects are
carried out through seven
distinct phases, shown to the
right. While the construction
phase is the most visible to
the community, it is also the
culmination of months to
sometimes years’ worth of
planning, scoping, design,
engineering, and permitting;
all leading up to the
construction phase.
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, at the time of adoption, was projected to generate approximately
$22 million annually. General Fund capital expenditures for FY2022-23 have increased by
65% compared to pre-Measure G-20 levels.
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.
Page 644 of 697
3
In addition to the expansion of the C IP due to the passage of Measure G-20, CIP delivery is
currently also constrained by a number of different factors, including staffing constraints, supply
chain issues, and construction cost escalation.
B. CIP Process Improvements Made in Response to the Management Partners Study
A CIP Process Improvement Manager was hired in November 2021 to lead the implementation
of the Management Partners recommendations, as well as other identified areas for
improvement. Process improvement work to date has been approved by Council as required
and included:
1. Creation of two new classifications of staff in the CIP Division:
a. Capital Improvement Plan Administrative Manager to manage the non-
technical and financial aspects of the City’s CIP, and
b. Capital Projects Manager 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.
2. Addition of 4.00 FTE net new positions to build capacity to address the growth
of the annual CIP. These positions include the new 1.00 FTE Capital Improvement
Plan Administrative Manager and 1.00 FTE Capital Projects Manager positions
noted above, 1.00 FTE Supervising Engineer and 1.00 FTE Engineering Inspector.
In addition to these net new additions, 1.00 FTE Engineer was reclassified to a
Capital Projects Manager (the Public Works Department now has 2.00 FTE Capital
Projects Manager positions).
3. Development of a reporting database to centralize information about project
status (including scope, timeline and budget) in a single document for streamlined
reporting.
4. Collaboration with Finance and IT staff to improve financial system (Oracle)
functionality to better track and control capital project budgets and expenditures.
5. Development of a recommended new budget structure for the Capital budget
(discussed in more detail below).
6. Clarification of CIP processes through enhancement of CIP governance,
including:
a. Updates to CIP policies to clarify CIP processes, and support the
recommended new budget structure discussed in more detail below
b. Development of a Charter to clarify the role of the CIP Review Committee and
meeting procedures
c. Development of project evaluation criteria to be used on an ongoing basis,
regardless of economic outlook and external impacts
d. Development of a Project Request Form that departments will be required to
complete in order to request funding for a new capital project. This form is
intended to:
Page 645 of 697
4
i. assist departments in developing the scope of the requested project,
ii. provide the CIP Review Committee with the information needed in order
to evaluate and prioritize projects for funding, and
iii. provide a good starting point for project managers to develop project
plans.
It is expected that further work efforts implementing more of the Management Partners study
will be reflected in the 2023-25 Financial Plan. On September 22, 2022, staff presented
recommended process improvements related to the structure of the CIP budget to the Revenue
Enhancement Oversight Commission (REOC). Below is a summary of budget
recommendations presented to the REOC.
C. Process Improvements for Budget Structure: CIP ‘Funding Buckets’
As discussed in the FY 2021-22 Mid-Year Budget Update and FY 2022-23 Budget Supplement,
supply chain issues and cost escalation have significantly impacted the delivery of the City’s
capital projects; an example is the Summer 2022 Roadway Sealing project, which came in
significantly over bid and required a budget adjustment of almost $1.6 million. To provide staff
with flexibility to adjust the budgets of individual capital projects, staff is recommending that the
City Council appropriate funding for Asset Maintenance and Asset Replacement costs in the
CIP budget at a ‘funding bucket’ level, rather than at the individual project level.
This approach would allocate a to tal budget to each category (see below) and in doing so,
Council would provide staff with the flexibility to move money between projects within a funding
bucket administratively, without seeking approval from the Council. This approach will put
emphasis on delivering projects and shift priorities to ensure projects are being constructed.
Asset Maintenance projects are ones that address recurring and annual needs to maintain
existing assets. Asset Replacement projects are ones that address periodically rec urring
and/or annual needs that replace existing assets with a similar new asset. Use of funding
buckets is not recommended for New Asset projects which expand the City’s infrastructure that
serves the community—budget adjustments for those projects are recommended to remain
under the purview of the City Council due to their scope, fiscal impacts including debt issuance,
and generally higher level of community interest.
The funding buckets are intended to group like projects within the Asset Maintenance and
Asset Replacement project type and include:
1. Fleet
2. Facilities
3. Open Space and Natural Areas Preservation
4. Parking and Transit
5. Parks, Urban Forestry, and Public Art
6. Streets, Bridges and Multimodal Transportation
7. Creek and Flood Protection
8. Information Technology
9. Water Resources, Treatment and Distribution
10. Wastewater Collection and Treatment
Page 646 of 697
5
1. The use of funding buckets has several benefits, including:
a. Appropriation at the bucket level and staff discretion to move money within a bucket
allows the City to be nimbler in responding to cost overruns, as well as changes to
project prioritization to deliver projects instead of lengthy processes to re -allocate
budget. Under current processes, staff must seek Council approval to make a
budget adjustment for a project. Drafting and routing these reports takes time and
is limited to review at one of two monthly meetings; a process that can take up to two
months.
b. Projects are priced closer to when they are initiated, rather than during budget
development, which can be two years before a project begins. Developing project
cost closer to when they are initiated allows for more accurate cost estimates, based
on known scopes and the impact of external conditions (e.g. cost escalation).
c. Staff has additional time to develop project scopes. Rather than scoping projects
during budget development to identify a budget to seek Council appropriation, staff
will have the ability to focus on scoping projects as they are assigned, which will
result in more accurate and complete project scopes (more time to scope projects
directly aligns with a Management Partners recommendation).
2. Controls, Checks, and Balances to Support Funding Buckets
Feedback from the REOC was that they understood why staff was recommending use of
funding buckets and that it would provide much-needed flexibility to move money between
projects when higher cost estimates would otherwise halt forward momentum . However,
the REOC also expressed some concern about their and the Cit y Council’s opportunity to
be informed and provide guidance or direction to staff in the event that any capital project(s)
exceed estimated budget to the extent that they might impact delivery of other projects in
the same bucket. Staff is planning to return to the REOC in December to continue this
discussion and provide additional information as requested by the members.
3. Policy Language
Recognizing that the funding bucket approach changes how the REOC makes
recommendation to the City Council for appropriating funding for capital projects, staff has
been working on updates to policies and procedures to assure that appropriate controls
and checks and balances are in place.
At the September 22nd REOC meeting, staff presented policy updates that are being
developed for consideration by the City Council on January 10, 2023 , as a part of the
Budget Foundation. As of the writing of this report, the language is under development
and a summary of the changes to be recommended is included below:
Page 647 of 697
6
Recommended Changes to Existing Policies
Policy Title Description and Rationale for Change
Project
Manager
Reflects current role for project managers to manage project scope,
budget allocation, timeline and communications with project
stakeholders. Revisions clarify that project management is primarily
performed by staff from CIP Engineering but can also be done by staff in
other departments, as appropriate.
CIP Review
Committee
Expands description of the CIP Review Committee’s role and reflects
current membership of the Committee. Revisions clarify that the
Committee is responsible for:
1. Assessing the City’s fiscal condition and staff capacity to deliver
projects so that the recommended CIP represents what can
realistically be accomplished; and
2. Recommending to the City Manager the projects that should be
included in the biennial financial plan, as well as appropriate
funding levels for the CIP funding buckets; and
3. Considering new projects that may be requested mid-year to
address emergent needs; and
4. Evaluating the re-prioritization of projects as needs and conditions
change to ensure consistency with project evaluation criteria,
ability to deliver projects, and City priorities.
CIP
Appropriation
Clarifies recommended new approach of City Council appropriation of
CIP budget to ‘funding buckets’ for Asset Maintenance and Asset
Replacement projects and provides staff discretion to administratively
move funding within the buckets. Identifies the ‘buckets’ as:
1. Fleet
2. Facilities
3. Open Space and Natural Areas Preservation
4. Parking
5. Parks, Urban Forestry, and Public Art
6. Streets, Bridges and Multimodal Transportation
7. Creek and Flood Protection
8. Information Technology
9. Water Resources, Treatment and Distribution
10. Wastewater Collections and Treatment
Clarifies that appropriation of budget for New Asset projects is made to
individual projects and that budget adjustments for these projects
require City Council authorization.
Page 648 of 697
7
Recommended New Policies
Policy Title Description and Rationale for Change
Project Type Identifies and defines project types, including Asset Maintenance, Asset
Replacement, and New Asset projects, and clarifies existing process of
considering Asset Maintenance needs before recommending funding for
projects to replace existing assets or construct new assets.
Project Request
Forms
Requires that departments submit a Project Request Form (PRF) to
formally document and describe requested capital projects. Use of this
new form is intended to ensure that the Committee has the information it
needs to evaluate and prioritize projects for funding. This new practice is
also intended to address a Management Partners recommendation that
staff allocate additional time for project scoping. The information provided
on the PRF is intended to help address this recommendation by requiring
requesting departments to articulate the scope of a project early on.
Project
Evaluation
Criteria
Identifies the criteria that will be used to evaluate and prioritize requested
capital projects for funding. Evaluation criteria is as follows (equally
weighted at 1 point each):
1. Does the project support economic sustainability of the community
and organization?
2. Does project address a critical community health or safety need?
3. Does project make good on ongoing commitments? Consider:
a. Previously budgeted (or existing external funding source)
b. Approved planning documents
c. Address mandates or legal requirements
4. Does the project address core infrastructure needs?
5. Does the project provide a visible and measurable community
benefit?
6. Does the project align with Major City Goals?
7. Does the project address Measure G priorities?
a. Economic development and business retention
b. Safe and clean public areas
c. Youth/senior services and recreation facilities
d. Open space/natural areas preservation and maintenance
e. Street maintenance and transportation
f. Community safety and emergency preparedness
g. Protect financial stability
h. Creek and flood protection
i. Address homelessness
Page 649 of 697
8
8. Does the project have a positive impact on ongoing operations?
a. Reduction to operating costs
b. Improved service delivery
Creation of
Projects
Establishes that projects will only be created outside of budget
development process only if they address an emergency need or are
directed by the City Council.
Project
Appropriations
Clarifies the recommended new approach of appropriating CIP funding to
‘buckets’ by identifying that appropriation to individual projects does not
occur with adoption of the budget. Identifies five options that staff can
pursue if a project is expected to be considerably over estimated budget:
1. Eliminate the project
2. Defer the project for consideration to the next Financial Plan period
3. Rescope or change the phasing of the project to meet the budget
4. Re-prioritize projects and appropriate additional budget from the
appropriate bucket to the project to meet the need
5. Appropriate additional resources as necessary from the Capital
Projects Reserve if the re-prioritization of projects is not possible or
advantageous or insufficient funding remains in the overall budget
allocation withing the funding bucket.
Administrative
Budget
Adjustments
Establishes the process staff must follow to process a budget adjustment
administratively within a bucket. The process requires consultation
between the project manager, City Engineer, CIP Administrative
Manager, and Public Works Analyst to consider the request for additional
funding for a project within the context of other projects intended to be
funded within the bucket. To assure appropriate checks and balances,
the policy also identifies the required routing for budget adjustments
which must be signed off by staff from the proponent department, Public
Works staff, and Finance staff.
CIP Reporting Requires staff to publish reports on the CIP on a quarterly basis, as part
of Quarterly Budget Reports provided to the REOC and City Council; and
specifies that the reports should include a summary of administrative
budget adjustments made within appropriated funding buckets,
associated tradeoffs, as well as a status update on projects in progress.
Policies Recommended to be Deleted
Policy Title Description and Rationale for Change
Program
Objectives
Eliminating policy that does not reflect current practice. The existing
policy states that “Project phases will be listed as objectives in the
program narratives of the programs, which manage projects.”
Page 650 of 697
9
D. Existing Purchasing Policy Requirements
In addition to the policy updates summarized above, it is worth noting that the City’s Purchasing
Policy, which was approved by Council in May 2022, requires that staff must seek City Council
approval to award construction contracts over $200,000. Most of the projects included in the
City’s CIP have a construction cost that exceeds this threshold, which means that staff will
continue to regularly be before the City Council to seek approval to proceed with projects. With
each Council Agenda Report, the City Council will have the opportunity to ask questions about
projects and provide direction to staff, as necessary.
E. Regular CIP Project and Budget Reporting
Finally, as noted in the summary policy language above, staff will provide quarterly reporting
to both the REOC and City Council about project status and use of funding within each bucket
for transparency and increased communications. In addition to providing information on the
project status, the reports will also include a detailed accounting of project funding, including:
Initial budget estimates for each project (the total of all projects in a funding bucket will
equate to the appropriated funding amount),
Current budget appropriated to each project,
Current expenditures charged to each project, and
At completion, the total actual cost of each project.
Presentation of these reports on a quarterly basis (approximately every three months) will
provide additional opportunity for both REOC and the City Council to ask questions and provide
direction to staff, as necessary.
Draft templates of the reports are below. These reports will be provided for each funding bucket
and included in the Financial Plan and Budget Supplement for budget recommendations and
adoption:
Page 651 of 697
10
Quarterly Reports to City Council and REOC:
F. Inclusion of CIP Engineering program staff time and certain other positions involved
in project delivery in the capital, rather than the operating budget.
In addition to the funding bucket approach, staff also plans to recommend the inclusion of the
CIP Engineering program supporting project delivery in the capital budget. The intent of doing
this is to accurately reflect the cost of delivering the City’s CIP. Many other organizations
achieve this by charging staff time to individual projects, based on timecoding. Staff is building
a list of employees predominately in Public Works who play a significant role in capital project
oversight and delivery and the percentage of time they spend doing this work. As a part of the
2023-25 Financial Plan, staff will recommend inclusion of this staff time in the capital budget,
rather than the operating budget.
Page 652 of 697
R ______
RESOLUTION NO. _____ (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AN AMENDMENT TO THE 2022-
2023 BUDGET ALLOCATION
WHEREAS, the City Council adopted Ordinance 1348 (1999 Series) establishing
an Affordable Housing Fund (AHF) for the collection and distribution of in-lieu housing
fees to promote affordable housing in San Luis Obispo at the sole discretion of the City
Council; and
WHEREAS, in accordance with the San Luis Obispo City Charter Section 802, the
City Manager submitted the 2019-2021 Financial Plan to Council for its review and
consideration on June 4, 2019, approving the ongoing transfer of $40,000 from the AHF
to General Fund to support the operating expenses of the San Luis Obispo County
Housing Trust Fund; and
WHEREAS, the City Manager submitted the Fiscal Year 2022 -23 Supplemental
Budget to Council approving and appropriating the 2022-23 budget allocation including
operating expenditures, debt service, and capital improvement plan budget (R-11332) on
June 7, 2022; and
WHEREAS, the $40,000 was transferred from the Affordable housing fund to the
General Fund in FY 2022-23; and
WHEREAS, the $40,000 was not allocated to the operating expenditure budget so
the balance currently resides in the General Fund Undesignated Fund Balance; 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 government agencies; and
WHEREAS, regulations require that the governing body of each local agency
establish its appropriations limit and annual factors by resolution.
WHEREAS, the required calculations to determine the City’s appropriations limit,
and estimated appropriations subject to limitation for fiscal year 2022-23, were performed
by the Department of Finance and approved by Council on June 7, 2022 (R-11332); and
WHEREAS, in reviewing the calculations for the appropriation limit, staff found that
the incorrect Consumer Price Index was applied; and
WHEREAS, the Finance Department re-calculated the City’s appropriations limit
for 2022-23 and the City appropriated proceeds of taxes remain well below the
appropriation limit; and
Page 653 of 697
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 budget is hereby amended to appropriate $40,000 of
the City’s General Fund Undesignated balance into operating budget operating budget
for the Housing Trust Fund.
SECTION 2. The City’s appropriation limit and annual adjustment factors for
fiscal year 2022-23 are adopted as follows:
Upon motion of _______________, seconded by _____________, and on the
following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was 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
Appropriations Limit 2021-22 $79,470,558
Consumer Price Index (revised from 7.5%) 7.55%
Population Factor: County Population Growth 0.28%
Compounded Percentage Factor (multiplicative not additive) 1.025%
Appropriations Limit 2022-23 (revised) $85,706,220
Page 654 of 697
Setting the Stage for the 2023-25
Financial Plan
November 15, 2022
1
Recommendations
2
1.Receive and discuss the following framework in preparation for the 2023-25 goal-setting and
Financial Plan process:
a.FY 2022-23 1st quarter results
b.2021-23 Adopted Major City Goals
c.General Plan and Climate Action Plan Update
d.Setting the stage framework including core services and a scan of strategic indicators
for all major funds.
e.Introduce a recommended approach to the budgeting and management of the Capital
Improvement Plan (CIP)and receive Council feedback (Attachment D)
2.Adopt a resolution entitled,“A Resolution of the City Council of the City of San Luis Obispo,
California,approving an amendment to the 2022-23 Budget Allocation”to appropriate $40,000 of
the City’s General Fund Unassigned Fund Balance into operating budget to contribute to the
Housing Trust Fund and correction to the 2022-23 Appropriations Limit.
3
Community Priorities Survey
www.slocity.org/OpenCityHall
November 14th-December 15th
Community's opportunity to help shape the City's Major City
Goals
Community Forum
Ludwick Community Center
January 26, 2023, 6PM
Community's opportunity to help mold how the City will
implement the potential Major City Goals
Purpose of Setting the Stage and the Strategic Scan
6
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic
Scan
Other/
Conclusion
❑Take a look at the financial standing after Q1 of the current fiscal year
❑Provide updates on the current Major City Goals and other strategic goals
❑Review the City’s core services
❑Provide context on how new goals and initiatives fit in with the City’s
responsibility to deliver core services
❑Help Council determine strategic priorities for the 2023-25 Financial Plan
❑Provide a Strategic Scan of important statistical information that provides
important context for decision making through the budget process
7
2022-23 1st Quarter
Financial Review
Where are we
now
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
8
2022-23 1st Quarter Financial Review
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
22 Million in
Revenues
(YTD)
$34 Million in
OpEx (YTD)
3 MCG Tasks
Completed in
Q1
4 CIP
Projects
Completed in
Q1
General Fund Q1 Status
•Revenues and expenditures for all funds are track as anticipated
•Current salary savings due to vacancies and expired SLOCEA agreement
9
What does the current picture mean for financial planning?
The upside
Strong Q1 sales and transaction tax remittals
Record high TOT continues into Q1
The downside
Consumer confidence is declining, and many signs point to a slowdown in tourism activity and
consumer spending
Cannabis tax and fee budget will need to be adjusted at mid -year
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
General Plan & Other
Strategic Plan Updates
10
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
General Plan Programs Summary 11
LAND USE ELEMENT - 73
CIRCULATION ELEMENT - 69
HOUSING ELEMENT - 65
NOISE ELEMENT - 8
CONSERVATION AND OPENS SPACE ELEMENT - 68
SAFETY ELEMENT - 34
PARKS AND RECREATION ELEMENT - 41
WATER AND WASTEWATER ELEMENT -38
396
Total Programs
•The City’s General Plan is composed of a “building block” hierarchy of goals, objectives,
policies, and programs.
•Monitoring the City’s progress in implementing General Plan programs assists with decision
making in ongoing pursuit of the adopted plan and implementation of the City’s vision.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Total % complete % ongoing
LAND USE ELEMENT 73 26%74%
CIRCULATION ELEMENT 69 10%87%
HOUSING ELEMENT 65 15%85%
NOISE ELEMENT 8 25%75%
CONSERVATION AND OPENS SPACE ELEMENT 68 15%85%
SAFETY ELEMENT 34 21%79%
PARKS AND RECREATION ELEMENT 41 12%85%
WATER AND WASTEWATER ELEMENT 38 8%89%
Climate Action Plan
12
Nearly every foundational action in the 2020
Climate Action Plan is implemented or is in
progress
Work to date has reaffirmed the 2020 Climate
Action Plans goals and actions and historic federal
and state funding will enable rapid implementation
of the next implementation phase
2023-27 Work Program, which includes the 2022
Climate Action Progress Report will be presented
to Council on December 13, 2022 and is available
for public review on the City website.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Other Major Strategic Efforts Underway
DEI Strategic Plan Economic Development
Strategic Plan Homelessness Strategic Plan
13
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Currently being scoped
In Progress
Released for RFP
Tentative May 2023
Actively drafting
Present to Council February 2023
Parking and Access Plan
Spring of 2023
2021-23 Major City Goals
14
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
15
Economic Recovery, Resiliency and Fiscal
Sustainability
•Many new initiatives that came out of the pandemic
•A “pulse” survey executed to gather data to help develop the Economic Development
related DEI initiatives
•Added a 3rd fulltime Ambassador downtown (1.2a-6)
•TBID Mid-week promotion which resulted in 421 qualified stays
•Most Major City Goal efforts were funded on a one-time basis in 2021-23
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
$54,000
in funding to incentivize
additional childcare start-ups
(1.2a-8)
$119,000
in grants to non-profit and
arts organizations
(1.2)
$45,000
to help facilitate talent
relocation and retention
Climate Action, Open Space, and Sustainable Transportation
Adopted policy
requiring all-electric
new buildings
starting in 2023
Conducted 17
stakeholder and
community meetings
and hosted the SLO
Climate Party
Purchased first all-
electric fleet
vehicles
Completed key Active
Transportation Plan
projects including the
Orcutt Road
Roundabout and
Railroad Safety Trail.
Opened the new trail at
Miossi Open Space that
advances conservation
easement projects
throughout the
Greenbelt
16
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
17
Diversity, Equity, and Inclusion
Launched Community Diversity Speaker Series
Expanded staffing of DEI office to include a DEI Management
Fellow
Expanded inclusive language in hiring and recruitment documents
and embedded DEI component to employee self-evaluations
DEI embedded into Legislative Platform
Expanded internal DEI committee workplan and objectives
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
HRC
embedded DEI into purpose
and goals for 2023-25
$300,000
in grants to non-profit
organizations
MOU
executed between Cal
Poly & the City to
advance DEI
18
Housing and Homelessness
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Housing
•Develop Objective Design Standards & Update Development Review Process (3.1c)
•Support a 25% expansion of the number of beds at the 40 Prado Homeless Services Center (3.11b)
•Zoning Regulations Update -Housing (3.1d)
Homelessness
•Pair a crisis worker with an Emergency Medical Technician (EMT) to provide non-emergency
response and care to unhoused community members (MCU). (3.10a)
•Created an ongoing Homelessness Response Manager position
•$1.7 million from the State and Local Fiscal Recovery Fund allocation for the Anderson hotel
•$300,000 to support Transition Mental Health Association to provide eight homes for homeless
individuals
Setting the Stage Framework
19
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
FTE Count*
150.5
238.5
70.25
20
Public
Safety
Internal
Services
Community
Services
Organizational
Structure
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
*Permanent, ongoing employees only. Does not
include contract or temporary staff.
How does the City fund its services? (General Fund)
Based on 2022-23 Budget
21
Top 4 revenue sources:
Sales & Use Tax
Local Revenue Measure
Property Tax
Transient Occupancy Tax
Other Tax & Franchise
Revenue
Fees for Service
Grants & Subventions*
Interfund Transfers
70%11%19%100%
Local Revenue Measure G-20 surpassed Property Tax as the
City’s #1 source of revenue in FY 2020-21.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
*Excludes ARPA Funding
$112 Million
Capital, Debt, Insurance
22
$21.2 million
$2 million
Capital
Debt
$4.3 million Insurance
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
19% of budget
2% of budget
4% of budget
23
Special
Projects
Major City
Goals
Emergent
needs
63 Core Programs & Services
Infrastructure maintenance
Childcare
Development Services
Street and Parks
Public Safety
How does the City fund its services? (General Fund)
$83 Million Operating Budget
used to fund
The City’s priority is to provide core services. New initiatives and one-time
strategic goals overlap core services. If additional resources (revenue) are
not available, tradeoffs are necessary.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Capital, Debt, Insurance transfers
24
Department Budgets, Core
Programs and Program
Structures
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Police Services Public
Safety
25
$20.8 million
19% of budget 60 Sworn
Police
Officers, 91
total staff
Responded to
over 37,000
calls for service
in 2021. 14%
increase from
2020.
Administration Patrol,
Downtown
Bikes,
Community
Action Team
Investigations Dispatch &
Records
Neighborhood
Outreach Traffic Safety
Core ServicesGeneral Fund RevenueQ1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Fire Services
Public
Safety
26
Emergency
Response
(Staffed)
Hazard
Prevention
(Staffed)
Training
Services
Fire
Apparatus
Services
(Staffed)
Fire Station
Facility
Support
Disaster
Preparedness
& Assistance
Core Services
$14.5 million
13% of budget
Fire Admin
(Staffed)
4 Stations /
45
Firefighters.
59.5 total staff
Responded to
over 6,000 calls
for service YTD
in 2022. On
schedule for
a 15% increase
from 2021.General Fund RevenueQ1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
$10.4 million
9% of budget
Administration and Information Technology
Office of the
City Council
Office of the
City Manager
Office of
Economic
Development
and Tourism
Office of
Sustainability
and Natural
Resources
Protection
Office of the
City Clerk
Office of
Information
Technology
Office of
Diversity,
Equity and
Inclusion
Core Services
$300,000
Allocated to
Non-profits
to Advance
DEI in the
Community
42 Eligible
Applications
and $1.5M
in Requests
Direct
Support to
21
Organizations
Internal
Services
27
General Fund RevenueQ1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
38.75 FTE Staff
City Attorney Internal
Services
28
$1.3 million
1% of budget
Legal Review
of all Contracts
and Other
Documents
Advice to City
Council,
Advisory
Bodies, Staff
Support for all
Major City
Goals
Management
of Defense of
the City
(Claims and
Litigation)
Advice re
Development,
Planning and
Programs
Processing
and
Coordination
of Admin Cite
Appeals
Public Record
Requests
(Advise Staff
and Review
Records)
Core Services
6 Full-time
Regular Staff
2 Contract/
Temp Staff
All City Legal
Advice,
Answers, and
Review
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Human Resources
Internal
Services
29
Human
Resources
Administration
Benefits Classification
and
Compensation
Training and
Development
Risk
Management,
Safety,
Wellness
Labor
Relations
Performance
Management Recruitment
Core Services
11 Full-Time
Regular Staff
Support for 542
Regular &
Supplemental
Staff Serving
the Community
$1.7 million
1.5% of budget
General Fund RevenueQ1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Internal
Services
$2.3 million
2% of budget
30
Finance
Finance
Admin
Accounting/
AP/ Payroll Budget Purchasing Revenue
Management
Support
Services/
Non-Dept
Core Services
15.5 FTE
Positions
Treasury
with
Revenue,
Debt,
Investment
Accounting
AP, Payroll,
Audit,
Assets
General Fund Revenue$2.9 million
2.5% of budget
Department Budget
Non-departmental
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Community
Services
31
Community Services Group Administration
CSG Admin /
Solid Waste &
Recycling
Program
Community
Development
Parks &
Recreation Public Works Utilities
$0.5 million
General Fund RevenueCommunication Collaboration Efficiencies
Administrative Support to Core Services
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
0.5% of budget
CSG Admin (2.5 FTE)
Solid Waste &
Recycling
(2 FTE)
$317K
0.3% of budgetAB 939/SB 1383 Revenue
Community Development Community
Services
32
39 FTE
Positions
Increased
Development
Increased
Housing
Opportunities
Core Services
$6.7 million
6% of budget
General Fund RevenueAffordable Housing Development Review
Policy Development
and Long-Range
Planning
Building Permits /
Inspections
Code Enforcement /
Neighborhood
Services
Core Services
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Park
Maintenance
Swim Center
Maintenance
Urban Forest
Services
Facility
Maintenance
Streets &
Sidewalk
Maintenance
Traffic Signals
& Street
Lighting
Fleet Services CIP Project
Engineering Transportation Flood Control Parking
Services
Transit
Operations
Public Works
Community
Services 33
94 FTE 12
Programs
71 MCG
Tasks
Core Services
$16.1 million
15% of budget
General Fund RevenueQ1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Parks & Recreation Community
Services
34
Ranger
Service Sports Special
Events Golf Childcare Aquatics Public Art
Core Services
30 FTE and
33,800
Supplemental
Staff Hours
$997,873
Operating
Budget
P&R
Blueprint for
the Future:
2021-2041
$5.3 million
5% of budget
General Fund RevenueQ1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Utilities -Water Fund
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
1.87B
Gallons of
Water
Delivered
Community
Services
35
Total Budget: $28.3 Million
Utilities -Sewer Fund
1.09B
Gallons of
Wastewater
Treated
90M
Gallons of
Recycled Water
Delivered
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Community
Services
36
Total Budget: $20.6 Million
Parking Fund: Core Services 37
Enforcement of State and Local Regulations
Operation & Maintenance of Three (3) Parking Structures
Operation & Maintenance of Nine (9) parking lots & 1,000+
parking meters
Administration and planning of parking permit programs
Community
Services
2022-23 Expenditure Budget*
$4.4 million
2022-23 Revenue Projection
$6.5 million
* Operating budget only.
Excludes debt service and
capital ($10.8 million)
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
38
Parking Fund –Deferred Projects Now Underway
Cultural Arts District Parking Structure
Groundbreaking Phase 1A Anticipated Winter
Additional Centralized Pay Stations
in Railroad/Monterey Areas and
Credit Card Capable Street Meters
▪Access & Parking Management Plan (Adoption Anticipated Spring 2023)
▪Rate Increase Begins January 2023 through July 2025
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
-$20M
-$10M
$0M
$10M
$20M
$30M
$40M
$50M
$60M
2023-24 2024-25 2025-26 2026-27 2027-28
TOTAL REVENUES TOTAL EXPENDITURES UNRESERVED FUND BALANCE
39Previous Parking Fund Forecast with No Rate
Increases
Fund Balance
becomes
negative in
2024-25
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Community
Services
$0M
$10M
$20M
$30M
$40M
$50M
$60M
2023-24 2024-25 2025-26 2026-27 2027-28
TOTAL REVENUES TOTAL EXPENDITURES UNRESERVED FUND BALANCE
40Parking Fund Forecast with approved Rate
Increases and Program Adjustments
Unreserved fund balance is depleted during
construction of parking structure but is offset by
debt service and replenished in outer years
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Community
Services
Transit 41
Safe, reliable transportation for
seniors, students, working
professional, and visitors
2022-23 Expenditure Budget*
$8 million
2022-23 Revenue Projection*
$11.1 million
Community
Services
* Includes some unsecured grant funding
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
42
Transit Fund -Grants will help advance the CIP
Significant Grant Funding
1.American Rescue Plan Act
($12.3M)
2.SLO Regional Transit Authority
($4.9M)
Capital Projects
1.Electric Bus Purchases (up to 6)
2.EV Infrastructure Construction
3.Transit Center Rehabilitation
4.Bus Stop Improvements
5.Office Space Remodel to Enhance
Customer Service
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Strategic Scan
43
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
44
•Development Activity
•Parks & Recreation
•Public Works
•Utilities and water
usage
•Police Services
•Fire Services
City Demographics Housing &
Homelessness
Social, Economic,
Environmental
Core Service
Indicators
•Population
change
•Unemployment
•Job Growth
•Inflation
•Housing
Demographics
•Cost of living
•Homelessness in
our Community
•Homelessness &
City Operations
•Diversity, Equity
Inclusion Data
•Climate Change
and the Economy
•Economic Activity/
City Investments
Understanding Decision Making and the Effects
on the City’s Future
Goal
Meet decisionmakers’ need for
strategic information to stimulate
practical solutions to long-term
challenges facing the City
Strategy
Analyze demographic, economic,
social, and environmental trends to
anticipate challenges and provide
realistic solutions
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
4%3%3%
8%
29%
14%
8%8%
4%
6%
8%
4%
2%
Under 5 5 to 9 10 to 14 15 to 19 20 to 24 25 to 34 35 to 44 45 to 54 55 to 59 60 to 64 65 to 74 75 to 84 85 and over
Age Distribution
The population of SLO City 45
Population Change from
2010
City of SLO: 5.4%
State: 5.3%
Current Population
47,545
Population Change from
2020
City of SLO: 1.0%
State: -0.8%
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Based on census data
46Unemployment Rate by
Geographical Area
Unemployment Averages*:
City of SLO: 2.5% (1.5% margin of error)
County of SLO: 2.3%
California: 3.9%
National: 3.5% (0.1% margin of error)
At height of pandemic, unemployment
was ~8%, it has fully recovered and
remains very low.
3-7%
>12%
7-12%
<3%
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
*September 2022 EDD Data Based on Census Data
A closer look at job growth
47
•Payrolls Q4 2020 to 2021
•City of San Luis Obispo grew 4.5%
•Statewide 6.3% growth
•Job growth in San Luis Obispo
•Small firms growing by +3.3%
•Mid-size firms -1.7%
•Large firms +0.3%.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
48USD Inflation since 1970
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
8.3%
Inflation greatly impacts both the City’s revenues and expenditures
2015 Cost
$25,401
2022 Cost
$33,130
+ wait time
Ford F-150 (Asset #1526)
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
49Diversity, Equity and Inclusion Demographics
Women-owned
firms
28%
Men-owned
firms
72%
Minority-owned firms
15%
Nonminority-
owned firms
85%
SLO CITY BUSINESSES BY OWNERSHIP TYPE
(2021)
Source: “U.S. Census Bureau QuickFacts: California; San Luis Obispo City, California.” Census Bureau QuickFacts,
www.census.gov/quickfacts/fact/table/CA,sanluisobispocitycalifornia/PST045219.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion6.50%1.70%15.90%0.50%4.20%40.20%35.20%2.30%0.40%5.10%0.00%5.50%18.80%70.10%Black or African
American alone,
percent
American Indian
and Alaska
Native alone,
percent
Asian alone,
percent
Native Hawaiian
and Other
Pacific Islander
alone, percent
Two or More
Races, percent
Hispanic or
Latino, percent
W hite alone, not
Hispanic or
Latino, percent
POPULATION BY RACE (2021)
California San Luis Obispo City, CaliforniaCity of San Luis Obispo
50Diversity, Equity and Inclusion Demographics: The City Organization
1%
4%
1%
14%
8%
72%
City of SLO Workforce Racial/Ethnic
Demographics
American Indian or Alaska
Native
Asian or Pacific Islander
Black or African American
Hispanic
Not disclosed
White
Female
29%
Male
70%
Not Disclosed
1%
CITY OF SLO WORKFORCE GENDER
DEMOGRAPHICS
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
51Why Diversity, Equity, and Inclusion Matters?
❑Racially diverse leadership leads to
better performance
❑78% of workers think that a DEI
commitment offers a competitive
advantage in the recruitment and
retention process
❑The City must foster a workplace
where all employees feel valued
and respected.
For the Organization
❑Council has made a commitment
to making San Luis Obispo a
welcoming, inclusive and safe
community.
❑The city declared racism a public
health crisis in 2020
❑Social and economic inequality is
embedded in our systems and
culture, and that recovery must
integrate deep structural
changes.
In the Community
❑The Federal Economic
Development Agency has
declared Equity as their #1 for all
Comprehensive Economic
Development Strategies (CEDS)
that seek federal funding.
❑The state expanded its Bureau of
Environmental Justice to have a
greater focus on advancing racial
equity and justice
At the State & Federal Level
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
52
Climate Change and the Economy
Urgency
▪Climate disruptions will continue to be a
source of economic volatility.
▪Federal, state, and the City all have near
term (10-15 year) deep decarbonization
goals
Opportunity
•Unprecedented financial resources are on
their way. In 2022 alone, California and the
federal government committed over $425
billion to a low carbon transition.
•Additional substantial federal and state grant
resources are expected.
The Future of SLO
With these resources available, the City can achieve its goals by drawing down
these resources and deploying projects and programs at speed and scale in
our community.
The Central Coast could become a renewable energy hub that would support a
vibrant green tech/cleantech entrepreneurial environment.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
53Economic Activity and Local Investment
0
10
20
30
40
50
60
70
Vacant Businesses –Downtown SLO
Data from Downtown SLO
•Vacancy rates downtown are decreasing/plateauing
•Without the City’s investment, economic
development would have been set back.
•Faster than expected recovery of TOT and sales &
transaction tax revenue is partially due to the City
investments in recovery and resiliency.
Buy Local Bonus Program $868,522 in direct local spending
Two rounds of Childcare investment
($95K direct)
70-100+ additional childcare slots in
SLO City
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
54
Key Takeaways from the Central Coast Economic
Forecast
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
▪The future of San Luis Obispo is largely dependent on the
City continuing to attract and retain a diverse talent
pool.
▪More housing, specifically affordable and multi-family
housing, is crucial for economic growth and stability.
▪Younger workers are moving to inland communities where
housing is more affordable.
55
Housing
Year
Owner
Occupied
Housing Unit
Rate
Median Value
of Owner-
Occupied
Housing Units
Median Gross
Rent
Median
Household
Income
Per Capita
Income
2000 38.0%$278,800 $724 $31,926 $20,386
2010 37.6%$588,400 $1,153 $40,812 $26,204
2020 41.1%$662,300 $1,611 $58,546 $36,232
Average cost of housing has increased 130% whereas per capita income has increased by 78%
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
56Housing
Renting in San Luis Obispo
3%
11%
29%
29%
12%
6%
9%
0%5%10%15%20%25%30%35%
Less than $500
$500 to $999
$1,000 to $1,499
$1,500 to $1,999
$2,000 to $2,499
$2,500 to $2,999
$3,000 or more
Percentage of UnitsRent Cost (dollars)Rent Average (per person), 2020
35.0
percent or
more of
income
59%
30.0 to 34.9 percent of
income
5%
25.0 to 29.9 percent of
income
11%
20.0 to 24.9 percent of
income
8%
15.0 to 19.9 percent of
income
9%
Less than 15.0 percent of
income
8%
Rent as a percentage of
household income
(GRAPI), 2020
Majority of renters in San Luis Obispo spend more than 35% of their income on rent
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
57
Point in Time Count (PIT) -Homeless Population Totals:
Homelessness in our Community
•The PIT indicates a slight decrease in homelessness in SLO City compared to 2019.
•However, this data is representative of a single night and may vary based on weather conditions,
resource availability, etc.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
58
Homelessness and City Operations
Police Reports Taken Involving
Homeless Persons
Homeless
Calls for Service
Consistent calls for service and subsequent reports filed show the impact that
homelessness has on City resources including first responders.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
59New Ongoing Resources Towards Homelessness:
Mobile Crisis Unit & the Community Action Team
•MCU is a new program offering Crisis Support and resources in nonemergency situations such as
mental health, substance abuse and chronic homelessness
•Both MCU and CAT provide services beyond emergency response:Build Trust, Provide Care, Offer
Resources, Free up Emergency Personnel
7441
578
17
3
127
TOTAL CALLS RELATED TO HOMELESSNESSUNIQUE INVIDUALS CONTACTEDFAMILY & AGENCY REUNIFICATIONLOCAL PERMANENT HOUSING PLACEMENTMENTAL HEALTH, SUBSTANCE ABUSE TREATMENT REFERRALSCAT STATS 2021
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
60
Development in the City
Building Inspections Conducted
Increasing to record high levels
Development Permit
Applications Received
Many large development projects occurring in the City. Lower development permit applications
than the peak FY 2020, but still high.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
61
The City as a Childcare Provider
Parks & Recreation
Overall, the childcare waitlist has grown as demand increases among the different types.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
62Parks & Recreation
Aquatics & Instructional Classes
Aquatics programs have grown overall usage, and new and existing instructional class offerings
continue to fill at high rates.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
63Public Works
Transit & Transportation
The Transit Program anticipates an increase in ridership from previous years following the
COVID-19 pandemic.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
64Water Usage in the City
Gallons Per Capita Daily
Slightly declining
Recycled
Water (Acre-Feet)
Increasing
Water/Sewer
Customer Accounts
Increasing due to new units
Since FY10-11 to FY21-22 the City increased annual recycled water delivered by 79%.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
65Utilities
Considerations for the 23-25 Financial Plan
1. Ongoing drought is resulting in increased
State-mandated water conservation and
water use efficiency regulations, despite
stable conditions locally.
2. Industry-specific rises in costs (i.e.
chemicals, electricity, capital project delivery)
3. General inflation
Available City Water Supply
(Acre-Feet, End of FY)
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
conclusion
66Police: Calls for Service vs. Staffing
•Calls for service increased 14% in 2021
from 2020 and 32% since 2009. Staffing
decreased 4% over the same period.
•Only 42 of the 60 sworn positions
were actively working shifts (on
average) in 2021-22 due to:
•Vacancies/recruitment
•Workers’ compensation leave
•General time off (trainings,
vacation, sick leave)
Year over Year Calls for Service/Officer Staffing
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
67Police Department: Other Challenges
•Mandatory training for officers has increased and will continue to as a result of
legislative changes related to policing.
•Currently, 8 hours of Crisis Intervention Training (CIT) is required for all officers –the
goal of the department is to increase this to 20 hours and as a result officers would
acquire the status of “Mental Health Peace Officer”.
•Public Safety Equipment Replacement Fund: Increase in costs for police protective
equipment. New equipment is needed such as AEDs for vehicles and rifle rated
vests for all police officers.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
68
A full-service all-risk fire department offering fire suppression, specialty rescue, hazardous
materials mitigation, and paramedic advanced life support.
2021 Count 2022 YTD Count
6256 7935Total Unit Responses
more units committed = less resources for other calls
6,013 Calls for Service in 2022 YTD
15% increase from 2021
•158 Fires
•3,467 Medical Emergency
•652 Service Calls
•Remaining: rescues, false alarms, hazardous
conditions
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
26% Increase in Unit Responses
to Incidents
CIP Budgeting Approach and
Other Recommendations
69
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
CIP Budget Approach -Timeline
•September:Initial conversation with REOC
•Tonight: Preview recommended new CIP budget structure for Council
•Opportunity for questions and Council guidance to help refine approach
•December: Second conversation with REOC
•January:Return to Council to seek adoption of policy language to support
recommended CIP budget structure
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
70
71CIP Budget Approach
•Use of ‘Funding Buckets’ for Asset Maintenance and Asset Replacement projects
•Funding Buckets group like projects
•Not recommended for New Asset projects (typically large scale, “legacy”
projects)
•Governance
•Purchasing policy
•Budget adjustment process
•CIP reporting
•Policy language (previewing for January adoption)
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
72
Fleet
Facilities
Open Space
& Natural
Areas
Preservation
Parking &
Transit
Parks, Urban
Forestry &
Public Art
Streets,
Bridges &
Multimodal
Transportation
Creek & Flood
Protection
Information
Technology
Water
Resources,
Treatment &
Distribution
Wastewater
Collections &
Treatment
Asset Maintenance/
Replacement Projects
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
CIP Budget Approach-Current vs. Recommended
Current Approach Recommended Approach
73
Project Type
Project
Task
Council Budget
Appropriation
Staff discretion to
move budget
between tasks
Project Type
Funding “ Bucket “
Project
Task
Council Budget
Appropriation
Staff discretion move
budget between
projects
74Current Budget Appropriation Process
Budget
appropriation
to individual
projects
Project #Project FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
1000503 Annual Public Art Maintenance & Projects $ 142,500 $ 142,500 $ 40,000 $ 40,000 $ 40,000
Small Public Art Projects $ 102,500 $ 102,500 $ 0 $ 0 $ 0
Utility Box Beautify $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
Public Art Annual Asset Maintenance $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
1000030 Laguna Lake Golf Course Maintenance $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
1000532 Roundabout Art Installations $ 300,000 $ 300,000 $ 200,000 $ 200,000 $ 200,000
1000027 Urban Forest Maintenance $ 315,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000
Urban Forest Maintenance $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000
Urban Forest Master Plan $ 140,000 $ 0 $ 0 $ 0 $ 0
1000033 Playground Equipment Replacement $ 110,000 $ 100,000 $ 700,000 $ 800,000 $ 1,175,000
DeVaul Ranch Playground $ 60,000 $ 0 $ 375,000 $ 0 $ 0
Vista Lago Mini Park Playground $ 50,000 $ 0 $ 250,000 $ 0 $ 0
Laguna Hills Playground $ 0 $ 0 $ 75,000 $ 0 $ 750,000
Mitchell Park Playground $ 0 $ 100,000 $ 0 $ 750,000 $ 0
Playground Equipment Replacement $ 0 $ 0 $ 0 $ 50,000 $ 350,000
French Park Playground Equipment Replacement $ 0 $ 0 $ 0 $ 0 $ 75,000
91385 Park Major Maintenance & Repairs $ 1,835,000 $ 160,000 $ 1,000,000 $ 690,000 $ 840,000
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
75
Parks,
Urban
Forestry &
Public Art
1000503-
Annual Public
Art Maint &
Projects
1000030-
Laguna Lake
Golf Course
Maint
91385-Park
Major Maint &
Repairs
1000033-
Playground
Equipment
Rep
1000532-
Roundabout
Art
Installations
1000027-
Urban Forest
Maint
$$$
Example: Parks, Urban
Forestry & Public Art
bucket for Asset
Maintenance projects
•Estimated cost for
individual projects
determines
recommended bucket
amount
•Staff would have
discretion to use
bucket amount to
fund all projects
within the bucket
Budget appropriation to bucket
Recommended New Approach to Budget Appropriation
76Benefits of Funding Bucket Approach
Enables the City to
be nimbler in
responding to cost
overruns, as well as
changes to project
prioritization to
deliver projects
Projects are priced
closer to when they
are initiated, rather
than during budget
development
Staff has additional
time to develop
project scopes which
will result in more
accurate and
complete project
scopes
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
77CIP Budget Approach –Funding Bucket Governance
•Purchasing Policy requires Council authorization to award construction
contracts over $200,000
•Staff will be in front of Council regularly for projects, providing opportunity
for Council to provide direction
•Budget adjustment process
•Forces consideration of overall CIP
•CIP reporting
•Provided to REOC and Council quarterly
•Focus on project status and expenditures from buckets
•Policy language
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
78
Changes to Existing Policies
•Clarifies role of Project Managers
•Clarifies role of CIP Review Committee
•Outlined recommended new approach of City Council appropriation of funding to Asset Replacement and
New Asset projects to "funding buckets"
New Policies
•Identifies and defines project types
•Requires use of Project Request Forms
•Establishes ongoing criteria used by CIP Review Committee to prioritize projects for funding
•Limits creation of new projects off-cycle to those that address emergency needs
•Establishes the process staff must follow to process administrative budget adjustments within a "funding
bucket"
•Requires staff to publish CIP reports on a quarterly basis
Deletion of Existing Policies
•Eliminates policy that requires project phases to be listed as objectives in department program narratives
(this is not current practice)
CIP Budget Approach –Policy Changes
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
79
•Appropriate $40,000 of the City’s General Fund Unassigned Fund Balance into operating budget
to contribute to the Housing Trust Fund.
•Correction to the 2022-23 Appropriations Limit:
Council Agenda Report: Recommendation #2
Previously adopted Appropriations Limit 2022-23 (R-11332)$85,666,375
Corrected Calculation
Appropriations Limit 2021-22 $79,470,558
Consumer Price Index (revised)7.55%
Population Factor:County Population Growth 0.28%
Compounded Percentage Factor (multiplicative not additive)1.025%
Appropriations Limit 2022-23 (revised)$85,706,220
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion
Conclusion: Planning for 2023-25
Good Fiscal Management Public Engagement Quality Services
Continued commitment to…
Many challenges, many opportunities, many efforts and endeavors ahead
80
Recommendations
81
1.Receive and discuss the following framework in preparation for the 2023-25 goal-setting and
Financial Plan process:
a.FY 2022-23 1st quarter results
b.2021-23 Adopted Major City Goals
c.General Plan and Climate Action Plan Update
d.Setting the stage framework including core services and a scan of strategic indicators
for all major funds.
e.Introduce a recommended approach to the budgeting and management of the Capital
Improvement Plan (CIP)and receive Council feedback (Attachment D)
2.Adopt a resolution entitled,“A Resolution of the City Council of the City of San Luis Obispo,
California,approving an amendment to the 2022-23 Budget Allocation”to appropriate $40,000 of
the City’s General Fund Unassigned Fund Balance into operating budget to contribute to the
Housing Trust Fund and correction to the 2022-23 Appropriations Limit.
Q1 Review Strategic Plan
Updates
Setting the
Stage
Framework
Strategic Scan Other/
Conclusion