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HomeMy WebLinkAboutb22013-14midyrbudgetreviewwithattch1 FROM: Katie Lichtig, City Manager Wayne Padilla, Director of Finance & Information Technology Joe Lamers, Budget Manager SUBJECT: 2013-14 MID-YEAR BUDGET REVIEW RECOMMENDATION 1. Review and discuss the City’s financial condition and status of Major City goals at the mid- point of 2013-14. 2. Approve revenue and expenditure changes presented in the accompanying Mid-Year Budget Review document. 3. Provide direction regarding the proposed uses of the General Fund excess reserve over the 20% level. REPORT IN BRIEF The City of San Luis Obispo has received national recognition for its use of a two-year budget process that involves the community in the goal-setting process, emphasizes long-range financial planning and supports effective program management. In its discussion about the City’s current financial status and forecast this report addresses a number of significant issues as shown below. The most recent end-of-year financial results from 2012-13 coupled with a review of current year revenue and expenditure trends were considered in the development of the forecast that is shown for 2013-14. The current forecast shows: • For the General Fund, on-going revenues are projected to increase by $2.4 million this year over the original budget while one-time revenues, which include grants and mutual aid reimbursements, have grown by $1.1 million over the original budget amount. • Development Fee programs continue to realize increases in funding this year in significant amounts. • Prior year encumbrances and capital project account balances have been reflected in the current year expense budgets for all funds when applicable. Three General Fund supplemental funding requests totaling $955,000 in 2013-14 have been received from departments to provide one-time and on-going resources needed to accomplish critical functions. These requests are described in detail later in this report and also in Section C of the Mid-Year Budget Update. The General Fund reserve exceeds the 20% level by $6.7 million, before considering the supplemental funding requests referred to above. The report provides recommendations for the use of a portion of this amount for additional one-time purposes. 2-18-14 B2 - 1 2013-14 Mid-Year Budget Review Page 2 Finally, this report identifies a number of uncertainties that must be monitored and considered in the future as they become more defined. These include: • The changing actuarial assumptions being considered by the California Public Employees Retirement System (CalPERS) later this month that will increase employer rates starting in 2016-17 and those that were adopted by CalPERS in April 2013 that will change employer rates starting in 2015-16. • The changes in on-going premium levels charged by the California Joint Powers Insurance Authority for liability and workers compensation insurance coverage. • The possibility for recurring retrospective charges from the CJPIA related to liability and workers compensation claims experience. • The potential for an adjustment in the amount of Franchise Fee revenues that are generated from the City’s two utility funds as the result of a current review of the basis on which those fees are charged. DISCUSSION The City’s two-year Financial Plan process calls for the submittal of a formal financial status report to the Council every six months. The accompanying Mid-Year Budget Review for 2013-14 meets this requirement and provides a comprehensive overview of the City’s fiscal condition at the mid-point of the current fiscal year. Background: Purpose of the Mid-Year Budget Review For routine fiscal monitoring, all departments have on-line access to real time accounting information. Financial reports are issued monthly to key staff members and quarterly financial reports are distributed to the Council and staff. Additionally, the Finance and Information Technology (IT) Department issues regular reports to the Council and staff and the community on key revenues such as sales tax, transient occupancy tax and investments, as well as ad hoc reports as needed. The preparation and submittal of a formal financial review at the mid-point of the fiscal year provides an opportunity to take a broader look at the City’s financial picture and identify recommended adjustments to make the city-wide 2013-14 budget reflect current assumptions and trends. Report Organization The accompanying Mid-Year Budget Review is organized into five main sections: Section A: Transmittal Memorandum: Provides a narrative overview of the City’s fiscal environment and a narrative of key changes made to revenue projections as a result of this review. Section B: Financial Condition Summaries: Provides comprehensive presentations and updates of projected revenues and expenditures based on staff’s best and most prudent professional judgment applied to current conditions. Beginning fund balances/working capital balances have been updated using the audited 2012-13 results. Projected ending balances for 2013-14 have been forecast using the revised B2 - 2 2013-14 Mid-Year Budget Review Page 3 budget estimates. Council action is required to approve certain revenue and expenditure items that are part of the forecast changes. Section C: Mid-Year Requests: Provides detailed supporting documentation for the requested mid-year budget adjustments submitted by various departments. These requests require affirmative action on the part of Council to be approved. Section D: Recent financial and revenue reports: Provides the most recent quarterly investment report, quarterly Sales Tax newsletter, and monthly TOT report. Section E: Status of Goals and Objectives: Contains the report on the second update to the status of progress made on Major City Goals and Other Council Objectives as well as the status of major Capital Improvement Plan (CIP) projects. This includes recommended “Action Plan” revisions as discussed in the report. Summary of Mid-Year Budget Review Results After reviewing the City’s audited results for 2012-13 and the year-to-date revenue activity, the mid-year review revealed the following with regard to the original 2013-14 budget: Revenues and Inter-fund Transfers-In: • The General Fund revenue projections have been updated and key changes are described starting on page A3 of the Transmittal Letter contained in the Mid-Year Budget Report. On-going revenue sources reflect changes that resulted in a net increase of approximately $2.4 million or 4.4% over the original budget. Of that amount $904,000 is from an increase in the forecast for development review fees. One-time revenues, which include grant sources and mutual aid reimbursements, increased by $1.1 million over the adopted budget amount. Combined, these changes resulted in a 6.4% overall increase in revenue over the original budget. The following represent changes to the transfer in transactions for the General Fund: o The state released its forecast for Gas Tax revenues earlier this month and it indicates that the city will be receiving $75,000 less this year compared to the original budget. The transfer-in from the Gas Tax Fund has been adjusted accordingly. o The General Fund received a $9,000 transfer-in from the General Capital Outlay Fund to help with the cost of remodeling the Marsh/Broad Streets restroom in order to make it available during the late evening hours. • The Community Development Block Grant (CDBG) Fund forecast is recognizing an adjustment to the current year grant allocation in the net amount of $2,500. Previously allocated but unspent grant allocations were rolled over to the current year in the amount of $741,900 to match previously programmed project costs which were also rolled over in accordance with the city’s capital project budgeting policy. • The Law Enforcement Grant Fund is recognizing $120,000 from the Public Safety Liaison Officer Program which funds an equal amount of cost for county probation services under a multi-agency agreement. An additional $205,000 is being recognized from a grant received from the Office of Traffic Safety to pay for B2 - 3 2013-14 Mid-Year Budget Review Page 4 additional enforcement costs. Both of these items were previously approved by the City Council. • The Gas Tax Fund will realize $75,000 less revenue this year compared to the original budget according to the latest forecast provided by the state. • The Public Art Capital Fund is reflecting a donation received toward the cost of the Library Mural in the amount of $500. The fund has also received $84,000 in Public Art fees so far this year and the forecast anticipates that up to $100,000 will be received. The original budget did not anticipate the receipt of development fees. The fund is also reflecting a transfer-in from the General Fund in the amount of $18,185. This amount represents the City’s annual set-aside for public art which is determined based on eligible general capital outlay projects. This amount was not identified and included for funding at the time that the current year budget was adopted. • The Insurance Benefit Trust Fund’s adopted budget reflected a transfer-in from the enterprise Funds totaling $644,000 to cover the cost of the first installment payment owed to the California Joint Powers Insurance Authority for the retrospective deposit that is owed for past years’ liability program charges based on an analysis of coverage years up to 2009-10. When staff completed the 2012-13 fiscal closing process, it was determined that the enterprise funds were required to report their obligation to repay a portion of the deposit at June 30, 2013. As a result, each fund was separately charged for their share of the expense last year. Since that occurred, and since the payment has been made to the CJPIA directly by the enterprise funds, the obligation contained in this year’s budget to transfer that expense to the Insurance Benefit Fund must be removed to avoid charging the funds twice for the same expense. • The Sewer Enterprise Fund revenue forecast contains the assumption that the rate structure requiring schools to pay for sewer service based on average daily attendance values will change after the public hearing to allow the school sites to be billed on the basis of a flow-based charge, which is the same method used for other commercial users. Under the forecast assumption, sewer charge revenues will decrease by approximately $65,000 this year as a result of this rate change. On an annual basis, the estimated revenue decrease is between $200,000 to $225,000. • The Transit Enterprise Fund revenue forecast is recognizing $10,779 received as a reimbursement for damages to a bus shelter. This is offset by an equal amount of repair expense. • The Water Enterprise Fund revenue forecast is reflecting a decrease in the estimated interest earnings for the year to reflect the current estimated amount. The proposed reduction is in the amount of $119,200. • The Tourism Improvement Board Fund’s revenue from assessments is tied to the growth level that is forecast for the Transient Occupancy Tax in the General Fund. As a result, the annual assessment revenue is forecast to increase by $48,100 which represents a 4.2% increase over the original budget estimate. B2 - 4 2013-14 Mid-Year Budget Review Page 5 • The Transportation Impact Fee Fund’s original budget estimate for impact fees was set at $712,000 while actual receipts to date exceed $820,000. The proposed budget reflects an increase of $188,000 for a total of $900,000. • The Fleet Replacement Fund’s original budget contained an estimate for the amount of proceeds that would be received from the lease purchase of a new fire engine. The actual cost of the fire engine was lower than the original budget amount which also lowered the amount borrowed under the lease purchase agreement by $24,549. As a result, the forecast reflects this amount of decrease in the lease purchase proceeds account. • The Parkland Development Fund’s adopted budget did not include an estimate for in- lieu fees; however, the year-to-date actual receipts are material. The proposed budget forecast includes an estimate for dwelling unit fees in the amount of $1,200 and the Park in-lieu fees are estimated at $85,000. • The Open Space Acquisition Fund’s current year fee receipts total $21,000. The proposed budget reflects a forecast of $25,000 for the year. • The Airport Area Impact Fee Fund’s year-to-date receipts of impact fees are in excess of $255,000. The proposed budget reflects a forecast of $300,000 for the year. • The Los Osos Valley Road Impact Fee Fund currently reports that a total of $3,100 has been received and this is equal to the forecast amount shown in the proposed budget. • The Affordable Housing Fund has received Inclusionary Housing Fees in excess of $623,000 and the proposed budget reflects a forecast of $650,000 for the year. • The Parking Enterprise Fund’s original interest income estimate has been found to be too high in light of current conditions. As a result, the budget forecast reflects a decrease to the original budget estimate of $84,700. Council action is required to affirm certain items contained in the summary schedule that is provided in Section B of the Mid-Year Budget Update which reflect changes to the revenue forecast and the transfers in/out that have not been previously approved by prior Council action or by the City Manager under the authority of that office. These items are shown in the column labeled “Pending Approval.” Expenditures and Transfers-Out: As part of the process of transitioning from one fiscal period to the next, the budget procedures provide for the carryover of unspent capital project monies into the new year. For all affected funds, this has been accomplished and is reflected in the summary schedule that is provided in Section B of the Mid-Year Budget Update. In addition, encumbrances representing existing obligations to outside vendors for work in progress for various activities that were underway in 2012-13 have also been rolled over to the current year and the budget for expenditures has been B2 - 5 2013-14 Mid-Year Budget Review Page 6 increased accordingly. The details of these encumbrances are listed in the same summary schedule that is contained within Section B of the Mid-Year Budget Update document. Various items that have been previously approved by Council action or by the City Manager under the authority of that office have been included in the budget of the affected fund when approved. These are also listed in the summary schedule of changes to expenditure contained in Section B of the Mid-Year Budget Update document. There are two items that affect all funds which have staffing costs. The first is an adjustment that is required to be made to properly reflect the full cost of the required annual contribution for the retiree medical program. At the time the 2013-14 budget was drafted, a portion of the annual required contribution was not included in the total annual cost that is shared with all funds that have staffing costs, due to an oversight when interpreting the actuarial report. This fact was discovered during the closing of the 2012-13 financial records. The total additional expense that is to be added to the city-wide budget is $219,730. This amount is similar to that which was budgeted in the past using the actuarially defined costs. The narrative below identifies the amount that applies to each fund. The second adjustment reduces the amount that was budgeted city-wide for the cost of Unemployment Insurance benefits by $101,400. The city’s experience level has been much lower than the expense forecast, allowing this reduction to occur. The amount applicable to each fund is shown below. The following items represent changes made to the expenditure budgets of the various funds and departments shown. General Fund • Finance & I.T. - $2,542 in overtime costs were incurred when a staff member was sent to assist with a mutual aid fire response to provide GIS tracking of the fire lines. This amount is offset by an equal amount of revenue. • Fire Department - $225,649 was incurred for mutual aid service costs. This is offset by an equal amount of reimbursement revenue; The City administers the county-wide hazardous material mitigation program and is reimbursed for the cost of the part-time business manager. During the first 6 months of this year, the cost of this position was $5,903 and the City received reimbursement for that amount. • Risk Management – Reduce appropriations by $46,800. This amount was included in the budget as an estimate for interest on the retrospective deposit owed to the California Joint Powers Insurance Authority. No additional payments are due until July 2015 and the amount is fully funded in that year. • The retiree health insurance adjustment is $173,220 and the unemployment insurance cost reduction is $83,359 for the General Fund. • Transfer Out - Each year the set-aside for public art is determined based on eligible general capital outlay projects. This amount has been identified ($18,185) but was not funded at the time that the current year budget was adopted. This amount, if B2 - 6 2013-14 Mid-Year Budget Review Page 7 approved, will come from the General Fund reserve. Because of increasing General Fund revenues projected for the rest of this year, approval of this transfer will not have a significant impact on the General Fund’s undesignated reserve. Community Development Block Grant Fund • The retiree health insurance adjustment is $600. • The unemployment insurance cost reduction is $223. Law Enforcement Grant Fund • The unemployment insurance cost reduction is $422. Gas Tax Fund • The current estimate for Gas Tax revenues provided by the state indicates that the City will be receiving $75,000 less than the amount contained in the original budget. The transfer-out to the General Fund has been adjusted accordingly. Tourism Business Improvement District Fund • The retiree health insurance adjustment is $900. • The unemployment insurance cost reduction is $149. Insurance Benefit Fund • As explained in the revenue section, the originally established payment ($644,100) to the California Joint Powers Insurance Authority for the first installment of the retrospective deposit was included in the adopted budget for this fund. The amount of the payment was to be provided by the Enterprise Funds via inter-fund transfer during the current year; however, the obligation was required to be reported in the enterprise funds as an expense of the 2012-13 year under Generally Accepted Accounting Principles. As a result, the payment appropriation should be removed from the expenditure budget. Water Enterprise Fund • The fund’s share of the above mentioned retrospective deposit ($253,900) is being removed from the budget due to the expense being recorded in the prior year. • The fund’s budgeted obligation to the Nacimiento water program is being lowered by $282,000 based on the annual funding requirement set by San Luis Obispo County, after the current budget estimate was adopted. • The retiree health insurance adjustment is $17,430. • The unemployment insurance cost reduction is $6,243. Parking Enterprise Fund • This fund’s share of the retrospective payment to the CJPIA was $83,500 and was reported in the 2012-13 year as described above and therefore is being removed from the budget. • The retiree health insurance adjustment is $5,850. • The unemployment insurance cost reduction is $2,702. B2 - 7 2013-14 Mid-Year Budget Review Page 8 Sewer Enterprise Fund • The Sewer Fund owed $258,300 for the CJPIA retrospective deposit. This amount was reported as an expense in 2012-13 and therefore must not be shown as an obligation of the current year. • Based on the recently completed financing of the Water Resource Recovery Facility (WRRF) Energy Improvement Project, the actual debt service obligation is different from the amount budgeted and the debt service appropriation is being lowered by $477,100 to match the actual obligation. • The budget for the WRRF Energy Project ($8,947,000) is being established at this time to create the project budget that will carry forward until the project has been completed. • The retiree health insurance adjustment is $18,330. • The unemployment insurance cost reduction is $6,861. Transit Enterprise Fund • This fund’s share of the retrospective payment to the CJPIA was $17,600 and was reported in the 2012-13 year and therefore must not be shown as an obligation of the current year. • The retiree health insurance adjustment is $1,200. • The unemployment insurance cost reduction is $520. Whale Rock Commission • This fund’s share of the retrospective payment to the CJPIA was $30,800.00 and was reported in the 2012-13 year and therefore must not be shown as an obligation of the current year. Fleet Replacement Fund • The actual cost of the fire engine will be $24,549 less than originally shown in the budget. The proposed budget reflects this change in spending assumptions. Council action is required to affirm certain items contained in the summary schedule that is provided in Section B of the Mid-Year Budget Update which reflect changes to the expenditure forecast that have not been previously approved by prior Council action or by the City Manager under the authority of that office. These items are shown in the column labeled “Pending Approval.” Fund Balances and Working Capital Totals Following the completion of the City’s Comprehensive Annual Financial Report, staff reviewed all of the final fund balance and working capital totals to establish the new amounts that are reflected in the mid-year budget. These amounts and the amount of any change from the original estimate used for the 2013-14 original budget are shown in the Change in Financial Position documents which are included in Section B of the Mid-Year Budget Update document. Based on the 2012-13 financial results reported in the Comprehensive Annual Financial Report, the General Fund’s unrestricted reserve grew by $4.5 million more than the budget estimate for that year. A report given to the City Council indicated that the increase in the unrestricted reserve was $5.1 million more than the budgeted forecast, but this did not take into the increase in the B2 - 8 2013-14 Mid-Year Budget Review Page 9 reserve for encumbrances ($373,000) and the amount retained in the debt service reserve ($331,600) which increased the restricted portion of the total fund balance. Part of the overall increase in the unrestricted reserve is due to a one-time adjustment of $1.8 million made directly to the fund balance in order to recognize accrued sales taxes according to the calculated value by the State. Going forward, sales taxes will remain in line with the normal budget forecast growth trends and no significant adjustments to the year-end accrual will need to be made. Based on the current financial projections, the City’s General Fund will exceed its 20% unrestricted reserve level requirement throughout the 2013-15 Financial Plan period. As mentioned above, the reserve amount in excess of the 20% requirement, estimated at $6.7 million, is available for one- time projects and programs. After consideration of the following supplemental funding requests, $5,810,000 remains available for additional one-time expenditures. More detail is provided later in this report on other possible use of this available resource for the Council’s consideration. Supplemental Funding Requests Section C of the Mid-Year Budget Update document contains detailed information on the three supplemental funding requests that have been received, all coming from General Fund departments. These requests meet the criteria to qualify for supplemental funding by having a critical relationship to one or more major city goals, not having existing support from current appropriations and requiring urgent action in order to meet existing service delivery expectations. The table below represents the proposed 2013-14 funding amounts related to each request and the proposed source of funding. As indicated above, the complete details of each request are shown in Section C of the Mid-Year Budget Update document. Below is a brief description of each request. Fire Vehicle Mechanic program - This request is being made to provide adequate funding for the recruitment and retention of a qualified fire vehicle mechanic and the development of an apprentice program that would create a line of succession for this position which has been extremely difficult to fill. An additional amount is also being sought to supplement the Fire Department’s budget with $26,000 for fleet maintenance costs at this time due to the limited funds available to continue maintenance of emergency equipment. This portion of the funding request is being treated as a one- time cost since the situation will be addressed at the time the supplemental budget is prepared for 2014-15, thereby limiting the on-going impact to the General Fund to the current year. Future on- going costs will be $157,000 in 2014-15 and will escalate by approximately $4,000 per year after that. Quickest Route Automatic Vehicle Locating Software – This request is made to obtain a software component to the current fire dispatch software that will allow dispatchers to see which emergency vehicle is closest to the current call for service and route that vehicle to the call, potentially saving minutes in the department’s response time to life-threatening emergencies compared to the dispatch system’s current capabilities. This has a one-time acquisition cost of $20,600 and future licensing fees of approximately $800 per year that will be absorbed into the Fire Department’s operating budget with no increase in appropriations required in the future. B2 - 9 2013-14 Mid-Year Budget Review Page 10 Development Services Funding Request – This request follows on the presentation made by the Community Development Director to the City Council in September 2013 about significant workload impacts affecting the Community Development, Fire and Public Works Departments stemming from the large number of development applications that had been received up to that time. Since then, the number of development applications has continued to grow, increasing the workload on both the existing staff and the contractors hired to provide supplemental assistance. This increase in applications is also reflected in the growth in development revenue which is expected to exceed the current budget estimate by more than $900,000. This submission is both a recap of the activities that have taken place since September 2013 showing how the funding allocated at that time have been utilized and a request to utilize the additional revenues that are forecast to be received in excess of the existing budget for the remainder of this year. Staff is also requesting to return to the City Council in June during the Supplemental Budget review hearings with a policy for the future identification of development fees in excess of the budgeted amount and the timely appropriation of those amounts in order to adequately fund the required service levels needed to serve the development application process. On-going expenses stemming from this request represent the additional salary and benefit costs associated with extending three existing positions from 75% time worked to full-time employment and covering the 50% cost of the Principal Transportation Planner that is currently paid by the Parking Enterprise Fund, but due to workload demands from new development can no longer be justified. On-going costs extending beyond 2013-14 increase from $50,100 to $130,600 in 2014-15 and increase by approximately $3,400 per year thereafter. Limited term expenses related to this request include funding for a Contract Special Projects Manager in the Community Development Department and development services legal support obtained through a consultant services contract. These expenses are estimated to be $54,000 in 2013-14 and $196,000 in 2014-15 but are not currently expected to continue beyond that year. These costs are proposed to be paid from the excess over the 20% reserve amount since they are not directly tied to the development review fee program but are vital to supporting that process and ensuring that other priorities are attended to in a timely manner. Additional limited term expenses spanning 2013-15 are being requested in the total amount of $992,400 to extend the current contractor and temporary staffing support that was implemented with Council’s support of the department’s request in September 2013. If approved, these expenses would be paid from on-going development fee revenues. Proposed Uses of Excess Reserve Over 20% In addition to the supplemental funding requests received, staff is proposing the following as possible uses of the remaining amount of the excess reserve over the 20% level: $3.0 million to pay down unfunded liabilities. This could be applied either to the $24 million side-fund liability that exists in the California Public Employees Retirement System (CalPERS) safety program or the retrospective deposit balance in the amount of $2.025 million that exists at the California Joint Powers Insurance Authority. Further analysis with regard to the CalPERS side-fund amount and options will be brought back to the City Council in April. $1.7 million to backfill for Measure Y revenues in 2014-15 if needed. As staff indicated in its report to the City Council on January 21st and the Council concurred, one of the options to be considered for preserving services in 2014-15 in the event that the Measure Y revenue stream B2 - 10 2013-14 Mid-Year Budget Review Page 11 does not continue beyond March 2015 would be to use a portion of the existing reserve amount that exceeds the 20% level. $435,000 for street paving and the paving of the Sinsheimer stadium parking lot. • Additional funding is needed in the street rehabilitation and reconstruction account to more fully fund paving in Areas 6 and 7, including the completion of required ADA curb ramps in the project area. This additional funding would help complete the neighborhood paving needs in these areas. • The Sinsheimer Parking Lot project budget was reduced in the 13-15 Financial Plan by $50,000. In addition, increased requirements relative to the Municipal Stormwater Permit result in a current project deficit of $80,000. $250,000 to be set aside as a matching grant future use in acquiring land at 40 Prado Road for the homeless services center as proposed by Community Action Partners of San Luis Obispo County (CAPSLO). This assumes that other agencies, including the county and the newly formed Homeless Foundation of San Luis Obispo County contribute their fair share. The amount of the city’s contribution could be reduced depending on the final tally of contributions provided by other cities in the county. Yet this set-aside may be used to achieve this aspect of the Homeless Major City Goal if required. $250,000 to be used to begin the city hall reconfiguration to provide an elevator for public use and to consolidate two public service counters on the main floor. $100,000 for the creation of an employee development and leadership program in conjunction with the county. The City is in discussions with the County of San Luis Obispo regarding the possibility of collaborating to provide a cost effective and progressive approach to leadership development for the two organizations (City and County). Collaborating with the County allows the City to participate in providing a three-tiered leadership development model that includes supervisory, management, and executive academies with classroom training, experiential learning activities, guest speakers, and coaching. The model would be provided through a group of consultants based on proven public sector competencies and regularly evaluated for effectiveness. While certain aspects of the leadership development program may be tailored for City or County specific needs, the economy of scale offered by this collaboration allows both organizations and our community to benefit from a program that otherwise would not be affordable for the City. Staff is requesting $100,000 of the one-time funds in excess of policy reserve to be designated for the purpose of “seeding” this program. Staff is in preliminary discussions with the County and consultant and therefore, does not have a complete estimate of costs and timeline for roll-out but is confident this amount will get the program up and running. Financial Uncertainties The purpose of the mid-year review is to provide an update on the status of known or newly identified potential changes in the City’s revenue and expenditure trends. As of the date of this report, the following issues have been identified. • The California Joint Powers Insurance Authority (CJPIA) staff recently updated their estimates of liability and workers’ compensation coverage for 2014-15 from estimates B2 - 11 2013-14 Mid-Year Budget Review Page 12 previously provided and included in the 2013-15 Financial Plan. As a result, the premium for liability coverage will be $13,000 or approximately one percent more than the original estimate budgeted while the premium for worker’s compensation coverage will be $42,500 or approximately three percent more than the original estimate budgeted. Based on further information received from CJPIA, it appears that liability insurance premiums will grow a 5% and workers compensation premiums will grow by 8% each year, starting in 2015-16. • In addition to the insurance premium increases, the CJPIA has notified the City that the latest retrospective adjustment of coverage years including 2011-12 has resulted in new charges for both the liability and workers compensation insurance programs that must be paid in July 2014. The additional charge for the liability program is $39,300 and the additional charge for the workers compensation program is $442,700. Given the nature of the retrospective adjustment process, it is possible that additional charges could be identified in the future. • Last April, the CalPERS Board adopted a new rate structure intended to provide a funding formula that ensures that all plans are fully funded within a fixed 30-year period. This formula makes a number of other changes in assumptions that have long been held by CalPERS, including a change to a 25 year period for recognizing market gains and losses and the use of a 5-year window to implement rate changes (smoothing). CalPERS has provided estimates for the range of costs that will be incurred after the new employer rates take effect starting in 2015-16. Based on these estimates, the additional costs in 2015-16 could be $201,000 for the Miscellaneous plan and $273,600 for the Safety Plan. By the e nd of that year, the City will have set-aside $740,000 from a self-assessed charge that begins in 2014-15 at 1% of staff wages and grows to 2% starting in 2015-16. By 2017-18, the higher employer rates could create additional costs totaling $1.5 million, which would exceed the set-aside amount by $930,000. This additional cost potential has not been built into the Five Year Fiscal Forecast. • As a result of a demographic and economic experience study, PERS actuaries are recommending to the PERS Board the adoption of changes in plan assumptions that will lead to rate increases. The study found that more employees were retiring than previously assumed and that retirees were living longer in retirement. It is also being recommended the PERS Board adopt an updated mortality index which will help assumptions align with mortality improvements. If approved by the PERS Board, the rate increases would first take effect in FY 2016/17. Board policy calls for a five year ramp up of rate increases stemming from assumption changes, which means the full impact of these changes wouldn’t be phased in until FY 2020/21. Preliminary estimates from PERS project the employer cost could increase (as a percentage of salary) from 0.9% to 1.9% for Miscellaneous and 1.9% to 3.3% for Safety in the first year and increase to 3.1% to 6.5% for Miscellaneous and 5.3% to 9.3% for Safety in the fifth year. The range of potential cost increases from these rate changes for the Miscellaneous and Safety plans are shown in the table below. The low end of the employer rate change estimate for both plans is shown in the column labeled “Low” while the upper end of the range estimate for the two plans is shown in the column labeled “High”. These cost assumptions have not been included in the Five Year Fiscal Forecast. It is important to note that the staffing costs contained in the 5 Year Fiscal Forecast do not reflect assumptions for savings that will be achieved when new staff is hired and they become members of either the 2nd or 3rd tier retirement programs, which have a lower overall cost B2 - 12 2013-14 Mid-Year Budget Review Page 13 to the city. This means that the current expense forecast is already carrying some excess costs and the actual savings built in will help to partially offset some of the increases to employer rates that are shown below. Estimated Additional CalPERS Employer Costs from 2014 Actuary Recommendations 2016-17 2020-21 Low High Low High Miscellaneous $133,000 $281,600 $511,300 $1,072,000 Safety $213,700 $371,200 $665,900 $1,168,500 $346,700 $652,800 $1,177,200 $2,240,500 • Staff identified the need to analyze the franchise fees charged to the water and sewer utility funds to ensure that they are being charged appropriately and are commensurate with the impacts placed on public infrastructure. The outcome of that analysis and the impact on current and future revenues from this revenue source are not known at this time. The total fees generated equal $1.03 million in the current fiscal year. City-wide Perspective in the Mid-year Update While the Mid-Year Budget Review primarily focuses on programs and projects financed through the General Fund, it does contain relevant information regarding any projected changes affecting the City’s enterprise funds. Consistent with the City's policy of annually reviewing the enterprise fund rates, a comprehensive analysis will be presented in June 2014 addressing rate and revenue issues in the Water, Sewer, Parking, and Transit funds. Major City Goal Update The Mid-Year Budget Update document also includes in Section E a status report for Major City Goals and the progress toward accomplishment of the work program as defined by the Council. SUMMARY After evaluating the fiscal environment described above, along with the submissions of the various departments, staff recommends that the City Council should consider and approve the three operating program supplemental funding requests submitted as part of this Mid-Year Budget Review. Together these General Fund requests total $954,800 for 2013-14. ATTACHMENT 1. Mid-Year Budget Review for 2013-14 (Available on the City Website and distributed under separate cover to City Council) 2. Resolution B2 - 13 2013-14 Mid-YearBudget Review San Luis Obispo, California For the 2013-15 Financial Plan Co v e r p h o t o b y w e r n e r s l a v e @ y a h o o . c o m ( C C B Y - N D 2 . 0 ) B2 - 14 2013-15 Financial Plan MID-YEAR BUDGET REVIEW: 2013-14 February 2014 JAN HOWELL MARX, MAYOR CARLYN CHRISTIANSON, VICE MAYOR JOHN ASHBAUGH, COUNCIL MEMBER DAN CARPENTER, COUNCIL MEMBER KATHY SMITH, COUNCIL MEMBER KATIE LICHTIG, CITY MANAGER Prepared by the Department of Finance & Information Technology Wayne Padilla, Director Joe Lamers, Budget Manager Vilma Warner, Senior Accountant Michelle Bulow, Administrative Assistant City of San Luis Obispo B2 - 15 TABLE OF CONTENTS A. Transmittal Memorandum Overview A-1 Financial Condition Summary A-2 Mid-Year Budget Requests A-8 Status of Goals and Objectives A-9 Conclusion A-10 B. Financial Condition Summaries Revenues by Major Category and Source B-1 Summary of Revenue Adjustments B-8 Summary of Expenditure Adjustments B-11 Interfund Transactions Operating Transfers B-21 Reimbursement Transfers B-24 Changes in Financial Position Combined Statements All Funds Combined B-25 Governmental Funds B-26 Enterprise and Agency Funds B-27 General Fund B-28 Special Revenue Funds Downtown Business Improvement B-29 Tourism Business Improvement B-30 Gas Tax B-31 Transportation Development Act B-32 CDBG B-33 Law Enforcement Grant Fund B-34 Capital Project Funds Public Art Fund B-35 Park Hotel Fund B-36 Capital Outlay B-37 Parkland Development B-38 Transportation Impact Fee B-39 Open Space Protection B-40 Airport Area Impact Fee B-41 Affordable Housing B-42 Fleet Replacement B-43 LOVR Sub-Area Fee Fund B-44 Major Facility Replacement B-51 I.T. Replacement B-53 Debt Service Fund B-45 Enterprise Funds Water B-46 Sewer B-47 Parking B-48 Transit B-49 Whale Rock Reservoir B-50 Internal Service Fund Insurance Benefit Fund B-52 C. Mid-Year Supplemental Budget Requests Summary of Mid-Year Budget Requests C-1 Fire Vehicle Mechanic C-2 Quickest Route C-7 Development Services C-14 D. Recent Financial and Revenue Reports Sales Tax Newsletter: Third Calendar Quarter 2013 D-1 Monthly TOT Report: December 2013 D-3 Quarterly Investment Report: December 2013 D-4 E. Status of Goals and Objectives Introduction E-1 Status of Major City Goals E-2 Status of Other Council Objectives E-24 Status of Major CIP Projects E-35 B2 - 16 Section A TRANSMITTAL MEMORANDUM B2 - 17 February 5, 2014 TO: Mayor and City Council FROM: Katie Lichtig, City Manager Wayne Padilla, Director of Finance Joe Lamers, Budget Manager SUBJECT: MID-YEAR BUDGET REVIEW FOR 2013-14 OVERVIEW The City’s Budget and Fiscal Policies call for a formal financial status report to the Council for every six- month period. The Mid-Year Budget Review meets this requirement and allows the Council to take a broader look at the City’s financial picture at the mid-point of the fiscal year. This report provides: 1. An update to the beginning fund balance projections based on actual audited results from the prior fiscal year. 2. An analysis of revenue trends since adoption of the Financial Plan, and revision of revenue and ending fund balance projections accordingly. 3. Identification of any issues requiring Council attention, and recommendations for corrective action or additional funding if required. The mid-year review also provides an opportunity to give the Council a formal update on the status of the Major City Goals program, Capital Improvement Plan (CIP) projects and other objectives. All Funds Reviewed This mid-year budget review primarily focuses on programs and projects financed through the General Fund, but it does contain basic numerical information regarding any projected changes affecting the City’s other funds, including the enterprise funds. Staff has reviewed the projections for these funds to ensure that they are sound in light of current conditions. Consistent with the City's policy of annually reviewing the enterprise fund rates, a comprehensive analysis will be presented in June 2014 addressing rate and revenue issues in the Water, Sewer, Parking, and Transit funds. Summary of Findings and Conclusions After reviewing the City’s audited financial results from 2012-13 and analyzing the current fiscal year-to-date revenue and expenditure trends, staff applied their best and most prudent professional judgment to confirm the revenue and expenditure projections for the rest of the fiscal year. The following points highlight the major changes that have been made to the original General Fund revenue and expenditure projections compared to the adopted 2013-14 budget: 1. General Fund revenues received through January were compared to receipts from 12 months ago and a forecast of future revenues for the next 5 months was developed in order to determine the annual revenues to be derived from each revenue source. The key changes in the revenue forecast that resulted from this analysis are described starting on page A-3 below. On-going revenues for 2013-14 are forecast to increase by a total of $2.4 million over the original budget amount. Of this amount $1,204,000 is from development fees, which includes $300,000 carried over from the prior year. Grant and other non-recurring revenues increased by $1.1 million compared to the original budget. The forecast for major revenues shown in this document represents growth trends that are in line with those provided by HdL for sales tax assumptions, other outside sources such as the county for property tax receipts, current contract agreements related to fee reimbursements and current local revenue trends. As shown in the Five Year Fiscal Forecast, the forecast rate increases related to sales tax revenues are reasonable when compared to the 2012 Beacon Economics forecast for major revenues. 2. This mid-year update continues the assumption that there will be savings equal to 2% of budgeted salaries and benefits. 3. While it appears that the local economy is recovering faster than that of the rest of the state, the amount of new revenue growth is both modest and subject to fluctuations in the short term. For example, global economic forces continue to significantly depress yields on invested cash to barely a fraction of that earned 3 years ago. While consumer spending on new cars has increased A-1 B2 - 18 significantly in the past year, HdL, the City’s sales tax advisor, is cautioning that the market appears to be reaching a saturation point leading to fewer sales in the near future. The increase in new cars having greater fuel efficiency is creating less need for gasoline, which drives down sales tax receipts. The county has advised that the inflation rate used to increase the assessed value of property that is subject to the Proposition 13 taxing strategy is limited to less than .5% next year, when the historical inflation factor is 2% per year. On the positive side, transient occupancy tax receipts continue to grow year over year and are forecast to increase by 7.5% over last year’s levels. Changes made to the utility user’s tax ordinance that took effect in April 2013 are creating an increase in that revenue that is forecast to be nearly 9% over the prior year while the City realizes its first full year of the higher receipts. After this year, the growth rate is estimated to be 3%. All of these conditions have been considered during the development of the current revenue forecast and provide the rationale for using realistic estimates going forward and continuing the practice of frequent monitoring of current conditions. 4. In general, staff has only proposed mid-year budget requests that need to be considered now in order to meet timing requirements or adequately fund current programs. Accordingly, there are 3 operating program changes submitted for Council consideration during this Mid-Year Review totaling $131,900 in on-going costs and $823,000 in one-time costs for the current year, all of which are General Fund related. Continuing Actions to Achieve and Maintain Fiscal Health and Sustainability 1. Use One-Time Savings Only for One-Time Expenses or Projects. Maintaining a minimum fund balance level provides the City with a first line of defense when adverse circumstances arise. City policy calls for the maintenance of General Fund reserve balance of at least 20% of operating expenses for the year. Expenditure savings or one-time revenue increases add to the General Fund balance but are short term and cannot support ongoing increases in expenditures. 2. Reinvesting in Capital Assets. As the General Fund unrestricted fund balance increases due to recurring savings and the gradually improving economy, it is important to re-invest in the City’s capital assets which have historically been funded on a pay-as-you-go basis. The adopted 2013-14 General Fund budget of approximately $59 million includes the use of $2.3 million from the reserve for one-time expenses. These costs include $1.2 million for Skate Park construction; $500,000 for replacement of Information Technology equipment and $500,000 for reinvestment in Major Facility Replacement projects. The 2013-15 Financial Plan includes General Fund Capital Improvement projects totaling $15.4 million while the upcoming 5-year period reflects a total of $40.3 million in General Fund Capital Improvement Projects. FINANCIAL CONDITION SUMMARY General Fund Balance Changes Beginning FY 2013-14 Fund Balance. Based on the 2012-13 financial results reported in the Comprehensive Annual Financial Report, the General Fund’s unrestricted reserve grew by $4.5 million more than the budget estimate for that year. A report given to the City Council indicated that the increase in the unrestricted reserve was $5.1 million more than the budgeted forecast, but this did not take into account the increase in the reserve for encumbrances ($373,000) and the amount retained in the debt service reserve ($331,600) at the end of the year. Part of the overall increase in the unrestricted reserve is due to a one-time adjustment of $1.8 million made directly to the fund balance in order to recognize accrued sales taxes according to the calculated value by the State. Going forward, sales taxes will remain in line with the normal budget forecast growth trends and no significant adjustments to the year-end accrual will need to be made. In addition to the one-time adjustment described above, the General Fund realized $1.3 million or 2.25% more revenue than was budgeted in 2012-13. Nearly every major revenue category saw an increase over the budgeted amount. In addition, General Fund realized expenditure savings of $2.7 million which is $600,000 more than was anticipated. Most of the expenditure savings came from staffing savings, largely due to position vacancies during the year. These positions were filled or are likely to be filled in the current fiscal year. A-2 B2 - 19 Based on these results, the 2012-13 unrestricted fund balance is $6.7 million above the 20% minimum reserve level. This amount represents resources available for use on future, one-time spending. Projected FY 2013-14 Ending Financial Condition. Based on the current financial projections, the City will exceed its 20% unrestricted reserve level requirement throughout the 2013-15 Financial Plan period. As mentioned above, the reserve amount in excess of the 20% requirement, estimated at $6.7 million, is available for one-time projects and programs, such as the supplemental funding requests that are discussed later in this document. General Fund Revenues Included in Section B of this report is a summary of revenues by fund and major source that provides actual results for 2012-13, original budgeted amounts for 2013-14 along with revised projections and respective variances for each source. Based on this Mid-Year Review, overall projections for 2013-14 General Fund revenues are now anticipated to be about $2.4 million higher than projected in the 2013-15 Financial Plan, with approximately $1.1 million of that amount representing one-time revenues from grants and the Mutual Aid reimbursements. The following summarizes the most significant General Fund revenue trends: 1. General Sales Tax. Based on the latest forecast provided by HdL, which utilizes input from Beacon Economics, general sales tax receipts will be approximately $723,500 over the original budget forecast. Compared to the prior year, general sales tax receipts will reflect an increase of $940,500. This increase is the result of growing auto sales and the taxes generated by on-line sales and local energy projects that are increasing allocations through the county pool. The forecast for next year is for lower amounts of tax generation from these sources as the demand for new cars winds down and the large-scale solar energy panel project and nuclear plant refurbishing and refueling projects taking place in the county come to an end. (these generate sales taxes to the county-wide pool from which we obtain a portion of the total receipts) This situation is also coupled with lower tax generation from the sale of vehicle fuel as more energy efficient vehicles and a decline in the number of new drivers push down demand for fuel. HdL, the city’s sales tax monitor, has also indicated that in 2014-15 a one-time negative adjustment to correct revenues will be made by the state to close out the “Triple Flip” sales tax for property tax exchange program which ends in 2015-16. 2. Measure Y Sales Tax. Using the HdL forecast for Measure Y Sales Tax revenue, the mid-year revision reflects an increase in receipts of approximately $84,000 compared to the original budget and an increase of $190,200 over the prior year. For the sake of consistency, the five year forecast reflects the continuation of Measure Y revenue which would require voter approval beyond March of 2015. 3. Property Tax. Property taxes grew for the first time in three years during 2012-13 and compared to the results for that year (after removing a one-time reimbursement of $620,000), property taxes are estimated to grow by $204,000 based on current estimates. Staff is recommending a $20,000 increase to the current budget to reflect the county’s current forecast amount. 4. Vehicle License Fees In-lieu. The county has forecast that this amount will grow by $112,500 over the prior year or $59,500 over the current budget estimate. 5. Transient Occupancy Tax (TOT). TOT continues to show year over year growth. The current forecast indicates that TOT will increase by 7.5% or $418,000 over the prior year. The forecast represents $240,900 more revenue over the current budget forecast. 6. Franchise Fees. The forecast took into account the payment history of each franchise fee payer and indicates that annual fees will be approximately $26,400 less than the amount received in 2012-13. Compared to the current budget estimate however, the forecast adds $2,900 to the revenue total. The forecast does not take into account any adjustments that may result from the analysis of the utility fund’s franchise fees that is currently being performed. 7. Utility Users Tax (UUT). Based on a review of the UUT payments made by each company to the city, the forecast indicates that receipts will be 8% or $440,000 over the prior year amount. In the current year, the forecast will add $600,000 to the current budget amount. A significant portion of this increase is due to the change in the UUT ordinance A-3 B2 - 20 that took effect on April 1, 2013 and expanded the type of wireless phone services that are subject to the tax. 8. Interest on Investments. The current forecast shows a sharp decrease in interest earnings as the result of the steady decline in the number of higher yielding investments from the city’s portfolio as they mature over time and are replaced with equally credit worthy but lower yielding investments. The value recorded each year is also influenced by the current market value of the portfolio, which had been trending lower in light of the federal government’s planned reduction in the value treasury bonds that it intended to continue acquiring each month in its efforts to suppress interest rates. These adjustments represent increases and decreases over time, since the City does not intend to sell an investment before it matures. The City is required to value the portfolio at market value in accordance with Governmental Accounting Standards. During the current year, the unrealized market gains and losses will be tracked separately from the interest earnings in order provide staff with a better understanding of the true performance of the portfolio. In spite of the unrealized gains and losses that have accrued, the prudent use of an investing strategy that uses a ladder system of grouping investment purchases and maturity dates has allowed the city to extend the period of time from which it was able to enjoy above-average yields on its investments compared to current market conditions. Due to the time constraints imposed by state law that limits the maximum period of time that an investment can be held to no more than 5 years and the fact that most of these higher yielding investments have or are about to mature, the city is now facing a period of time when the portfolio is weighted with mostly lower yielding investments until such time as the credit market and the Federal Open Market Committee see fit to effect changes that result in an increase in interest yields on permissible investments. As a result of these conditions, the forecast for interest on investments reflects a reduction of $145,000 compared to the original budget. With the focus of the city’s investment efforts being directed at the primary goal of protecting the invested principal through the use of high quality investments, staff will continue to look for permissible investments and strategies that position the city’s portfolio to begin capturing higher returns at the earliest opportunity. 9. Other Subventions and Grants. These revenues include funding from state and federal sources. The mid-year forecast reflects an increase in this revenue category of $228,200 to reflect Mutual Aid Reimbursements that are expected for claims that were filed by the Fire Department. In addition, the unused portion of the previously awarded Strategic Growth Council Grant for the update of the Land Use and Circulation Element Plan update is being carried over in the amount of $432,600. Additional grants are also reflected in the mid-year revision: Fire Prevention Grant $101,536; Local Hazard Mitigation Plan $47,549; Justice Department grant for the Police Department $10,150. 10. Development Review Fees. Revenues collected through January 2014 are well ahead of expectations. The mid-year forecast reflects adjustments to account for the fees already received and those anticipated to be received during the current year from proposed development activity. Based on the amounts received and staff’s estimate for the rest of the year, development fee revenue is forecast to be $1,204,000 more than the original budget forecast. The revised total includes $300,000 carried over from 2012-13 based on Council’s authorization received by Community Development in September 2013 to defer that amount and carry it over to this year. The new total is $752,000 more than the prior year total. It is important to point out that development related revenues are cyclical in nature and very difficult to predict. It is for these reasons that future years’ forecasts are based on staff’s expectation of when development projects will begin to generate fees and not on the assumption that past results represent a continuing and reliable revenue trend. 11. Other Revenues. This category includes a variety of revenue sources, most of which are reflecting minor changes in the forecast. The most significant change is a reduction of $105,000 to remove an estimate that was included in the adopted budget that was used to anticipate growth in revenues that could not be specifically identified last Spring when the budget was assembled. A-4 B2 - 21 Other Fund Revenues 1. CDBG Fund. Federal Grants – recognize $2,490 in additional funds that are being made available to the city for the current year based on information received from the county after the budget was adopted. Carryover grant allocations that were unused in the prior year totaling $741, 900 are also being recognized. 2. Law Enforcement Grant Fund – recognize $120,186 from the Public Safety Liaison Officer Program. This was offset by an equal expenditure to pay for county services per the grant agreement. Also recognize $205,204 from the Office of Traffic Safety Grant for program costs. 3. Public Art – recognize $18,185 to be transferred from the General Fund representing the 2013-14 allocation to the program that was not identified at the time the current budget was adopted; recognize a donation of $523 for the Library Mural. This is offset by an equal amount of expense. No Public Art fees were estimated this year, however current receipts total $84,000 therefore the proposed budget reflects $100,000 total estimated receipts for this year. 4. Information Technology Replacement – recognize $27,947 from the Public, Education, Government technology system fund (the source is cable television providers). This is offset by the cost of the Council Chamber technology upgrade project. 5. Insurance Benefit Trust Fund – reduced the transfer-in to zero from $644,100.This represented the amount owed from Enterprise funds for the first installment to be paid on the retrospective charge that is owed to the California Joint Powers Insurance Authority. The payment was posted to the prior year in the Enterprise Funds to comply with the requirement to recognize their part of the debt at that time. 6. Sewer Enterprise Fund – As reported previously to the City Council, the change in user fees applied to school sites from one based on average attendance to a flow-based charge is estimated to lower the revenues for the rest of this year by $65,000 if the rate structure is approved during the public hearing scheduled for tonight’s meeting. 7. Transit Fund – recognize $10,779 received as a reimbursement for damages to a bus shelter. This is offset by an equal amount of repair expense. 8. Water Enterprise Fund – Interest earnings are proposed for reduction in the amount of $119,200 to reflect the current estimate for the rest of the year. 9. Tourism Improvement Board Fund – The assessment revenue for this fund is tied to the growth level that is forecast for the Transient Occupancy Tax in the General Fund. As a result, the annual assessment revenue is forecast to increase by $ 48,100 which represents a 4.2% increase over the original budget estimate. 10. Transportation Impact Fee Fund – The original budget estimate for impact fees was set at $712,000 while actual receipts to date exceed $820,000. The proposed budget reflects an increase of $188,000 for a total of $900,000. 11. Fleet Replacement Fund- The completed financing resulted in a lower cost for the fire engine replacement and therefore a lower financing cost. The proposed budget reflects a decrease in loan proceeds of $24,549. 12. Parkland Development Fund – The current budget did not include an estimate for in-lieu fees, however actual receipts are material. The proposed budget includes an estimate for dwelling unit fees in the amount of $1,200 and the Park in-lieu fees are estimated at $85,000. 13. Open Space Fund – The current year’s fee receipts total $21,000. The proposed budget reflects a forecast of $25,000 for the year. 14. Airport Area Impact Fee Fund – The current year receipts are in excess of $255,000. The proposed budget reflects a forecast of $300,000 for the year. 15. Los Osos Valley Road Impact Fee Fund – The current budget did not include an estimate for these fees. A total of $3,100 has been received and this is equal to the forecast amount shown in the proposed budget. 16. Affordable Housing Fund – Year to date receipts of the Inclusionary Housing Fee exceed $623,000 and the proposed budget reflects a forecast of $650,000 for the year. 17. Parking Enterprise Fund – Interest income received last year is a good indicator of the amount to be received in the current year. The budget forecast reflects a decrease in the original budget estimate of $84,700. 18. General Purpose Capital Outlay Fund- Recognize unspent grant funds from the prior year in the total amount of $1,874,200. The projects that these grant funds will be used for A-5 B2 - 22 are listed in the Summary of Revenue Adjustments provided in Section B of this document. Operating Programs Section B includes an overview of changes to the operating program budgets. Organized by fund, these schedules include the original budget, re-appropriations for encumbrances and carryovers, and budget changes to-date since approval of the 2013-15 Financial Plan in June 2013. These summaries also reflect the mid-year budget requests, which are discussed later in this document. Below is a description of the items affecting each fund which require Council approval. There are two items that affect all funds which have staffing costs. The first is an adjustment that is required to be made to properly reflect the full cost of the required annual contribution for the retiree medical program. At the time the 2013-14 budget was drafted, a portion of the annual required contribution was not included in the total annual cost that is shared with all funds that have staffing costs. This fact was discovered during the closing of the 2012-13 financial records. The total additional expense that is to be added to the city-wide budget is $219,730 and the narrative below identifies the amount that applies to each fund. The second adjustment reduces the amount that was budgeted city-wide for the cost of Unemployment Insurance benefits by $101,400. The city’s experience level has been much lower than the expense forecast, allowing this reduction to occur. The amount applicable to each fund is shown below. General Fund Finance & I.T. - $2,542 in overtime costs were incurred when a staff member was sent to assist with a mutual aid fire response to provide GIS tracking of the fire lines. This amount is offset by an equal amount of revenue. Fire Department - $225,649 was incurred for mutual aid service costs. This is offset by an equal amount of reimbursement revenue; The City administers the county-wide hazardous material mitigation program and is reimbursed for the cost of the part-time business manager. During the first 6 months of this year, the cost of this position was $5,903 and the City received reimbursement for that amount. Risk Management – Reduce the appropriations by $46,800. This amount was included in the budget as an estimate for interest on the retrospective payment owed to the California Joint Powers Insurance Authority. No additional payments are due until July 2015 and the amount is fully funded in that year. The retiree health insurance adjustment is $173,220 and the unemployment insurance cost reduction is $83,359 for the General Fund. Community Development Block Grant Fund – The retiree health insurance adjustment is $600. The unemployment insurance cost reduction is $223. Law Enforcement Grant Fund –The unemployment insurance cost reduction is $422. Tourism Business Improvement District Fund - The retiree health insurance adjustment is $900. The unemployment insurance cost reduction is $149. Insurance Benefit Fund – the originally established payment ($644,100) to the California Joint Powers Insurance Authority for the first installment of the retrospective payment was included in the adopted budget for this fund. The resources to make the payment was to be provided by the enterprise funds via inter-fund transfer during the current year, however the obligation was required to be reported in the enterprise funds as an expense of the 2012-13 year under Generally Accepted Accounting Principles. As a result, the payment appropriation should be cancelled. Water Enterprise Fund – the fund’s share of the above mentioned retrospective payment ($253,900) is being reversed due to the expense being recorded in the prior year; The fund’s budgeted obligation to the Nacimiento water program is being lowered by $282,000 based on the annual funding requirement set by San Luis Obispo County, after the current budget estimate was adopted. The retiree health insurance adjustment is $17,430. The unemployment insurance cost reduction is $6,243. Parking Enterprise Fund - This fund’s share of the retrospective payment to the CJPIA was $83,500 and was reported in the 2012-13 year as described above. The retiree health insurance adjustment is $5,850. The unemployment insurance cost reduction is $2,702. A-6 B2 - 23 Sewer Enterprise Fund – The Sewer Fund owed $258,300 for the retrospective payment to the CJPIA. This amount was reported as an expense in 2012-13 and therefore must not be shown as an obligation of the current year; based on the recently completed financing of the Water Resource Recovery Facility (WRRF) Energy Improvement Project, the actual debt service obligation is different from the amount budgeted and the debt service appropriation is being lowered by $477,100 to match the actual obligation; the budget for the WRRF Energy Project ($8,947,000) is being established at this time to create the project budget that will carry forward until the project has been completed. The retiree health insurance adjustment is $18,330. The unemployment insurance cost reduction is $6,861. Transit Enterprise Fund - This fund’s share of the retrospective payment to the CJPIA was $17,600 and was reported in the 2012-13 year and therefore must not be shown as an obligation of the current year. The retiree health insurance adjustment is $1,200. The unemployment insurance cost reduction is $520. Whale Rock Commission - This fund’s share of the retrospective payment to the CJPIA was $30,800 and was reported in the 2012-13 year and therefore must not be shown as an obligation of the current year. The retiree health insurance adjustment is $2,200. The unemployment insurance cost reduction is $918. Fleet Replacement Fund – the actual cost of the fire engine will be $24,549 less than originally shown in the budget. The proposed budget reflects this change in spending assumptions. Listing of Encumbrances and Other Budget Changes that have Occurred Prior to the Mid-Year Budget Update This part of Section B reflects the budget changes that have taken place to re-appropriate prior year encumbrances, carryover unspent capital project balances and other routine budget changes that have occurred since the approval of the 2013-15 Financial Plan in June 2013. Inter-Fund Transactions This portion of Section B reflects actual inter-fund transfers for 2013-14 along with the original budget and revisions for 2013-14. The revised operating transfers are explained below: General Fund Transfer In -The General Fund received a $9,000 transfer in from the General Capital Outlay fund to support the cost of completing the Broad/Marsh restroom facility in order for it to be open late at night as part of the minor capital program incorporated in the Parks Maintenance budget. The State of California recently released its latest forecast for Gas Tax revenues and the information indicates that for this year the city should expect to receive $75,000 less than was originally planned. The transfer-in from the Gas Tax fund has been lowered accordingly. General Fund Transfer Out – The General Fund is obligated to provide funding for Public Art based on .5% of the value of qualified capital projects sponsored by the city each year. The 2013-14 annual contribution ($18,185) was not incorporated into this year’s budget at the time it was adopted and is proposed to be added during this mid-year budget update. Public Art Fund Transfer In – If approved by the City Council, the transfer from the General Fund described above will be reflected in the budget for this fund in the amount of $18,185. General Capital Outlay Fund Transfer Out – The transfer of $9,000 to support the work to reopen the Broad/Marsh restroom facility was approved by the City Manager in August 2013. Gas Tax Transfer Out – As indicated above, the latest state estimates for Gas Tax Revenues indicate that the City will receive $75,000 less than was originally expected. The transfer out to the General Fund has been lowered by this amount. Projected Fund Balances/Working Capital Based on the revised estimates for revenue projections and expenditures, this part of Section B includes a summary of projected changes in financial position for each of the City's operating funds. As with the revenue projections, the changes in financial position schedules include the actual fund balances/working capital along with the original budget and revised budget projections for 2013-14. The costs and estimated revenues that are associated with the following Mid-Year supplemental A-7 B2 - 24 funding requests are also reflected in the General Fund’s forecast ending fund balance. Staff noted that the Community Development Block Grant Fund ended 2012-13 with a negative fund balance of $2,500. This is being reviewed to determine the cause and proper means of returning the fund to a positive position. MID-YEAR BUDGET REQUESTS As noted previously, mid-year budget requests focus on areas that need to be approved now in order to meet timing requirements or adequately fund current programs through the end of the fiscal year. Supporting documentation that fully justifies the need for these adjustments is provided in Section C, summarized as follows. Operating Programs There are three operating program mid-year budget requests for Council consideration in the General Fund. These requests are summarized below: Fire Vehicle Mechanic - This request is being made to provide adequate funding for the recruitment and retention of a qualified fire vehicle mechanic and the development of an apprentice program that would create a line of succession for this position which has been extremely difficult to fill. An additional amount is also being sought to supplement the Fire Department’s budget for fleet maintenance costs at this time due to the limited funds available to continue maintenance of emergency equipment. Quickest Route Automatic Vehicle Locating Software – This request is made to obtain a software component to the current fire dispatch software that will allow dispatchers to see which emergency vehicle is closest to the current call for service and route that vehicle to the call, potentially saving minutes in the department’s response time to life-threatening emergencies compared to the dispatch system’s current capabilities. Development Services Funding Request – This request follows on the presentation made by the Community Development Director to the City Council in September 2013 when he identified significant workload impacts affecting Community Development, Fire and Public Works Departments stemming from the large number of development applications that had been received up to that time. Since then, the number of development applications has continued to grow, increasing the workload on both the existing staff and the contractors hired to provide supplemental assistance. The documentation submitted with this funding request is both a recap of the activities that have taken place since September showing how the funding allocated at that time has been utilized and a request to utilize the additional revenues that are forecast to be received in excess of the existing budget for the remainder of this year. Staff is also requesting to return to the City Council in June during the Supplemental Budget review hearings with a policy for the future identification of development fees in excess of the budgeted amount and the appropriation of those amounts in order to adequately fund the required service levels needed to serve the development application process. STATUS OF GOALS AND OBJECTIVES Section E of this report provides a formal look at the status of Major City Goals, Other Council Objectives and Major CIP Projects as of February 1, 2014. As reflected in the report, with about 30% of the two-year Financial Plan period completed, progress on the various goals ranges from 10 - 30% complete based on the respective “action plans.” Issues of Uncertainty 1. Insurance Program Premiums Prospective Funding Model. California Joint Powers Insurance Authority (CJPIA) staff recently updated their estimates of liability and workers’ compensation coverage for 2014-15 from estimates previously provided and included in the 2013-15 Financial Plan. As a result, the premium for liability coverage will be $13,000 or approximately one percent more than the original estimate budgeted while the premium for worker’s compensation coverage will be $42,500 or approximately three percent more than the original estimate budgeted. The Five Year Fiscal Forecast reflects continued growth of 5% for liability insurance and 8% for workers compensation premiums based on the range of estimates provided by the CJPIA. A-8 B2 - 25 2. Upcoming Retrospective Charges and Adjustments. Retrospective charges and refunds are cost allocation adjustments to all prior coverage periods and apply to both liability and workers compensation claim pools, which are further distinguished by the year in which a loss claim is recognized. Some claims take many years to resolve and over time their estimated values change based on new information as it develops. Retrospective charges and refunds are computed annually by CJPIA, and take into consideration all the changes in claim values that occurred during the most recent year. The retrospective computation for the liability program for periods including 2011-12 resulted in a charge to the City in the amount of $39,300. The retrospective computation for the workers’ compensation program for periods including 2011-12 resulted in a charge to the City in the amount of $442,700. Since the calculation for future retrospective charges and refunds are based on the claims of all 125 members of the CJPIA, as measured on June 30th of each year, the amount of any future adjustment beyond the current calculation cannot be determined at this time. With respect to the methodology used in making the retrospective computations, in 2013-14 the CJPIA transitioned from a retrospective funding model to a prospective funding model. However, coverage years through 2012-13 will continue to be reviewed and retrospectively adjusted on an annual basis and indefinitely into the future, until all claims incurred during the coverage years up to and including 2012-13 are completely closed on a pool-wide basis. During the transition period (claims incurred in 2010-11 through 2012-13) the cost allocation methodology will consist of a blended approach, containing elements of both the old and new funding models. 3. Existing Retrospective Charge. The above retrospective charges are in addition to the annual insurance premiums discussed in item 1 above and the ongoing repayment of the retrospective charge for the liability program that included retrospective balances of all outstanding adjustments conducted on coverage years from inception through 2009-10. This retrospective charge was due in July 2013 with payment plans available. The retrospective charge helped increase the pool’s funding or confidence level. A repayment plan was established in 2013 that included an initial payment of $1.1 million which included the application of $452,000 that the City had previously paid to CJPIA from a successful lawsuit judgment and five remaining annual payments of $429,500. The annual payment is included in the 2014-15 budget and subsequent years’ payments are included in the 5 Year Fiscal Forecast. According to the payment plan approved by Council in 2013, the balance will be paid in full in July 2018. 4. California Public Employees Retirement System (CalPERS) rates. Recently, CalPERS has identified new employer rates for the Miscellaneous and Safety Plans and the impact of these changes are reflected in the budget forecast. The rate changes and their associated annual costs, based on the values used in the 2014-15 budget, by program, are shown below. Miscellaneous + .455% (total estimated cost is $90,000) Safety Tier 1 + 1.201% Police Tier 2 +.16% Fire Tier 2 +.563% (total estimated cost is $131,300) Last April, the CalPERS Board adopted a new rate structure intended to provide a funding formula that ensures that all plans are fully funded within a fixed 30-year period. This formula makes a number of other changes in assumptions that have long been held by CalPERS, including a change to a 25 year period for recognizing market gains and losses and the use of a 5-year window to implement rate changes (smoothing). CalPERS has provided estimates for the range of costs that will be incurred after the new employer rates take effect starting in 2015-16. Based on these estimates, the additional costs in 2015-16 could be $201,000 for the Miscellaneous plan and $273,600 for the Safety Plan. By the end of that year, the City will have set-aside $740,000 from a self-assessed charge that begins in 2014- 15 at 1% of staff wages and grows to 2% starting in 2015-16. By 2017-18, the higher employer rates could create additional costs totaling $1.5 million, which would exceed the A-9 B2 - 26 set-aside amount by $930,000. This additional cost potential has not been built into the Five Year Fiscal Forecast. Recently, CalPERS has identified new employer rates for the Miscellaneous and Safety Plans and the impact of these changes are reflected in the budget forecast. The rate changes and their associated annual costs, based on the values used in the 2014-15 budget, by program, are shown below. Miscellaneous + .455% (total estimated cost is $90,000) Safety Tier 1 + 1.201% Police Tier 2 +.16% Fire Tier 2 +.563% (total estimated cost is $131,300) As a result of a demographic and economic experience study, PERS actuaries are recommending to the PERS Board the adoption of changes in plan assumptions that will lead to rate increases. The study found that more employees were retiring than previously assumed and that retirees were living longer in retirement. It is also being recommended the PERS Board adopt an updated mortality index which will help assumptions align with mortality improvements. If approved by the PERS Board, the rate increases would first take effect in FY 2016/17. Board policy calls for a five year ramp up of rate increases stemming from assumption changes, which means the full impact of these changes wouldn’t be phased in until FY 2020/21. Preliminary estimates from PERS project the employer cost could increase from 0.9% to 1.9% for Miscellaneous and 1.9% to 3.3% for Safety in the first year and increase to 3.1% to 6.5% for Miscellaneous and 5.3% to 9.3% for Safety in the fifth year. The range of potential cost increases from these rate changes for the Miscellaneous and Safety plans are shown in the table below. The low end of the employer rate change estimate for both plans is shown in the column labeled “Low” while the upper end of the range estimate for the two plans is shown in the column labeled “High”. These cost assumptions have not been included in the Five Year Fiscal Forecast. It is important to note that the staffing costs contained in the 5 Year Fiscal Forecast do not reflect assumptions for savings that will be achieved when new staff is hired and they become members of either the 2nd or 3rd tier retirement programs, which have a lower overall cost to the city. This means that the current expense forecast is already carrying some excess costs and the actual savings this represents will help to partially offset some of the increases to employer rates that are shown below. Low High Low High Miscellaneous $133,000$281,600$511,300$1,072,000 Safety $213,700$371,200$665,900$1,168,500 $346,700$652,800$1,177,200$2,240,500 2016-17 2020-21 Estimated Additional CalPERS Employer Costs from 2014 Actuary Recommendations 5. Utility Franchise Fees. Staff identified the need to analyze the franchise fees charged to the water and sewer utility funds to ensure that they are being charged appropriately and are commensurate with the impacts placed on public infrastructure. The outcome of that analysis and the impact on current and future revenues from this revenue source are not known at this time. The total fees generated equal $1.03 million in the current fiscal year. CONCLUSION The Budget Review Team and Department Heads will be prepared to respond to any questions the Council may have regarding this report at the February 18, 2014 meeting. If you have any questions in the interim, or require additional information, please do not hesitate to contact Finance Director Wayne Padilla at 805-781- 7125. A-10 B2 - 27 Section B FINANCIAL CONDITION SUMMARIES B2 - 28 REVENUES BY MAJOR CATEGORY AND SOURCE SUMMARY BY FUND Actual Original Revised 2012-13 Budget Projection Variance % Change GOVERNMENTAL FUNDS General Fund 57,578,700 55,462,200 59,049,800 3,587,600 6% Special Revenue Funds 2,817,100 3,293,500 4,436,900 1,143,400 35% Capital Project Funds 2,738,900 1,981,200 5,232,700 3,251,500 164% Total Governmental Funds 63,134,700 60,736,900 68,719,400 7,982,500 13% ENTERPRISE FUNDS Water Fund 18,182,900 18,146,300 18,027,100 (119,200)-1% Sewer Fund 16,215,200 15,753,200 15,688,200 (65,000)0% Parking Fund 4,726,000 4,102,700 4,018,000 (84,700)-2% Transit Fund 4,062,900 4,780,400 4,791,200 10,800 0% Golf Fund Whale Rock Reservoir Fund 931,300 932,400 932,400 Total Enterprise Funds 44,118,300 43,715,000 43,456,900 (258,100)-1% TOTAL $107,253,000 $104,451,900 $112,176,300 7,724,400 7% 2013-14 B-1 B2 - 29 REVENUES BY MAJOR CATEGORY AND SOURCE BUDGET SUMMARY Actual Original Revised 2012-13 Budget Projection Variance GENERAL FUND Tax & Franchise Revenues Sales & use tax General 14,242,200 14,515,500 15,238,900 723,400 5% Measure Y 6,493,800 6,600,000 6,684,000 84,000 1% Public safety (Proposition 172)327,700 284,200 338,900 54,700 19% Property tax 9,176,600 8,740,800 8,761,100 20,300 0% Property tax in lieu of VLF 3,533,200 3,586,200 3,645,700 59,500 2% Transient occupancy tax 5,572,400 5,749,400 5,990,300 240,900 4% Utility users tax 4,916,100 4,756,000 5,356,000 600,000 13% Franchise fees 2,552,300 2,523,000 2,525,900 2,900 0% Business tax certificates 2,055,300 2,116,200 2,116,600 400 0% Real property transfer tax 256,300 180,000 200,000 20,000 11% Total Tax & Franchise Revenues 49,125,900 49,051,300 50,857,400 1,806,100 4% Fines & Forfeitures Vehicle code fines 118,700 127,700 120,000 (7,700)-6% Other fines & forfeitures 41,000 39,600 36,000 (3,600)-9% Total Fines & Forfeitures 159,700 167,300 156,000 (11,300)-7% Investment and Property Revenues Investment earnings 12,800 165,200 20,000 (145,200)-88% Rents & concessions 217,400 159,000 159,000 Total Investment & Property 230,200 324,200 179,000 (145,200)-45% Subventions & Grants Motor vehicle in-lieu 19,300 Homeowners & other in-lieu taxes 74,300 75,000 72,800 (2,200)-3% Other in-lieu taxes 21,700 21,700 22,200 500 2% SB 90 reimbursements 8,900 11,200 11,200 Police training (POST)70,700 50,000 40,000 (10,000)-20% Mutual aid reimbursements 459,400 228,200 228,200 COPS grant AB3229 100,000 100,000 100,000 OTS Grant 74,000 Zone 9 reimbursements 50,900 85,000 85,000 Other state & federal grants 495,200 592,600 592,600 Total Subventions & Grants 1,374,400 331,700 1,152,000 820,300 247% Service Charges Police Services Accident reports 2,800 3,000 3,000 Collision investigation 14,400 12,000 12,000 Alarm permits and false alarm fees 62,700 70,000 70,000 DUI cost recovery 16,300 20,000 15,000 (5,000)-25% Tow release fee 13,500 14,000 12,000 (2,000)-14% Booking fee recovery Tobacco permit fees 21,800 20,000 20,000 Administrative citations 105,400 140,000 100,000 (40,000)-29% 2013-14 % Change B-2 B2 - 30 REVENUES BY MAJOR CATEGORY AND SOURCE Actual Original Revised 2012-13 Budget Projection Variance GENERAL FUND Parking citations 97,700 80,000 80,000 Other police services 212,500 72,000 98,000 26,000 36% Total Police Services 547,100 431,000 410,000 (21,000)-5% Fire Services Cal Poly fire services 266,600 265,000 270,700 5,700 2% Medical emergency recovery 166,700 168,000 168,800 800 0% Fire safety/haz mat permits 128,300 130,800 130,800 Multi-dwelling unit inspections 192,700 193,000 193,000 CUPA fees 106,000 92,000 92,000 Other fire services 29,700 23,000 26,900 3,900 17% Total Fire Services 890,000 871,800 882,200 10,400 1% Development Review Planning & zoning fees 677,000 423,900 867,300 443,400 105% Building Permits 674,700 555,500 1,085,000 529,500 95% Construction plan check & inspection 554,800 385,400 635,000 249,600 65% Infrastructure plan check & inspections 264,000 360,500 300,000 (60,500)-17% Encroachment permits 143,500 154,500 150,000 (4,500)-3% Fire plan check & inspections 219,300 155,000 280,000 125,000 81% Waterways management plan fees 3,300 Other Development Fees 58,700 108,900 30,000 (78,900)-72% Total Development Review 2,595,300 2,143,700 3,347,300 1,203,600 56% Parks & Recreation Adult athletic fees 134,200 122,400 122,400 Youth athletic fees 34,700 33,700 33,700 Skate park fees Instruction fees 91,600 83,900 83,900 Special event fees 86,200 72,700 92,700 20,000 28% Rental & use fees 203,200 161,500 161,500 Children services 654,100 511,600 550,000 38,400 8% Teens & seniors 3,600 500 500 Aquatics 243,400 248,200 248,200 Golf 307,300 291,700 291,700 Other recreation revenues (10,400)(7,000)(7,200)(200)3% Total Parks & Recreation 1,747,900 1,519,200 1,577,400 58,200 4% General Government Business license 386,100 443,400 380,000 (63,400)-14% Sales of publications 2,300 2,600 2,000 (600)-23% Other service charges 25,800 26,000 11,700 (14,300)-55% Total General Government 414,200 472,000 393,700 (78,300)-17% Total Service Charges 6,194,500 5,437,700 6,610,600 1,172,900 22% Other Revenues Insurance refunds 14,000 35,000 35,000 Other revenues 480,000 150,000 59,800 (90,200)-60% Total Other Revenues 494,000 150,000 94,800 (55,200)-37% Total General Fund $57,578,700 $55,462,200 $59,049,800 $3,587,600 6% 2013-14 % Change B-3 B2 - 31 REVENUES BY MAJOR CATEGORY AND SOURCE Actual Original Revised 2012-13 Budget Projection Variance SPECIAL REVENUE FUNDS Downtown Business Improvement District Fund Service Charges 208,300 205,000 205,000 Total Downtown BID Fund 208,300 205,000 205,000 Tourism Business Improvement District Fund Investment & Property Revenues 100 1,500 1,500 Other Revenues Service Charges 1,119,200 1,149,900 1,198,000 48,100 4% Total Tourism BID Fund 1,119,300 1,151,400 1,199,500 48,100 4% Community Development Block Grant Fund Subventions & Grants 223,600 506,600 1,251,000 744,400 147% Gas Tax Fund Subventions & Grants 1,198,500 1,357,200 1,282,200 (75,000)-6% Transportation Development Act Fund Subventions & Grants 38,300 49,100 49,100 Law Enforcement Grant Fund Investment & Property Revenues 100 100 Subventions & Grants 325,400 325,400 Service Charges 2,200 2,000 2,000 Total Law Enforcement Grant Fund 2,200 2,100 327,500 325,400 Public Art Contributions Fund Investment & Property Revenues 200 2,100 2,100 Service Charges 26,700 20,000 120,000 100,000 500% Other Revenues 500 500 Total Public Art Contributions Fund 26,900 22,100 122,600 100,500 455% Total Special Revenue Funds $2,817,100 $3,293,500 $4,436,900 1,143,400 35% 2013-14 % Change B-4 B2 - 32 REVENUES BY MAJOR CATEGORY AND SOURCE Actual Original Revised 2012-13 Budget Projection Variance CAPITAL PROJECT FUNDS General Purpose CIP Subventions & Grants State of California T SHA/USHA 834,500 834,500 Safe routes to school grant 557,100 SLTPP/STP grant 1,221,300 (1,221,300)-100% STP/SHA - RRTC 24,400 Other state grants 62,500 643,500 643,500 Federal Government Highway & bridge rehabilitation & replacement (HBRR)32,000 714,500 714,500 Transportation enhancement (TEA) Other federal grants 224,700 600,000 600,000 Service Charges Zone 9 reimbursements 186,100 303,000 303,000 Other Revenues Contributions Other Revenue 1,300 Total General Purpose CIP 1,088,100 1,221,300 3,095,500 1,874,200 153% Parkland Development Fund Investment & Property Revenues 300 6,700 6,700 Subventions & Grants Service Charges Park in-lieu fees 149,800 85,000 85,000 Dwelling unit charge 2,400 1,200 1,200 Other Revenues Total Parkland Development Fund 152,500 6,700 92,900 86,200 Transportation Impact Fee Fund Investment & Property Revenues 3,000 10,000 10,000 Subventions & Grants 1,059,700 Service Charges Impact Fees 221,200 712,000 900,000 188,000 26% Other Revenues Total Transportation Impact Fee Fund 1,283,900 722,000 910,000 188,000 26% Fleet Replacement Fund Investment & Property Revenues 600 6,000 6,000 Other Revenues Sale of surplus property 30,000 10,000 10,000 Total Fleet Replacement Fund 30,600 16,000 16,000 2013-14 % Change B-5 B2 - 33 REVENUES BY MAJOR CATEGORY AND SOURCE Actual Original Revised 2012-13 Budget Projection Variance CAPITAL PROJECT FUNDS Open Space Protection Fund Investment & Property Revenues 500 500 Subventions & Grants 125,000 125,000 Service Charges 25,000 25,000 Total Open Space Protection Fund 500 150,500 150,000 Airport Area Impact Fee Fund Investment & Property Revenues 900 5,000 5,000 Service Charges 300,000 300,000 Total Airport Area Impact Fee Fund 900 5,000 305,000 300,000 Affordable Housing Fund Investment & Property Revenues 700 8,000 8,000 Subventions & Grants Service Charges 182,700 650,000 650,000 Total Affordable Housing Fund 183,400 8,000 658,000 650,000 Los Osos Valley Road Sub-Area Fee Fund Investment & Property Revenues (200)1,700 1,700 Service Charges 3,100 3,100 Total LOVR Sub-Area Fee Fund (200)1,700 4,800 3,100 182% Information Technology Replacement Fund Investment & Property Revenues (300) Service Charges Total IT Replacement Fund (300) Total Capital Project Funds $2,738,900 $1,981,200 $5,232,700 3,251,500 164% TOTAL-GOVERNMENTAL FUNDS $63,134,700 $60,736,900 $68,719,400 7,982,500 13% % Change 2013-14 B-6 B2 - 34 REVENUES BY MAJOR CATEGORY AND SOURCE Actual Original Revised 2012-13 Budget Projection Variance ENTERPRISE & AGENCY FUNDS Water Fund Investment & Property Revenues 33,500 169,200 50,000 (119,200)-70% Service Charges 18,088,300 17,947,100 17,947,100 Other Revenues 61,100 30,000 30,000 Total Water Fund 18,182,900 18,146,300 18,027,100 (119,200)-1% Sewer Fund Investment & Property Revenues 3,300 113,600 113,600 Service Charges 16,113,500 15,632,900 15,567,900 (65,000)0% Other Revenues 98,400 6,700 6,700 Total Sewer Fund 16,215,200 15,753,200 15,688,200 (65,000)0% Parking Fund Fines & Forfeitures 631,100 701,300 701,300 Investment & Property Revenues 33,600 119,700 35,000 (84,700)-71% Service Charges 4,061,300 3,281,700 3,281,700 Other Revenues Total Parking Fund 4,726,000 4,102,700 4,018,000 (84,700)-2% Transit Fund Investment & Property Revenues 3,000 5,800 5,800 Subventions & Grants 3,404,900 4,118,800 4,114,300 (4,500)0% Service Charges 654,900 650,800 650,700 (100)0% Other Revenues 100 5,000 20,400 15,400 308% Total Transit Fund 4,062,900 4,780,400 4,791,200 10,800 0% Whale Rock Commission Investment & Property Revenues 600 9,300 9,300 Service Charges 930,000 921,700 921,700 Other Revenues 700 1,400 1,400 Total Whale Rock Commission Fund 931,300 932,400 932,400 Total Enterprise & Agency Funds $44,118,300 $43,715,000 $43,456,900 ($258,100)-1% TOTAL - ALL FUNDS $107,253,000 $104,451,900 $112,176,300 $7,724,400 7% % Change 2013-14 B-7 B2 - 35 *Offset by related expense Budget Amendment Pending Name:Description:Amount Approval Total GENERAL FUND Forecast Update Adjust forecast for Property Taxes/VLF In-lieu $79,840 Forecast Update Adjust forecast for Sales Tax/Public Safety Tax $861,750 Forecast Update Adjust forecast for Transient Occupancy Tax $240,930 Forecast Update Adjust forecast for Franchise Fees $2,904 Forecast Update Adjust forecast for Business Tax Penalties $425 Forecast Update Adjust forecast for UUT $600,017 Forecast Update Adjust forecast for Real Property Transfer Tax $20,000 Forecast Update Adjust forecast for Fines/Forefeitures ($11,200) Forecast Update Adjust forecast for Interest Earnings ($145,200) Forecast Update Adjust forecast for subventions/grants ($584) Forecast Update adjust forecast for public safety fees ($16,516) Forecast Update adjust forecast for development fees $903,622 Forecast Update adjust forecast for leisure/cultural fees $58,400 Forecast Update adjust forecast for other revenues ($139,400) LHMP (FEMA pass thru)Consulting fees to update LHMP*$47,549 Other Contributions Sale of scrap metal*$470 Damage to City Property Cost recovery - Damon Garcia Sports Field*$1,197 Parks & Recreation Deposit Staff time for noise complaint on Permit 13366*$150 Planning & Zoning Fees Development Services fees carried over from 12-13*$50,000 Development Review Development Services fees carried over from 12-13*$25,000 Building Permits Development Services fees carried over from 12-13*$200,000 Fire Plan Check & Inspection Development Services fees carried over from 12-13*$25,000 Other Federal Grants 2013 JAG funds for department facilitator*$10,150 Other Contributions Sale of scrap metal*$528 Mutual Aid Reimbursement Reimburse mutual aid expenses in Fire 7/1/13-12/10/13*$225,649 Fire Prevention Grant (FEMA)FEMA Grant for Fire/Fall Prevention for SLO Seniors*$101,536 Mutual Aid Reimbursement Reimburse mutual aid expense in Finance*$2,542 OES Engine Reimbursement Reimbursement for OES Engine parts*$755 LUCE Grant Records LUCE Grant remaining from prior year*$432,623 Other Contributions Library Mural plaque donation*$419 Other Contributions SLO Triathlon reusable bags donation*$2,000 Other Contributions Junior Giants transportation donation*$1,041 Other FD Revenues to 85100 for salary & benefits for Hazmat Mgr*$5,903 Total, General Fund $1,126,609 $2,460,891 $3,587,500 GAS TAX FUND Forecast Update Adjust forecast for Gas Tax Receipts ($75,000) Total, Gas Tax Fund ($75,000)($75,000) COMMUNITY DEVELOPMENT BLOCK GRANT FUND Prior Year Grant Funds Carried Over $741,953 2012 CDBG Grant Remove overstated revenue ($1,700) Federal Grants Adjust grant revenue budget to actual amount*$4,147 Total, CDBG Fund $741,953 $2,447 $744,400 SUMMARY OF REVENUE ADJUSTMENTS - MID YEAR 2013-14 B-8 B2 - 36 *Offset by related expense Budget Amendment Pending Name:Description:Amount Approval Total SUMMARY OF REVENUE ADJUSTMENTS - MID YEAR 2013-14 LAW ENFORCEMENT GRANT FUND Other State Grants State-Public Safety Liaison Officer Program*$120,186 OTS Avoid Grant Recognize grant revenue*$205,214 Total, Law Enforcement Grant Fund $325,400 $325,400 PUBLIC ART FUND Other P & R Revenue Donation received for Library Mural*$500 Forecast Update adjust Art in-lieu revenue estimate $100,000 Total, Public Art Fund $500 $100,000 $100,500 TOURISM BUSINESS IMPROVEMENT DISTRICT FUND Forecast Update TBID Assessment forecast change tied to TOT $48,100 Total, TBID Fund $48,100 $48,100 GENERAL PURPOSE CIP FUND Other State Grants Replaced by grant amounts below ($1,221,300) HBRR Marsh St Bridge Repair $714,491 RIP/STP Bob Jones Trail $600,000 SHA RRST Phase 4A $158,464 SHA General Traffic Signal Imrove $82,052 SHA Hwy 227 Sign Upgrades $359,250 HRP Santa Rosa Park Play $139,750 USHA Bob Jones Trail Connection $234,665 BTA RRST Hwy 101 Br $495,000 PDT Bob Jones Trail $8,793 Zone 9 Silt Removal $90,000 Zone 9 Mid-Hig By-Pass Ch $213,035 Total, General CIP Fund $1,874,200 $1,874,200 TRANSPORTATION IMPACT FEE FUND Forecast Update Forecast increase transportation Impact Fee $188,000 Total, Trasnporation Impact Fee Fund $188,000 $188,000 FLEET REPLACEMENT FUND Forecast Update Adjust loan proceeds revenue to actual ($24,549) Total, Fleet Replacement Fund ($24,549)($24,549) PARKLAND DEVELOPMENT FUND Forecast Update adjust Dwelling Unit In-lieu fee estimate $1,200 Forecast Update adjust Park in-lieu fee estimate $85,000 Total, Parkland Development Fund $86,200 $86,200 B-9 B2 - 37 *Offset by related expense Budget Amendment Pending Name:Description:Amount Approval Total SUMMARY OF REVENUE ADJUSTMENTS - MID YEAR 2013-14 OPEN SPACE FUND Other State Grants Carryover state grant for Calle Joaquin AG Reserve $125,000 Forecast Update adjust Open Space in-lieu fee $25,000 Total, Open Space Fund $125,000 $25,000 $150,000 AIRPORT AREA IMPACT FEE FUND Forecast Update adjust Airport Area Impact Fee estimate $300,000 Total, Airport Area Impact Fee Fund $300,000 $300,000 LOS OSOS VALLEY ROAD IMPACT FEE FUND Forecast Update adjust LOVR Area Impact Fee $3,100 Total, LOVR Impact Fee Fund $3,100 $3,100 AFFORDABLE HOUSING FUND Forecast Update adjust Inclusionary Housing Fee estimate $650,000 Total, Affordable Housing Fund $650,000 $650,000 WATER FUND Forecast Update Lower Interest earnings estimate for the year ($119,200) Total, Water Fund ($119,200)($119,200) SEWER FUND Forecast Update Estimated change in user fees applied to school sites ($65,000) Total, Sewer Fund ($65,000)($65,000) TRANSIT FUND Forecast Update Reimburse for damaged bus shelter @ Grand/Abbott $10,800 Total, Transit Fund $10,800 $10,800 PARKING FUND Forecast Update Adjust Interest Income estimate ($84,700) Total, Parking Fund ($84,700)($84,700) B-10 B2 - 38 *Offset by revenue **Offset by transfer-in ***Partially offset by revenue Encumbrance City Council/ CM Approved Budget CIP Pending Combined Name/Project #Description:Rollover Amendments Carryforward Approval Total: GENERAL FUND-PUBLIC SAFETY Jenson Audiovisual Inc Audio/Visual equipment 269 Verdin Marketing Community Outreach 298 GBS Commerce, Inc 3,996 Team building facilitator 10,150 Reallocate to Transportation (2,000) Totals for Police 4,563 8,150 12,713 Supplemental Request Quickest Route 20,600 Dewberry Consultants, Inc Consulting services for LHMP*45,894 Medstop Urgent Care Medical exams 1,190 LHMP 107 LHMP 1,548 Fire Prevention Grant (FEMA)*101,536 Reallocate to Fleet Dept (5,000) OES Engine Reimbursement 755 Mutual Aid Reimbursement*225,649 Cost of Hazmat Manager*5,903 Totals for Fire 47,084 98,946 252,152 398,182 Unemployment Insurance Adjustment (43,597) Retiree Health Insurance Allocation 87,220 Totals for Public Safety 51,647 107,096 295,775 454,518 GENERAL FUND-TRANSPORTATION Browning Associates Public Works 5-yr Strategic Plan 1,484 Brandan's Steam Cleaning Downtown sidewalk cleaning 3,850 Michael Di Milo Education program 1,862 Verdin Marketing Marketing services 3,388 SP Maintenance Services Downtown monthly sweeping 34,993 ATSI Conflict Monitor Tester 894 Hoadley Design Bike racks 3,000 SLO County Bicycle Coalition Bicycling promotion 5,124 Peak Racks Parking rack plaques 2,997 Poor Richard Printing Printing services 1,236 SLO Regional Rideshare Advertising projects 4,000 Atkins North America Prado Road roundabout 1,500 Central Coast Transp Cons Land Use & Circ Updates 104,000 Hamner, Jewell & Associates Right of Way services 1,142 Dokken Engineering Design study bike bridge 8,420 SLO County Bicycle Coalition Bicycle Transportation Plan 10,300 Purchase of steel*636 Police parking lot patchwork 2,000 Purchase of steel*528 Purchase of steel*170 Unemployment Insurance Adjustment (4,417) Retiree Health Insurance Allocation 11,100 Totals for Transportation 188,190 3,334 6,683 198,207 SUMMARY OF EXPENDITURE BUDGET AMENDMENTS MID-YEAR 2013-14 11 B-11 B2 - 39 *Offset by revenue **Offset by transfer-in ***Partially offset by revenue Encumbrance City Council/ CM Approved Budget CIP Pending Combined Name/Project #Description:Rollover Amendments Carryforward Approval Total: SUMMARY OF EXPENDITURE BUDGET AMENDMENTS MID-YEAR 2013-14 GENERAL FUND-LEISURE, CULTURAL AND SOCIAL SERVICES Browning Associates Public Works 5-yr Strategic Plan 1,113 MacDonald Co Steel door for restroom 967 Tennis Landscape Landscape maintenance 856 K D Janni Landscape Landscape maintenance 333 Bunyon Brothers Tree Service Urban Forest Services 13,155 Gaia Graphics & Assoc Use of carryover funds 1,565 Eradication of bedbugs 4,000 Fencing 1,197 Staff time for noise complaint*150 Restroom repair**9,000 Transfer for use of SESLOC parking lot 32,000 Library Mural Plaque*419 SLO Traithlon reusable bags*2,000 Junior Giants transportation*1,041 Unemployment Insurance Adjustment (8,958) Retiree Health Insurance Allocation 20,900 Totals for Leisure, Cultural, and Social Services 17,989 49,807 11,942 79,738 GENERAL FUND-COMMUNITY DEVELOPMENT Supplemental Request Development Services 852,500 Browning Associates Public Works 5-yr Strategic Plan 742 Economic Vitality Corp.Economic Dev. Regional Efforts 5,000 Economic & Planning Systems, Inc Infrastructure Financial Analysis 56,930 Environmental Ctr. Of SLO Educational programs 237 Verdin Marketing Events/Promotion Svcs.9,869 Pierre Rademaker Design Style Guide & ID Standard 20,240 Flint Strategies, Inc Parking Ordinance Outreach 12,880 Historic Resources Group Historic Context Stmnt 10,925 Matrix Design Group, Inc.LUCE update***610,788 Johnson Aviation Airport Land Use Plan 79,000 Willdan Engineering Plan check for Mind Body 18,900 CDCE, Inc Mobile data services 19,138 Poor Richard Printing Flyers 6,896 Use of Development fees from PY*300,000 Unemployment Insurance Adjustment (10,114) Retiree Health Insurance Allocation 20,450 Totals for Community Development 851,545 300,000 862,836 2,014,381 12 B-12 B2 - 40 *Offset by revenue **Offset by transfer-in ***Partially offset by revenue Encumbrance City Council/ CM Approved Budget CIP Pending Combined Name/Project #Description:Rollover Amendments Carryforward Approval Total: SUMMARY OF EXPENDITURE BUDGET AMENDMENTS MID-YEAR 2013-14 GENERAL FUND-GENERAL GOVERNMENT Supplemental Request Fire Vehicle Mechanic 81,689 Per Council action Staff fellowship program 26,000 Leibert Cassidy Whitmore Legal Services 59,463 Burke, Williams & Sorense Legal Services 92,535 Law Offices of Jones & Mayer Legal Services 2,179 Jarvis Fay Doporto & Gibson Legal Services 999 KCBX Cable Cast Operations 633 Software Solutions Budget Document Automation 9,600 NBS Government Finance Group User/Regulatory Fee Study 23,710 Muni Services, LLC UUT Software 3,725 Don Maynor UUT Compliance Consulting 1,250 HdL Coren & Cone Contract Services for Sales Tax Report 33,300 Software Solutions Financial statement template 7,100 Maximus, Inc.Mandated Costs Claim Preparation 760 Maximus Consulting Services Mandated Costs Claim Preparation 1,337 Maximus, Inc.Mandated Costs Claim Preparation 2,429 Bartel Assoc., LLC GASB 45 Actuarial Study 2,000 Mahoney & Assoc. Consulting FTA Cost Allocation Plan 4,000 Maximus, Inc.Mandated Costs Claim Preparation 2,397 Sungard Public Sector Software upgrade 520 More Office Solutions Copy machines 10,763 CITIG, Inc.Data recovery plan 5,090 CITIG, Inc.Upgrade VM Ware 7,435 Dell Marketing Dell computer equipment 15,825 Avtec, Inc Radio Dispatch Center devices 32,404 Woolpert, Inc Energov 104,000 Dell Marketing Dell computer equipment 100 Gov Connection, Inc.Laserjet 1,132 Quickstart Network Admin training 4,990 VPN Dynamics Firewall/VPN training 10,782 Verizon Wireless Cellular services 1,200 Sterling Communications Preventative maintenance 7,488 Gov Connection, Inc.Dell computer equipment 43,490 CIO Solutions, LP I.T. consulting 69,300 Gartner, Inc Consulting 20,750 CDW-G Adobe Licenses 19,614 Software Solutions Prepaid Computer Classes 10,000 Liebert Cassidy Whitmore Labor relations consulting 12,613 Browning Associates Public Works 5-yr Strategic Plan 1,113 Servicemaster Janitorial Contract Services 60 Executive Janitorial Janitorial Contract Services 752 San Luis Powerhouse Inc Emergency generator maintenance 9,311 Jim Ritterbush Repair Services Emergency vehicle repair 24,000 Catalyst Consulting Measure Y Committee Facilitator 10,000 Support eradication of bedbugs (4,000) CIO Solutions, LP Consulting-data switching equip. maint.11,769 Offset by reduction in Fire Fire Vehicle Mechanic 5,000 Reverse budget for interest expense (46,800) Mutual Aid Reimbursement*2,542 Unemployment Insurance Adjustment (16,273) Retiree Health Insurance Allocation 33,550 Totals for General Government 686,149 22,769 54,708 763,626 GENERAL FUND TOTAL 1,795,520 483,006 1,231,944 3,510,470 Notes: General Fund encumbrances are shown as a single line item in the Change In Financial Position worksheet. $74,600 of the supplemental funding request are also shown as a separate line on the Changes In Financial Position. 13 B-13 B2 - 41 *Offset by revenue **Offset by transfer-in ***Partially offset by revenue Encumbrance City Council/ CM Approved Budget CIP Pending Combined Name/Project #Description:Rollover Amendments Carryforward Approval Total: SUMMARY OF EXPENDITURE BUDGET AMENDMENTS MID-YEAR 2013-14 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND 91034950 313 South Street 456,953 91057951 Women's Business Center 10,000 91074953 3212 Rockview 749 91143952 Homeless Campus 75,000 91170950 542 Hathway Acqu/Reha 95,000 90902952 CDBG Curb Ramp 2011 Design 30,000 90902953 CDBG Curb Ramp 2011 Construction 75,000 91074953 Close 3212 Rockview project (749) 91034950 Remove overstated expense for 313 South St (1,668) Update grant allocation 3,335 Unemployment Insurance Adjustment (223) Retiree Health Ins Cost Allocation 600 Totals, CDBG Fund 1,667 741,953 377 743,997 LAW ENFORCEMENT GRANT FUND Public Safety Liaison Officer Grant*120,186 OTS DUI Avoid Grant*205,204 90885956 Software License/AFR Project 1,115 99899999 Complete Projects 607 Unemployment Insurance Adjustment (422) Totals, Law Enforcement Grant Fund 325,390 1,722 (422)326,690 PUBLIC ART FUND 91128965 Library Mural*523 91286965 Public Art Master Plan 40,000 90525965 Public Art Maintenance 10,000 91287965 Kyle Roofing Mural 5,000 99899999 Completed Projects 38,910 90455965 Fountain at March/Higuera 238 91017965 Meadow Park Community Garden 6,562 91018965 9/11 Memorial 68,550 91128965 Library Mural Project 11,846 Totals, Public Art Fund 523 181,106 181,629 TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) FUND Rosetta Marketing Group Marketing services 17,354 Unemployment Insurance Adjustment (149) Retiree Health Ins Cost Allocation 900 Totals, TBID Fund 17,354 751 18,105 GENERAL PURPOSE CIP FUND 91193953 SESLOC Parking Lot Deconstruction (32,000) 90875956 Hwy 227 Signal Conversion 238,700 91206952 Prado Bridge Deck Overlay (17,700) 91169950/57 Bob Jones Octagon Barn (125,000) 91249951 Mission Plaza Master Plan (50,000) 91098953 Bob Jones Trail Connection 234,665 99899999 Completed Projects (9,000) 99899999 Completed Projects 12,940 90766952 City Gateways 17,212 90495953 City to Sea Greenway 26,983 91006963 Fox Pro Replace 65,147 91022963 Laserfiche 3,606 91104952 City Website Upgrade 36,400 91106956 Wireless Net Infr Replace 4,202 91167963 Comm Ctr Blade Wrn 13,841 14 B-14 B2 - 42 *Offset by revenue **Offset by transfer-in ***Partially offset by revenue Encumbrance City Council/ CM Approved Budget CIP Pending Combined Name/Project #Description:Rollover Amendments Carryforward Approval Total: SUMMARY OF EXPENDITURE BUDGET AMENDMENTS MID-YEAR 2013-14 90222953 Radio System Upgrade 208 90222956 Radio System Upgrade 15,338 91194956 GPS System Replacement 19,600 90658953 Loma Adobe 23,500 91193953 Damon Garcia Sports Field 32,824 99110957 Laguna Lake Dredging 28,795 91151952 Pool Boiler Replacement 7,103 91151953 Pool Boiler Replacement 184,618 91107953 City Hall Entry Steps 7,499 90346951 Street R&R Main Acct 60,000 90346954 Street R&R Main Acct 101 90480950 Marsh St Bridge Repair 19,364 90480957 Marsh St Bridge Repair 31,542 90646952 Toro St Ck Bank Stabi 450 90646957 Toro St Ck Bank Stabi 11,704 90742952 Master Cmp Replace 23,859 90742953 Master Cmp Replace 35,970 90849953 Sidewalk Repair 48,737 90943956 Sign Maintenance 184,636 90943953 Street Sign Maintenance 810 90979952 Downtown Beautification 10 90979953 Downtown Beautification 4,394 91037953 Rplmnt Var Loc 14 91043953 Chorro St R&R 4,881 91079963 Util Asst Mgmt System 76,909 91100953 Toro St Bank Stabilization 30,000 91165952 Broad St Bank Reinforce 5,070 91165957 Broad St Bank Reinforce 13,248 99501952 Neighborhood Traffic 3,558 90013951 Flood Plan Phase II 600 90346953 Master Street R&R 412,587 90480952 Marsh St Bridge Repair 22,412 90558953 Traffic Safety Report 25,645 91079956 Util Asset Mgmt Sys 40,000 99501953 Neighborhood Traffic 18,549 99868953 Sidewalk Access Improve 9,121 90740952 Directional Sign Program 308 90740953 Directional Sign Program 93,940 90884953 Traffic Oper Rept Implement 9,706 91098952 Bob Jones Trail Connection 60,712 91098953 Bob Jones Trail Connection 8,000 90398953 Traffic Safety Report 360 90558953 Traffic Safety Report 14,798 15 B-15 B2 - 43 *Offset by revenue **Offset by transfer-in ***Partially offset by revenue Encumbrance City Council/ CM Approved Budget CIP Pending Combined Name/Project #Description:Rollover Amendments Carryforward Approval Total: SUMMARY OF EXPENDITURE BUDGET AMENDMENTS MID-YEAR 2013-14 90752951 Skate Park Improve 9 90851952 Playground Equip Replacement-Meadow 339 90851954 Playground Equip Replacement 3,598 90883965 Bridge Enhance Art 47,200 91028952 Johnson Park Play Equipment 10,361 91029952 Santa Rosa Park Play Equipment 9,178 91030952 Emerson Park Playground 5,066 91030953 Emerson Park Playground 21,304 91030956 Emerson Park Playground 1,309 91101963 PR Admin Software Replace 1,296 91103952 Playground Equip Replacement 10,806 91103953 Playground Equip Replacement 338,416 91103954 Playground Equip Replacement 90,000 91166951 Sinsheimer Stadium Bl 34,566 90455965 Fountain at Marsh/Higuera 62,500 90650953 Sinsheimer Equipment Replacement 90,503 91096956 CAD Server Replacement 98,142 90480950 Marsh Street Bridge Repair 149,463 90480952 Marsh Street Bridge Repair 172,989 90480957 Marsh Street Bridge Repair 243,458 90649952 Mid-Hig By-Pass Channe 23,035 90741953 RRST Hwy 101 Br 495,000 90821953 RRST Phase 4A 158,464 90872953 General Traffic Signal Improve 82,052 90875952 Hwy 227 Sign Upgrades 550 90875953 Hwy 227 Sign Upgrades 120,000 91169951 Bob Jones Octagon Barn 8,793 91029953 Santa Rosa Park Play 139,750 Totals, General CIP Fund 239,665 4,189,958 4,429,623 TRANSPORTATION IMPACT FEE FUND 90073953 Mid-Higuera Improve Project 93,718 90741952 RRST Hwy 101 Br 10,909 90821952 RRST Phase 4A 848 90821953 RRST Phase 4A 2,678 90949951 Traffic Model Update 141,440 90950951 Safety Trail Lighting 5,000 90950952 Safety Trail Lighting 3,125 90950953 Safety Trail Lighting 60,000 90950954 Safety Trail Lighting 10,000 91110953 Satefy Trail Hath/Taft 247,594 91111950 Railroad Safety Trail Taft/Pepper 80,000 91111952 Railroad Safety Trail Taft/Pepper 200,000 99821950 Los Osos Valley Rd Interchange 1,093,800 90398953 Traffic Safety Report 1,563 90572953 Bicycle Facility Improve 72,647 90653951 Traffic Volume Counts 11,282 99615953 Bicycle Projects 37,470 99899999 Completed Projects 116 Totals, T.I.F. Fund 2,072,190 2,072,190 16 B-16 B2 - 44 *Offset by revenue **Offset by transfer-in ***Partially offset by revenue Encumbrance City Council/ CM Approved Budget CIP Pending Combined Name/Project #Description:Rollover Amendments Carryforward Approval Total: SUMMARY OF EXPENDITURE BUDGET AMENDMENTS MID-YEAR 2013-14 FLEET REPLACEMENT FUND Woolpert, Inc Maint & Asset Mgmt System 11,805 Marathon Industries, Inc Purch/Fabrication D/Truck 18,123 Wondries Fleet Group Purchase Ford truck 68,948 The Bancorp Bank Patrol Sedan lease 20,334 National Auto Fleet Group 2 Ford Interceptor sedans 12,104 10-8 Retrofit Inc Install of equipment for PD Vehicle 9,887 10-8 Retrofit Inc Code 3 Emergency Resp equipment 12,172 National Auto Fleet Group Utility vehicle 33,202 National Auto Fleet Group Purchase Chevy Suburban 45,957 Emergency Vehicle Group I Purchase EVG Fire vehicle 48,465 91172956 Fire Dept Command vehicle 2,878 91171956 Police Marked Patrol sedan 5,279 91190956 Police Marked Utility vehicle 4,526 91079963 Utility Asset Mgmt System 30,319 99899999 Completed Projects 16,296 90059956 Fire Engine (adjust actual cost)(24,549) Totals, Fleet Replacement Fund 280,997 59,298 (24,549)315,746 INFORMATION TECHNOLOGY REPLACEMENT FUND Council Chamber tech upgrade**27,947 Totals, InfoTech Replacement Fund 27,947 27,947 MAJOR FACILITY REPLACEMENT FUND HVAC Unit Replacement design funds 12,300 Totals, Major Facility Repl Fund 12,300 12,300 INSURANCE BENEFIT Remove budget for CJPIA deposit payment (644,100) Totals, Insurance ISF Fund (644,100)(644,100) PARKLAND DEVELOPMENT FUND RRM Design Group Santa Rosa Skate Park 22,755 90752952 Skate Park improvement 3,051 90752953 Skate Park improvement 970,029 99031950 Open Space-Parkland A 3,360 99899999 Complete Projects 715 Totals, Parkland Dev Fund 22,755 977,155 999,910 OPEN SPACE FUND 90768955 Creek mitigation 15,000 91112950 Froom Ranch improvement 5,000 91112953 Froom Ranch improvement 63,434 91112957 Froom Ranch imrovement 5,000 91195953 Calle Joaquin AG Resr 125,000 Totals, Open Space Fund 213,434 213,434 AIRPORT AREA IMPACT FEE FUND 90917951 Aiport Area Specific Plan Update 9 Totals, Airport Area Impact Fee Fund 9 9 17 B-17 B2 - 45 *Offset by revenue **Offset by transfer-in ***Partially offset by revenue Encumbrance City Council/ CM Approved Budget CIP Pending Combined Name/Project #Description:Rollover Amendments Carryforward Approval Total: SUMMARY OF EXPENDITURE BUDGET AMENDMENTS MID-YEAR 2013-14 LOS OSOS VALLEY ROAD IMPACT FEE FUND Dokken Engineering Los Osos Valley Rd Interchange 4,954 99821952 Los Osos Valley Rd/US 101 Interchange 5,025 Totals, LOVR Impact Fee Fund 4,954 5,025 9,979 AFFORDABLE HOUSING FUND 91034950 313 South Street 650,000 Council approved AHF Award 30,000 Totals, Affordable Housing Fund 30,000 650,000 680,000 WATER FUND Cannon Corporation Design services for Scada 122,068 Springbrook Software Inc Billing for software upgrade 21,916 Nex Level Information Tech CMMS Project Integration Assistance 1,004 Woolpert, Inc Maint & Asset Mgmt System 78,167 Accuvant Wireless network upgrade 115 Advantage Technical Services Emergency Repairs & Tech Svc-Rosemon 11,795 Advantage Technical Services Emergency Repairs & Tech Svc-EdnaTank 11,795 Wallace Group Design services for Water PMP 4,388 MNS Engineers, Inc 16" waterline replacement 245,579 Ferguson Enterprises Inc CLA Valve Foothill/Chorro 20,040 Wallace Group Engineering services-Water Master Plan 193,819 Brownstein Hyatt Farber Salinas Dam safety 4,769 CIO Solutions LP Extreme Networks equipment 15,000 Water System Consulting Recycled Water Pump analysis 5,570 Verdin Marketing Marketing/communication services 20,575 General Air Compressors Air System maintenance 1,964 FGL Environmental, Inc Water Lab Analysis & Testing 16,356 General Chemicals Performance Liquid Alum Sulphate 36,138 Sterling Water Technologies Aluminum Sulphate 22,307 JCI Jones Chemical, Inc Sodium Hydroxide 13,400 Olin Corp Sodium Hypochlorite 26,140 Polydyne Inc Liquid Cationic Polymer 38,894 Thatcher Co of California Sodium Silicone Fluoride 11,137 Jenson Audiovisual Inc Monitor for water treatment plant 5,201 BAR fr completed projects Trench repairs 102,000 91079963 Util Asset Mgmt System 26,819 91104952 City website upgrade 1,900 91114956 Water Resuse Automated Improvements 28,966 91147953 Trench Repair 13,896 91148953 Fire Lateral Reimb 105,000 91149953 Raise Valve Covers 39,975 91152953 Tank maintenance 40,610 91178952 Water pump station analysis 3,404 91192952 16" Waterline Replace 33,767 91194956 GPS system replacement 12,600 99653953 WTP major equipment maintenance 43,000 91006963 Fox Pro replacement 6,700 91022963 Laserfiche 465 90490952 Telemetry system upgrade 88,435 99899999 Completed Projects 190,553 Nacimiento charge (adjusted by County)(282,000) Unemployment Insurance Adjustment (6,243) Retiree Health Ins Cost Allocation 17,430 Totals, Water Fund 928,137 102,000 636,090 (270,813)1,395,414 18 B-18 B2 - 46 *Offset by revenue **Offset by transfer-in ***Partially offset by revenue Encumbrance City Council/ CM Approved Budget CIP Pending Combined Name/Project #Description:Rollover Amendments Carryforward Approval Total: SUMMARY OF EXPENDITURE BUDGET AMENDMENTS MID-YEAR 2013-14 PARKING FUND Phoenix Group Information Contract services 17,177 Flint Strategies Inc Consulting services 1,820 Burke, Williams & Sorensen Attorney retention 13,213 Browning & Associates PW 5 yr Strategic Plan 371 Watry Design Inc Palm-Nipomo Parking Structure 28,880 California Pro Painting Marsh St Parking Garage 81,000 Parker & Associates Catalogue Artificats 842 P 19,242 90960956 Upgrade parking structure equipment 113,000 90961953 Parking lot reseal/resurface 44,469 91027956 Parking Enforcement Utility Cart 10-11 36,600 91104952 City website upgrade 1,300 91121956 City Council Parking Meter 1,296 91139953 DT Parking Sign Repl 1,544 91139954 DT Parking Sign Repl 7,871 91173953 Marsh St Paint-Phase2 93,370 91175951 Parking lot resurfacing 20,000 91194956 GPS system replacement 12,600 90435950 Palm-Nipomo Parking Garage-Land Acquisition 3,627 90435952 Palm-Nipomo Parking Garage-Design 1,040,283 90435957 Palm-Nipomo Parking Garage-Environmental Rev 222,200 91006963 Fox Pro replacement 78 91022963 Laserfiche 116 99899999 Completed Projects 77,098 Unemployment Insurance Adjustment (2,702) Retiree Health Ins Cost Allocation 5,850 Totals, Parking Fund 161,703 1,675,452 3,148 1,840,303 SEWER FUND Springbrook Software Inc Billing software upgrade 21,916 Gexpro Software/Equip upgrade 304 NEX Level Information Tech CMMS Project Integration Assistance 1,004 Woolpert, Inc Maint & Asset Mgmt System 78,167 Whitaker Construction Group RR Safety Trail Hathway 77,816 Aecom, Inc Calle Joaquin Laguna Lift 43,776 Raminha Construction Laguna Lift Station 112,788 Flo Systems, Inc Laguna Lift Station 35,145 Filippin Engineering Inc Laguna Lift replacement 445 Water System Consulting Inc W/WTR Infrastructure replacement 295,175 Aecom USA, Inc Calle Joaquin Laguna Lift 235,444 Filippin Engineering Inc Santa Rosa sewerline replacement 65,617 Hamner Jewell & Associate Santa Rosa Siphon Row Ser 19,829 Filippin Engineering Inc Jennifer St RR Crossing 53,235 Filippin Engineering Inc Higuera/Marsh Sewerline 22,921 Don Maruska & Company Inc Facilitate Mun SLO Creek 5,280 Larry Walker Associates NPDES Permit reissuance support 25,791 Larry Walker Associates NPDES Permit reissuance support 22,713 Somach Simmons & Dunn Attorney-Client Fee Contr 48,054 CIO Solutions LP Extreme Networks Equipment 15,000 K D Lanni Landscaping Inc Landscape maintenance 4,290 Hill Brothers Chemical Co Purchase & Del MGOH 97,256 Olin Corp Sodium Hypochlorite 100,314 JCI Jones Chemical, Inc Sodium Bisulfite 50,640 FGL Environmental, Inc Water Quality Lab 72,556 WRRF Energy Efficiency Project 55,000 WRRF Energy Efficiency Project 517,000 91219954 WRRF Upgrade Mgmt Phase 2,225,383 90916953 Sewerline Impr 09-10 682,132 19 B-19 B2 - 47 *Offset by revenue **Offset by transfer-in ***Partially offset by revenue Encumbrance City Council/ CM Approved Budget CIP Pending Combined Name/Project #Description:Rollover Amendments Carryforward Approval Total: SUMMARY OF EXPENDITURE BUDGET AMENDMENTS MID-YEAR 2013-14 90916954 Sewerline Impr 09-10 4,870 91063956 Scada Upgrade Integration 31,849 91079963 Util Asset Mgmt System 19,824 91104952 City website upgrade 1,900 91110953 RR Satefy Trail Hath/Taft 49,074 91116953 Laguna Lift Station replacement 111,548 91117951 WW Infrastructure Replacement Strategy 450 91120953 WRF Major maintenance 456,348 91150952 WRF Energy Efficiency 1,325 91180953 Santa Rosa sewerline replacement 630,100 91185951 Jennifer RR/Hig-Marsh 9,777 91194956 GPS system replacement 12,600 90239953 Master Collection Sys Improvement 186,501 91006963 Fox Pro replace 16,009 91022963 Laserfiche 310 99899999 Completed Projects 200,000 WRRF Energy Efficiency Project 8,947,000 WRRF debt payment correction (477,100) Unemployment Insurance Adjustment (6,861) Retiree Health Ins Cost Allocation 18,330 Totals, Sewer Fund 1,505,477 2,797,383 2,414,616 8,481,369 15,198,845 TRANSIT FUND Browning & Associates PW 5 yr Strategic Plan 371 Ridership Development Con Consultant services 12,579 Deep Blue Integration Inc Swipe Card Access System 30,324 BAR fr 45960 Damaged bus shelter cost recovery 10,779 90919953 Bus stop improvement 725 91090956 Facility Security IMP 3,448 91104952 City website upgrade 3,500 91122956 SLO Transit Pickup 45,500 91194956 GPS System Replacement 12,600 99601956 Bus maintenance facility Ex 1,136 91006963 Fox Pro replace 982 91022963 Laserfiche 78 Unemployment Insurance Adjustment (520) Retiree Health Ins Cost Allocation 1,200 Totals, Transit Fund 43,275 10,779 67,968 680 122,702 WHALE ROCK FUND Converse Consultants MBS Civil Engineering Assessment 7,295 Cannon Corporation Design services for Scada 25,574 91123951 Whale Rock Silt Study 800 90069952 Old Creek Habitat Plan 145,316 90490952 Telemetry system upgrade 26,547 90490953 Telemetry system upgrade 350,000 Unemployment Insurance Adjustment (918) Retiree Health Ins Cost Allocation 2,200 Totals, Whale Rock Fund 32,869 522,663 1,282 556,814 20 B-20 B2 - 48 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Mid-Year City Council/ CM Approved Budget Pending 2012-13 Budget Revision Amendments Approval General Fund Operating Transfers In Gas Tax Fund 1,198,535 1,357,200 1,282,200 (75,000) TDA Fund 38,345 49,100 49,100 Tourism BID Fund 22,376 23,000 23,000 Affordable Housing Fund 17,000 17,000 Sewer Enterprise Fund 14,390 Parking Enterprise Fund 100,700 General Purpose CIP 9,000 9,000 Debt Service Fund 116 Total operating transfers in 1,374,462 1,446,300 1,380,300 9,000 (75,000) Operating Transfers Out Community Development Block Gran (45,000)(53,100) (53,100) General Purpose CIP (3,473,924)(4,885,900)(4,885,900) Open Space Protection Fund (22,500)(200,000) (200,000) Fleet Replacement Fund (500,000)(408,600) (408,600) Debt Service Fund (2,772,632)(2,760,200) (2,760,200) Information Technology Fund (200,000)(565,500) (565,500) Major Facility Replacement Fund (602,700) (602,700) Public Art Fund (18,185)(18,185) Total operating transfers out (7,014,056)(9,476,000)(9,494,185)(18,185) Total Operating Transfers (5,639,594)(8,029,700)(8,113,885)9,000 (93,185) Community Development Block Grant Fund Operating Transfer In Park Hotel Fund 17,900 17,900 General Fund 45,000 53,100 53,100 45,000 71,000 71,000 Gas Tax Fund Operating Transfer Out General Fund (1,198,535)(1,357,200)(1,282,200)75,000 Transportation Development Act Fund Operating Transfer Out General Fund (38,345)(49,100)(49,100) Tourism Business Improvement District Fund Operating Transfer Out General Fund (22,376)(23,000)(23,000) Information Technology Replacement Fund Operating Transfer In General Fund 200,000 565,500 565,500 Public Access Channel Fund 27,947 200,000 565,500 565,500 27,947 2013-14 B-21 B2 - 49 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Mid-Year City Council/ CM Approved Budget Pending 2012-13 Budget Revision Amendments Approval 2013-14 Sewer Enterprise Fund Operating Transfer Out Insurance Benefit Fund (258,300)258,300 General Fund (14,390) (14,390)(258,300)258,300 Parking Enterprise Fund Operating Transfer Out Insurance Benefit Fund (83,500)83,500 General Fund (100,700) (100,700)(83,500)83,500 Water Enterprise Fund Operating Transfer Out Insurance Benefit Fund (253,900)253,900 Transit Enterprise Fund Operating Transfer Out Insurance Benefit Fund (17,600)17,600 Insurance Benefit Fund Operating Transfer In General Fund Water Enterprise Fund 253,900 (253,900) Sewer Enterprise Fund 258,300 (258,300) Parking Enterprise Fund 83,500 (83,500) Transit Enterprise Fund 17,600 (17,600) Whale Rock Commission 30,800 (30,800) 644,100 (644,100) Operating Transfer Out General Fund Whale Rock Commission Operating Transfer Out Insurance Benefit Fund (30,800)30,800 General Purpose CIP Operating Transfer In General Fund 3,473,924 4,885,900 4,885,900 Operating Transfer Out Public Art Fund (19,300)(9,000)(9,000) Total operating transfers 3,454,624 4,885,900 4,876,900 (9,000) Open Space Protection Fund Operating Transfers In General Fund 22,500 200,000 200,000 B-22 B2 - 50 INTERFUND TRANSACTIONS OPERATING TRANSFERS Actual Original Mid-Year City Council/ CM Approved Budget Pending 2012-13 Budget Revision Amendments Approval 2013-14 Fleet Replacement Fund Operating Transfers In General Fund 500,000 408,600 408,600 Debt Service Fund Operating Transfer In General Fund 2,772,632 2,760,200 2,760,200 Operating Transfer Out General Fund (116) Total operating transfers 2,772,516 2,760,200 2,760,200 Major Facility Replacement Fund Operating Transfer In General Fund 602,700 602,700 Park Hotel Fund Operating Transfer Out CDBG Fund (17,900)(17,900) Affordable Housing Fund Operating Transfer Out General Fund (17,000)(17,000) Public Art Fund Operating Transfer In General Fund 18,185 18,185 Capital Outlay Fund 19,300 Total operating transfers in 19,300 18,185 18,185 Public Access Channel Fund (PEG) Operating Transfer Out Information Technology Fund (27,947) NET OPERATING TRANSFERS $0 $0 $0 $0 $0 B-23 B2 - 51 INTERFUND TRANSACTIONS REIMBURSEMENT TRANSFERS Actual Original Mid-Year City Council/ CM Approved Budget 2012-13 Budget Revision Amendments General Fund ($3,732,100)($3,897,500)($3,897,500) Enterprise and Agency Funds Water 1,316,700 1,268,900 1,268,900 Sewer 1,394,100 1,609,600 1,609,600 Parking 508,600 609,300 609,300 Transit 416,900 320,400 320,400 Golf 0 0 0 Whale Rock Commission 95,800 89,300 89,300 Total Enterprise and Agency Funds $3,732,100 $3,897,500 $3,897,500 2013-14 B-24 B2 - 52 The following pages present the changes in financial position for each fund. The variance column is explained below. CHANGES IN FINANCIAL POSITION TRANSIT FUND Actual Adopted Budget Mid-Year Revision 2012-132013-20142013-14 Revenues Investment and Property Revenues 3,1005,800 5,800 From Other Governments TDA Revenues 1,118,0001,977,4001,799,700(177,700)-9% Other Grants 596,700222,700 395,900173,20078% FTA Grants 1,690,1001,918,7001,918,700 Service Charges 654,900650,800 650,700 (100)0% Other Revenues 27,8005,000 20,40015,400308% Total Revenues 4,090,6004,780,4004,791,20010,800 0.2% Expenditures Operating Programs Transportation 2,746,6002,941,4002,965,80924,4091% General Government 416,900320,400 320,400 Total Operating Programs 3,163,5003,261,8003,286,20924,4091% Capital Improvement Plan Projects 903,200954,7001,052,99398,29310% Total Expenditures 4,066,7004,216,5004,339,202122,702 3% Variance Increase/ (Decrease) % change 2013-14 Padilla, Wayne: The variance shows the difference between the Mid- Year Revision value and the Adopted Budget Value. Padilla, Wayne: The % change indicates the rate of change between the Mid-Year Revision value and the Adopted Budget Value. Extremely large variances are not shown when the nature of the change is obvious B2 - 53 CHANGES IN FINANCIAL POSITION ALL FUNDS COMBINED Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Tax Revenues 49,125,900 49,051,300 50,857,300 1,806,000 4% Fines and Forfeitures 790,800 868,600 857,300 (11,300)-1% Investment and Property Revenues 309,000 774,100 425,000 (349,100)-45% Subventions and Grants 8,386,100 7,584,700 11,394,500 3,809,800 50% Service Charges Governmental Funds 8,107,000 7,526,600 10,099,900 2,573,300 34% Enterprise Funds 38,888,400 37,512,500 37,447,400 (65,100)0% Trust and Agency Revenues 931,300 932,400 932,400 Other Revenues 714,500 201,700 162,400 (39,300)-19% Total Revenues 107,253,000 104,451,900 112,176,200 7,724,300 7% Expenditures Operating Programs Public Safety 23,973,400 24,481,500 25,066,853 585,353 2% Public Utilities 19,209,100 20,617,300 21,239,637 622,337 3% Transportation 7,393,300 8,131,000 8,201,154 70,154 1% Leisure, Cultural & Social Services 6,790,300 7,348,100 7,409,848 61,748 1% Community Development 7,777,400 7,734,900 8,648,561 913,661 12% General Government 12,538,900 14,150,000 13,610,717 (539,283)-4% Total Operating Programs 77,682,400 82,462,800 84,176,770 1,713,970 2% Capital Improvement Plan Projects 11,742,600 21,015,900 49,948,144 28,932,244 138% Debt Service 9,305,400 7,877,800 7,400,700 (477,100)-6% Total Expenditures 98,730,400 111,356,500 141,525,614 30,169,114 27% Other Sources (Uses) Adjustment to Working Capial 140,728 Operating Transfers In 8,407,600 11,584,300 11,564,485 (19,815)0% Operating Transfers Out (8,292,500)(11,023,700)(10,975,885)47,815 0% Proceeds from Debt Financings 1,265,900 1,241,351 (24,549)-2% Potential MOA Adjustments Other Sources (Uses)(231,400)(560,600)(560,600) Expenditure Savings 914,700 914,700 Total Other Sources (Uses)24,428 2,180,600 2,184,051 3,451 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 8,547,028 (4,724,000)(27,165,363)(22,441,363)475% Fund Balance/Working Capital, Beginning of Year 64,072,072 45,920,800 75,179,000 29,258,200 64% Fund Balance/Working Capital, End of Year Prior Year Restatement 2,559,900 Reserved for Debt Service 2,017,900 1,908,400 2,043,200 134,800 7% Unreserved 75,721,000 39,288,400 45,970,437 6,682,037 17% Total Fund Balance/Working Capital 75,179,000$ 41,196,800$ 48,013,637$ 6,816,837$ 17% 2013-14 Variance Increase/ (Decrease) % change B-25 B2 - 54 CHANGES IN FINANCIAL POSITION ALL GOVERNMENTAL FUNDS COMBINED Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Tax Revenues 49,125,900 49,051,300 50,857,300 1,806,000 4% Fines and Forfeitures 159,700 167,300 156,000 (11,300)-7% Investment and Property Revenues 235,500 365,800 220,600 (145,200)-40% From Other Governments 4,981,300 3,465,900 7,280,200 3,814,300 110% Service Charges 8,107,000 7,526,600 10,099,900 2,573,300 34% Other Revenues 525,300 160,000 105,300 (54,700)-34% Total Revenues 63,134,700 60,736,900 68,719,300 7,982,400 13% Expenditures Operating Programs Public Safety 23,973,400 24,481,500 25,066,853 585,353 2% Transportation 2,798,200 3,110,700 3,120,717 10,017 0% Leisure, Cultural & Social Services 6,790,300 7,348,100 7,409,848 61,748 1% Community Development 7,777,400 7,734,900 8,648,561 913,661 12% General Government 12,498,200 13,505,900 13,610,697 104,797 1% Total Operating Programs 53,837,500 56,181,100 57,856,676 1,675,576 3% Reimbursed Expenditures (3,774,900)(3,897,400)(3,897,400) Total Operating Expenditures 50,062,600 52,283,700 53,959,276 1,675,576 3% Capital Improvement Plan Projects 6,582,100 9,620,700 19,644,342 10,023,642 104% Debt Service 2,747,200 2,760,200 2,760,200 Total Expenditures 59,391,900 64,664,600 76,363,818 11,699,218 18% Other Sources (Uses) Operating Transfers In 8,407,600 10,940,200 10,920,385 (19,815)0% Operating Transfers Out (8,292,500)(10,940,200)(10,892,385)47,815 0% Proceeds from Debt Financings 1,265,900 1,241,351 (24,549)-2% Potential MOA Adjustments Other Sources (Uses) Expenditure Savings 914,700 914,700 Total Other Sources (Uses)115,100 2,180,600 2,184,051 3,451 0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 3,857,900 (1,747,100)(5,460,467)(3,713,367)213% Fund Balance, Beginning of Year 28,246,700 20,596,400 34,664,500 14,068,100 68% Prior Year Restatement 2,559,900 30,806,600 20,596,400 34,664,500 14,068,100 68% Fund Balance, End of Year Reserved for Debt Service 2,017,900 1,908,400 2,043,200 134,800 7% Unreserved 32,646,600 16,940,900 27,160,833 10,219,933 60% Total Fund Balance 34,664,500$ 18,849,300$ 29,204,033$ 10,354,733$ 55% 2013-14 Variance Increase/ (Decrease) % change B-26 B2 - 55 CHANGES IN FINANCIAL POSITION ALL ENTERPRISE AND AGENCY FUNDS COMBINED Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Fines and Forfeitures 631,100 701,300 701,300 Investment and Property Revenues 73,500 408,300 204,400 (203,900)-50% From Other Governments 3,404,800 4,118,800 4,114,300 (4,500)0% Service Charges 38,888,400 37,512,500 37,447,400 (65,100)0% Other Revenues 189,200 41,700 57,100 15,400 37% Trust and Agency Revenues 931,300 932,400 932,400 Total Revenues 44,118,300 43,715,000 43,456,900 (258,100)-1% Expenditures Operating Programs Public Utilities 19,209,100 20,617,300 21,239,637 622,337 3% Transportation 4,595,100 5,020,300 5,080,437 60,137 1% Leisure, Cultural & Social Services General Government 3,815,600 4,541,500 3,897,420 (644,080)-14% Total Operating Programs 27,619,800 30,179,100 30,217,494 38,394 0% Capital Improvement Plan Projects 5,160,500 11,395,200 30,303,802 18,908,602 166% Debt Service 6,558,200 5,117,600 4,640,500 (477,100)-9% Total Expenditures 39,338,500 46,691,900 65,161,796 18,469,896 40% Other Sources (Uses) Adjustment to Working Capial 140,728 Operating Transfers In 644,100 644,100 Proceeds from Debt Financings Operating Transfers Out (83,500)(83,500) Other Sources (Uses)(231,400)(560,600)(560,600) Potential MOA Adjustments Total Other Sources (Uses)(90,672) Revenues and Other Sources Over (Under) Expenditures and Other Uses 4,689,128 (2,976,900)(21,704,896)(18,727,996)629% Working Capital, Beginning of Year 35,825,372 24,721,600 40,514,500 15,792,900 64% Working Capital, End of Year 40,514,500$ 21,744,700$ 18,809,604$ (2,935,096)$ -13% 2013-14 Variance Increase/ (Decrease) % change B-27 B2 - 56 CHANGES IN FINANCIAL POSITION GENERAL FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Encumbrances:1,768,200 Fund Balance Available for 2013-14 costs 1,768,200 Revenues Tax Revenues 49,125,900 49,051,300 50,857,300 1,806,000 4% Fines and Forfeitures 159,700 167,300 156,000 (11,300)-7% Investment and Property Revenues 230,200 324,200 179,000 (145,200)-45% Subventions and Grants 1,374,400 331,700 1,152,000 820,300 247% Service Charges 6,194,500 5,437,700 6,610,600 1,172,900 22% Other Revenues 494,000 150,000 94,800 (55,200)-37% Total Revenues 57,578,700 55,462,200 59,049,700 3,587,500 6% Total Resources Available in 2013-14 60,817,900 Expenditures Operating Programs Public Safety 23,973,400 24,479,800 24,862,071 382,271 2% Transportation 2,798,200 3,110,700 3,120,717 10,017 0% Leisure, Cultural & Social Services 6,790,300 7,348,100 7,409,848 61,748 1% Community Development 6,297,700 5,928,900 7,037,737 1,108,837 19% General Government 12,498,200 13,505,900 13,610,697 104,797 1% Total Program Expenditures 52,357,800 54,373,400 56,041,070 1,667,670 3% Reimbursed Expenditures (3,774,900)(3,897,400)(3,897,400) Total Expenditures 48,582,900 50,476,000 52,143,670 1,667,670 3% Other Sources (Uses) Operating Transfers In 1,374,500 1,446,300 1,380,300 (66,000)-5% Proceeds from Debt Issuance Operating Transfers Out (7,014,000)(9,476,000)(9,494,185)(18,185)0% Other Financing Uses Cost of Issuance MOA & Other Compensation Adjustments Expenditure Savings 914,700 914,700 Total Other Sources (Uses)(5,639,500)(7,115,000)(7,199,185)(84,185)1% Revenues and Other Sources Over (Under) Expenditures and Other Uses 3,356,300 (2,128,800)1,475,045 3,603,845 -169% Fund Balance, Beginning of Year 13,684,400 12,916,400 16,837,800 3,921,400 30% Prior Year Restatement 1,896,900 Fund Balance, End of Year sub-total 18,937,600$ 10,787,600$ 18,312,845$ 7,525,245$ 70% Fund Balance Components: Encumbrances:(1,768,200)(1,768,200) Debt Service Reserve:(331,600) Restricted Fund Balance total:(2,099,800)(1,768,200) Policy Reserve Level @ 20%:(10,070,220)(10,610,234) Amount Over (Under) Policy Reserve:6,767,580 5,934,411 Supplemental Requests from Excess Reserve (74,600) Fund balance end of year - no debt reserve 5,859,811 2013-14 Variance Increase/ (Decrease) % change B-28 B2 - 57 CHANGES IN FINANCIAL POSITION DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (DBID) FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenues Service Charges Assessments 208,300 205,000 205,000 Other Service Charges Total Service Charges 208,300 205,000 205,000 Other Revenues Total Revenues 208,300 205,000 205,000 Expenditures Operating Programs Community Development 208,500 205,000 205,000 Total Expenditures 208,500 205,000 205,000 Other Sources (Uses) Operating Transfers In Total Other Sources (Uses) Revenues and Other Sources Over (Under) Expenditures and Other Uses (200) Fund Balance, Beginning of Year 1,300 1,300 1,100 (200)-15% Fund Balance, End of Year 1,100$ 1,300$ 1,100$ (200)$ -15% 2013-14 Variance Increase/ (Decrease) % change B-29 B2 - 58 CHANGES IN FINANCIAL POSITION TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID) FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenues 100 1,500 1,500 Service Charges 1,119,200 1,149,900 1,198,000 48,100 4% Total Revenues 1,119,300 1,151,400 1,199,500 48,100 4% Expenditures Operating Programs Community Development 1,029,400 1,128,400 1,146,504 18,104 2% Capital Improvement Plan Projects Total Expenditures 1,029,400 1,128,400 1,146,504 18,104 2% Other Sources (Uses) Operating Transfer In Operating Transfer Out (22,400)(23,000)(23,000) Total Other Sources (Uses)(22,400)(23,000)(23,000) Revenues and Other Sources Over (Under) Expenditures and Other Uses 67,500 29,996 29,996 Fund Balance, Beginning of Year 194,500 100,000 221,900 121,900 122% Prior Year Restatement (40,100) Fund Balance, End of Year 221,900$ 100,000$ 251,896$ 151,896$ 152% 2013-14 Variance Increase/ (Decrease) % change B-30 B2 - 59 CHANGES IN FINANCIAL POSITION GAS TAX FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues From Other Governments - Gasoline Tax 1,198,500 1,357,200 1,282,200 (75,000)-6% Total Revenues 1,198,500 1,357,200 1,282,200 (75,000)-6% Other Sources (Uses) Operating Transfers Out (1,198,500)(1,357,200)(1,282,200)75,000 -6% Total Other Sources (Uses)(1,198,500)(1,357,200)(1,282,200)75,000 -6% Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year Fund Balance, End of Year In March 2010,the Legislature passed ABx8 6 and ABx8 9, which contained the provisions for a swap of Proposition 42 state sales tax on gasoline with allocations from the motor vehicle excise tax (gas tax). 2013-14 Variance Increase/ (Decrease) % change B-31 B2 - 60 CHANGES IN FINANCIAL POSITION TRANSPORTATION DEVELOPMENT ACT (TDA) FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Subventions and Grants 38,300 49,100 49,100 Total Revenues 38,300 49,100 49,100 Other Sources (Uses) Operating Transfers Out (38,300)(49,100)(49,100) Total Other Sources (Uses)(38,300)(49,100)(49,100) Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year Fund Balance, End of Year 2013-14 Variance Increase/ (Decrease) % change B-32 B2 - 61 CHANGES IN FINANCIAL POSITION COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues From Other Governments CDBG Allocation 202,400 506,600 1,251,000 744,400 147% Other Revenues 21,200 Total Revenues 223,600 506,600 1,251,000 744,400 147% Expenditures Operating Programs Community Development 241,800 472,600 259,320 (213,280)-45% General Government Total Operating Programs 241,800 472,600 259,320 (213,280)-45% Capital Improvement Plan Projects 29,300 105,000 1,062,277 957,277 912% Debt Service Total Expenditures 271,100 577,600 1,321,597 743,997 129% Other Sources (Uses) Operating Transfer In 44,900 71,000 71,000 Total Other Sources (uses)44,900 71,000 71,000 Revenues and Other Sources Over (Under) Expenditures and Other Uses (2,600)403 403 Fund Balance, Beginning of Year (2,600)(2,600) Fund Balance, End of Year (2,600)$ (2,197)$ (2,197)$ 2013-14 Variance Increase/ (Decrease) % change B-33 B2 - 62 CHANGES IN FINANCIAL POSITION LAW ENFORCEMENT GRANTS FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenues 100 100 Subventions and Grants 325,400 325,400 Service Charges 2,200 2,000 2,000 Total Revenues 2,200 2,100 327,500 325,400 Expenditures Operating Programs Public Safety 1,700 204,782 203,082 Capital Improvement Plan Projects 123,608 123,608 Total Expenditures 1,700 328,390 326,690 Revenues and Other Sources Over (Under) Expenditures and Other Uses 2,200 400 (890)(1,290) Fund Balance, Beginning of Year 20,500 20,900 22,700 1,800 9% Fund Balance, End of Year 22,700$ 21,300$ 21,810$ 510$ 2% 2013-14 Variance Increase/ (Decrease) % change B-34 B2 - 63 CHANGES IN FINANCIAL POSITION PUBLIC ART (PRIVATE SECTOR CONTRIBUTIONS) FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenues 200 2,100 2,100 Service Charges In-lieu fees 26,700 20,000 120,000 100,000 500% Other Revenues 500 500 Total Revenues 26,900 22,100 122,600 100,500 455% Expenditures Capital Improvement Plan Projects 72,500 181,629 181,629 Total Expenditures 72,500 181,629 181,629 Other Sources (Uses) Operating Transfer In 19,300 18,185 18,185 Operating Transfer Out Total Other Sources (Uses)19,300 18,185 18,185 Revenues and Other Sources Over (Under) Expenditures and Other Uses (26,300)22,100 (40,844)(62,944)-285% Fund Balance, Beginning of Year 373,700 213,100 347,400 134,300 63% Fund Balance, End of Year 347,400$ 235,200$ 306,556$ 71,356$ 30% 2013-14 % change Variance Increase/ (Decrease) B-35 B2 - 64 CHANGES IN FINANCIAL POSITION PARK HOTEL FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenues Subventions and Grants State Grants Total Revenues Other Sources (Uses) Operating Transfer Out (17,900)(17,900) Total Other Sources (Uses)(17,900)(17,900) Revenues and Other Sources Over (Under) Expenditures and Other Uses (17,900)(17,900) Fund Balance, Beginning of Year 17,900 17,900 17,900 Fund Balance, End of Year 17,900$ 2013-14 Variance Increase/ (Decrease) % change B-36 B2 - 65 CHANGES IN FINANCIAL POSITION GENERAL PURPOSE CIP Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Subventions and Grants 1,086,800 1,221,300 3,095,500 1,874,200 153% Service Charges Other Revenues 1,300 Total Revenues 1,088,100 1,221,300 3,095,500 1,874,200 153% Expenditures Capital Improvement Plan Projects 3,948,300 5,145,700 9,575,313 4,429,613 86% Total Expenditures 3,948,300 5,145,700 9,575,313 4,429,613 86% Other Sources (Uses) Operating Transfers In 3,473,900 4,885,900 4,885,900 Operating Transfers Out (19,300)(9,000)(9,000) Other Sources (Uses) Sale of Surplus Property Total Other Sources (Uses)3,454,600 4,885,900 4,876,900 (9,000)0% Revenues and Other Sources Over (Under) Expenditures and Other Uses 594,400 961,500 (1,602,913)(2,564,413)-267% Fund Balance, Beginning of Year 1,744,700 25,800 2,690,900 2,665,100 Prior Year Restatement 351,800 Fund Balance, End of Year 2,690,900$ 987,300$ 1,087,987$ 100,687$ 10% 2013-14 Variance Increase/ (Decrease) % change B-37 B2 - 66 CHANGES IN FINANCIAL POSITION PARKLAND DEVELOPMENT FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenues 300 6,700 6,700 Subventions and Grants Service Charges Park In-Lieu Fees 2,400 85,000 85,000 Dwelling Unit Fees 149,800 1,200 1,200 Other Revenues Total Revenues 152,500 6,700 92,900 86,200 Expenditures Capital Improvement Plan Projects 11,700 999,910 999,910 Total Expenditures 11,700 999,910 999,910 Revenues and Other Sources Over (Under) Expenditures and Other Uses 140,800 6,700 (907,010)(913,710) Fund Balance, Beginning of Year 1,091,600 237,500 1,232,400 994,900 419% Fund Balance, End of Year 1,232,400$ 244,200$ 325,390$ 81,190$ 33% 2013-14 % change Variance Increase/ (Decrease) B-38 B2 - 67 CHANGES IN FINANCIAL POSITION TRANSPORTATION IMPACT FEE FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenue 3,000 10,000 10,000 Subventions and Grants 1,059,700 Impact Fees 221,200 712,000 900,000 188,000 26% Other Revenues Total Revenues 1,283,900 722,000 910,000 188,000 26% Expenditures Capital Improvement Plan Projects 1,752,000 713,000 2,785,190 2,072,190 291% Total Expenditures 1,752,000 713,000 2,785,190 2,072,190 291% Other Sources (Uses) Bond Proceeds Operating Transfer In Total Other Sources (Uses) Revenues and Other Sources Over (Under) Expenditures and Other Uses (468,100)9,000 (1,875,190)(1,884,190) Fund Balance, Beginning of Year 3,511,700 574,400 3,394,900 2,820,500 491% Prior Year Restatement 351,300 Fund Balance, End of Year 3,394,900$ 583,400$ 1,519,710$ 936,310$ 160% 2013-14 Variance Increase/ (Decrease) % change B-39 B2 - 68 CHANGES IN FINANCIAL POSITION OPEN SPACE PROTECTION FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenue 500 500 Subventions and Grants 125,000 125,000 Service Charges 25,000 25,000 Other Revenues Total Revenues 500 150,500 150,000 Expenditures Capital Improvement Plan Projects 11,600 200,000 413,434 213,434 107% Total Expenditures 11,600 200,000 413,434 213,434 107% Other Sources (Uses) Operating Transfer In 22,500 200,000 200,000 Operating Transfer Out Total Other Sources (Uses)22,500 200,000 200,000 Revenues and Other Sources Over (Under) Expenditures and Other Uses 10,900 500 (62,934)(63,434) Fund Balance, Beginning of Year 183,400 121,300 194,300 73,000 60% Fund Balance, End of Year 194,300$ 121,800$ 131,366$ 9,566$ 8% 2013-14 Variance Increase/ (Decrease) % change B-40 B2 - 69 CHANGES IN FINANCIAL POSITION AIRPORT AREA IMPACT FEE FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenue 900 5,000 5,000 Service Charges 300,000 300,000 Total Revenues 900 5,000 305,000 300,000 Expenditures Capital Improvement Plan Projects 317,700 9 9 Total Expenditures 317,700 9 9 Revenues and Other Sources Over (Under) Expenditures and Other Uses (316,800)5,000 304,991 299,991 Fund Balance, Beginning of Year 1,021,600 706,100 704,800 (1,300)0% Fund Balance, End of Year 704,800$ 711,100$ 1,009,791$ 298,691$ 42% 2013-14 Variance Increase/ (Decrease) % change B-41 B2 - 70 CHANGES IN FINANCIAL POSITION AFFORDABLE HOUSING FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenue 700 8,000 8,000 Subventions and Grants Service Charges 182,700 650,000 650,000 Total Revenues 183,400 8,000 658,000 650,000 Expenditures Capital Improvement Plan Projects 30,000 680,000 680,000 Total Expenditures 30,000 680,000 680,000 Transfer Out (17,000)(17,000) Revenues and Other Sources Over (Under) Expenditures and Other Uses 153,400 (9,000)(39,000)(30,000)333% Fund Balance, Beginning of Year 1,768,500 1,138,500 1,921,900 783,400 69% Fund Balance, End of Year 1,921,900$ 1,129,500$ 1,882,900$ 753,400 67% 2013-14 Variance Increase/ (Decrease) % change B-42 B2 - 71 CHANGES IN FINANCIAL POSITION FLEET REPLACEMENT FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenues 600 6,000 6,000 Service Charges Other Revenues Sale of Surplus Property 30,000 10,000 10,000 Total Revenues 30,600 16,000 16,000 Expenditures Capital Improvement Plan Projects 182,600 1,648,400 1,964,146 315,746 19% Total Expenditures 182,600 1,648,400 1,964,146 315,746 19% Other Sources (Uses) Proceeds from Debt Financing 572,900 548,351 (24,549)-4% Operating Transfers In 500,000 408,600 408,600 Total Other Sources (Uses)500,000 981,500 956,951 (24,549)-3% Revenues and Other Sources Over (Under) Expenditures and Other Uses 348,000 (650,900)(991,195)(340,295)52% Fund Balance, Beginning of Year 2,242,200 2,276,600 2,590,200 313,600 14% Fund Balance, End of Year 2,590,200$ 1,625,700$ 1,599,005$ (26,695)$ -2% 2013-14 % change Variance Increase/ (Decrease) B-43 B2 - 72 CHANGES IN FINANCIAL POSITION LOS OSOS VALLEY ROAD SUB-AREA FEE FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenue (200)1,700 1,700 Service Charges 3,100 3,100 Total Revenues (200)1,700 4,800 3,100 182% Expenditures Capital Improvement Plan Projects 226,400 9,979 9,979 Total Expenditures 226,400 9,979 9,979 Revenues and Other Sources Over (Under) Expenditures and Other Uses (226,600)1,700 (5,179)(6,879)-405% Fund Balance, Beginning of Year 372,800 138,200 146,200 8,000 6% Fund Balance, End of Year 146,200$ 139,900$ 141,021$ 1,121$ 1% 2013-14 Variance Increase/ (Decrease) % change B-44 B2 - 73 CHANGES IN FINANCIAL POSITION DEBT SERVICE FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Expenditures Debt Service Cost of debt issuance 11,500 2012/2001 Refunded Revenue Bonds 485,100 385,800 385,800 2004/1994 Refunding Revenue Bonds 293,300 294,900 294,900 2005/1996 Refunding Revenue Bonds 472,200 467,800 467,800 2006 Lease Revenue Bonds 460,000 460,400 460,400 2009 Lease Revenue Bonds 840,300 837,900 837,900 Fire Engine/Truck Lease Purchase 126,900 128,900 128,900 Energy Conservation Lease Purchase 57,900 Capital Lease (Fire Truck Proposed) Capital Lease (I.T. Equip. Proposed)184,500 184,500 Lease Revenue Bond 2014 (LOVR Proposed) Total Expenditures 2,747,200 2,760,200 2,760,200 . Other Sources (Uses) Operating Transfers In 2,772,500 2,760,200 2,760,200 Total Other Sources (Uses)2,772,500 2,760,200 2,760,200 Revenues and Other Sources Over (Under) Expenditures and Other Uses 25,300 Fund Balance, Beginning of Year 2,017,900 1,908,400 2,043,200 134,800 7% Fund Balance, End of Year Reserved for Debt Service 2,017,900 1,908,400 2,043,200 134,800 7% Unreserved Total Fund Balance 2,043,200$ 1,908,400$ 2,043,200$ 134,800$ 7% Variance Increase/ (Decrease) % change 2013-14 B-45 B2 - 74 CHANGES IN FINANCIAL POSITION WATER FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Service Charges Water Sales Water Service Charges 15,333,500 16,131,900 16,131,900 Sales to Other Agencies 885,100 896,400 896,400 Development Impact Fees 1,578,100 662,000 662,000 Connection Charges and Meter Sales 45,500 27,000 27,000 Account Set-up Fee 104,300 101,400 101,400 AB 939 Reimbursement 141,800 128,400 128,400 Total Service Charges 18,088,300 17,947,100 17,947,100 Other Revenues 61,100 30,000 30,000 Subventions and Grants Investment and Property Revenues 33,500 169,200 50,000 (119,200)-70% Total Revenues 18,182,900 18,146,300 18,027,100 (119,200)-1% Expenditures Operating Programs Public Utilities 12,034,800 13,075,100 13,235,497 160,397 1% General Government 1,316,700 1,268,800 1,268,800 Total Operating Programs 13,351,500 14,343,900 14,504,297 160,397 1% Capital Improvement Plan Projects 826,100 3,246,300 4,481,217 1,234,917 38% Debt Service 2,126,600 2,191,400 2,191,400 Total Expenditures 16,304,200 19,781,600 21,176,914 1,395,314 7% Other Sources (Uses) Other Sources (Uses) Proceeds from Debt Financing Projected MOA Adjustments PERS Employer Rate Increas Expenditure Savings Other Sources (Uses)(130,700)(253,900)253,900 Total Other Sources (Uses)(130,700)(253,900)253,900 Revenues and Other Sources Over (Under) Expenditures and Other Uses 1,748,000 (1,889,200)(3,149,814)(1,260,614)67% Working Capital, Beginning of Year 13,099,300 11,276,700 14,847,300 3,570,600 32% Working Capital, End of Year 14,847,300$ 9,387,500$ 11,697,486$ 2,309,986$ 25% Variance Increase/ (Decrease) % change 2013-14 B-46 B2 - 75 CHANGES IN FINANCIAL POSITION SEWER FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Service Charges Customer Sales Sewer Service Charges 14,701,000 14,402,200 14,337,200 (65,000)-0.5% Sales to Cal Poly 876,600 882,400 882,400 Development Impact Fees 346,000 154,400 154,400 Account Set-Up Fees 82,700 105,000 105,000 Industrial User Charges 66,700 66,600 66,600 Connection Charges and Meter Sales 40,500 22,300 22,300 Total Service Charges 16,113,500 15,632,900 15,567,900 (65,000)-0.4% Other Revenues 98,400 6,700 6,700 Investment and Property Revenues 3,300 113,600 113,600 Total Revenues 16,215,200 15,753,200 15,688,200 (65,000)-0.4% Expenditures Operating Programs Public Utilities 6,332,300 6,699,400 7,152,763 453,363 7% General Government 1,394,100 1,609,600 1,609,600 Total Operating Programs 7,726,400 8,309,000 8,762,363 453,363 5% Capital Improvement Plan Projects 3,317,800 6,801,000 22,023,581 15,222,581 224% Debt Service 2,932,900 1,451,600 974,500 (477,100)-33% Total Expenditures 13,977,100 16,561,600 31,760,444 15,198,844 92% Other Sources (Uses) Cashflow adjustment for working capital 109,828 Proceeds from Debt Financing Projected MOA Adjustments Operating Transfers Out Other Sources (Uses)(258,300)258,300 Total Other Sources (Uses)109,828 (258,300)258,300 Revenues and Other Sources Over (Under) Expenditures and Other Uses 2,347,928 (1,066,700)(16,072,244)(15,005,544) Working Capital, Beginning of Year 14,589,472 7,553,700 16,937,400 9,383,700 124% Working Capital, End of Year 16,937,400$ 6,487,000$ 865,156$ (5,621,844)$ -87% Variance Increase/ (Decrease) % change 2013-14 B-47 B2 - 76 CHANGES IN FINANCIAL POSITION PARKING FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Service Charges Parking Meter Collections Lots 519,900 525,100 525,100 Streets 1,278,300 1,311,900 1,311,900 Parking Structure Collections 821,600 822,600 822,600 Long-Term Parking Revenues 386,700 387,600 387,600 Lease Revenues 205,300 216,100 216,100 Parking In-Lieu Fees 822,200 18,300 18,300 Other Service Charges 27,300 100 100 Total Service Charges 4,061,300 3,281,700 3,281,700 Investment and Property Revenues 33,600 119,700 35,000 (84,700)-71% Fines and Forfeitures 631,100 701,300 701,300 Other Revenues Total Revenues 4,726,000 4,102,700 4,018,000 (84,700)-2% Expenditures Operating Programs Transportation 1,848,500 2,078,900 2,114,628 35,728 2% General Government 592,100 609,300 609,320 20 0% Total Operating Programs 2,440,600 2,688,200 2,723,948 35,748 1% Capital Improvement Plan Projects 56,300 393,200 2,197,774 1,804,574 459% Debt Service 1,498,700 1,474,600 1,474,600 Total Expenditures 3,995,600 4,556,000 6,396,322 1,840,322 40% Other Sources (Uses) Cashflow adjustment for working capital (27,800) Savings Staffing Operating Transfer Out (83,500)83,500 Proceeds from Debt Financing Other Sources (Uses)(100,700) Potential MOA Adjustments Total Other Sources (Uses)(128,500)(83,500)83,500 Revenues and Other Sources Over (Under) Expenditures and Other Uses 601,900 (536,800)(2,378,322)(1,841,522)343% Working Capital, Beginning of Year 5,985,100 4,734,600 6,587,000 1,852,400 39% Working Capital, End of Year 6,587,000$ 4,197,800$ 4,208,678$ 10,878$ 0% Variance Increase/ (Decrease) % change 2013-14 B-48 B2 - 77 CHANGES IN FINANCIAL POSITION TRANSIT FUND Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenues 3,100 5,800 5,800 From Other Governments TDA Revenues 1,118,000 1,977,400 1,799,700 (177,700)-9% Other Grants 596,700 222,700 395,900 173,200 78% FTA Grants 1,690,100 1,918,700 1,918,700 Service Charges 625,300 650,800 650,700 (100)0% Other Revenues 29,700 5,000 20,400 15,400 308% Total Revenues 4,062,900 4,780,400 4,791,200 10,800 0% Expenditures Operating Programs Transportation 2,746,600 2,941,400 2,965,809 24,409 1% General Government 416,900 320,400 320,400 Total Operating Programs 3,163,500 3,261,800 3,286,209 24,409 1% Capital Improvement Plan Projects 903,200 954,700 1,052,993 98,293 10% Total Expenditures 4,066,700 4,216,500 4,339,202 122,702 3% Other Sources (Uses) Cashflow adjustment for working capital (700) Potential MOA Adjustments Other Sources (17,600)17,600 Expenditure Savings Total Other Sources (Uses)(700)(17,600)17,600 Revenues and Other Sources Over (Under) Expenditures and Other Uses (4,500)546,300 451,998 (94,302)-17% Working Capital, Beginning of Year 990,600 692,100 986,100 294,000 42% Working Capital, End of Year 986,100$ 1,238,400$ 1,438,098$ 199,698$ 16% Variance Increase/ (Decrease) % change 2013-14 B-49 B2 - 78 CHANGES IN FINANCIAL POSITION WHALE ROCK COMMISSION Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenues 600 9,300 9,300 Service Charges Member Agency Contributions 603,700 587,400 587,400 Water Distribution Charges 324,300 334,300 334,300 Other Service Charges 2,000 Total Service Charges & Interest 930,600 921,700 921,700 Other Revenues 700 1,400 1,400 Total Revenues 931,300 932,400 932,400 Expenditures Operating Programs Public Utilities 842,000 842,800 851,377 8,577 1% General Government 95,800 89,300 89,300 Total Operating Programs 937,800 932,100 940,677 8,577 1% Capital Improvement Plan Projects 57,100 548,237 548,237 Total Expenditures 994,900 932,100 1,488,914 556,814 60% Other Sources (Uses) Transfer out (30,800)30,800 Adjust for working capital 59,400 Total Other Sources (Uses)59,400 (30,800)30,800 Revenues and Other Sources Over (Under) Expenditures and Other Uses (4,200)(30,500)(556,514)(526,014) Working Capital, Beginning of Year 1,160,900 464,500 1,156,700 692,200 149% Working Capital, End of Year 1,156,700$ 434,000$ 600,186$ 166,186$ 38% Variance Increase/ (Decrease) % change 2013-14 B-50 B2 - 79 CHANGES IN FINANCIAL POSITION MAJOR FACILITY REPLACEMENT Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenue Service Charges Total Revenues Expenditures Capital Improvement Plan Projects 394,000 406,300 12,300 3% Total Expenditures 394,000 406,300 12,300 3% Other Sources (Uses) Operating Transfer In 602,700 602,700 Operating Transfer Out Revenues and Other Sources Over (Under) Expenditures and Other Uses 208,700 196,400 (12,300)-6% Fund Balance, Beginning of Year Fund Balance, End of Year -$ 208,700$ 196,400$ (12,300)$ -6% 2013-14 Variance Increase/ (Decrease) % change B-51 B2 - 80 CHANGES IN FINANCIAL POSITION INSURANCE BENEFIT Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenue Service Charges Total Revenues Expenditures Operating Programs General Government 644,100 (644,100) Capital Improvement Plan Projects Total Expenditures 644,100 (644,100) Other Sources (Uses) Operating Transfer In 644,100 (644,100) Operating Transfer Out Total Other Sources (Uses)644,100 (644,100) Revenues and Other Sources Over (Under) Expenditures and Other Uses Fund Balance, Beginning of Year Fund Balance, End of Year 2013-14 % change Variance Increase/ (Decrease) B-52 B2 - 81 CHANGES IN FINANCIAL POSITION INFORMATION TECHNOLOGY REPLACEMENT Actual Adopted Budget Mid-Year Revision 2012-13 2013-2014 2013-14 Revenues Investment and Property Revenue (300) Service Charges Total Revenues (300) Expenditures Capital Improvement Plan Projects 1,414,600 1,442,547 27,947 2% Total Expenditures 1,414,600 1,442,547 27,947 2% Other Sources (Uses) Operating Transfer In 200,000 565,500 593,500 28,000 5% Debt Proceeds 693,000 693,000 Total Sources (Uses)200,000 1,258,500 1,286,500 28,000 2% Revenues and Other Sources Over (Under)199,700 Expenditures and Other Uses 199,700 (156,100)(156,077)23 Fund Balance, Beginning of Year $200,000 199,700$ (300)$ 0% Fund Balance, End of Year 199,700$ 43,900$ 43,623$ (277)$ -1% 2013-14 Variance Increase/ (Decrease) % change B-53 B2 - 82 Section C MID-YEAR SUPPLEMENTAL BUDGET REQUESTS B2 - 83 SUMMARY OF 2013-14 MID-YEAR SUPPLEMENTAL BUDGET REQUESTS Page No.2013-142014-15Total OPERATING PROGRAMS General Fund Fire Vehicle Mechanic - 1x costs 26,000$ -$ 26,000$ Fire Vehicle Mechanic - ongoing costs 55,689$ 157,120$ 212,809$ Quickest Route - 1x costs 20,600 20,600 Development Services - limited term costs*748,400244,000992,400 Development Services - ongoing costs 50,100130,600180,700 Dev. Svcs. Special Projects - limited term*54,000196,000250,000 Total Operating Programs 954,789$ 727,720$ 1,682,509$ *limited term indicates costs span two years only REQUEST SUMMARY BY FUNDING SOURCE General Fund - Ongoing Revenues 880,189$ 531,720$ 1,411,909$ General Fund Excess Reserve 74,600 196,000 954,789$ 727,720$ 1,682,509$ Department Requests C-1 B2 - 84 Fund: Many factors have adversely influenced the City's ability to maintain its fleet. These include a two-year search for a replacement Fire Vehicle Mechanic, insufficient funds to carry out succession training, insufficient budgetary increases for contracts and operating supplies in support of mechanic services, and a misalignment of staff-to- workload expectations. This request attempts to deal with all of those factors in a manner that puts the City on a firm path to ensuring the long-term operational capability of critical vehicles and heavy-duty apparatus. In addition to reinstating the contracts and commodities for vehicle maintenance to appropriate levels, this request implements a staffing strategy that provides for succession planning in difficult to fill positions and puts in place support staff to provide administrative relief for supervisors and line-level employees, both of which have been pulled away from vital job functions to perform routine administrative work. Please describe here the Major City Goal for which you are requesting supplemental funds. Indicate what the original timeline for completion of the goal is, in your response: The Major City Goals supported are Essential Services, Infrastructure Maintenance , and Fiscal Health. The timeline starts with this request and continues beyond the current fiscal year as it include annual training for the Fire Vehicle Mechanic, Fire Vehicle Apprentice, and the Corp Yard based Heavy Equipment Mechanics. The training focuses on core areas of expertise for the Fire Vehicle Mechanic, including aerial ladder maintenance/testing, chassis electrical, and new pumper maintenance/repair. For the Fire Vehicle Apprentice, the training involves attendance and certifications from a two annually occurring 5-day long fire apparatus training workshops hosted by the California Fire Vehicle Mechanics Association. The areas of training covered in these workshops includes fire pump maintenance and repair, aerial ladder maintenance and repair, and electrical diagnostics and repair. The training for the PW Corp Yard mechanics will be professional/technical development in line with the needs of maintaining specialized emergency apparatus due to the absence/inavailability of the Fire Vehicle Mechanic. This includes three PW Corp Yard mechanics attending two classes per mechanic per year. The topics covered in these classes includes fire pumps and accessories, basic electrical systems/electronics, air brakes, and steering/suspension systems. The Stand-by pay is for the Fire Vehicle Mechanic position only and ensures the availability of the mechanic on weekday nights after hours, weekends, and holidays to return to work and repair critical issues involving front line emergency apparatus. The focus of standby pay will be during fire season (generally April through November) and other periods of heavy apparatus use and/or low fleet depth. The designation of standby pay periods will be based upon mutual agreement between the Deputy Fire Chief and Fire Vehicle Mechanic. 2013-14 Operating Budget Supplemental Funding Request Department Name:Fire and Public Works Departments 100 - General Fund Division:Emergency Response (Fire) Please provide the information below to support your supplemental request. Fiscal Officer:Julie Cox (Fire); Ryan Betz (Public Works) Please confirm that all pending budget amendment request forms have been processed before starting this process. Please make sure that the department has made all required adjustments between operating line items in order to ensure that existing appropriations are adequate. If, after making the adjustments described in #1 above, the department finds that it is unable to adequately fund an activity that is related to a critical public safety function or Major City Goal, you may submit this request for supplemental funding. C-2 B2 - 85 Expense Detail: Please provide a BAR as an attachment which outlines the total amounts being requested and the line items that are affected by the requested adjustment. Please describe in the space on the next page, what additional items of cost are required and reflect how you arrived at your cost estimates for the rest of this fiscal year. (please submit all documents to T:\13-15 Financial Plan\13-14 Mid-year review\Operating Budget Review) please do not make changes after submitting w/out telling Finance Please describe here the Major City Goal for which you are requesting supplemental funds. Indicate what the original timeline for completion of the goal is, in your response:The Major City Goals supported are Essential Services, Infrastructure Maintenance , andFiscal Health. The timeline starts with this request and continues beyond the current fiscal year as it include annual training for the Fire Vehicle Mechanic, Fire Vehicle Apprentice, and the Corp Yard based Heavy Equipment Mechanics. The training focuses on core areas of expertise for the Fire Vehicle Mechanic, includingaerial ladder maintenance/testing, chassis electrical, and new pumper maintenance/repair. For the Fire Vehicle Apprentice, the training involves attendance and certifications from a two annually occurring 5-day long fire apparatus trainingworkshops hosted by the California Fire Vehicle Mechanics Association. The areas of training covered in theseworkshops includes fire pump maintenance and repair, aerial ladder maintenance and repair, and electricaldiagnostics and repair. The training for the PW Corp Yard mechanics will be professional/technical development in line with the needs of maintaining specialized emergency apparatus due to the absence/inavailability of the Fire Vehicle Mechanic. This includes three PW Corp Yard mechanics attending two classes per mechanic per year. The topics covered in these classes includes fire pumps and accessories, basic electrical systems/electronics, air brakes, and steering/suspension systems. The Stand-by pay is for the Fire Vehicle Mechanic position only and ensures the availability of the mechanic on weekday nights after hours, weekends, and holidays to return to work and repair critical issues involving front line emergency apparatus. The focus of standby pay will be during fire season (generally April through November) and other periods of heavy apparatus use and/or low fleet depth. The designation of standby pay periods will be based upon mutual agreement between the Deputy Fire Chief and Fire Vehicle Mechanic. For the staffing component for FVM it is 9 pay periods, for the apprentice it is 7 pay period as we will be hiring for the position and the 1/2 time Administrative Assistant it is 9 pay periods. For the FD training it includes two training for the FVM one in February and one in May. For the fire vehicle apprentice it includes one training this FY. For the HEM at PW there is one for each of the three HEM for the remainder of the year. The other operating expenditures for FD is made up of several accounts that have been overspent and specific accounts and amounts are listed on the BAR. Line Item Description Account No.2013-142014-15 Personnel 2/27-6/30/14 Additional funding for FVM salary/benefits/stand-by 100-50340 10,48333,017 Fire Vehicle apprentice salary/benefits100-85410 18,35767,661 Admin Assistant (PW), half time increase salary/benefits 100-50340 14,44936,442 Contract Services Training (FVM and FVA)100-85410-7459 6,7008,600 Training (three PW Mechanics)100-50340-7459 5,70011,400 Other Operating Expenditures Other Operating Expenditures (Fire)100-85410 26,000 0 Total Operating Costs 81,689157,120 Total Requested 81,689157,120 C-3 B2 - 86 Memo To: Wayne Padilla, FIT Director From: Julie Cox, Administrative Analyst Re: Fire and Public Works Midyear budget request There are three components to the Midyear Budget Request: staffing, training and operating expenditures. STAFFING The staffing component of the request includes three positions: 1.Fire Vehicle Mechanic, a regular full-time budgeted position will be transferred to the Fire Department budget. 2.Mechanic Apprentice a new full-time position in the Fire Department budget. 3.Administrative Assistant a new half-time position in the Public Works budget. These positions were developed collaboratively with Human Resources, Public Works, and Fire Department participation. Arrival at this recommendation followed two years of analysis, recruitment, and research, some of which is detailed below. The request for the Fire Vehicle Mechanic position increased the budgeted position by $10,500 for the remainder of FY 13-14 (nine pay periods) and by $33,000 in FY 14-15. The Fire Vehicle Mechanic is currently filled by Fleet Maintenance Supervisor as authorized by the CMR 12/13/13. Since January 2012, the City has attempted to fill the Fire Vehicle Mechanic position without successful resolution. The primary methods staff has explored include: 1.Utilizing contract Fire Vehicle Mechanic staff. There were inadequate local available individuals and resources in the region. Due to the rigorous demand of earning a certificate as a California Fire Mechanic, there are fewer certified fire vehicle mechanics than there are job opportunities. 2.Providing the service through a private contract. After issuing an RFP, the sole proposal submittal was $183,000 annually; approximately 2 ½ times the existing budget. A component of this submittal also included a fixed mark-up of all equipment and supplies over the actual costs. 3.Temporary staff assistance in various areas. Attempts to hire temporary Fleet Supervisors, Fleet Coordinators, Vehicle Buyers and Vehicle Mechanics resulted in no satisfactory applicants. 4.Discuss with Fire Union the prospect of moving the position to the SLOCEA bargaining unit to enhance the relative earnings of this position by aligning it with a bargaining unit that currently receives great health benefit contributions. This alternative was rejected by the Fire Union. 5.Offer the Fire Vehicle Mechanic position at salary range 426. There were no applicants willing to accept the position at that rate. C-4 B2 - 87 6.Offer the Fire Vehicle Mechanic position at salary range 432. There were no applicants willing to accept the position at the increased rate. 7.Offer the Fire Vehicle Mechanic position at salary range 432, with provision for ‘Y’ rated salary; to current Fleet Supervisor. This was declined by Jeremy Schmidt. 8.Hire .5, Temporary Administrative Assistant to assist with Fleet-related administrative duties. This has been implemented. 9.Authorize Fleet Supervisor who is a certified Fire Vehicle Mechanic to act in that role and temporarily reclassify him as non-exempt pursuant to FLSA regulations given he spends more than 50% of his time on Fire Vehicle Mechanic duties, while continuing to cover Fleet Supervisor responsibilities. This has now existed for seven months and is no longer feasible due to workload. The request for the full-time Mechanic Apprentice for the Fire Department addresses the mechanic workload issues, coverage and succession planning of the Fire Vehicle Mechanic as well as the Heavy Vehicle Mechanics at Public Works. The Human Resources Department has researched the proposed salary range for this position from comparable positions in other cities. The proposed 417 range is equivalent to the City’s entry level Maintenance Worker I position. The estimated cost for the new position based on seven pay periods of FY 13-14 is $18,400. The cost for the position for FY 2014-15 is estimated at $67,700. The request for the half-time Administrative Assistant for the Public Works Department would provide administrative support to the Fleet Maintenance Supervisor as well as fleet staff. The Administrative Assistant would process invoices for payment, complete the data entry into Square Rigger Program which tracks the labor/vehicle repair/cost of parts/etc. for each vehicle, respond to phone calls and assist with written reports. Public Works has had a temporary Administrative Assistant in this position for approximately 6 months. Prior to this temporary position, the Fleet Supervisor and Senior Mechanic completed these tasks. It was determined that the Administrative Assistant is a more efficient and economical way to address the administrative needs providing more time for the Fleet Supervisor to complete tasks such as SPCC, Hazardous waste, fueling operations and vehicle procurement and disposal. This then allows the Senior Mechanic to spend more time working on vehicles. The estimated cost for the new half-time Administrative Assistant based on nine pay periods of FY 13-14 is $14,500. The cost for the position for FY 2014-15 is estimated at $36,400. Best practices for fleet organizations generally include an administrative staff person to perform the duties noted above. Absent that resource, Fleet Mechanic staff often detract from their regular duties to perform data entry and administrative functions which are often not the best use of their skills and abilities. Inclusion of this staff person increases the actual ‘floor time’ for the existing Mechanics. Prior to the addition of the temporary administrative staff person, existing Senior Mechanic would often spend 50% of his time on those duties. The addition of a permanent .5 Administrative Assistant increases the overall productivity of the Fleet shop and enhances the quality and reliability of those necessary recordkeeping and date entry tasks. C-5 B2 - 88 TRAINING The request for the increased in the training line item for Public Works is related to the approval of the Skills Based Pay. This increase in funding will provide for one training for each of the three Heavy Vehicle Mechanics in FY 2013-14 and two classes for each in FY 2014-15. This includes the class registration travel and lodging estimated at $1,900 per class. Providing training for the Heavy Vehicle Mechanics is integral to our current operations by providing relief services to the Fire Vehicle Mechanic during times of planned and unplanned leave. This certification-based training is also integral to the success planning for our future Fire Vehicle Mechanic needs. This plan will support current operations and is intended to prevent a reoccurrence of what has been a two-year gap in a sustainable, financially-feasible solution. The succession plan would result in the Fire Vehicle Apprentice becoming a viable candidate for future Heavy Vehicle Mechanic vacancies and Heavy Vehicle Mechanics becoming viable candidates for Fire Vehicle Mechanic. To maintain the certifications and proficiencies of the Fire Vehicle Mechanic, the Fire Department is requesting funding for two classes in FY 2013-14. Two classes for the Fire Vehicle Mechanic and Mechanic Apprentice are requested in FY 2014-15. OPERATING EXPENDITURES The operating supplies for both FD and PW are accounts that have been overspent due to rising costs. While efforts have been made to identify savings in other accounts and transfer the funds to the line items that are overspent, additional funding is needed. At 50% of the current fiscal year, operating expenditures for mechanic-related supplies are close to and over 100% spent in some accounts. In years past, the Fire Vehicle Mechanic has deferred maintenance and repair during the final months of the budget cycle due to inadequate funding. As costs have increased at rates greater than the mechanic-related operating expenditures budget has increased, this system of deferring maintenance from one budget cycle to the next has become unsustainable. The calculated request for additional funding of $26,000 would provide the Fire Vehicle Mechanic with sufficient funding to provide maintenance and repair at a consistent level of service throughout the entire year. As with all other budget accounts, any funding not utilized for its authorized purchase would be realized in year-end savings. CONCLUSION Public Works, Human Resources, and Fire worked closely together to develop this recommendation that corrects the service, supply, and training needs that exist to support mechanic services in both Public Works and Fire. This proposed solution addresses currently underfunded needs in a way that plans for sustainable success over many years. Total funding request for FY 2013-14 is $81,689 and FY 2014-15 is $157,120. C-6 B2 - 89 Fund: Please provide the information below to support your supplemental request. Fiscal Officer:Julie Cox Please confirm that all pending budget amendment request forms have been processed before starting this process. Please make sure that the department has made all required adjustments between operating line items in order to ensure that existing appropriations are adequate. If, after making the adjustments described in #1 above, the department finds that it is unable to adequately fund an activity that is related to a critical public safety function or Major City Goal, you may submit this request for supplemental funding. 2013-14 Operating Budget Supplemental Funding Request Department Name:Fire Department General Fund Division:Emergency Response This technology was not possible until the February 2013 software upgrade in the Emergency Communications Center (ECC). Implementing “quickest route” Automatic Vehicle Locator (AVL) dispatching for fire companies would be one of the most significant enhancements to the reduction in response times since the advent of the 9- 1-1 system. Currently, fire companies are dispatched based on a predefined response area, whereby the City is divided into four districts. Fire companies are dispatched based on their assigned response area, rather than based on their actual location. If, for example, Truck 1 is returning from a medical call in the north section of their assigned district and a heart attack occurs in the south section of Engine 2’s assigned district, Engine 2 is assigned the incident even though Truck 1 may be precious minutes closer. When this is recognized, the solution of reassigning the incident to the closer unit, Truck 1, involves a conversation back and forth over the radio to confirm that Truck 1 is in fact closer, and then Dispatch must manually key a change in the assigned unit before Truck 1 receives the emergency information on their mobile data computer (MDC). In a best case scenario, The project supports the Major City Goal of Neighborhood Wellness as well as the Other Important Initiative of Infrastructure Maintenance. This project was submitted for consideration as a significant operating program change during the development of the current financial plan. At that time, the project timeline was forecasted to start in February 2013 and complete in September 2013, a seven-month work completion cycle. In preparation for Council's consideration at mid-year review, Fire has met with IT and Police Communications staff to once again discuss this program. Additionally, this project was presented to and receiuved support from the Information Technology Steering Committee in December 2013. C-7 B2 - 90 Expense Detail: Please provide a BAR as an attachment which outlines the total amounts being requested and the line items that are affected by the requested adjustment. Please describe in the space on the next page, what additional items of cost are required and reflect how you arrived at your cost estimates for the rest of this fiscal year. (please submit all documents to T:\13-15 Financial Plan\13-14 Mid-year review\Operating Budget Review) please do not make changes after submitting w/out telling Finance The project includes two one-time-only expenses: the initial start-up costs associated with the software and office supplies (to support printing job aids and training materials). The on-going expense is for software maintenance. There are no staffing costs associated with this project. Line Item Description Account No.2013-142014-15 Staffing 0 Contract Services 18600 Spillman Quickest Route software & maintenance 100-85100-722718600 Other Operating Expenditures 2000 Office Supplies 100-85100-74212000 Minor Capital 0 Total Operating Costs 20600 C-8 B2 - 91 PAGE 1 Note: This form is due to the Technical Advisory Committee by the first Wednesday of the month to meet the deadline for the ITSC meeting on the fourth Wednesday of the month. IT Steering Committee Project Proposal Date: December 10, 2013 Requesting Department: Fire Department Head Approval: Garret Olson Prepared By: Garret Olson ☒ New Project ☐ Maintenance/Replacement ☐ Other: Click to edit ☐ Network Infrastructure ☒ Application ☐ Hardware ☐ Other: Click to edit Project Description Describe the project being proposed. If this is an enterprise solution (used by three or more departments), identify the other departments involved. Install Quickest Route software module for public safety computer dispatch (Spillman). Need and Urgency 1.What is driving this request? The implementation of automatic vehicle locator (AVL) functionality in Spillman did not include the Quickest Route module. Quickest Route is the most vital application of AVL technology for Fire. It allows our Fire apparatus geolocation to be considered along with our transportation network in determining the closest emergency response unit to an emergency. Currently, units are dispatched based on a static “first-due response area.” 2.What will happen if this project is not implemented? The Fire Department will not be able to use AVL technology to the advantage of our customers, which results in longer response times and more radio traffic between responding units. The bottom line is that we are taking longer to get so calls where seconds literally count. Patient outcomes and fire control efforts are negatively impacted by longer response times. 3.Who inside or outside your department does this project affect? Dispatchers will need to use a new command (unit recommenda) when assigning apparatus to an emergency. 4.How does this project help achieve City goals? Yes, it plays a significant role in our ability to provide public safety by decreasing response times to significant fires and medical emergencies. In the Fire Service, there are few benchmarks as vital as decreasing response times. IT Strategic Plan 1.Is the project included in the IT Strategic Plan? Many projects already are, but you are still able to submit proposals for projects that are not. Not specifically, this module should have been included with the 2013 AVL implementation. 2.What is the project’s total weighted score? Unknown 3.How does the project implement the IT Strategic Plan? Unknown IT Consultation 1.Did you meet with IT staff before proposing this project to the Committee? Yes 2.Does IT support this project? Yes 3.Does the project fit within existing infrastructure? Yes 4.Does the project meet current City technology standards ? Yes C-9 B2 - 92 PAGE 2 5.Does IT have the resources to maintain the project at an appropriate level? Yes How has the project has been vetted? Discuss IT’s involvement with reviewing and approving all technology components of the project request. Fire staff met with IT and Dispatch to discuss this project. Originally we hoped to include this project under the umbrella of the MCD replacement project, but there isn’t confidence that sufficient funding exists in that project budget. After speaking with the City Manager about the impact of Quickest Route AVL, we are now moving forward with a mid-year budget request for funding support from the City Council. Project Timeline What are the key milestone dates for implementing the project (e.g. RFP approval, user testing, project launch) and when is it expected to be finished? Describe how this project fits into IT’s available resource schedule. Note: Please consult with IT before creating your timeline. To be determined. Fiscal Impact Project Funding How is the project funded? Be sure to include both initial and ongoing costs, any potential IT staffing increases, and their funding sources. Identify any assumptions made about how new or ongoing costs will be funded. Mid-year budget allocation (pending). Cost Summary COST BY TYPE CURRENT PROPOSED CHANGE Contract services (on time only) 0 18630 $ 0.00 Contract services (on-going maintenance and license) Edit 762 $ 0.00 Click to edit Edit Edit $ 0.00 Click to edit Edit Edit $ 0.00 Total $ 0.00 $ 0.00 $ 0.00 FUNDING BY SOURCE CURRENT PROPOSED CHANGE Mid-year budget request (FY13-14) Edit 18630 $ 0.00 On-going Edit 762 $ 0.00 Click to edit Edit Edit $ 0.00 Click to edit Edit Edit $ 0.00 Total $ 0.00 $ 0.00 $ 0.00 Alternatives Discuss alternatives for achieving the project objectives. C-10 B2 - 93 Track, locate, and map units in real time The AVL (Automatic Vehicle Locator) Mapping module allows agency personnel to track the location of units on a map of their jurisdiction. Seamless integration between Spillman’s AVL Mapping and CAD Mapping modules allow field personnel, dispatchers, and supervisors to view calls and units on the agency’s map. From the AVL map screen, personnel can update their status with a single touch as well as access call comments and premises and HazMat records. Key Features Mobile Access to Critical Information Using Spillman’s Mobile AVL Mapping module, personnel in the field can access critical call information and a map from a single screen. Addresses, cross streets, hazards, updated call comments, responding units, weather, and premises and HazMat information can be accessed alongside the map. From the AVL map, you can see the location, status, and contact information of responding units, view the quickest route to call, access building schematics and live camera feeds, and identify locations for staging units and setting perimeter boundaries. Display any point on the AVL map using GoogleMaps™ mapping service, and obtain GPS coordinates by right-clicking on any map location. Large toolbar buttons allow you to easily utilize a touch-screen while driving. Server AVL With server AVL, you can view the location of a unit as soon as the vehicle is started and the transmitter begins sending pulses. This information is transmitted directly to your agency using a combined GPS transmitter and wireless modem. Server AVL works even in vehicles without laptop computers or in a vehicle where the laptop computer is turned off. Client AVL Client AVL uses a GPS antenna connected to a mobile laptop computer to receive real-time location information. The GPS data, along with other data from the laptop, is transmitted to your agency’s dispatch center where you can view the unit’s movements on the CAD map. You can utilize any National Marine Electronics Association (NMEA) 2.0 compliant device to communicate with the module. Unit Tracking The AVL Mapping module allows dispatchers to easily see the real-time locations of all AVL-equipped units on the CAD map. Knowing which units are in the vicinity of an active CAD call enables dispatchers to make more informed decisions and ask nearby officers to assist if necessary. By linking with the Google Earth™ mapping service, users can also replay patrol vehicle routes on a Google Earth map, enabling them to easily review pursuits or evaluate police routes. Advantages View the current location of all units on your jurisdiction’s map, along with contact information and color-coded statuses. Improve response time using Quickest Route. Update your unit’s status directly from the AVL Mapping screen. Maximize situational awareness using a single screen to access critical information. Sheriff CommunicationsPolice C-12 B2 - 94 About Spillman For nearly 30 years, Spillman Technologies has provided public safety professionals with state-of-the-art software solutions backed by unparalleled customer service. Today, Spillman’s integrated public safety software is used by more than 950 police departments, sheriff’s offices, communications centers, fire departments, and correctional facilities nationwide. 4625 West Lake Park Blvd. Salt Lake City, Utah 84120 800.860.8026 info@spillman.com www.spillman.com Spillman’s AVL Mapping, CAD Mapping, and Quickest Route modules are sold separately. The AVL Mapping module requires additional hardware. The Quickest Route module must be used in conjunction with the AVL Mapping module. Mobile AVL Mapping 1. 3. 2. 4. Improved Response Times Use the Quickest Route feature of the AVL Mapping module to determine the ideal route to a call. This feature takes into account your local street network while recognizing barriers such as rivers, canyons, and limited-access highways. Officers can see turn-by- turn directions on the AVL map screen or expand the panel to see a full list of directions to a call. Dispatchers can also use Quickest Route to determine which unit is closest to a call, greatly reducing the time needed to get a unit on scene. Instead of dispatching by proximity only, actual drive time is calculated in order to recommend units that can arrive on scene first. 1.2. 3. 4. Change your status from the AVL mapping screen with a single touch. Display the fastest route to a location using Quickest Route. View other responding units, including their full contact information and color-coded statuses, such as “enroute” or “arrived.” Read the latest updates from dispatchers and other responders in the Call Comments box. C-13 B2 - 95 Community Development, Fire, Public Works & City Attorney Departments Fund: Please provide the information below to support your supplemental request. Fiscal Officer(s):Ted Green (CDD), Ryan Betz (PW), Julie Cox (Fire) Please confirm that all pending budget amendment request forms have been processed before starting this process. Please make sure that the department has made all required adjustments between operating line items in order to ensure that existing appropriations are adequate. If, after making the adjustments described in #1 above, the department finds that it is unable to adequately fund an activity that is related to a critical public safety function or Major City Goal, you may submit this request for supplemental funding. 2013-14 Operating Budget Supplemental Funding Request Department Name: 100 - General Fund Division:Planning, Building, Engineering Please describe here the critical public safety function for which you are requesting supplemental funds. Indicate why this is a critical function in your response. On September 3, 2013, Council approved a Development Services revenue allocation of $300,000 to pay for temporary contract staff assistance and consultant services for Community Development, Public Works, and Fire Departments. While that original amount has helped, the number of building permits and project applications continues to increase substantially, generating further demand for plan check services that have grown beyond staff’s current ability to complete within required time limits. The additional workload cannot be accomplished by existing staff, triggering a request for a supplemental budget appropriation to further pay for the cost of hiring additional consultants, and contract temporary staff. Therefore, Community Development is requesting an additional $883,500 in funds, transferred from 2013-2014 fiscal year Development Review revenues, for continued 2013-2014 fiscal year Development Services expenses. These funds are to be used for Community Development, City Attorney, Public Works and Fire Departments, in order to pay for one time temporary contract staff assistance and consultant services, special project assistance, and other proposed City staff changes. Please describe here the Major City Goal for which you are requesting supplemental funds. Indicate what the original timeline for completion of the goal is, in your response. The Major City Goals supported are Economic Development and Fiscal Health. The timeline begins with the current fiscal year (2013-14), and expands into 2014- 15, though this request deals exclusively with the former year, with a future allocation for the latter not being requested at this time. It is assumed that there will be an eventual permit slowdown in 2015, estimating that approximately $440,000 of resources more than previously projected in the 2014-2015 budget will be required for adequate service levels, as opposed to the previous year’s request. C-14 B2 - 96 Expense Detail: Please provide a BAR as an attachment which outlines the total amounts being requested and the line items that are affected by the requested adjustment. Please describe in the space on the next page, what additional items of cost are required and reflect how you arrived at your cost estimates for the rest of this fiscal year. (please submit all documents to T:\13-15 Financial Plan\13-14 Mid-year review\Operating Budget Review) please do not make changes after submitting w/out telling Finance There are four main areas of expenses: Consultant Costs, Ongoing Staffing Costs, Temporary/Contract Staffing and Special Projects Consultants Costs. Below is the expense detail for each area, for both 2013-14 and 2014-15 fiscal years. In addition, a memo providing additional information has been provided. Line Item Description 2/15/14 to 6/30/14 2014-15 Consultant Costs Planning Consultant Services $100,000$0 Engineering Plan Check Consultant Services $70,000$0 Building Plan Check Consultant Services $378,000$0 Ongoing Staffing Costs Engineering Permit Technician (.75 to 1.0)$8,600$21,500 Building Permit Technician (.75 to 1.0)$8,600$21,500 Fire Inspector (.75 to 1.0)$8,800$21,700 Principal Transportation Planner (Reallocation)$24,100$65,900 Temporary or Contract Staffing Public Information Support Tech $12,500$0 Planning Technician(s)$50,000$0 Building Plan Check $10,000$0 Fire Plan Check Temp Staff $24,700$0 Engineering Plan Check Contract Staff $37,500$0 Building Inspector $35,000$0 Transportation Planner $30,700$113,400 Special Projects Consultant Costs Planning Special Projects Manager $27,000$126,000 Development Services Legal Support $27,000$70,000 Total Operating Costs $852,500$440,000 C-15 B2 - 97 MEMORANDUM Date: January 9, 2014 TO: Wayne Padilla, Finance Director FROM: Derek Johnson, Community Development Director Daryl Grigsby, Public Works Director Garret Olson, Fire Chief CC: Katie Lichtig, City Manager Michael Codron, Assistant City Manager SUBJECT: UPDATE OF 2013-14 DEVELOPMENT REVENUES ALLOCATION IN PREPARATION OF THE 2013-14 MID-YEAR BUDGET REVIEW RECOMMENDATION 1.Receive a report on the $300,000 in funding authorized by City Council on September 3, 2013 (Table 1). 2.Receive a summary report on permit activity in the 2013-14 Fiscal Year, (Table 2 & Attachment B). 3.Receive a report on 2013-14 Development Review revenues (Table 3). 4.Transferring from 2013-14 fiscal year Development Review revenues, appropriate an additional $828,400 for continued 2013-14 fiscal year Development Services expenses. These funds are to be used for Community Development, City Attorney, Public Works and Fire Departments, in order to pay for one time temporary contract staff assistance and consultant services, special project assistance, and the following proposed City staff changes: a.Increasing one Engineering Permit Technician from .75 to a 1.0 Position, with additional ongoing expenses of $8,600 in 2013-14 and $21,500 in 2014- 15, from anticipated revenue increases and estimated sustained levels of permit activity. b.Increasing one Building Permit Technician from .75 to a 1.0 Position, with additional ongoing expenses of $8,600 in 2013-14 and $21,500 in the 2014- 15, from anticipated revenue increases and estimated sustained levels of permit activity. c.Increasing one Fire Inspector from .75 to a 1.0 Position, with additional ongoing expenses of $8,800 in 2013-14 and $21,700 in 2014-15, from anticipated revenue increases and estimated sustained levels of permit activity. 5.Prepare the 2014-15 budget supplement to appropriate an additional $374,100 from an undesignated Fund Balance, to pay for one time contract assistance for special projects and programs, and continued Development Services. 6.Restore funding for the City’s Principal Transportation Planner position to the pre- 2011-12 allocation, altering the funding for the position from 50% of the Parking C-16 B2 - 98 Development Services Memorandum Fund and 50% of the General Fund, to 100% of the City’s General Fund. Not counted as apart of the Development Services revenue request, the cost for this reallocation would be $24,100 for 2013-14, as well as an additional $65,900 to continue that allocation for 2014-15. This would ensure the position’s continued availability for Development Services projects for the remainder of the fiscal year. 7.Amend the 2013-2015 Budget and Fiscal Policy to allow the City Manager to allocate development review fees in order to retain temporary development related services, and establish a “Development Services Account” in the General Fund, to track the reallocation of Development Services fees that exceed, or are projected to exceed adopted budgeted amounts. STATUS OF $300,000 IN FUNDING On September 3, 2013, Council approved a Development Services revenue allocation of $300,000 to pay for temporary contract staff assistance and consultant services for Community Development, Public Works, and Fire Departments. As described in the 2013 Organizational Assessment, one of the 10 strategic recommendations to the City is the development of a protocol to expedite the dispensation of permit revenue, when permit activity exceeds available resources, and quickly shed unneeded resources when development activity slows. Table 1 below shows the status of the original appropriation, showing that $294,146 (Column C) has been spent to cover elevated levels of permit activity dating back to July 1st, and projected through February 15, 20141: Table 1 Original 9/3/13 2013-14 Development Services Allocation (A)(B)(C) BudgetSpent Remaining $62,500$58,732 $3,768 $6,285 $0 $6,285 $81,215 $81,215 $0 $150,000$139,947$10,053 BudgetSpent Remaining $6,900$7,131-$231 $6,900$6,046$854 $40,000$36,497$3,503 $20,000$20,000$0 $25,000$30,278-$5,278 $42,350$45,397-$3,047 $8,850$8,850$0 $150,000$154,199-$4,199 $300,000 $294,146 $5,854 Building Inspector Subtotal: Total Allocation (A): Total Spent (B): Total Remaining (C): Engineering Plan Check Contract Staff Consultant Costs Planning Consultant Services Engineering Plan Check Consultant Services Building Plan Check Consultant Services Subtotal: Temporary or Contract Staffing Public Information Support Tech Planning Technician(s) Building Plan Check Fire Plan Check Temp Staff Public Works Permit Tech II 1 1 1 1 Inclusive of all 2013-14 expenses paid, encumbered, and estimated, given current spending rates through February 15, 2014. C-17 B2 - 99 Development Services Memorandum PERMIT ACTIVITY Attachment B of this Memorandum graphically shows the permit activity trends across fire, building and planning. The data shows a trend of noticeable and significant increases in applications across all divisions. The mere number of applications does not provide a complete portrayal of the nature of impact, in terms of workload. Planning applications include large subdivisions in the Margarita and Orcutt areas, along with large and complex commercial buildings that are either infill, or located in expansion areas. Another significant factor is the sizeable increase in approved valuation, which is an indicator of more complex and larger projects, thus requiring more resources for plan review and inspections. Table 2 2008-20092009-20102010-20112011-20122012-20132013-20142014-2015 Total Planning Applications Received 194193199175237271295 Staff (Approved F.T.E.'s)6 5 5 4 4 4 4 Total Building Permits 475438441462566569612 Staff (Approved F.T.E.'s)5.755.755.755.755.755.755.75 Total Inspections 10,3718,37610,21013,69110,53811,50011,518 Staff (Approved F.T.E.'s)5.755.755.755.755.755.755.75 Total Fire Department Permit/Plan Reviews 230264282321344321334 Staff (Approved F.T.E.'s- Devlopment Review)1.11.11.11.11.11.11.1 Total Valuations $42,229,600$33,978,800$39,548,800$28,539,500$39,956,400$59,086,390$65,598,920 Staff (Approved F.T.E.'s)5.755.755.755.755.755.755.75 Total PW Building Permits & Planning Applications Reviewed 1,000305270312328450513 Staff (Approved F.T.E.'s)4.53.83.83.353.352.952.95 A summary of the above chart indicates that from 2008-09 actuals to 2014-15 projected, there are: •33% fewer permanent staff for 34% increase in planning applications •Same permanent staff level for 22% increase in building permits •Same permanent staff level for 9.9% increase in inspections •Same permanent level staff for 31% increase in fire permits/plan reviews •35% fewer staff for a 50% decrease in Engineering reviewed planning applications and building permits REVENUE Development activity within the City of San Luis Obispo continues to show steady growth, with revenues far ahead of projections. Just weeks from the midpoint of the 2013-14 fiscal year, Development Review revenues collected were at 69% of projected amounts, with actual revenues of $3.29 million projected by June 30, 2014: $903,600 more than budgeted, as shown in Table 3. C-18 B2 - 100 Development Services Memorandum Table 3 City of San Luis Obispo Development Review 2013-14 Revenues (A) (B) (C) (D) Budgeted Revenues (2013-14) Actual Revenues as of 12-13-13 Newly Projected (2013-14) Revenues Adopted Budget vs. Updated Revenues Planning $498,900 $431,815 $775,000 $276,100 Building $1,182,900 $933,250 $1,750,000 $567,100 Eng. Dev. Rev. $581,900 $180,343 $542,300 -$39,600 Fire Plan Check & Inspection $180,000 $156,550 $280,000 $100,000 Total $2,443,700 $1,701,958 2 $3,347,300 $903,600 The only revenue not projected to meet the adopted budget goal is Engineering Development Review. This is primarily due to the timing of the Engineering Development Review permit application payments, which occurs six to twelve months later during the construction phase of the project. These revenue assumptions assume a slow down for the second half of the 2013-14 fiscal year. If the permit activity rate remains steady, revenues would exceed the adopted budgeted by over $1.7 million. FUNDING REQUEST FOR 2013-14 & 2014-15 FISCAL YEARS In order to provide timely customer service for the current workload demands, it is recommended that, from 2013-14 Development Review revenue, City Council appropriate an additional $828,400 in 2013-14, and earmark $374,100 for continued 2014-15 Development Services expenses. In addition, it is recommended the General Fund support the Principal Transportion Planner position exclusively from the General Fund, which would cost an additional $22,800 for 2013-14, and $65,900 in 2014-15. 2 This amount includes $300,000 of permit fees deferred and transferred into the Development Services revenues YTD for 2013-14. C-19 B2 - 101 Development Services Memorandum As shown in Table 4, the funds would be diversified in the following ways: Table 4 EXPENDITURES One-time Ongoing Consultant Costs Estimated: 02-15-14 to 06-30-14 Estimated: 2014-15 Total Staffing Costs* Estimated: 02-15-14 to 06-30-14 Estimated: 2014-15 Total Planning Consultant Services $100,000 -Engineering Permit Technician (.75 to 1.0)$8,600$21,500 Engineering Plan Check Consultant Services $70,000 -Building Permit Technician (.75 to 1.0)$8,600$21,500 Building Plan Check Consultant Services $378,000 -Fire Inspector (.75 to 1.0)$8,800$21,700 $548,000 -Subtotals:$26,000$64,700 Temporary or Contract Staffing* Public Information Support Tech $12,500 - Planning Technician(s)$50,000 - Building Plan Check $10,000 - Fire Plan Check Temp Staff $24,700 - Engineering Plan Check Contract Staff $37,500 - Building Inspector $35,000 - Contract Transportation Planner $30,700$113,400 $200,400$113,400 Special Projects Consultant Costs* Planning Special Projects Manager $27,000$126,000 Development Services Legal Support $27,000$70,000 *9 payperiods left in FY 13-14 $54,000$196,000Subtotals: A. B. C. One-Time D. Ongoing Subtotals:TOTAL COST $828,400 $802,400 $309,400 $64,700 Additional 2013-14 Development Services Cost Allocations Subtotal: $374,100 2013-14 2014-15 $26,000 Consultant Costs (Section A): $548,000 would need to be designated towards the continuation of utilizing consultants for larger projects. When current staff capacity is exceeded, as is the case now, consultants increase resources during those crucial peak permit times, when activity outstrips available City resources to timely process permits. Moreover, consultants help ensure that high profile projects addressing multiple City objectives are processed in timely manner. As such, the department must continue to implement the City’s Economic Development Strategic Plan: with the surge of private development activity, the required levels of customer service must meet standardized required permit processing times. Attachment ‘A’ provides a summary of current projects currently in queue for much-needed outside consultants, for the purpose of reviewing permit applications and plans. Temporary and Contract Staffing (Section B): In order to ensure timely review and proper execution of development applications, studies, inspections, and other related planning activities, it is recommended that an additional $200,400 for 2013-14 be made available, and $113,400 for 2014- 15 be set aside for adequate temporary and contract staffing levels. Among those positions would be a temporary Contract Transportation Planner, hired solely to address development projects, and would serve as primary liaison between Community Development and Public Works departments, relative to the transportation component of projects. Larger projects on the south end of San Luis Obispo, such as the Western Enclave of the Margarita Area, Chevron, Dalidio, projects in the Orcutt Area Plan, and other developments are critical to the completion of the currently fragmented transportation network. This position would be instrumental in project review for those larger projects, linking the Impact Fee program, Area Specific Plans, and actual project proposals to insure both timely review, and successful implementation of a well- coordinated transportation network. The Contract Transportation Planner would review projects looking at all transportation modes, and insure a well-connected bike and pedestrian network is constructed as appropriate. C-20 B2 - 102 Development Services Memorandum This position would also review smaller in-fill projects. They would provide timely review, and insure the circulation and transportation infrastructure is appropriate for both project and context. There are a number of these projects scheduled for the next several months, including Garden Street Terrace and Chinatown. This contract position would only be used in the event current staff cannot maintain pace with timeline and sequencing of upcoming development projects. Special Project Consultants Costs (Section C): For one temporary Special Projects Manager and contract legal support, it is recommended that an additional $54,000 for 2013-14 be made available, and $196,000 for 2014-15 be set aside for ongoing, projected costs. In the interest of the City’s high profile projects, it is proposed that a temporary special projects manager position be created for the remaining portion of the 2013-14 fiscal year, and through the end of the 2014-15 fiscal year. This position will coordinate planning of public infrastructure at 40 Prado Road, Medical Marijuana, and Vacation Rental projects, and other important projects as they emerge. With both the current level of development applications, as well as the implementation of Neighborhood Wellness, additional workload demands have been placed upon on the City Attorney’s office. This exceeds the office’s current capacity to address emerging and anticipated issues related to legal review of environmental and land use approvals and public works contracting issues, as well as evaluation and drafting of reimbursement agreements, development agreements, and real property transactions and proposals. To alleviate these additional burdens, it is recommended that one time resources be allocated to provide contract legal support over the remaining portion of the current year, and extending through the 2014-15 fiscal year. Ongoing Staff Costs (Section D): In order meet sustained levels of permit activity, an additional $26,000 for 2013-14 will be needed, and an estimated $64,700 for 2014-15 will be required, for the following current City staff positions: 1.) One Engineering Technician would be raised from ¾ to full time. Interactions at the engineering counter have increased; and while permit revenues are down, minor permits and larger projects require a full time position to serve the public’s needs. 2.) One Building Permit Technician would be raised from ¾ to full time. Elevated permit levels are showing that at a minimum, associated revenue increases are adequate to support the ongoing funding for this position. This position is needed to staff the front counter and respond to increased levels of customer interaction at the public counter and process over the counter permits. 3.) One Fire Inspector would be raised from ¾ to full time. Elevated permit levels are showing that, at a minimum, associated revenue increases are adequate to support the ongoing funding for this position. The full time position is needed to respond to increased level of fire plan checks. C-21 B2 - 103 Development Services Memorandum PRINCIPAL TRANSPORTATION PLANNER: 100% GENERAL FUND Instead of budgeting the City’s Principal Transportation Planner at .5 from the City’s General Fund and .5 from the City’s Parking Fund, as is done now, fund the position exclusively from the General Fund, which would cost $24,100 for 2013-14, and $65,900 in 2014-15. It was previously done this way until 2011-12, when several projects required the need for a department-diversified Principal Transportation Planner; however, since that time, the steady increase of high-profile projects has resulted in a clear need for a Principal Transportation Planner focused on Development Services projects, funding the position entirely from the General Fund. The following are among these new projects: a.Los Osos Valley Road Interchange b.Land Use and Circulation Element c.Implementing the policies and projects of the LUCE (post 9/14) d.Bike Plan Implementation e.SLOCOG planning committees for trail projects and US 101 f.Safe Routes to School Projects g.Active Transportation Grant projects EXPENDITURES Ongoing 2013-142014-15 Principal Transportation Planner (.5 to 1.0)*$24,100$65,900 $24,100$65,900 General Fund Request Total REVENUE VS. EXPENSES: RELATIONSHIP TO SERVICE LEVEL MAINTENANCE One measurement to consider in the context of additional resources needed, is the relationship of revenues to expenses. Ultimately, Development Services are paid for with permit fees, with approximately 25% of those fees going to overhead. Table 5 shows the relationship of revenue to expenses, from FY 2009-FY 2015. The red line shows previously projected budget expenses, and the green line indicates updated, actual expenses required to maintain adequate service levels. Denoting a sizeable leap, fees (the blue line) serve as a direct proxy to service demand – and the resource gap between red and green lines is an impediment to proper service levels. While the original 9/3/13 $300,000 in funding has helped (purple line), it did not completely and successfully raise service levels needed to process permits. Following the line upward to the second half of 2014, the graph denotes that the $828,400 will only partially meet current demand, and funds beyond that amount are not being requested. This is not being done out of departmental C-22 B2 - 104 Development Services Memorandum need; rather, this is recommended in order to minimize potential risk, either from unanticipated economic slowdown, and/or the unrealization of $903,600 in currently projected, “extra” revenue. Following the purple line even further, the graph assumes that there will be an eventual permit slowdown in 2015, estimating that approximately $374,100 of resources more than previously projected in the 2014-15 budget will be required for adequate service levels, as opposed to the previous year’s request. Please note: this allocation for 2014-15 is not yet being requested at this time. This may change, should Council not support the proposed policy. Table 5 FISCAL POLICY REVISION The change in development cycles and the timing of peak work load is largely unpredictable; development cycles fluctuate over time as with any market, requiring constant resource adjustments in order to meet workload demands. While the department regularly follows up with City developers regarding submittal dates and follows other relevant market information, it is challenging to accurately predict workload trends. As such, it is recommended that policy amendments be enacted to allow for administrative transfer of development review fees, in order to provide timely customer service when workload activity exceeds allocated and budgeted resources, as was recommended in the CDD organizational assessment 3. The time between permit submittal, and City Council’s consideration of budget amendments is currently established at time increments of six months. In this modern, fast-paced business environment, the time lag between when permits are submitted and work emerges and then when resources can be adjusted is too long of a cycle to timely respond given business pressures and the 3 Develop a Solution for the Cyclical Nature of Development $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 2009 2010 2011 2012 2013 2014 2015 Dev. Rev. Fees & Adjusted Costs Fees Costs needed to complete projects Requested Dev. Rev. Funds Actual Costs Expended $374K for 14/15 $828K for 2nd half of 13/14$300K added on 9/3/13 C-23 B2 - 105 Development Services Memorandum goal to streamline the review process. A more streamlined approach to allow budget adjustments to match resources to workload is needed. Staff will present a budget policy amendment similar to that shown below in the “Development Review Programs” section of the 2013-2015 Budget and Fiscal Policy for Council consideration: “The City Manager may reallocate Development Services revenues for Development Services expenses that are projected to exceed the adopted revenue to acquire temporary resources to timely process development permit applications and perform other related permit processing activities while maintaining a balanced budget. In no case, shall the reallocation of revenue exceed 75% of the projected revenue that is projected to exceed the adopted budget. Any and all reallocated revenues shall be reported to the City Council in the mid-year and supplemental budget. Such reporting shall include an analysis of consistency with this policy.” Additionally, it is recommended that the City establish a “Development Services Account” in the General Fund to transfer fees paid for permit processing. This account would be used to transfer fees that are paid for services that actually exceed, or are projected to exceed budgeted amounts. An accounting mechanism to track revenues transferred would provide a simple approach to report to the City Manager and City Council. C-24 B2 - 106 Development Services Memorandum Attachment A CONSULTANT ESTIMATES 02/15/14-06/30/14 Building Consultant Projection 02/15/14-06/30/14 Estimated Consultant Amount Chinatown Plan Check $60,000 Monterey Place Plan Check $60,000 Serra Meadows 2352 Plan Check $25,000 Moylan Terrace Plan Check $16,000 Laurel Creek Plan Check $110,000 SLO Terrace Plan Check $32,000 Misc. Plan Check $75,000 Total $378,000 Engineering Projection 02/15/14-06/30/14 Estimated Consultant Amount Serra Meadows $25,000 Chinatown $15,000 Misc. Plan Check $30,000 Total: $70,000 Planning Consultant Projection 02/15/14-06/30/14 Estimated Consultant Fees Orcutt Area Specific Plan – Tentative Tract Map/ARC (Jones) $25,000 Orcutt Area Specific Plan – Tentative Tract Map/ARC (Gray) $25,000 University Square – ARC/possible EIR $15,000 Bishop Knoll – Annexation/Tentative Tract Map, ARC $25,000 Miscellaneous Projects $10,000 Total $100,000 C-25 B2 - 107 Attachment B 475 438 441 462 566 569 6125.755.755.755.755.75 5.75 5.75 0 2 4 6 8 10 300 400 500 600 700 800 2008‐20092009‐20102010‐20112011‐20122012‐20132013‐20142014‐2015* St a f f i n g Pe r m i t s Fiscal Year Total  Building Permits Total Building Permits Staff (Approved F.T.E.'s) Updated 2013‐14 Projection Updated 2014‐15 Projection Trendline 194 193 199 175 237 271 295 6 55 4 4 4 4 0 2 4 6 8 10 150 170 190 210 230 250 270 290 310 2008‐20092009‐20102010‐20112011‐20122012‐20132013‐20142014‐2015* St a f f i n g Pl a n n i n g  Ap p l i c a t i o n s Fiscal Year Total  Planning Application Received Total Planning Applications Received Staff (Approved F.T.E.'s) Updated 2013‐14 Projection Updated 2014‐15 Projection Trendline C-26 B2 - 108 Attachment B (Continued) 10,371  8,376  10,210  13,691  10,538  10,265 11,518  5.755.755.755.755.755.755.75 0 2 4 6 8 10  7,000  8,000  9,000  10,000  11,000  12,000  13,000  14,000  15,000 2008‐20092009‐20102010‐20112011‐20122012‐20132013‐20142014‐2015* St a f f i n g In s p e c t i o n s Fiscal Year Total  Inspections Total Inspections Staff (Approved F.T.E.'s) Updated 2013‐14 Projections Updated 2014‐15 Projection Trendline 230 264 282 321 344 321 334 1.1 1.1 1.1 1.1 1.1 1.1 1.1 0 1 2 3 100 150 200 250 300 350 400 2008‐20092009‐20102010‐20112011‐20122012‐20132013‐20142014‐2015* St a f f i n g Pe r m i t / P l a n  Re v i e w s Fiscal Year Total  Fire Department Permit/Plan Reviews Total Fire Department Permit/Plan Reviews Staff (Approved F.T.E.'s‐ Devlopment Review) Updated 2013‐14 Projection Updated 2014‐15 Projections Trendline C-27 B2 - 109 Attachment B (Continued) $42,229,600  $33,978,800  $39,548,800  $28,539,500  $39,956,400  $59,086,390  $65,598,920  5.755.755.755.755.755.755.75 0 2 4 6 8 10  $25,000,000  $30,000,000  $35,000,000  $40,000,000  $45,000,000  $50,000,000  $55,000,000  $60,000,000  $65,000,000  $70,000,000 2008‐20092009‐20102010‐20112011‐20122012‐20132013‐20142014‐2015* St a f f i n g Va l u a t i o n s Fiscal Year Total  Valuations Total Valuations Updated 2013‐14 Projection Updated 2014‐15 Projection Staff (Approved F.T.E.'s) 1000 305 270 312 328 450 513 4.5 3.83.8 3.353.35 2.952.95 0 1 2 3 4 5 0 200 400 600 800 1000 2008‐20092009‐20102010‐20112011‐20122012‐20132013‐20142014‐2015* Pe r m i t / P l a n  Re v i e w s Fiscal Year Total  Engineering Permit/Plan Reviews Total PW Department Building Permits Reviewed and Planning Applications Staff (Approved F.T.E.'s) Updated 2013‐14 Projection Updated 2014‐15 Projection Trendline C-28 B2 - 110 Section D RECENT FINANCIAL AND REVENUE REPORTS B2 - 111 D-1 B2 - 112 D-2 B2 - 113 Year End TOT Revenues Prior YearLast YearThis Year 2011-122012-132013-14AmountPercent July $591,184$636,779$699,845$63,0669.9% August 574,394623,655674,279$50,6248.1% September 490,523508,583515,314$6,7311.3% October 437,805469,977509,435$39,4588.4% November 347,436359,163425,76966,606 18.5% December 314,784319,451355,31535,864 11.2% Year To Date Total 2,756,126 2,917,607 3,179,957 $262,3509.0% January 276,165303,196 February 323,383350,383 March 392,266434,212 April 475,912494,831 May 447,808489,862 June 578,234617,724 Year To Date Total 6,349,919 6,756,407 3,961,041 The revenues shown in this report are prepared on an accrual basis as of the end of the month. They are based on TOT amounts reported by operators but not necessarily remitted to the City within the 30 days after month-end required by the City's TOT ordinance. Last Year Vs This Year Increase (Decrease) Monthly TOT Report December 2013 February 4, 2014 This report covers the City's transient occupancy tax (TOT) revenues for December 2013 compared with the two prior years. As reflected below, revenues for the month of December 2013 are up by 11.2% from the same month last year and up 9% year to date. The December results are encouraging news and a good indicator that travel activities continue to be positively impacted by the City’s ongoing campaign as a travel destination. Currently this report covers 38 establishments representing 2,120 rooms. Financial Plan. Based on these results, staff is recommending a change to the current budget forecast for TOT revenues in the Mid-Year Budget Report that will increase the revenue estimate by $240,900 or 4.2% over the current estimate and 7.5% over the prior year’s total. For more information, please call Michelle Bulow at (805) 781-7521. DISTRIBUTION: City Council, Budget Review Team, Fiscal Officers, Department Heads, The Tribune, Economic Development Manager, John Lindt, Dave Kastner, Chamber of Commerce, Verdin Marketing, Pragna Patel, Business Times, New Times, SLO City News, SLO Journal D-3 B2 - 114 D-4 B2 - 115 D-5 B2 - 116 D-6 B2 - 117 D-7 B2 - 118 D-8 B2 - 119 D-9 B2 - 120 D-10 B2 - 121 D-11 B2 - 122 Section E STATUS OF GOALS AND OBJECTIVES B2 - 123 STATUS OF GOALS AND OBJECTIVES As of February 1, 2014 CITY OF SAN LUIS OBISPO B2 - 124 STATUS OF GOALS AND OBJECTIVES As of February 1, 2014 TABLE OF CONTENTS INTRODUCTION Overview 1 Report Card: Major City Goals and Other Important Council Objectives 1 MAJOR CITY GOALS Homelessness 2 Neighborhood Wellness 7 Sustain Essential Services & Fiscal Health 11 Bike & Pedestrian Paths 16 Economic Development 18 Assess & Renew the Downtown 20 Skate Park Construction 22 OTHER IMPORTANT COUNCIL OBJECTIVES Open Space Expansion 24 Infrastructure Maintenance 27 Improve Transportation 31 CARRYOVER GOALS AND OBJECTIVES Update Land Use and Circulation Elements 33 Action Plan Changes and Next Report 34 STATUS OF MAJOR CIP PROJECTS Status of Major Capital Improvement 35 Plan (CIP) Projects B2 - 125 INTRODUCTION OVERVIEW This report details the status of Major City Goals and Other Important Council Objectives set by the Council as part of the 2013-15 Financial Plan as of February 1, 2014. In general, we are off to a good start in accomplishing these objectives based on the work programs adopted by the Council. Report Card. The following is a quick “report card” on the status of Major City Goals and Other Important Council Objectives based on the “action plans” approved by the Council as part of the 2013-15 Financial Plan. As a benchmark, at February 1st, 2014, we are 30 percent through the two-year Financial Plan period. Most of the goals and objectives are well underway and progress is continuous. Organization. The “report card” is followed by a short summary of notable changes from the original action plan. After this is a more detailed report on each Major City Goal and Other Important Council Objectives, which shows the objective and action plan as adopted by the Council. Revisions to the goals are displayed as follows: • Additions are shown in italics; • Date changes are shown in italics and highlighted in a separate column; and • Deletions are shown in strikeout. Report Card: 2013-15 Major City Goals & Other Important Objectives – Percent Complete as of 2/1/14 Important Note Many of these objectives are multi-year goals that have activities associated with them that go beyond the 2013-15 Financial Plan period. This status report is focused on approved “Action Plan” tasks as of February 1, 2014. 0%10%20%30%40%50%60%70%80%90%100% Address Homelessness Neighborhood Wellness Preservation of Essential Services & Fiscal Health Bike/Pedestrian Paths Economic Development Strategic Plan Assess/Renew Downtown Skate Park Construction Major City Goals 0%10%20%30%40%50%60%70%80%90%100% Improve Transportation Infrastructure Maintenance Open Space Expansion Other Important Council Objectives E-1 B2 - 126 MAJOR CITY GOALS – ADDRESS HOMELESSNESS IMPLEMENT COMPREHENSIVE STRATEGIES TO ADDRESS HOMELESSNESS Objective: Implement comprehensive strategies to address homelessness in our City in partnership with other entities. Encourage existing, improved, and expanded services (including advocating to the County and other organizations for delivery of case management, drug, alcohol, and detoxification services, and mental health services), support the establishment of a new homeless services center, and pursue good-neighbor, safety, and quality of life programs (including restrooms), using technology as appropriate. Action Plan: Task Current Revised Encourage existing, improved, and expanded services 1. Increase coordination and representation of City interests in discussions with the County, social services providers and non-profit organizations for delivery of existing, improved and expanded services, including case management, drug, alcohol, detoxification, and mental health services. Ongoing 2. Continue the City’s Homeless Issues Working Group, and HSOC and FPDC participation to support and implement the 10-Year Plan and identify, evaluate, and implement strategies to reduce the impacts of homelessness on the City. Ongoing 3. Continue, and increase where feasible, financial support for Maxine Lewis, Prado, Safe Parking Program, GIA Program, Housing Programs and Warming Station. Ongoing 4. Utilize the Human Relations Commission to outreach to the community and maintain focus and strategic support and direction on homeless issues. Ongoing 5. Continue to implement Housing Element programs Ongoing 6. Work with developers to include affordable housing units in projects and to complete housing projects in process. Ongoing 7. Look for new opportunities to use Affordable Housing Fund and grant monies to leverage other funds for affordable housing projects. Ongoing Support the establishment of a new homeless services center 1. Execute a MOU between the City, County and CAPSLO to formalize the common objectives and methods for achieving development of a Homeless Services Center. 12/13 4/14 2. Continue, and increase where feasible, financial support for the Homeless Services Center. Ongoing Pursue good-neighbor, safety and quality of life programs 1. Implement a CAT team concept to address adverse transient/homeless behaviors. Ongoing Completed 2. Work with CAPSLO to enhance and support a comprehensive Good Neighbor Policy. Ongoing E-2 B2 - 127 MAJOR CITY GOALS – ADDRESS HOMELESSNESS 3. Develop all elements needed for donation station implementation, including monitoring, maintenance, fund collection, deposition of funds, identification of recipients, and locations. 12/13 6/14 4. Council direction on option for restroom provision. 1/14 5. Collaborate with interested private entities to implement a donation station program. 2/14 Ongoing 6. Start restroom implementation with completion date dependent upon solution (see “Assess and Renew the Downtown” goal for specific recommendations.) 7/14 Status Summary: 25% Complete. The following is a summary of accomplishments and important next steps for this goal: Encourage Existing, Improved and Expanded Services Homeless Services On October 1st, Council approved amendments to Title 17 (Zoning Regulations) of the Municipal Code to permit and provide standards for the operation of safe parking facilities on private properties within the City. The Ordinance provides a limited exception to allow safe parking facilities on property located outside of the public right-of-way in certain zoning districts subject to permit requirements; performance standards and use permit considerations to ensure that safe parking facilities will be compatible with surrounding uses and effective at facilitating participants’ transition to permanent housing. This Ordinance is effective October 31st. On October 1st, Council adopted funding priorities for the 2014 CDBG Program Year. The City has received seven applications requesting a total of $754,695. The City expects to receive approximately $460,000 for the upcoming year. On December 4th, the HRC recommended program funding allocations to the City Council. Council will consider HRC’s recommendations on February 4th. The City has a Homeless Issues Working Group to support and implement the 10-Year Plan and to identify, evaluate, and implement strategies to reduce the impacts of homelessness on the City. The Working Group meets bi-monthly and is made up of executive team members that have programmatic responsibility in areas that serve the homeless population, or serve community members that are impacted by homelessness. Staff provides leadership in implementing the 10-Year Plan by working with CAPSLO and other housing and service providers including considering ways to encourage transitional housing and “housing first” options. Staff implements the General Plan Housing Element, which contains policies and programs that support housing and service agencies whose mission it is to develop programs for the City’s homeless population. Staff promotes collaborative efforts and opportunities to address the needs of the homeless population and acts as the City liaison to HSOC and Friends of Prado Day Center. Staff was actively involved with the 2013 Homeless Enumeration Report. Every two years, all jurisdictions receiving federal funding to provide housing and services for the homeless are required by HUD to conduct a point-in-time count of sheltered and unsheltered homeless persons at a single time during the last ten days of January. The data collected through these counts help the federal government and local jurisdictions better understand the nature and extent of homelessness and plan for needed programs and services. Additionally, local jurisdictions use the findings of their point-in-time count to apply for federal funding for homeless programs. In 2013, the San Luis Obispo County Continuum of Care is expected to receive approximately $1 million in federal funds for homeless services. E-3 B2 - 128 MAJOR CITY GOALS – ADDRESS HOMELESSNESS Staff developed a new Homeless Solutions webpage. This page is dedicated to keeping the public updated with all the latest homeless program initiatives. It includes a donations link to the United Way website and information on local homeless programs, services and documents. Affordable Housing The City facilitates the provision of affordable housing and provides leadership in implementing the 10-Year Plan by partnering with a variety of social service providers and the Countywide Homeless Services Oversight Council (HSOC). Providing affordable housing is one of the key objectives in transitioning homeless persons. This effort includes administration of the City’s CDBG program, Housing Element implementation, awards of the City’s Affordable Housing Fund to support transitional and low income housing, administration of the City’s Inclusionary Housing Program, and participation in the planning and execution of a variety of special projects including the warming station at the Prado Day Center, the safe parking program, and the proposed Homeless Services Center project. On August 20th, Council adopted changes to Chapter 17.90 (Affordable Housing Incentives) of the Zoning Regulations to be consistent with State density bonus law. The City’s Affordable Housing Incentives were last updated in 1995 and State law related to affordable housing production has substantially changed. Some highlights of the adopted changes include additional definitions, greater percentage of density bonus allowed for providing affordable housing and additional options for alternative incentives and concessions. This amendment was particularly timely since the City is updating the Housing Element and jurisdictions must have updated density bonus ordinances. Staff is collaborating with HASLO regarding their option to develop affordable housing in the Margarita Area Specific Plan (MASP). HASLO is in the preliminary stages of developing plans to construct affordable housing on a two acre property that is required to be dedicated by the property owner/developer of the subdivision. Work continued on updating the City’s General Plan Housing Element. State law establishes a schedule for cities and counties to periodically update their housing elements. Under this schedule, the City is required to adopt an updated housing element on or before June 30, 2014. The update process is a tool to modify housing policies and programs to reflect the changing needs, resources, and conditions in the community, and to respond to changes in housing law. Staff is collecting background data and updating Housing Element appendices. Staff attended a State sponsored housing element workshop in October and facilitated a public workshop at the City/County Library in November. On November 19th, Council approved an Affordable Housing Fund award for the Housing Trust Fund (HTF) in the amount of $30,000 to support the HTF’s operating expenses for 2014. The HTF provides three key services that benefit affordable housing in the City of San Luis Obispo: 1) financing, 2) technical assistance and 3) advocacy. The HTF provides funding for affordable housing projects, including property acquisition, construction and refinancing. HTF staff also serves as a resource to City staff working with developers on affordable housing projects. On September 27th, Habitat for Humanity of San Luis Obispo County (HFH), City officials and a number of community partners attended a home dedication ceremony for the families of HFH’s affordable housing development located at 3212 Rockview Place. The site is approximately 12,000 square feet in area and the project included the development of three single-family homes. These homes are deed restricted for purchase by very-low income families under the City’s long- term affordability program. Each home occupies its own lot and includes approximately 1,000 square feet of living area with three-bedrooms and 1½ baths. The Habitat families that purchased the homes have performed over 500 hours of sweat equity on their home. They purchased the homes with a no-interest loan and their monthly mortgage payments will be used to support Habitat’s work throughout the County. The City contributed a Community Development Block Grant of $241,217 and an Affordable Housing Fund grant of $38,783 for property acquisition and site clearance and remediation. On October 15th, Transistions Mental Health Association of San Luis Obispo County (TMHA), City officials and a number of community partners attended an open house and guided tour of “Hope House”, TMHA’s recently constructed E-4 B2 - 129 MAJOR CITY GOALS – ADDRESS HOMELESSNESS permanent supportive housing development located at 1306 Nipomo Street. The project included the renovation of an existing 2,333 square foot home into two studio units and a wellness center and construction of a new two-story building with six studio units and vehicle parking. All eight units are fully furnished and residential support services for the tenants are provided on-site in the wellness center. These units are deed-restricted for rent by very-low income individuals under the City’s long-term affordability program. The City contributed development review and citywide impact fee waivers to the project. The Moylan Terrace housing development located at 851 Humbert Street has completed and sold Phase 1 of the development. The project includes 80 residential townhomes and a building with a community room and one rental apartment. Of the 81 units, 49 are deed-restricted under the City’s long-term affordability program with the remainder to be sold as “workforce housing” (between 120% and 160% of the County median income). The project includes a mix of affordability for the 49 deed-restricted units, including 2 very-low, 14 low and 33 at the moderate income levels. Phase 2 of 7 is under construction with completion expected in spring of 2014. The City contributed an Affordable Housing Fund grant of $709,900 for property acquisition and development review and citywide impact fee waivers for the affordable units. Staff continued to work closely with HASLO, ROEM Development Corporation, HTF and the County on a proposal to assist the 313 South Street Family Apartment project be successful in receiving state tax credits in March 2014. This project has received multi-year CDBG and HOME funding allocations as well as a City Affordable Housing Fund award to support the acquisition and development of a 43-unit apartment project for low and very-low income households. On December 10th, Council held two TEFRA public hearings for the reissuance of tax exempt bonds and loans by HASLO for the Del Rio Terrace Apartments located at 2005 Johnson Avenue and the Carmel Street Apartments located at 433 Pacific Street. These projects include 59 affordable housing rental apartments for seniors. This action financially assisted the projects by allowing HASLO to reduce the interest rates on the bonds and loans that financed construction. To increase homeownership opportunities available and affordable to very-low, low and moderate-income households the City partnered with HASLO and Goldfard and Lipman to prepare documents that implement the City’s Equity Share purchase program as provided for in Chapter 17.91.150 of the Zoning Regulations. This program allows buyers of affordable units to enter into an agreement with the City that upon resale of the property, the City’s equity share in the property is returned to the City for use in other affordable housing developments. In discussions with HASLO, the City anticipates this program being utilized in future phases of the Moylan Terrace project. In 2013, the County’s Homeless Services Oversight Council (HSOC) voted to make Housing First its top priority for 2014, and voted to join the 100,000 Homes Campaign. This program uses the Housing First approach to assist the most vulnerable, chronically homeless persons who are at risk of dying on the streets. In response to HSOC’s action, HASLO offered to make available 50 Housing Choice Vouchers to house the most vulnerable homeless persons. On November 5, 2013, the County Board of Supervisors authorized funding for case management services to implement the program. The City submitted a letter and provided testimony in support of this action. County staff is currently working on developing an RFP for qualified homeless service providers to assist 50 of the County’s most vulnerable homeless receive and retain permanent housing. County staff expects the program to begin this summer. Pursue Good Neighbor, Safety and Quality of Life Programs CAT Team Concept - staff has assigned two officers who are currently working in the CAT Team capacity addressing adverse transient/homeless behaviors. As part of the mission of the Community Action Team they have given directed focus to the top ten chronic offenders within our community. These offenders are those that require the most repeat police services for their behaviors, usually in the downtown. The CAT Team has met with the County Sheriff’s Department, the District Attorney’s Office and the court’s to discuss long term solutions for these repeat offenders. These solutions include both more severe punitive terms for these offenders and the connection to social services that could assist in transitioning E-5 B2 - 130 MAJOR CITY GOALS – ADDRESS HOMELESSNESS these people out of homelessness and into a sober living environments. The Cat Team has had at least four of the top ten accept social services and are currently living in sober living environments. Work continued to develop a comprehensive Good Neighbor Policy in collaboration with CAPSLO. A draft of the policy is scheduled for review before the HRC on February 5th. Donation Stations – The Downtown Association Board of Directors voted to participate and support this program as a lead partner. The United Way has partnered with the program and is acting as the non-profit 501c(3) which will receive and distribute donations collected by the City. Specific beneficiaries have yet to be determined. The project is in its early phases which currently include a marketing campaign. It is expected this will take place in the next sixty days. Other phases will include identifying donation meter locations for installment and collection of donations. It is anticipated that donation stations will be installed in the spring after careful coordination with local merchants and the Downtown Association. Staff is currently preparing a memorandum of agreement to formalize the operations once the program. The Project Team reviewed current directed giving efforts and has developed a link through the City’s website titled “Homeless Solutions”. This link provides public information related to homelessness in our community and directs people to homeless service opportunities for those in need. It also provides information on the Directed Giving campaign as well as plans for the development of the Meter Donation Station Project. Citizens can utilize links on this page to go directly to the United Way website to provide donations. The Project Team discussed in detail Donation Meters and the logistics with the implementation and installation of meter heads. Currently the City uses IPS Group Inc. for our digital parking meters. This company will donate meter heads which will be used specifically as donation locations. The meters will be placed at seven identified locations in heavily pedestrian traveled areas. They will be marked in such a way that they will be distinguished as donation sites only and will not be confused with normal parking meters. Restrooms - Increasing restroom availability beyond their previous closure time is underway. Mission Plaza Restroom hours were extended to midnight in July. Re-commissioning of the Broad Street restrooms is complete and the restroom is open for late night use. Public Works alerted both the Police Department and the Downtown Association to share the news with potential “customers.” E-6 B2 - 131 MAJOR CITY GOALS – NEIGHBORHOOD WELLNESS INITIATIVES CONTINUE AND ENHANCE NEIGHBORHOOD WELLNESS INITIATIVES Objective: Continue and Enhance Neighborhood Wellness Initiatives. Continue to support proactive code enforcement, pursue a residential rental inspection program, improve street cleanliness, increase public safety enforcement, and support neighborhood led initiatives. Action Plan: Task Current Revised Proactive Code Enforcement 1. Develop a code enforcement hearing officer program and associated training protocols Ongoing 2. Produce and distribute quarterly Neighborhood Wellness newsletter Ongoing 3. Noise abatement and residential parking district enforcement by SNAP Ongoing Completed 4. Improved education/outreach plan for neighborhood noise abatement. 8/13 Ongoing 5. Implement a lien process for uncollected fines and incurred costs. 8/13 3/14 6. Establish an Abatement Fund 9/13 3/14 7. Conduct comprehensive municipal code review to identify possible amendments to code to facilitate code enforcement efforts. 11/13 08/14 Rental Inspection 1. Identify best practices and complete a draft outline of the program 8/13 11/13 2. Conduct outreach with stakeholders to obtain input on the draft program outline 9/13 to 3/14 9/13-07/14 3. Review stakeholder input with Council and receive policy direction 4/14 11/14 4. Revise program outline and draft an ordinance 5/14 7/14 5. Conduct outreach with stakeholders on the revised program outline and ordinance 6/14 9/14 6. Agendize the Ordinance for public hearing and Council adoption 7/14 04/15 7. Begin rental inspection program if adopted by the City Council 3/15 9/15 Street Cleanliness 1. Identify problematic areas 10/13 Complete E-7 B2 - 132 MAJOR CITY GOALS – NEIGHBORHOOD WELLNESS INITIATIVES Task Current Revised 2. Develop informational materials and delivery methodology to educate residents on their sweeping day and the benefits of keeping cars off the streets for the sweeping 12/13 2/14 3. Evaluate informational campaign effectiveness 3/14 6/14 4. If needed, develop and implement enforcement activities 10/14 Public Safety Enforcement 1. Implementation and coordination of CAT team to address neighborhood concerns 7/13 Completed 2. Continue the development of park and neighborhood officers within identified geographical boundaries for residential connectivity and collaboration Ongoing Completed Neighborhood Initiatives 1. Obtain Council direction for guidelines and process for “Neighborhood Match” grants for neighborhood improvement projects 1/14 11/14 2. Develop database of neighborhood boundary areas and contact information 1/15 3. Complete neighborhood tree plantings – as requested Ongoing 4. Participate in Neighborhood Civility Project Ongoing Status Summary: 10% Complete. The following is a summary of accomplishments and important next steps for this goal: Proactive Code Enforcement 2. Quarterly Newsletter – staff has produced three newsletters, (spring 2013, summer 2013 and fall 2013). The newsletter email distribution list is comprised of approximately 70 residents, several of which in turn forward the newsletter to their neighbors. The Newsletter is also shared with Cal Poly and Cuesta administration. Content is comprised of updates on existing neighborhood related projects as well as information on upcoming meetings, events and programs. The newsletter is also posted on the Police Department page of the City website and the link is posted to the Neighborhood Services Facebook page. The Winter edition of the newsletter will be distributed in February. 3. Noise abatement and parking enforcement by SNAP – The SNAP schedule and responsibilities have been fine tuned. SNAP is now reporting for shifts earlier as to better enforce residential parking districts. SNAP is also responding to noise complaints during all six weekly shifts. Two SNAP teams are scheduled for traditionally busy times (start of school, Halloween, etc.) to allow for quicker response time to noise complaints. Additionally, they are assisting with graffiti abatement, tagging abandon vehicles for tow and abandoned bicycle tagging and retrieval. This task has been successfully implemented and SNAP will continue to enforce parking and noise standards in the neighborhoods. 4. Outreach – with the amendments to Safety Enhancement, an extensive outreach strategy was put into place in August and September. All property owners with business tax licenses were mailed a postcard explaining the safety enhancement changes. Door hangers were distributed to over 3,000 residences in the neighborhoods which had a high percentage of student age residents. The door hanger shared safety enhancement and “Avoid Party Regret” information as well as “how E-8 B2 - 133 MAJOR CITY GOALS – NEIGHBORHOOD WELLNESS INITIATIVES to be a good neighbor” reminders. Two ads were run in the Mustang Daily, a full page in the WOW edition and a quarter page in the Back to School edition and continued the safety enhancement and “Avoid Party Regret” messaging. The Office of Neighborhood Services Facebook page was updated daily with rotating safety enhancement, “Avoid Party Regret” and be a good neighbor message. Staff attended a variety of in-person events to share noise abatement information: Cuesta new student orientation in August, WOW leader training prior to the start of WOW, two-day WOW resource fair for new students, Inter-fraternal Council, PanHellenic Council, four fraternity chapter meetings and one sorority chapter meeting. Staff presented to the Neighbors North of Foothill annual meeting in mid-November and shared information on the Neighborhood Officer program and answered a variety of questions posed by the resident attendees. Outreach for Halloween included print ads in the Mustang Daily, New Times and posters distributed by the Downtown Association for food and beverage outlets. Cal Poly and Cuesta administration assisted with electronic distribution of the Halloween enforcement information. Neighborhood Wellness meetings continue to be held bi-monthly at the Ludwick Community Center. Recent topics of discussion have included the CAT team, open space and creek winterization, Neighborhood Officer Program and the Civility Working Group. Upcoming topics will include residential drought and city water conservation, the Cal Poly Off Campus Coordinator’s student education program, street sweeping and the proposed rental inspection program. Work has not begun on developing Neighborhood Match grant guidelines for neighborhood improvement projects. This effort will be picked up in the spring and will be presented to Council in Fall 2014. 6. The two interns from Germany and the fellow in the City Attorney’s Office are collaborating on multiple fronts to improve the overall citation appeals process, developing a lien process that is outlined in State law and the City’s municipal code. Additionally, staff is doing research on the establishment of an abatement fund to assist with abatement efforts when exigent health and safety conditions exist that require immediate attention and action. The first phase of proposed changes to the City’s code enforcement program began with a review of proposed changes to the City’s appeals process. Once these changes are implemented, the focus will shift to presenting different enforcement tools and the establishment of an abatement fund to address immediate health and safety issues. Staff appeared before City Council on January 7th seeking input to the citation appeals process. Council directed the process would have two levels of appeal with second level administered by the Construction Board of Appeals. Rental Inspection A Draft Project Plan for the development of a Rental Housing Inspection Program was presented to the Development Oversight Committee in October 2013 and it is being further refined. Two interns from the University of Ludwigsburg, Germany, arrived on October 21st and assisted with research through January 16, 2014. The research provided an overview of other programs that have been implemented throughout the state. This information provides a basis for identifying the range of best practices and options available for possible inclusion in a proposed program for San Luis Obispo. These options will be presented to the City Council in November 2014 when the consider provides policy direction based on a review of program options. Street Cleanliness Operation Clean Sweep is underway for street cleanliness. Information on where to find out what day your street is swept is being provided through newspapers, Facebook, the City’s website, Channel 20, and the spring Resource Newsletter that goes out to households. Residents are being encouraged to keep their vehicles off the street during their sweep day. Public Safety Enforcement 1. CAT Team – staff has assigned two officers who are currently working in the CAT Team capacity addressing neighborhood concerns. The CAT Team continues to act in this capacity. E-9 B2 - 134 MAJOR CITY GOALS – NEIGHBORHOOD WELLNESS INITIATIVES 2. Development of a Neighborhood Officer Program – Patrol officers are currently assigned to thirteen different geographical areas within the City. A link on the City’s website was created for the community to find out who their neighborhood officer is and how to contact them. Additionally, community members can also access specific crime data within their identified neighborhood. Since its inception in November 2013, the link has received about 1,900 visits, of which approximately 1,140 were new visitors. Neighborhood Initiatives Staff is participating in the Civility Working Group, a collaborative effort between residents, Cal Poly, Cuesta College and the City of San Luis Obispo to address issues of neighborhood wellness. Several objectives have been identified and tasks assigned. City staff are the “champions” for two of these objectives (#2 and #5). Objective #2 (Define stakeholders needs and success) intends to develop a “clear picture of various stakeholders perceptions”. Then define a mutually agreed to definition of success as it relates to changing the culture to achieve the overall vision of a shift in social behaviors that results in “an environment that fosters mutual respect and understanding”. With the assistance of an intern from Creative Mediations (supported by the Student Community Liaison Committee and a subcommittee of the Neighborhood Civility Working Group) a project plan has been created. This plan includes a variety of ways to collect opinions and to reach consensus definition of success. Objective #5 Engage Stakeholders: Review Current Educational and Information Efforts is currently being addressed by staff. The task includes the following steps: inventory information channels to residents, students, and landlords, examine content and effectiveness of educational efforts by Cal Poly, Cuesta, City, student and resident groups, compare to identified best practices, and develop Education-Communications Plan(s), including input on development of messages, advertising, and other outreach from residents as well as student leadership, campus administration, city leadership (staff and elected) and other stakeholders on problem definition and solutions. The inventory of information channels is in draft form and the subcommittee for Task 5 will be examining effectiveness in mid-February 2014. E-10 B2 - 135 MAJOR CITY GOALS – SUSTAIN ESSENTIAL SERVICES & FISCAL HEALTH SUSTAIN ESSENTIAL SERVICES, INFRASTRUCTURE, AND FISCAL HEALTH Objective: Sustain essential services, infrastructure, and fiscal health: preserve public health and safety and provide essential services in line with residents’ priorities and sustain the City’s short and long term fiscal health by planning future revenues (including renewal of Measure Y or an alternative measure), while implementing contingency planning, efficiency measures, and cost containment strategies including implementation of the Compensation Philosophy and monitoring further pension and benefit issues. Action Plan: Task Current Revised Plan future revenues including renewal of Measure Y or an alternative measure, as well as contingency planning 1. Create a nine-member Advisory Committee appointed by the City Council to guide outreach efforts, advise staff in the creation of the outreach effort, and implementation of the Major City Goal work plan, as well as provide advice and counsel to the City Council regarding future revenues. 7 – 8/13 Complete 2. Analyze Measure Y revenues and expenditures and identify community-wide benefits generated through the use of this local revenue source. 8 – 9/13 Complete 3. Conduct a survey regarding residents’ priorities and report the results back to the community. 9/13 11/13 4. Conduct study session to review options for alternative revenue measures, advisory measures, or other revenue alternatives in line with residents priorities. 12/13 5/14 with Committee recommendations 5. Prepare background information and alternatives for contingency planning and conduct a series of study sessions with the City Council regarding likely budget reductions and other contingency planning that would need to occur if Measure Y, or a different revenue measure, is not reauthorized. 7/13 – 2/14 7/14 6. Provide information to the community regarding the benefits of locally controlled revenue sources, such as Measure Y, through a variety of methods and informational outlets, including: a. Organize a speakers bureau of community members to engage the community about the benefits of Measure Y b. Make staff available to present information regarding Measure Y benefits at a wide variety of community meetings and to service organizations c. Present useful information about the benefits of Measure Y on the City’s website d. Use Facebook and Twitter to highlight key information and bring interested citizens to the website e. Direct mailing to registered voters. 1 – 11/14 7. Conduct annual Measure Y Community Forum 3/14 8. Conduct study session to review options for alternative revenue measures, advisory measures, or other revenue alternatives in line with residents priorities. (To be discussed with the presentation of the Local Revenue Measure Advisory Committee Final Report.) 5/14 4/14 E-11 B2 - 136 MAJOR CITY GOALS – SUSTAIN ESSENTIAL SERVICES & FISCAL HEALTH Task Current Revised 9. City Council consideration of a ballot measure to reauthorize the City to collect a ½- cent sales tax, or authorize a different revenue measure if in line with residents’ priorities. 5/14 7/14 10. If reauthorization of Measure Y or a new revenue measure is not placed on the ballot, develop contingency plans for necessary, future budget reductions. 7/14 11. If a proposed revenue measure fails at the ballot box, begin to implement contingency plans for necessary, future budget reductions. 11/14 Continue to closely review and monitor the City’s fiscal condition 1. Update General Fund Five-Year Forecast at least twice annually, at mid-year and with the recommended budget while ensuring that effective revenue and expenditure trend monitoring tools and processes are utilized. Ongoing 2. Prepare focused reports on areas of interest to City Council and management such as projected pension cost trends, insurance program costs, and investment performance and strategies. Ongoing 3. Beginning in 2014-15, self-assess one percent of salaries to be used to reduce CalPERS obligation. Ongoing 4. Present a cost benefit analysis to Council regarding the City’s ability to make payments on the CalPERS Tier 1 Safety Side Fund, pensions, or to offset ongoing employer rate increase. 4/14 Continue emphasis on effectiveness and efficiency of the City organization 1. Continue to perform organizational reviews; prioritizing the implementation of recommendations focused on improving effectiveness and efficiency. Ongoing 2. Continue to review and implement ideas for savings or increased revenues as recommended by community members and staff. Ongoing 3. Continue use of benchmarking and best practice reviews in evaluating recommendations. Ongoing 4. Implement benchmark analysis to compare key financial and outcome measures with comparable jurisdictions. 9/13 5/14 5. Identify opportunities for managed competition in City functions as identified from the results of benchmark analysis and organizational or best practices reviews. Ongoing 6. Examine feasibility of establishing and monitoring performance measures instead of workload measures. 12/14 7. Evaluation of cost effectiveness of leasing instead of purchasing equipment. Ongoing E-12 B2 - 137 MAJOR CITY GOALS – SUSTAIN ESSENTIAL SERVICES & FISCAL HEALTH Identify and address long-term liabilities that are important to the City’s fiscal sustainability 1. Refine the five-year capital improvement program that will responsibly protect the City’s infrastructure assets, including building facilities, and develop a plan for funding as needed. Ongoing 2. Establish replacement and funding plans for equipment. 10/13 – 2/14 12/14 3. Establish replacement and funding plans for information technology assets. 10/13 – 2/14 12/14 5. Periodically review liability and workers compensation claims trends and update a plan of funding if needed. Ongoing 6. Monitor liability and workers compensation claims to ensure best practices in prevention are implemented and costs reduced. Ongoing 7. Provide preliminary notice to the CJPIA of City’s intent to explore other coverage options. 7/13 Complete 8. Thoroughly review liability and workers compensation coverage, claims history, and other services provided by CJPIA and explore alternatives that ensure appropriate risk management and cost effectiveness. 7/13 – 4/14 9. Engage an outside consultant to initiate a cost basis analysis to evaluate and document the costs and impacts of the City’s Utilities operations on General Fund supported operations and facilities, including but not limited to City streets and right-of-way, to ensure appropriate and supportable franchise in-lieu or other appropriate charges to the water and sewer funds. 7/13 – 9/13 10/13 – 3/14 10. Report options to Council and provide recommendation. 4/14 6/14 Continue to monitor personnel costs and develop strategies to effectively manage the cost. 1. Continue to monitor personnel cost. Ongoing 2. Continue to monitor and support appropriate pension reform Ongoing 3. Continue to monitor pension costs and consider strategies to effectively reduce liabilities associated with the pension program. Ongoing 4. Analyze the effects of the “pay or play” mandate pursuant to the Affordable Care Act and recommend a plan of funding if applicable. 11/13 Complete 5. Assist in the development and coordination of the HRACC compensation and benefits survey to ensure appropriate local private sector data is available for use in future analysis. Participate in the survey. 7/13 – 12/13 Complete 6. Conduct a market compensation comparison of benchmark classifications in SLOCEA and management. 1/14 – 6/14 11/13-6/14 7. Develop a labor relations strategy to guide upcoming negotiations. 1/14 – 12/14 E-13 B2 - 138 MAJOR CITY GOALS – SUSTAIN ESSENTIAL SERVICES & FISCAL HEALTH 8. Conduct labor negotiations consistent with Council’s labor relations strategy with represented employee groups; initiating negotiations prior to expiration of current agreements 9/14 –6/15 Status Summary: 20% Complete. The following is a summary of accomplishments and important next steps: Plan Future Revenues The City Council has appointed 10 residents to serve on the Local Revenue Measure Advisory Committee (LRMAC). The LRMAC is supported by a facilitator, Dale Magee of Catalyst Consulting, and has been meeting regularly. The mission and responsibilities of the LRMAC include: 1. Analyze the City’s stewardship of Measure Y resources 2. Seek community input regarding their preferences and local revenue measure spending priorities 3. Develop recommendations specific to the November 2014 General Election regarding alternatives for reauthorization of Measure Y, or the creation of a new revenue measure 4. Assist the City in performing community outreach and education. Prior to November 1, the LRMAC held three meetings. The first meeting covered Measure Y Fundamentals, Services and Outcomes; the second meeting covered rules and regulations relating to revenue measures and an overview of all of the different revenue measures considered across the State in 2012; the third meeting focused on community priorities and included a presentation from the City’s public opinion research consultant. In January 2014 the LRMAC selected a sub- committee to begin to write their final report and recommendations to the City Council. The full committee held two additional meetings in January to discuss its recommendations and review a draft version of the report. In addition, the LRMAC held a Measure Y Open House on November 21. The purpose of the Open House was to give the public an opportunity to speak directly with Committee members. The Open House was attended by over 70 members of the community and was very helpful for Committee members. The next major public information event will be the Measure Y Community Forum on March 19, 2014. Review and Monitor City’s Fiscal Condition 1. Staff presented the financial results of the 2012-13 Fiscal Year on December 10, 2013. At that time, the Five Year Fiscal Forecast was updated to reflect those results. A second update to the Fiscal Forecast has been prepared and will be shared with the City Council in advance of the February 18, 2013 City Council meeting. At that meeting, staff will review the updated forecast as well as the Mid-Year Budget Update that has been developed for 2013-14. 3. Staff has included in the Five Year Fiscal Forecast, a self-assessment cost equal to 1% of salary starting in 2014-15 and growing to 2% of salary starting in 2015-16 to reduce the impact of future PERS rate increases. Identify and Address Long Term Liabilities 6. & 7. - In April 2013, staff notified the California Joint Powers Insurance Authority (CJPIA) of its intent to withdraw membership from the liability and workers compensation programs effective July 2014. Staff prepared a project plan to guide a thorough evaluation of alternatives to the CJPIA. A consultant, Tom Sinclair of Municipal Resource Group, was retained to assist in this project. Mr. Sinclair has worked with staff to identify the risk management needs of the City including insurance coverage, training, and risk management consultation given the City utilizes a decentralized risk management model at this time. In January 2014 staff recommended to the City Council that the City should continue in a risk-sharing JPA model to meet ongoing risk management needs including workers’ compensation and liability coverage. Mr. Sinclair has identified several possible risk pools that will be evaluated to determine feasibility and fit with the City’s requirements. Ultimately a cost analysis will also be conducted. E-14 B2 - 139 MAJOR CITY GOALS – SUSTAIN ESSENTIAL SERVICES & FISCAL HEALTH Personnel Costs In October 2013 staff presented to Council an update on the Affordable Care Act (ACA) Employer Shared Responsibility Implementation and Council adopted a resolution establishing that the City will comply with the ACA, Employer Shared Responsibility. This provision, which goes into effect January 1, 2015, is more commonly referred to as the “Play or Pay Mandate” and requires that employers offer health insurance coverage that is “affordable” and of “minimum value” to “substantially all” of its full-time (on average 130 hour per month) employees and their dependent children. While this provision doesn’t go into effect until January 2015, the City must establish a measurement period and start preparing for the detailed administration of this provision. Further, Council approved staff’s proposal for ensuring health coverage was affordable to temporary full time employees under the ACA. HR staff participated in the development of the HRACC Compensation and Benefit Survey and also completed the survey when it was sent out. We are awaiting results that will be used as a data point for the 2014 Compensation Study. On November 5, 2013 staff presented a report approved by Council that outlined the plan and approach to conducting the 2014 Benchmark Compensation Study along with how the results of the Study will help inform Council’s development of labor relations objectives. The 2014 Benchmark Compensation Study is currently underway and scheduled to be completed June 2014 and presented to Council in July 2014. The consultant, Geoffrey Rothman met with staff, the employee compensation committee, and the Personnel Board on November 18th and 19th, 2013 to review the project plan and provide an overview of compensation studies. HR staff has since collected data that the committee will be using in January and February 2014 to select the comparison organizations, benchmark classifications and data points. Current workload is delaying the completion of the calculations needed to determine the replacement funding needs for equipment and information technology assets. Peripheral work is being completed at this time. E-15 B2 - 140 MAJOR CITY GOALS – BICYCLE AND PEDESTRIAN PATHS EXPAND BICYCLE AND PEDESTRIAN PATHS Objective: Expand bicycle and pedestrian paths to improve connectivity and safety, including continued progress on Rail Road Bicycle and Pedestrian Safety Trail and Bob Jones Trail, and pursuit of other options contained in the Bicycle Transportation Plan. Action Plan: Task Current Revised Railroad Safety Trail 1. Complete design of Class I bikeway – Taft to Pepper (contingent on TIF and future grant funding availability). 6/14 Bob Jones City-to-Sea Trail 2. Complete construction of Class I bikeway connection to LOVR 2/14 3/14 3. Complete route planning of Class I bikeway – Octagon Barn Connection. 4/14 6/14 4. Begin design of bicycle facilities as part of the Prado Road Bridge at San Luis Creek project. (Contingent on TIF and debt financing funding availability). 7/13 Completed Other Bicycle and Pedestrian Paths 1. Complete design and begin construction of bicycle facilities as part of the LOVR interchange project (contingent on TIF, grant, and debt financing funding availability).* 10/14 2. Construct Class II bike facilities on Prado Road as part of the Serra Meadows Project (constructed by developer). 6/14 3. Construct miscellaneous bikeway improvements identified in the Bicycle Transportation Plan. Ongoing 4. Construct sidewalk ramps and repair sidewalks. Ongoing 5. Maintain pedestrian and bicycle paths. Ongoing Other Efforts that Support Bicycling and Walking 1. As time permits, seek funding for the construction of bikeways and pedestrian facilities within the City. Ongoing 2. Complete curb ramps, sidewalks, on-street bicycle facility paving, drain grate upgrades, and striping improvements in conjunction with City Street paving projects. Ongoing 3. Perform pavement maintenance on bicycle and pedestrian paths. Ongoing E-16 B2 - 141 MAJOR CITY GOALS – BICYCLE AND PEDESTRIAN PATHS Task Current Revised 4. Complete 2013- Bicycle Transportation Plan Update 8/13 Complete 5. Conduct biennial vehicle, bicycle, and pedestrian traffic counts, speed surveys and travel time studies (contingent on TIF funding availability).* Ongoing 6. Continue bicycling educational efforts. Ongoing 7. Continue alternative transportation marketing efforts Ongoing 8. Continue annual Halloween Safety campaign Ongoing 2013 Complete 9. Continue annual bicycle safety rodeo. Ongoing 10. Continue providing more short term bicycle parking through the Racks with Plaques bicycle rack donation program. Ongoing 11. Continue to implement General Plan and Specific Plan transportation policies, programs, and improvements via private development projects. Ongoing 12. Promote bicycling among City employees. Ongoing *Projects that are also identified in the “Improve Transportation” Other Important Objectives. Costs for these tasks are accounted for in the Other Important Objectives. Status Summary: 30% Complete. The following highlights key accomplishments so far and important next steps: Railroad Safety Trail 1. Taft to Pepper - Plans for the route alignment have advanced however, staff continues to work with Union Pacific to determine the most appropriate route through this area. Refined project cost estimates indicate that the current budget will likely increase significantly. Therefore staff is investigating alternatives that will be brought to Council as part of a study session in late spring/early summer to discuss alternatives and recommendations for construction. The City was successful in getting partial funding for the RRST – Taft to Pepper as part of the 2013 SLOCOG Call for Projects grant completion however the amount awarded was limited to the local match that may be required to apply for State Funding through the Active Transportation grant process that will be held in spring 2014. Bob Jones City-to-Sea Trail 3. Octagon Barn Connection – Planning for this segment is substantially complete and has been reviewed by City BAC and PC along with the County’s P&R Commission, Bicycle Advisory Committee and County Trail Committee. However, adjacent property owners have requested additional environmental review at this time (prior to Council consideration) and staff is reviewing how best to address this concern prior to final public hearing on route alternatives. Other Bicycle and Pedestrian Paths 4. Sidewalk repairs and some ramp work is ongoing, using the Job Order Contract approved by Council, and the 2013 ramp construction project is approximately 15% complete. E-17 B2 - 142 MAJOR CITY GOALS – ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENT Objective: Implement the adopted Economic Development Strategic Plan – which includes an emphasis on head-of- household jobs, collaboration, and measureable outcomes. Action Plan: Task Current Revised Break Down Barriers to Job Creation: Permit Processing Improvements 1. Strategy 1.1: Identify opportunities for permit streamlining with the goal of reducing permit processing times, seeking opportunities to increase internal coordination, and improving cross department focus on development review. 7/13 – 12/14 Break Down Barriers to Job Creation: Infrastructure and Fees 1. Strategy 1.5(a): Complete an infrastructure financing assessment to establish priorities for City investment in infrastructure expansion. See LUCE Update and EIR 08/14-06/15 2. Strategy 1.5(e): Identify one or more strategic infrastructure projects that the City could invest in to benefit residents, businesses, employees, and property owners by providing a significant return on investment to the City in the form of increased economic activity. 9/13 – 6/14 Pending Outcome of LUCE Update Break Down Barriers to Job Creation: Key Sites 1. Strategy 1.8: Prepare and update a portfolio of “available properties” ready for development in accordance with the findings of the permit process streamlining outcomes. 8/13 – 6/14 Pending Outcome of LUCE Update 2. Strategy 1.9: Evaluate the supply of land and space for residential and non-residential development in the expansion areas of the City and prioritize areas with the greatest potential for near term development that supports new head of household jobs. (This effort will follow the LUCE Update and EIR). 7/14 – 6/15 Actively Support Knowledge and Innovation: Entrepreneurship/Access to Broadband 1. Strategy 2.2: Convene a cross-department team at the City with input from the local industry experts, to facilitate expansion of broadband infrastructure including the policy for public- private partnerships and related endeavors. 7/13 In Process Promote and Enhance the San Luis Obispo Quality of Life 1. Strategy 3.3: Prepare a City of San Luis Obispo “view book” to facilitate business location services and use the view book as a tool for business attraction. (This effort is coordinated with #3, Strategy 1.8 above). 7/13 – 6/14 In Process Pending City Website project 2. Strategy 3.6: Explore opportunities to market the City as a place to do business via the airport and train depots. Ongoing E-18 B2 - 143 MAJOR CITY GOALS – ECONOMIC DEVELOPMENT Task Current Revised Build on Existing Efforts and Strengthen Regional Partnerships 1. Strategy 4.2: Work with regional partners such as the Chamber of Commerce and EVC to bring attention to existing businesses. Ongoing 2. Strategy 4.3 (b): Through policy changes, enhance data collection using the business licensing program (HdL) in order to facilitate collection of employment and other data about local companies. 9/14 – 6/15 3. Strategy 4.3(c): Identify all businesses with ten or fewer employees within the City by conducting a survey of business owners and developing an action plan that helps businesses of this size grow. 7/14 – 6/15 Status Summary: 20% Complete. The following is a summary of accomplishments and important next steps for this goal: Break Down Barriers to Job Creation 1. Permit Processing Improvements: The recommendations from the Community Development Departments (CDD) Organizational Assessment have been used to develop a project plan to execute the permit streamlining process. A Development Review Team (DRT) is in place to ensure a consistent and expedient approach across all involved departments. Changes to the DRT process are being implemented to provide a mechanism to track overdue plan checks and track work flow commitments. A Continuous Improvement Group (CIG) has been formed to ensure that there is cross department and cross functional input, action and alignment with the improvement process. 2. Infrastructure and Fees: The first phase of the project with the Consultant (EPS) covering information gathering and plan development has been completed. EPS has also led the first of the three planned sessions to lay the foundation for the future direction of infrastructure financing in the City. We have started identifying opportunities for investment in infrastructure but the majority of this work is dependent on the outcome of the business item in March and the final LUCE update. This is because the LUCE update will identify new infrastructure that is required to support new development opportunities and thus a comprehensive look at the City’s infrastructure and fee programs cannot be completed until the LUCE is adopted. Actively Support Knowledge and Innovation 1. Entrepreneurship/Access to Broadband: The City Council has approved an agreement with Digital West that will significantly expand the access to broadband in the City, particularly in the downtown. Staff is now working on forming a cross functional team with local industry experts will be formed and a charter and work program will be created for the team. Promote and Enhance the San Luis Obispo Quality of Life 1. View Book Creation: Initial discussions on the creation of the view book have been completed. Finalization of the path forward is dependent on the outcome of the City’s new website project. Additional Activities Economic Development Dashboard: The process has been started to build an economic development dashboard to help assess the impact of our activities as well as quantify the economic health of the City. The San Luis Obispo Chamber of Commerce, the Economic Vitality Corporation and other stakeholders are being consulted on this project. E-19 B2 - 144 MAJOR CITY GOALS – ASSESS & RENEW THE DOWNTOWN ASSESS AND RENEW THE DOWNTOWN Objective: Assess and renew the Downtown consistent with the adopted Land Use and Circulation Element (LUCE) update, revitalize Mission Plaza (including consideration of eliminating dogleg), support the continued development of cultural attractions, enhance lighting/safety components, reduce incidents of illegal activity and adverse behaviors through enhanced public safety presence and enforcement, providing pedestrian-friendly walkways, and address limits on alcohol establishments. Action Plan: Task Current Revised 1. Utilize Volunteers in Police Service (VIPS) as downtown patrols 1/14 2. Present concept of an Ambassador Program to the Downtown Association for consideration. 1/14 Complete 3. Community Action Team Downtown Deployment (CAT) 7/13 Complete 4. Dedicated School Resource Officer Daytime Downtown Deployment 7/13 Complete 5. Dedicated Daytime Overtime Downtown Deployment 9/13 Complete 6. Two Daytime Downtown Officers Deployment 1/14 Ongoing 7. Public Safety Video Purchase and Implementation in Mission Plaza area 7/13 3/14 8. Extend Mission Plaza Restroom Hours Ongoing Complete 9. Retrofit Broad/Marsh restroom and open 9/13 11/13 10. Research additional restroom options and constraints 12/13 3/14 11. Council update on additional hours of restroom availability impacts, and recommendations for additional implementation efforts. 3/14 4/14 12. Consideration of a moratorium on additional alcohol outlets 8/13 Complete 13. Mission Plaza Master Plan Initiation 1/14 Awaiting funding 14. Assess public safety access to existing business camera systems 2/14 15. Employ portable cameras in secluded high crime public areas. 6/14 16. Alcohol Concentration Evaluation and Adoption of Code Amendments 11/14 17. Mission Plaza Master Plan Adoption 9/15 Awaiting funding 18. Mission Plaza Railing Upgrade Ongoing E-20 B2 - 145 MAJOR CITY GOALS – ASSESS & RENEW THE DOWNTOWN Task Current Revised 19. Removal and replacement of damaged or hazardous downtown trees and sidewalks 6/15 20. Downtown Renewal, including sidewalks and appurtenances 1/15 21. Initiate and Complete review of Special Event Policy and Use of Mission Plaza 1/15 Status Summary: 30% Complete. The following is a summary of accomplishments and important next steps for this goal: 2. Ambassador Program has been presented to the Downtown Association. At this time, the Downtown Association has no interest in pursuing the program. 3. CAT Team – staff has assigned two officers who are currently working in the CAT Team capacity addressing downtown concerns. The CAT Team continues to work in this capacity. 5. Downtown Daytime Overtime – officers are currently being assigned to the downtown area on an overtime basis. Overtime was scheduled as part of the Financial Plan from August – December 2013. 6. Two Daytime Downtown Officer Deployment – One officer has been assigned on a permanent basis and is currently working the assignment. Due to officer recruitment and retention challenges, the second position has not been filled; however, the department is using overtime to supplement the assignment. 7. Public Safety Video – staff has solicited bids and is reviewing vendor proposals. 8. & 9. Mission Plaza Restroom hours were extended to midnight in July. Re-commissioning of the Broad Street restrooms is complete and the restroom is open for late night use. Public Works alerted both the Police Department and the Downtown Association to share the news with potential “customers.” 12. Council held a Study Session in July 2013 regarding alcohol, and staff will be returning in spring of 2014 with further discussion. 13. & 17. The City was not successful in obtaining a grant for an analysis of Mission Plaza needs. If this work element is still desired, funding will need to be allocated from the General Fund. 14. Due to staff resources and I.T. workload, this task is not feasible at this time. 18. The first Plaza Railing project is under design. Priorities have been established based on areas of the railing previously identified by the JPIA. E-21 B2 - 146 MAJOR CITY GOALS – SKATE PARK CONSTRUCTION SKATE PARK Objective: Complete construction of the skate park, utilizing a combination of public funds, donations, and grant funding where possible Action Plan: Task Current Revised 1. Submit application for storm water permit 9/13 Completed 2. Skate Park marketing plan 11/13 Completed 3. Receive building and storm water permits 12/13 1/14 4. Council approval of Skate Park Public Art design and funding 12/13 Completed 5. Issue plans and specifications for construction 2/14 1/14 6. Award park construction and Public Art contracts 4/14 7. Groundbreaking Spring 2014 8. Start construction 6/14 9. Complete construction 12/14 10. Identify and request maintenance resources 12/14 11. Open Santa Rosa Skate Park 1/15 12. Maintain and operate the Santa Rosa Skate Park Ongoing Status Summary: 10% Complete. The following is a summary of accomplishments and important next steps for this goal: The construction of the Skate Park Project is progressing as outlined in the Major City Goal Action Plan. At this point 100% of the plans, including erosion control, have been completed. Integration of the final public art component into the plans has occurred. It is estimated that bid documents will be ready to advertise for construction in January 2014. A project “Notice of Intent” has been prepared and has been submitted to the California State Water Resources Control Board. Additionally, plans were submitted to the Building Department in October and returned to staff with minor comments. Resubmission of the corrected plans and final Building Department review is anticipated to be completed by the end of 2013 with final review and approval in January 2014. 4. & 6.Skate Park Public Art - This project has differed from other public art projects in that the design for the artwork has been integrated into the actual project itself. For the City, this will be the first time that project construction and installation of public art components will occur simultaneously. The main “entrance” to the new multi-use zone will feature the principal public art components (concrete and metal shade trees) and landscaping. Public art has also been incorporated into the overall facility design to showcase the cultural elements being introduced into the expansion design including skateboarding, outdoor entertainment, walking fitness and community festivals. E-22 B2 - 147 MAJOR CITY GOALS – SKATE PARK CONSTRUCTION The Skate Park Public Art “Concrete Jungle” Project continues to progress alongside the park’s construction schedule. The conceptual public art design was approved by the Parks and Recreation Commission at its November 6, 2013 meeting and by the Architectural Review Commission at its December 2, 2013 meeting. The City Council provided the final approval of the Skate Park public art design at its December 10, 2013 meeting. Council will determine the levels of public art implementation and funding at the time of construction award, anticipated in late Spring 2014. At that time, funding available for the construction of the Public Art will be specifically identified and will include the existing balance in the Public Art fund which continues to receive funds from developer in-lieu fees and occasional private donations. E-23 B2 - 148 OTHER IMPORTANT COUNCIL OBJECTIVES – OPEN SPACE OPEN SPACE Objective: Commit funding to expand open space and provide adequate staffing, planning, and other resources to maintain and enhance open space quality and amenities. Action Plan: Task Current Revised Real Property Acquisition / Administration and Conservation Planning 1. Pursue key acquisition opportunities including additions to the Reservoir Canyon Natural Reserve and the Irish Hills Natural Reserve, as well as conservation easements which will protect larger landscapes including scenic views and City gateways, headwaters to San Luis Obispo Creek and several perennial streams, and valuable habitat areas. Ongoing 2. Ongoing annual monitoring of all City-owned space preserves, open space easements, and conservation easements. Ongoing 3. Complete Reservoir Canyon Natural Reserve Conservation Plan to include Upper Goldtree property addition. 7/13 Complete 4. Complete update of the Laguna Lake Management Plan. 9/13 7/14 5. Update Conservation Guidelines for open space lands within the City of San Luis Obispo to address minor inconsistencies with other policy documents. 6/14 12/14 6. Update the Saving Special Places report pertaining to strategic open space acquisition priorities. 12/14 7. Prepare the Islay Hill, Righetti Hill, and Terrace Hill Conservation Plans 6/15 Land Restoration, Stewardship, and Monitoring 1. Continue sediment removal project at Prefumo Creek inlet to Laguna Lake and continue monitoring of four other sediment removal locations completed in 2012. Ongoing 2. Continue vegetative stabilization efforts associated with road decommissioning project at Froom Ranch. Ongoing 3. Ongoing community outreach and education in partnership with ECOSLO Ongoing 4. Creek and flood protection within the City’s natural waterways through Zone 9 projects and coordination and oversight of the Stormwater Management program. Ongoing Complete for 2013-14 5. Ongoing monitoring, remedial action, and enhancement, as needed, of existing mitigation sites. Ongoing 6. Complete pampas grass treatment at Froom Ranch 3/14 7. Install wetland meadow and riparian planting / invasive species control at Calle Joaquin Agricultural Reserve suing awarded EEMP grant funds 12/14 E-24 B2 - 149 OTHER IMPORTANT COUNCIL OBJECTIVES – OPEN SPACE Task Current Revised Open Space Improvements, Maintenance, User Safety, and Patrol 1. Continue patrol of the City’s open space areas and creek corridors Ongoing 2. Continue maintenance of existing City open space trails Ongoing 3. Continue to coordinate 65 trail work days (3,500 hours) a year utilizing volunteers Ongoing 4. Continue to partner with the Central Coast Concerned Mountain Bikers on various open space improvements and maintenance. Ongoing 5. Continue to construct additional trails at Froom Ranch consistent with the approved Irish Hills Conservation Plan. Ongoing Two new trails now complete 6. Evaluate and implement long term solution to address unsanctioned and user created trails at Bishop Peak, and continue to evaluate and address trail head parking burdens in surrounding neighborhoods with signs, patrol, and dissemination of directional information on the City’s website, trail maps, and in SLO Stewards. Ongoing 7. Evaluate and implement long term solution to maintain singular and sustainable access trail at the Maino Open Space. Ongoing 8. Continue Ranger Led Hikes in the City’s open space on a monthly basis and upon request. Ongoing 9. Continue Ranger Service environmental education program and Junior Ranger Camp to increase open space knowledge and user safety. Ongoing 10. Increase staffing resources in the Ranger Service program to provide increased user safety and amenities including but not limited to added open space improvements, maintenance, and patrol. Ongoing Complete 11. Re-route and construct a trail connecting Froom Ranch to the Bureau of Land Management’s parcel in accordance with the Memorandum of Understanding with the Department of Interior. 6/15 12. Install new trail signs and kiosks including but not limited to: Froom Ranch, Froom- Johnson Ranch connector trail, and Reservoir Canyon. 6/15 13. In coordination with Cal Poly engineering volunteers complete the Reservoir Canyon bridge repairs. 6/15 14. Develop donation station program; creating avenue for further support of open space maintenance and preservation (opportunities include Iron Rangers in possible partnership with Public Art). 6/15 Urban-Wildland Interface Fuel Reduction 1. Bowden Ranch Open Space Eucalyptus thinning Ongoing Complete 2. Irish Hills Open Space Eucalyptus thinning and mowing Ongoing 3. Terrace Hill Open Space mowing Ongoing E-25 B2 - 150 OTHER IMPORTANT COUNCIL OBJECTIVES – OPEN SPACE Task Current Revised 4. Islay Hill Open Space mowing Ongoing 5. Maino Open Space / Lemon Grove Eucalyptus thinning Ongoing Status Summary: 15% Complete. The following is a summary of accomplishments and important next steps for this goal: Real Property Acquisition/Administration and Conservation Planning Staff is currently working on several conservation land acquisitions, to include both purchases and dedications. These projects, if successful, total approximately 2,100 acres of important open space lands in and around the City. Annual monitoring of open space properties and conservation easements are on schedule. The Reservoir Canyon Natural Reserve Conservation Plan was approved by the City Council at its November 19th meeting. The Laguna Lake Management Plan Update is in plan preparation stage and will begin being heard by appropriate advisory bodies in early 2014, with a City Council hearing scheduled for July 1st. A Cal Poly student has begun work on the Terrace Hill Conservation Plan as her senior project, with oversight and guidance from the Natural Resources Program staff. Land Restoration, Stewardship, and Monitoring The City Biologist continues to track and monitor numerous new and existing sediment removal projects, as well as provide oversight to annual “winterization” efforts in our waterways to help prevent flooding, which is complete for 2013- 14. The wetland meadow project at the Calle Joaquin Agricultural Reserve is scheduled for phase I installation in February. The pampas grass removal project at Froom Ranch is in planning stages with staff currently working to requisition project materials and appropriate landscape restoration contractors. ECOSLO is in contract to continue to assist the Natural Resources Program with community outreach through SLO Stewards and the Natural San Luis Docents program. Open Space Improvements, Maintenance, User Safety, and Patrol During summer 2013, the Parks and Recreation Department hosted two "at capacity" Junior Ranger Camps; educating approximately 40 children about local plants, animals, and sustainable practices in the City's natural areas. As approved in the 2013-15 Financial Plan, a full-time permanent Ranger Maintenance Worker was hired and started work for the Parks and Recreation Department on October 24. Ongoing work on open space maintenance, user safety and patrol continues. On November 16, in partnership with the Central Coast Concerned Mountain Bikers, City Rangers coordinated the construction of two new trails totaling approximately one half of a mile in the Irish Hills Natural Reserve that are now open for public use. Regular Saturday work days and Eagle Scout projects have occurred throughout the summer and fall seasons accomplishing ongoing maintenance in the open space areas. Urban-Wildland Interface Fuel Reduction Annual mowing and weed abatement was completed for summer 2013. A fuel reduction project was conducted for the Bowden Ranch area in mid-January 2014, and will be followed by work at the Cerro San Luis / Maino Open Space and Irish Hills Natural Reserve. Fire Department staff secured a $10,000 Fire Safe Council grant to match the City’s funds for these efforts. A Cal Poly master’s student in City and Regional Planning is preparing a Vegetation Management Plan in coordination with the Natural Resources Program and Fire Department for her graduate project. E-26 B2 - 151 OTHER IMPORTANT COUNCIL OBJECTIVES – INFRASTRUCTURE MAINTENANCE MAINTENANCE OF CITY INFRASTRUCTURE Objective: Enhance maintenance of City infrastructure including attention to streets, sidewalks, pedestrian walkways, lighting, bicycle paths, creek and flood protection, parks, open space, urban forest, public buildings, and other City-owned property. Action Plan: Task Current Revised Buildings 1. Facility Maintenance Ongoing 2. Jack House exterior painting 6/14 3. Jack House restroom remodel 6/14 4. Police station HVAC replacement 6/15 5. City Facility parking lot maintenance 6/15 6. City Hall perimeter drain 6/15 7. Minor exterior building painting 6/15 8. Fire Station & Corporation Yard roll-up door replacement 6/15 9. Golf Course restroom replacement design 6/15 Water 1. Distribution system and treatment facility maintenance Ongoing 2. Water Distribution system improvements – year 1 6/14 3. Telemetry system improvements 6/14 4. Stenner Canyon Raw Waterline replacement 6/15 5. Water Treatment Plant air compressor replacement 6/15 6. Water Distribution system Improvements – Year 2 6/15 7. Distribution pump station upgrade design 6/15 8. Serrano Tank replacement 6/15 9. Slack Tank replacement design 6/15 Wastewater E-27 B2 - 152 OTHER IMPORTANT COUNCIL OBJECTIVES – INFRASTRUCTURE MAINTENANCE Task Current Revised 1. Collection system and treatment facility maintenance Ongoing 2. Water Reclamation Facility major maintenance – year 1 6/14 3. Wastewater Collection system improvements – year 1 6/14 4. Water Reclamation Facility major maintenance – year 2 6/15 5. Wastewater Collection system improvements – year 2 6/15 Roadways 1. Roadway and traffic signal & lighting maintenance activities Ongoing 2. Street reconstruction & resurfacing – year 1 12/13 Complete 3. Street reconstruction & resurfacing – year 2 12/14 4. Prado Bridge deck overlay 6/15 5. Sidewalk repairs 6/15 6. Traffic sign maintenance 6/15 7. Marsh Street bridge design 6/15 8. Downtown lighted crosswalk replacement 6/15 Creek and Flood Protection 1. Creek encampment cleanup Ongoing 2. Storm drain system cleaning Ongoing 3. Annual creek winterization Ongoing 4. Johnson Underpass pump replacement 6/14 12/14 5. Broad & Leff culvert repair 6/14 6. Storm drain replacement – year 1 6/14 7. Storm drain replacement – year 2 6/15 8. Hathway & Murray culvert repair design 6/15 Parking 1. Structure and lot maintenance Ongoing 2. Parking lot resurfacing 6/14 Complete E-28 B2 - 153 OTHER IMPORTANT COUNCIL OBJECTIVES – INFRASTRUCTURE MAINTENANCE Task Current Revised 3. 919 Palm Structure stair rehabilitation 6/14 4. Marsh Structure light replacement 6/14 Transit 1. Bus stop shelter replacement 6/15 Parks, Tree, and Landscape Maintenance 1. Parks, trees, medians, roadway, and facility landscape maintenance Ongoing 2. Santa Rosa Park picnic & serving table replacement 6/14 3. Pathway maintenance – year 1 6/14 4. Sinsheimer Park playground equipment replacement 6/14 5. Pathway maintenance – year 2 6/15 6. Sinsheimer Stadium stair replacement 6/15 7. Mission Plaza rail replacement 6/15 8. Meadow Park light replacement 6/15 9. Downtown tree replacement & sidewalk repair 6/15 Swim Center 1. Swim Center maintenance Ongoing 2. Replace chemical pumps 6/14 Complete 3. Olympic pool plastering 6/15 Golf Course 1. Golf Course maintenance Ongoing Open Space 1. Open space and trail maintenance Ongoing City Maintenance & Asset Management 1. Complete implementation of Cityworks Asset & Maintenance Management Software 6/15 E-29 B2 - 154 OTHER IMPORTANT COUNCIL OBJECTIVES – INFRASTRUCTURE MAINTENANCE Status Summary: 15% Complete. The following is a summary of accomplishments and important next steps for this goal: Buildings 3. Jack House Restrooms award of construction is underway with a goal to complete construction in time for the upcoming “wedding” season. Quotations for painting work are being acquired to allow this work to be coordinated with the restroom upgrade. Tight bidding allowed the Gazebo reconstruction, originally planned for 2014-15 to be included in the bid with the restrooms, and will be completed in the same timeframe. 4. A HVAC unit at the Police Department and a rollup door at the Corporation Yard was replaced. Roadways 2. Street Reconstruction is complete on portions of California Blvd and Fredericks Street. 5. Sidewalk repairs are ongoing, using the Job Order Contract approved by Council. Creek & Flood Protection 3. During October and November, Natural Resources staff worked with contract service providers to clear excessive vegetation. Natural Resources and Public Works maintenance staff has teamed up to remove accumulated silt and drain pipe outlets in small open channel areas. Accumulations can cause backups in the system, aggravating flooding. 5. & 8. Broad & Leff, and Hathway & Murray culvert repairs were not ultimately funded as part of the adopted Financial Plan. These two projects were inadvertently left in the Action Plan. 6. The first year Storm Drain replacement project is under construction. Parking 1. Parking Lots 2, 3, 11 all completed for resurfacing and pothole remediation in November 2013. Swim Center 1. In addition to the Chemical Pump replacement, the Boiler replacement from the previous budget was completed along with a major repair of the circulation pump, and the new automatic vacuum robot replaced. City Maintenance & Asset Management 1. All maintenance staff launched the new Cityworks program during the last months of 2013, and recently reviewed the program status with the contract integrators to identify problem areas and needs. The staff will continue to learn and become proficient at using the program in the coming months. E-30 B2 - 155 OTHER IMPORTANT COUNCIL OBJECTIVES – IMPROVE TRANSPORTATION IMPROVE TRANSPORTATION Objective: Improve transportation – prioritize the construction of the Los Osos Valley Road (LOVR) overpass, invest in new sidewalks, bicycle paths, street lighting, curb cuts, and other amenities to improve the walkability of the City’s neighborhoods and commercial districts. Action Plan: Task Current Revised 1. Los Osos Valley Road Interchange - complete design and permitting work - begin construction 12/13 10/14 4/14 2. Prado Road Creek Bridge Widening – NEW - begin project study report - begin environmental, design, and permitting work - complete environmental, design, and permitting work - begin construction 7/13 7/14 6/17 6/18 Complete 3. Railroad Safety Trail - complete design of Class I bikeway – Taft to Pepper 6/14 T.B.D. 4. Bob Jones City-to-Sea Trail - complete construction of Class I bikeway connection to LOVR 2/14 4/14 5. Rehabilitate Downtown lighted crosswalks – NEW - complete Marsh Street in-ground lighted crosswalk - complete Higuera Street in-ground lighted crosswalk 6/14 6/16 6. Continue Land Use & Circulation Element Update 6/14 7. Continue the Neighborhood Traffic Calming program and associated projects Ongoing 8. Continue the Annual Traffic Safety program and associated projects Ongoing 9. Continue the bi-annual Traffic Operations program and associated projects Ongoing 10. Continue misc. bicycle facility improvements Ongoing 11. Complete bi-annual citywide bicycle, pedestrian, and vehicle counts (contingent on TIFF funding availability) Ongoing 12. Complete Fleet vehicle conversion / replacement 7/13 6/15 13. Conduct Short Range Transit Plan (SRTP) (contingent on grant funding availability) - Evaluate possibility of Joint RTA/SLO City SRTP - Issue RFP & hire consultant - Complete plan & present to Council 6/15 Status Summary: 20% Complete. The following is a summary of accomplishments and important next steps for this goal: E-31 B2 - 156 OTHER IMPORTANT COUNCIL OBJECTIVES – IMPROVE TRANSPORTATION 1. Los Osos Valley Road Interchange - The LOVR Interchange design has been submitted to Caltrans in a 100% design format and is awaiting review and approval the consultant project manager has been hired and began work on the project in late December. Final right of way acquisitions are complete. The City received an additional $1,000,000 for the project as part of the 2013 SLOCOG Call for Projects process. The project is still on schedule to be bid in summer of 2014. 3. RRST – Taft to PepperPlans for the route alignment have advanced however, staff continues to work with Union Pacific to determine the most appropriate route through this area. Refined project cost estimates indicate that the current budget will likely increase. Therefore staff is investigating alternatives that will be brought to Council as part of a study session in late spring/early summer to discuss alternatives and recommendations for construction. 6. Land Use and Circulation Element- The Land Use and Circulation Element continues to be a significant work effort for staff and the LUCE task force with many meetings being conducted and policy level recommendations being discussed. 12. Fleet Replacement- The Fleet replacement has been impacted by the inability to fill the Fire Vehicle Mechanic position. The Fleet Supervisor has acted in a dual position capacity since June 2013 while additional recruitment efforts have been undertaken. Major vehicle replacement orders (fire engine, traffic signal boom truck, Police department vehicle replacements) have been accomplished in order to address procurement timing, fleet safety and CARB air quality mandates. 13. Short Range Transit Plan- The Short Range Transit Plan update has been delayed due to funding delay for the RTA component of the study. The City is working with SLOCOG and RTA to submit additional Caltrans planning grant requests to save local funds and leverage limited transit funding. SLOCOG has approved a deferral of the City’s SRTP update to accomplish the joint planning effort. E-32 B2 - 157 CARRYOVER GOALS AND OBJECTIVES The following summarizes the status of “carryover” goals and important objectives from the 2011-13 and 2009-11 Financial Plans. In several cases, “carryover tasks” have been incorporated into the Major City Goals (or “Other Important Council Objectives”) for 2013-15, and as such, they are not repeated in this section. OTHER IMPORTANT COUNCIL OBJECTIVES PLANNING: UPDATE LAND USE AND CIRCULATION ELEMENTS Objective: Within the scope of the Strategic Growth Council (SGC) Grant, undertake an update of the Land Use and Circulation Elements; including “Healthy Cities,” complete streets, and pedestrian circulation policies. Building on the work completed in the previous fiscal year and public input from four workshops, on-line tools such as Mind-Mixer, the Community Survey, and participation in hearings and open houses, the Task Force for the Land Use and Circulation Elements update (TF-LUCE) and Planning Commission reviewed potential physical changes to land uses and circulation and provided recommendations to the Council for consideration. The Council endorsed a set of physical alternatives to be considered through the environmental review process on October 15, 2013. The TF-LUCE has been reviewing the legislative drafts of the documents and providing input and recommendations for changes. Since July, the TF-LUCE has held four meetings and will have six more prior to the end of the calendar year while they work through the policy considerations. The Planning Commission will review the TF-LUCE’s policy recommendations in December. The fifth community workshop was held on December 7th to review the concepts in the legislative drafts, discuss EIR scoping, and provide feedback for Council consideration in January. The City Council held two special meetings on January 14 and 28th to endorse the draft policies for analysis in the EIR. The Council endorsed both draft elements with amendments for environmental review. The draft elements and physical alternatives form the basis of the project description to be evaluated through an Environmental Impact Report. The draft EIR is scheduled to be released in May 2014. E-33 B2 - 158 ACTION PLAN CHANGES AND NEXT REPORT ACTION PLAN CHANGES As noted above, in general we are off to a good start in accomplishing the 2013-15 goals and objectives based on the work programs adopted by the Council. Notable changes from the original action plans include the following: NEXT REPORT Staff will present the next “formal report” to the Council in August 2014. In the interim, we will keep the Council up-to-date on the status of major projects through agenda reports, Council Notes and other briefing opportunities. E-34 B2 - 159 STATUS OF MAJOR CIP PROJECTS – 2ND UPDATE 2013-15 Under Construction Design Study 0%10%20%30%40%50%60%70%80%90%100% Laguna Lift Station Replacement Railroad Safety Trail—Hathway to Taft Bob Jones Trail Connector at LOVR Street Reconstruction/Paving Open Space Acquisition 0%10%20%30%40%50%60%70%80%90%100% Skate Park Water Resource Recovery Fac Energy Upgrade Playground Equipment Replacement Railroad Safety Trail—Taft to Pepper Marsh Street Bridge Replacement Downtown Directional Signs Website Upgrade Gateway Monument—Santa Rosa & Highland Calle Joaquin Lift Station Replacement Storm Drain System Replacements Playground Equipment Replacement LOVR Interchange Bicycle Facility Improvements Johnson/Santa Rosa/Emerson Parks Mitchell/Sinsheimer/Islay Hill/Ludwick/Vista Lago E-35 0%10%20%30%40%50%60%70%80%90%100% Water Resource Recovery Facility Upgrade Bob Jones Trail Octagon Barn Connection B2 - 160 SLOCity.org © 2014 City of San Luis Obispo B2 - 161 Attachment 2 RESOLUTION NO. (2014 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING CHANGES TO THE 2013-14 BUDGET, INCLUDING THE APPROVAL OF SUPPLEMENTAL FUNDING REQUESTS AND PROPOSED USES OF THE GENERAL FUND RESERVE THAT EXCEEDS THE 20% MINIMUM LEVEL WHEREAS, on June 17, 2013 the City Council approved the 2013-15 Financial Plan and the 2013-14 budget; WHEREAS, in accordance with the City’s Budget and Fiscal Policies, staff has completed a review of the city’s revenue and expenditure trends and has developed changed forecast amounts which are explained and compiled in the Mid-Year Budget Review; and WHEREAS, the City Manager has recommended the approval of three supplemental funding requests received from the Public Works, Community Development and Fire Departments. NOW, THEREFORE, be it resolved by the Council of the City of San Luis Obispo that: 1. The revised revenue and expenditure forecast amounts for 2013-14 identified in the Mid-Year Budget Review presented on this date are hereby adopted as the current forecasts for 2013-14. 2. The supplemental funding requests for the operating programs of the Public Works, Community Development and Fire Departments are hereby approved. 3. The one-time uses of the General Fund reserve that exceeds the 20% minimum level have been identified and shall be restricted for such future use as shown in Exhibit A to this Resolution. 4. The City Manager is hereby directed to make modifications to work programs, policies, and other components of the Financial Plan to reflect consistency with funding approvals set forth in this resolution. ****************** B2 - 162 Resolution No. _ (2014 Series) 2013-14 Mid-Year Budget Review On motion of ___________________, seconded by _______________________, and on the following vote: AYES: NOTE: ABSENT: the foregoing Resolution was passed and adopted on February 18, 2014. ATTEST: _________________________________ Mayor Jan Howell-Marx Anthony Mejia, City Clerk CMC APPROVED: Christine Dietrick, City Attorney B2 - 163 Resolution No. _ (2014 Series) 2013-14 Mid-Year Budget Review Exhibit A Recommended one-time uses of the General Fund reserve that exceeds the 20% minimum level: $3.0 million to pay down unfunded liabilities. This could be applied either to the $24 million side- fund liability that exists in the California Public Employees Retirement System (CalPERS) safety program or the retrospective deposit balance in the amount of $2.025 million that exists at the California Joint Powers Insurance Authority. Further analysis with regard to the CalPERS side-fund amount and options will be brought back to the City Council in April. $1.7 million to backfill for Measure Y revenues in 2014-15 if needed. As staff indicated in its report to the City Council on January 21st and the Council concurred, one of the options to be considered for preserving services in 2014-15 in the event that the Measure Y revenue stream does not continue beyond March 2015 would be to use a portion of the existing reserve amount that exceeds the 20% level. $435,000 for street paving and the paving of the Sinsheimer stadium parking lot. o Additional funding is needed in the street rehabilitation and reconstruction account to more fully fund paving in Areas 6 and 7, including the completion of required ADA curb ramps in the project area. This additional funding would help complete the neighborhood paving needs in these areas. o The Sinsheimer Parking Lot project budget was reduced in the 13-15 Financial Plan by $50,000. In addition, increased requirements relative to the Municipal Stormwater Permit resulted in a current project deficit of $80,000. $250,000 to be set aside as a matching grant future use in acquiring land at 40 Prado Road for the homeless services center as proposed by Community Action Partners of San Luis Obispo County (CAPSLO). This assumes that other agencies, including the county and the newly formed Homeless Foundation of San Luis Obispo County contribute their fair share. The amount of the city’s contribution could be reduced depending on the final tally of contributions provided by other cities in the county. Yet this set-aside may be used to achieve this aspect of the Homeless Major City Goal if required. $250,000 to be used to begin the city hall reconfiguration to provide an elevator for public use and to consolidate two public service counters on the main floor. $100,000 for the creation of an employee development and leadership program in conjunction with the county. The City is in discussions with the County of San Luis Obispo regarding the possibility of collaborating to provide a cost effective and progressive approach to leadership development for the two organizations (City and County). Collaborating with the County allows the City to participate in providing a three-tiered leadership development model that includes supervisory, management, and executive academies with classroom training, experiential learning activities, guest speakers, and coaching. The model would be provided through a group of consultants based on proven public sector competencies and regularly evaluated for effectiveness. While certain aspects of the leadership development program may be tailored for City or County specific needs, the economy of scale offered by this collaboration allows both organizations and our community to benefit from a program that otherwise would not be affordable for the City. Staff is requesting $100,000 of the one- time funds in excess of policy reserve to be designated for the purpose of “seeding” this program. Staff is in preliminary discussions with the County and consultant and therefore, does not have a complete estimate of costs and timeline for roll-out but is confident this amount will get the program up and running. B2 - 164 AGENDA CORRESPONDENCE City of San Luis Obispo February 10, 2014 TO: Mayor Marx & Members of the City Council FROM: Derek Johnson, Community Development Director VIA: Katie Lichtig, City Manager Prepared By: Ted Green, Administrative Assistant SUBJECT: 2013-14 Mid-Year Budget Review – Updates to CDD Development Services Revenue and Expenditure Tables The attached memo was prepared to highlight the need for additional resources to process applications with revenues derived from development fees. Some significant projects have been submitted that necessitate additional resources beyond those requested the 2013- 2014 Mid-Year Budget. The costs to add additional resources to provide the services for which applicants paid for would be offset by the revenues generated by fees. Staff has updated information on Community Development’s Mid-Year Budget Requests memo which is shown on pages C-14 to C-28Q. The original tables and amounts are shown in mark up with annotated tables to assist the City Council in evaluating the revised request. Specifically, the following pages have been updated: - Pages C-14 to C-15: The amounts proposed in the 2013-14 Operating Budget Supplemental Funding Request form were updated to reflect the changes, listed below. - Page C-17: Amounts from the 09-03-13 Development Services Allocation (Table 1) were updated to reflect expenses as of 02-05-14. - Page C-19: Revenue amounts have been updated from 12-13-2013 to 2-5-2014, and projected revenue for Engineering Development Review (Table 3) has been updated to reflect recently submitted projects. - Pages C-20, C-25: The 2013-14 additional revenue appropriation recommendation amount has been updated to include consultant costs (Table 4) for recently submitted Planning and Engineering projects. Attachment A on C-25 has also been updated with specific consultant projects and estimates. C-14 to C-15 2 Community Development, Fire, Public Works & City Attorney Departments Fund: 1 1a 2 3 4 Expense Detail: 6a Please provide the information below to support your supplemental request. Fiscal Officer(s):Ted Green (CDD), Ryan Betz (PW), Julie Cox (Fire) Please confirm that all pending budget amendment request forms have been processed before starting this process. Please make sure that the department has made all required adjustments between operating line items in order to ensure that existing appropriations are adequate. If, after making the adjustments described in #1 above, the department finds that it is unable to adequately fund an activity that is related to a critical public safety function or Major City Goal , you may submit this request for supplemental funding. 2013-14 Operating Budget Supplemental Funding Request Department Name: 100 - General Fund Division:Planning, Building, Engineering Please describe here the critical public safety function for which you are requesting supplemental funds. Indicate why this is a critical function in your response. On September 3, 2013, Council approved a Development Services revenue allocation of $300,000 to pay for temporary contract staff assistance and consultant services for Community Development, Public Works, and Fire Departments. While that original amount has helped, the number of building permits and project applications continues to increase substantially, generating further demand for plan check services that have grown beyond staff’s current ability to complete within required time limits. The additional workload cannot be accomplished by existing staff, triggering a request for a supplemental budget appropriation to further pay for the cost of hiring additional consultants, and contract temporary staff. Therefore, Community Development is requesting an additional $883,500 $943,800 in funds, transferred from 2013-2014 fiscal year Development Review revenues, for continued 2013-2014 fiscal year Development Services expenses. These funds are to be used for Community Development, City Attorney, Public Works and Fire Departments, in order to pay for one time temporary contract staff assistance and consultant services, special project assistance, and other proposed City staff changes. Please provide a BAR as an attachment which outlines the total amounts being requested and the line items that are affected by the requested adjustment. Please describe in the space on the next page, what additional items of cost are required and reflect how you arrived at your cost estimates for the rest of this fiscal year. (please submit all documents to T:\13-15 Financial Plan\13-14 Mid-year review\Operating Budget Review) please do not make changes after submitting w/out telling Finance Please describe here the Major City Goal for which you are requesting supplemental funds. Indicate what the original timeline for completion of the goal is, in your response. The Major City Goals supported are Economic Development and Fiscal Health. The timeline begins with the current fiscal year (2013-14), and expands into 2014-15, though this request deals exclusively with the former year, with a future allocation for the latter not being requested at this time. It is assumed that there will be an eventual permit slowdown in 2015, estimating that approximately $440,000 $374,100 of resources more than previously projected in the 2014-2015 budget will be required for adequate service levels, as opposed to the previous year’s request. 5 There are four main areas of expenses: Consultant Costs, Ongoing Staffing Costs, Temporary/Contract Staffing and Special Projects Consultants Costs. Below is the expense detail for each area, for both 2013-14 and 2014-15 fiscal years. In addition, a memo providing additional information has been provided. Line Item Description 2/15/14 to 6/30/14 2014-15 Consultant Costs Planning Consultant Services $100,000 $0 Engineering Plan Check Consultant Services $70,000 $0 Building Plan Check Consultant Services $378,000 $0 Ongoing Staffing Costs Engineering Permit Technician (.75 to 1.0)$8,600 $21,500 Building Permit Technician (.75 to 1.0)$8,600 $21,500 Fire Inspector (.75 to 1.0)$8,800 $21,700 Principal Transportation Planner (Reallocation)$24,100 $65,900 Temporary or Contract Staffing Public Information Support Tech $12,500 $0 Planning Technician(s)$50,000 $0 Building Plan Check $10,000 $0 Fire Plan Check Temp Staff $24,700 $0 Engineering Plan Check Contract Staff $37,500 $0 Building Inspector $35,000 $0 Transportation Planner $30,700 $113,400 Special Projects Consultant Costs Planning Special Projects Manager $27,000 $126,000 Development Services Legal Support $27,000 $70,000 Total Operating Costs $852,500 $440,000 Line Item Description 2/15/14 to 6/30/14 2014-15 Consultant Costs Planning Consultant Services $165,400 $0 Engineering Plan Check Consultant Services $120,000 $0 Building Plan Check Consultant Services $378,000 $0 Ongoing Staffing Costs Engineering Permit Technician (.75 to 1.0)$8,600 $21,500 Building Permit Technician (.75 to 1.0)$8,600 $21,500 Fire Inspector (.75 to 1.0)$8,800 $21,700 Temporary or Contract Staffing Public Information Support Tech $12,500 $0 Planning Technician(s)$50,000 $0 Building Plan Check $10,000 $0 Fire Plan Check Temp Staff $24,700 $0 Engineering Plan Check Contract Staff $37,500 $0 Building Inspector $35,000 $0 Transportation Planner $30,700 $113,400 Special Projects Consultant Costs Planning Special Projects Manager $27,000 $126,000 Development Services Legal Support $27,000 $70,000 Total Operating Costs $943,800 $374,100 Updated Costs:Original Costs: C-16 to C-25 3 MEMORANDUM Date: January 9, 2014 TO: Wayne Padilla, Finance Director FROM: Derek Johnson, Community Development Director Daryl Grigsby, Public Works Director Garret Olson, Fire Chief CC: Katie Lichtig, City Manager Michael Codron, Assistant City Manager SUBJECT: UPDATE OF 2013-14 DEVELOPMENT REVENUES ALLOCATION IN PREPARATION OF THE 2013-14 MID-YEAR BUDGET REVIEW RECOMMENDATION 1. Receive a report on the $300,000 in funding authorized by City Council on September 3, 2013 (Table 1). 2. Receive a summary report on permit activity in the 2013-14 Fiscal Year, (Table 2 & Attachment B). 3. Receive a report on 2013-14 Development Review revenues (Table 3). 4. Transferring from 2013-14 fiscal year Development Review revenues, appropriate an additional $828,400 $943,800 for continued 2013-14 fiscal year Development Services expenses (Table 4). These funds are to be used for Community Development, City Attorney, Public Works and Fire Departments, in order to pay for one time temporary contract staff assistance and consultant services, special project assistance, and the following proposed City staff changes: a. Increasing one Engineering Permit Technician from .75 to a 1.0 Position, with additional ongoing expenses of $8,600 in 2013-14 and $21,500 in 2014- 15, from anticipated revenue increases and estimated sustained levels of permit activity. b. Increasing one Building Permit Technician from .75 to a 1.0 Position, with additional ongoing expenses of $8,600 in 2013-14 and $21,500 in the 2014- 15, from anticipated revenue increases and estimated sustained levels of permit activity. c. Increasing one Fire Inspector from .75 to a 1.0 Position, with additional ongoing expenses of $8,800 in 2013-14 and $21,700 in 2014-15, from anticipated revenue increases and estimated sustained levels of permit activity. C-16 to C-25 4 5. Prepare the 2014-15 budget supplement to appropriate an additional $374,100 from an undesignated Fund Balance, to pay for one time contract assistance for special projects and programs, and continued Development Services. 6. Restore funding for the City’s Principal Transportation Planner position to the pre- 2011-12 allocation, altering the funding for the position from 50% of the Parking Fund and 50% of the General Fund, to 100% of the City’s General Fund (Table 5). Not counted as apart of the Development Services revenue request, the cost for this reallocation would be $24,100 for 2013-14, as well as an additional $65,900 to continue that allocation for 2014-15. This would ensure the position’s continued availability for Development Services projects for the remainder of the fiscal year. 7. Amend the 2013-2015 Budget and Fiscal Policy to allow the City Manager to allocate development review fees in order to retain temporary development related services, and establish a “Development Services Account” in the General Fund to track the reallocation of Development Services fees that exceed, or are projected to exceed adopted budgeted amounts. STATUS OF $300,000 IN FUNDING On September 3, 2013, Council approved a Development Services revenue allocation of $300,000 to pay for temporary contract staff assistance and consultant services for Community Development, Public Works, and Fire Departments. As described in the 2013 Organizational Assessment, one of the 10 strategic recommendations to the City is the development of a protocol to expedite the dispensation of permit revenue, when permit activity exceeds available resources, and quickly shed unneeded resources when development activity slows. Table 1 below shows the status of the original appropriation, showing that $294,146 $288,087 (Column C) has been spent to cover elevated levels of permit activity from July 1st, and projected through February 15, 2014: 9/3/13 Develoment Services Allocation: Changes in Table 1 below denote the following: - New planning projects requiring additional consultant services were added. - Unused Engineering Consultant funds were reallocated to Planning to cover immediate additional costs. - Temporary & Contract Staffing numbers were updated and corrected. C-16 to C-25 5 ORIGINAL Table 1 Original 9/3/13 2013-14 Development Services Allocation (A)(B)(C) Budget Spent Remaining $62,500 $58,732 $3,768 $6,285 $0 $6,285 $81,215 $81,215 $0 $150,000 $139,947 $10,053 Budget Spent Remaining $6,900 $7,131 -$231 $6,900 $6,046 $854 $40,000 $36,497 $3,503 $20,000 $20,000 $0 $25,000 $30,278 -$5,278 $42,350 $45,397 -$3,047 $8,850 $8,850 $0 $150,000 $154,199 -$4,199 $300,000 $294,146 $5,854 Engineering Plan Check Contract Staff Consultant Costs Planning Consultant Services Engineering Plan Check Consultant Services Building Plan Check Consultant Services Subtotal: Temporary or Contract Staffing Public Information Support Tech Planning Technician(s) Building Plan Check Fire Plan Check Temp Staff Public Works Permit Tech II Building Inspector Subtotal: Total Allocation (A): Total Spent (B): Total Remaining (C): 1 1 1 UPDATED Table 1 (Items in blue have been updated) Original 9/3/13 2013-14 Development Services Allocation (A)(B)(C) Budget Spent Remaining $68,785 $73,018 -$4,233 $81,215 $81,215 $0 $150,000 $154,233 -$4,233 Budget Spent Remaining $6,900 $5,841 $1,059 $6,900 $6,046 $854 $40,000 $38,869 $1,131 $20,000 $14,229 $5,771 $25,000 $23,909 $1,091 $42,350 $43,599 -$1,249 $8,850 $1,361 $7,489 $150,000 $133,854 $16,146 $300,000 $288,087 $11,913 Building Inspector Subtotal: Total Allocation (A): Total Spent (B): Total Remaining (C): Engineering Plan Check Contract Staff Consultant Costs Planning Consultant Services Building Plan Check Consultant Services Subtotal: Temporary or Contract Staffing Public Information Support Tech Planning Technician(s) Building Plan Check Fire Plan Check Temp Staff Public Works Permit Tech II 1 1 1 1 PERMIT ACTIVITY Attachment B of this Memorandum graphically shows the permit activity trends across fire, building and planning. 1 Inclusive of all 2013-14 expenses paid, encumbered, and estimated, given current spending rates through February 15, 2014. C-16 to C-25 6 The data shows a trend of noticeable and significant increases in applications across all divisions. The mere number of applications does not provide a complete portrayal of the nature of impact, in terms of workload. Planning applications include large subdivisions in the Margarita and Orcutt areas, along with large and complex commercial buildings that are either infill, or located in expansion areas. Another significant factor is the sizeable increase in approved valuation, which is an indicator of more complex and larger projects, thus requiring more resources for plan review and inspections. Table 2 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 Total Planning Applications Received 194 193 199 175 237 271 295 Staff (Approved F.T.E.'s)6 5 5 4 4 4 4 Total Building Permits 475 438 441 462 566 569 612 Staff (Approved F.T.E.'s)5.75 5.75 5.75 5.75 5.75 5.75 5.75 Total Inspections 10,371 8,376 10,210 13,691 10,538 11,500 11,518 Staff (Approved F.T.E.'s)5.75 5.75 5.75 5.75 5.75 5.75 5.75 Total Fire Department Permit/Plan Reviews 230 264 282 321 344 321 334 Staff (Approved F.T.E.'s- Devlopment Review)1.1 1.1 1.1 1.1 1.1 1.1 1.1 Total Valuations $42,229,600 $33,978,800 $39,548,800 $28,539,500 $39,956,400 $59,086,390 $65,598,920 Staff (Approved F.T.E.'s)5.75 5.75 5.75 5.75 5.75 5.75 5.75 Total PW Building Permits & Planning Applications Reviewed 1,000 305 270 312 328 450 513 Staff (Approved F.T.E.'s)4.5 3.8 3.8 3.35 3.35 2.95 2.95 A summary of the above chart indicates that from 2008-09 actuals to 2014-15 projected, there are:  33% fewer permanent staff for 34% increase in planning applications  Same permanent staff level for 22% increase in building permits  Same permanent staff level for 9.9% increase in inspections  Same permanent level staff for 31% increase in fire permits/plan reviews  35% fewer staff for a 50% decrease in Engineering reviewed planning applications and building permits REVENUE Revenue: City permit and plan activity continues to show no hint of slowing down, as reflected by revenues in Table 3, which have been updated from 12/13/13 to 2/5/14. Unexpectedly, projected revenue for Engineerin g Development Review has seen a greater upspike than predicted, with an additional $210,000 fees from new Bridge Street, Margarita Area, and SLO Terrace projects expected by this year’s fiscal end. Development activity within the City of San Luis Obispo continues to show steady growth, with revenues far ahead of projections. Just weeks from the midpoint of the 2013-14 fiscal year, Development Review revenues collected were at 69% of projected amounts, with actual revenues of $3.29 $3.34 million projected by June 30, 2014: $903,600 $1,113,600 more than budgeted, as shown in Table 3. C-16 to C-25 7 ORIGINAL Table 3 (A)(B)(C) (D) Budgeted Revenues (2013-14) Actual Revenues (12/13/13) Newly Projected (2013-14) Revenues Adopted Budget vs. Updated Revenues $498,900 $431,815 $775,000 $276,100 $1,182,900 $933,250 $1,750,000 $567,100 $581,900 $180,343 $542,300 -$39,600 $180,000 $156,550 $280,000 $100,000 $2,443,700 $1,701,958 $3,347,300 $903,600 Building Engineering Development Review Fire Plan Check & Inspection TOTAL Planning City of San Luis Obispo Development Review 2013-14 Revenues 2 UPDATED Table 3 (Items in blue have been updated) (A)(B)(C) (D) Budgeted Revenues (2013-14) Actual Revenues (2/5/14) Newly Projected 2013-14 Revenues Adopted Budget vs. Newly Projected Revenues $498,900 $500,580 $775,000 $276,100 $1,182,900 $1,323,139 $1,750,000 $567,100 $581,900 $259,873 $752,300 $170,400 $180,000 $184,509 $280,000 $100,000 $2,443,700 $2,268,101 $3,557,300 $1,113,600 City of San Luis Obispo Development Review 2013-14 Revenues Building Engineering Development Review Fire Plan Check & Inspection TOTAL Planning 2 2 FUNDING REQUEST FOR 2013-14 & 2014-15 FISCAL YEARS 2013-14 Continued Funding Request: Table 4 has been updated to show that an additional $115,400 in consultant costs for new Planning and Engineering projects are needed to support the review of projects. Specifically, $65,400 is required to continue reviews of Righetti Ranch, Bishop Knolland, and Calle Joaquin projects, as well as $50,000 in planning services needed to assist with the review of the Moresco project (formly known as King), located in the MASP. This project recently made its way through bankruptcy court, and is now actively seeking to amend planning conditions, in order to move forward with building and other improvements. (Attachment A on C-25 has also been updated with these specific consultant estimates.) In order to provide timely customer service for the current work load demands, it is recommended that, from 2013-14 Development Review revenue, City Council appropriate an additional $828,400 $943,800 in 2013-14, and earmark $374,100 for continued 2014-15 Development Services expenses. In addition, it is recommended the General Fund support the Principal Transportation 2 This amount includes $300,000 of permit fees deferred and transferred into the Development Services revenues YTD for 2013-14. C-16 to C-25 8 Planner position exclusively from the General Fund, which would cost an additional $24,100 for 2013-14, and $65,900 in 2014-15. As shown in Table 4, the funds would be diversified in the following ways: ORIGINAL Table 4 EXPENDITURES One-time Ongoing Consultant Costs Estimated: 02-15-14 to 06-30-14 Estimated: 2014-15 Total Staffing Costs* Estimated: 02-15-14 to 06-30-14 Estimated: 2014-15 Total Planning Consultant Services $100,000 -Engineering Permit Technician (.75 to 1.0)$8,600 $21,500 Engineering Plan Check Consultant Services $70,000 -Building Permit Technician (.75 to 1.0)$8,600 $21,500 Building Plan Check Consultant Services $378,000 -Fire Inspector (.75 to 1.0)$8,800 $21,700 $548,000 -Subtotals:$26,000 $64,700 Temporary or Contract Staffing* Public Information Support Tech $12,500 - Planning Technician(s)$50,000 - Building Plan Check $10,000 - Fire Plan Check Temp Staff $24,700 - Engineering Plan Check Contract Staff $37,500 - Building Inspector $35,000 - Contract Transportation Planner $30,700 $113,400 $200,400 $113,400 Special Projects Consultant Costs* Planning Special Projects Manager $27,000 $126,000 Development Services Legal Support $27,000 $70,000 *9 payperiods left in FY 13-14 $54,000 $196,000 $828,400 $802,400 $309,400 $64,700 Additional 2013-14 Development Services Cost Allocations Subtotal: $374,100 2013-14 2014-15 $26,000 Subtotals: A. B. C. One-Time D. Ongoing Subtotals:TOTAL COST UPDATED Table 4 (Items in blue have been updated) EXPENDITURES One-time Ongoing Consultant Costs Estimated: 02-15-14 to 06-30-14 Estimated: 2014-15 Total Staffing Costs* Estimated: 02-15-14 to 06-30-14 Estimated: 2014-15 Total Planning Consultant Services $165,400 -Engineering Permit Technician (.75 to 1.0)$8,600 $21,500 Engineering Plan Check Consultant Services $120,000 -Building Permit Technician (.75 to 1.0)$8,600 $21,500 Building Plan Check Consultant Services $378,000 -Fire Inspector (.75 to 1.0)$8,800 $21,700 $663,400 -Subtotals:$26,000 $64,700 Temporary or Contract Staffing* Public Information Support Tech $12,500 - Planning Technician(s)$50,000 - Building Plan Check $10,000 - Fire Plan Check Temp Staff $24,700 - Engineering Plan Check Contract Staff $37,500 - Building Inspector $35,000 - Contract Transportation Planner $30,700 $113,400 $200,400 $113,400 Special Projects Consultant Costs* Planning Special Projects Manager $27,000 $126,000 Development Services Legal Support $27,000 $70,000 *9 payperiods left in FY 13-14 $54,000 $196,000Subtotals: A. B. C. One-Time D. Ongoing Subtotals:TOTAL COST $943,800 $917,800 $309,400 $64,700 Additional 2013-14 Development Services Cost Allocations Subtotal: $374,100 2013-14 2014-15 $26,000 Consultant Costs (Section A): $548,000 $663,400 would need to be designated towards the continuation of utilizing consultants for larger projects. When current staff capacity is exceeded, as is the case now, consultants increase resources during those crucial peak permit times, when activity outstrips available City resources to timely process permits. Moreover, consultants help ensure that high profile projects addressing multiple City objectives are processed in timely manner. As such, the department must continue to implement the City’s Economic Development Strategic Plan: with the surge of private development activity, the required levels of customer service must meet standardized required permit processing times. Attachment ‘A’ provides a summary of current projects currently in queue for much-needed outside consultants, for the purpose of reviewing permit applications and plans. C-16 to C-25 9 Temporary and Contract Staffing (Section B): In order to ensure timely review and proper execution of development applications, studies, inspections, and other related planning activities, it is recommended that an additional $200,400 for 2013-14 be made available, and $113,400 for 2014- 15 be set aside for adequate temporary and contract staffing levels. Among those positions would be a temporary Contract Transportation Planner, hired solely to address development projects, and would serve as primary liaison between Community Development and Public Works departments, relative to the transportation component of projects. Larger projects on the south end of San Luis Obispo, such as the Western Enclave of the Margarita Area, Chevron, Dalidio, projects in the Orcutt Area Plan, and other developments are critical to the completion of the currently fragmented transportation network. This position would be instrumental in project review for those larger projects, linking the Impact Fee program, Area Specific Plans, and actual project proposals to insure both timely review, and successful implementation of a well- coordinated transportation network. The Contract Transportation Planner would review projects looking at all transportation modes, and insure a well-connected bike and pedestrian network is constructed as appropriate. This position would also review smaller in-fill projects. They would provide timely review, and insure the circulation and transportation infrastructure is appropriate for both project and context. There are a number of these projects scheduled for the next several months, including Garden Street Terrace and Chinatown. This contract position would only be used in the event current staff cannot maintain pace with timeline and sequencing of upcoming development projects. Special Project Consultants Costs (Section C): For one temporary Special Projects Manager and contract legal support, it is recommended that an additional $54,000 for 2013-14 be made available, and $196,000 for 2014-15 be set aside for ongoing, projected costs. In the interest of the City’s high profile projects, it is proposed that a temporary special projects manager position be created for the remaining portion of the 2013-14 fiscal year, and through the end of the 2014-15 fiscal year. This position will coordinate planning of public infrastructure at 40 Prado Road, Medical Marijuana, and Vacation Rental projects, and other important projects as they emerge. With both the current level of development applications, as well as the implementation of Neighborhood Wellness, additional workload demands have been placed upon on the City Attorney’s office. This exceeds the office’s current capacity to address emerging and anticipated issues related to legal review of environmental and land use approvals and public works contracting issues, as well as evaluation and drafting of reimbursement agreements, development agreements, and real property transactions and proposals. To alleviate these additional burdens, it is recommended that one time resources be allocated to provide contract legal support over the remaining portion of the current year, and extending through the 2014-15 fiscal year. Ongoing Staff Costs (Section D): In order meet sustained levels of permit activity, an additional $26,000 for 2013-14 will be needed, and an estimated $64,700 for 2014-15 will be required, for the following current City staff positions: C-16 to C-25 10 1.) One Engineering Technician would be raised from ¾ to full time. Interactions at the engineering counter have increased; and while permit revenues are down, minor permits and larger projects require a full time position to serve the public’s needs. 2.) One Building Permit Technician would be raised from ¾ to full time. Elevated permit levels are showing that at a minimum, associated revenue increases are adequate to support the ongoing funding for this position. This position is needed to staff the front counter and respond to increased levels of customer interaction at the public counter and process over the counter permits. 3.) One Fire Inspector would be raised from ¾ to full time. Elevated permit levels are showing that, at a minimum, associated revenue increases are adequate to support the ongoing funding for this position. The full time position is needed to respond to increased level of fire plan checks. PRINCIPAL TRANSPORTATION PLANNER: 100% GENERAL FUND Instead of budgeting the City’s Principal Transportation Planner at .5 from the City’s General Fund and .5 from the City’s Parking Fund, as is done now, fund the position exclusively from the General Fund. As Table 5 shows, this reallocation would cost $24,100 for 2013-14, and $65,900 in 2014- 15. It was previously done this way until 2011-12, when several projects required the need for a department-diversified Principal Transportation Planner; however, since that time, the steady increase of high-profile projects has resulted in a clear need for a Principal Transportation Planner focused on Development Services projects, funding the position entirely from the General Fund. The following are among these new projects: a. Los Osos Valley Road Interchange b. Land Use and Circulation Element c. Implementing the policies and projects of the LUCE (post 9/14) d. Bike Plan Implementation e. SLOCOG planning committees for trail projects and US 101 f. Safe Routes to School Projects g. Active Transportation Grant projects Table 5 EXPENDITURES Ongoing 2013-14 2014-15 Principal Transportation Planner (.5 to 1.0)*$24,100 $65,900 *9 payperiods left in FY 13/14 General Fund Reallocation Request C-16 to C-25 11 REVENUE VS. EXPENSES: RELATIONSHIP TO SERVICE LEVEL MAINTENANCE One measurement to consider in the context of additional resources needed, is the relationsh ip of revenues to expenses. Ultimately, Development Services are paid for with permit fees, with approximately 25% of those fees going to overhead. Table 6 shows the relationship of revenue to expenses, from FY 2009-FY 2015. The red line shows previously projected budget expenses, and the green line indicates updated, actual expenses required to maintain adequate service levels. Denoting a sizeable leap, fees (the blue line) serve as a direct proxy to service demand – and the resource gap between red and green lines is an impediment to proper service levels. While the original 9/3/13 $300,000 in funding has helped (purple line), it did not completely and successfully raise service levels needed to process permits. Following the line upward to the second half of 2014, the graph denotes that the $828,400 $943,800 will only partially meet current demand, and funds beyond that amount are not being requested. This is not being done out of departmental need; rather, this is recommended in order to minimize potential risk, either from unanticipated economic slowdown, and/or the unrealization of $903,600 $1,113,600 in currently projected, “extra” revenue. Following the purple line even further, the graph assumes that there will be an eventual permit slowdown in 2015, estimating that approximately $374,100 of resources more than previously projected in the 2014-15 budget will be required for adequate service levels, as opposed to the previous year’s request. Table 6 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 2009 2010 2011 2012 2013 2014 2015 Development Review Fees & Adjusted Costs Fees Costs needed to complete projects Requested Dev. Rev. Funds Actual Costs Expended Financial Plan Estimated Costs $374K for 14/15 $828K $943K for 2nd half of 13/14 $300K added on 9/3/13 C-16 to C-25 12 FISCAL POLICY REVISION The change in development cycles and the timing of peak work load is largely unpredictable; development cycles fluctuate over time as with any market, requiring constant resource adjustments in order to meet workload demands. While the department regularly follows up with City developers regarding submittal dates and follows other relevant market information, it is challenging to accurately predict workload trends. As such, it is recommended that policy amendments be enacted to allow for administrative transfer of development review fees, in order to provide timely customer service when workload activity exceeds allocated and budgeted resources, as was recommended in the CDD organizational assessment.3 The time between permit submittal, and City Council’s consideration of budget amendments is currently established at time increments of six months. In this modern, fast-paced business environment, the time lag between when permits are submitted and work emerges and then when resources can be adjusted is too long of a cycle to timely respond given business pressures and the goal to streamline the review process. A more streamlined approach to allow budget adjustments to match resources to workload is needed. It is therefore recommended that the “Development Review Programs” section of the 2013-2015 Budget and Fiscal Policy be amended as follows: “The City Manager may reallocate Development Services revenues for Development Services expenses that are projected to exceed the adopted revenue to acquire temporary resources to timely process development permit applications and perform other related permit processing activities while maintaining a balanced budget. In no case, shall the reallocation of revenue exceed 75% of the projected revenue that is projected to exceed the adopted budget. Any and all reallocated revenues shall be reported to the City Council in the mid-year and supplemental budget and shall be audited for consistency with this policy.” Additionally, it is recommended that the City establish a “Development Services Account” in the General Fund to transfer fees paid for permit processing. This account would be used to transfer fees that are paid for services that actually exceed, or are projected to exceed budgeted amounts. An accounting mechanism to track revenues transferred would provide a simple approach to report to the City Manager and City Council. 3 Develop a Solution for the Cyclical Nature of Development C-16 to C-25 13 Attachment A *Items in BOLD denote changes, and additional consultants added. $25,000 $25,000 $12,400 $28,000 $25,000 $25,000 $15,000 $10,000 $100,000 $165,400 $60,000 $60,000 $25,000 $16,000 $110,000 $32,000 $75,000 $378,000 Engineering Projection: 02/15/14 - 06/30/14 Estimated Consultant Amount $25,000 $15,000 $50,000 $30,000 $70,000 $120,000 Estimated Consultant Fees CONSULTANT ESTIMATES 02/15/14 - 06/30/14 Planning Consultant Projection: 02/15/14 - 06/30/14 Orcutt Area Specific Plan - Tentative Tract Map/ARC (Jones) Orcutt Area Specific Plan - Tentative Tract Map/ARC (Gray) University Square – ARC/possible EIR Bishop Knoll – Annexation/Tentative Tract Map, ARC Orcutt Area Specific Plan - Tentative Tract Map/ARC (Righetti) Calle Joaquin Rezone Miscellaneous Projects Tank Farm - Broad Street (McBride Property) Laurel Creek Plan Check Subtotal Miscellaneous Plan Check Subtotal Margarita Area (Moresco) Serra Meadows 2352 Plan Check Building Consultant Projection: 02/15/14 - 06/30/14 Moylan Terrace Plan Check Monterey Place Plan Check SLO Terrace Plan Check Estimated Consultant Amount Chinatown Plan Check Total Miscellaneous Plan Check Serra Meadows Chinatown Subtotal $548,000 $663,400 FEB 18 2014 Goodwin, Heather From: Marx, Jan Sent: Tuesday, February 18, 2014 12:22 PM To: JIM DUFFY; Smith, Kathy; Christianson, Carlyn; Carpenter, Dan; Ashbaugh, John Cc: Lease, Joseph; Mejia, Anthony; Goodwin, Heather Subject: RE: San Luis Obispo Building Department budget augmentation Thank you for your comments on this important issue, Jim. I am including our city clerk staff in this response, so your message is posted on the city website as Agenda Correspondence and becomes part of the record. All the Best, Jim AGENDA Jan Howell Marx Mayor of San Luis Obispo (805) 781 -7120 or (805) 541 -2716 CORRESPONDENCE Date 1YI Item# 1� From: JIM DUFFY Ud @jimduffyarch.com] Sent: Tuesday, February 18, 2014 12:15 PM To: Marx, Jan; Smith, Kathy; Christianson, Carlyn; Carpenter, Dan; Ashbaugh, John Cc: JIM DUFFY; Lease, Joseph Subject: San Luis Obispo Building Department budget augmentation Dear Council members, I am writing to urge you to approve the Building Departments request for a budget augmentation to outsource building permit plan check. From my perspective, and many others in the architecture and construction industries, this is a very real need and is caused by the following factors: • The decrease in staff prior to the recession The flood of projects submitted at the end of 2013 to avoid the new building code changes • The rapid upswing in the construction industry Current projected plan check review times are 6 weeks for initial comments instead of 4 weeks from previous years. In contrast, the County is about half that time. Based on what I'm seeing in the marketplace and projected development trends, I do not expend this current building climate to slow down anytime in the near future. Staff is doing an admirable job dealing with the flood of applications, mountains of plans currently in the pipeline and new projects waiting in the wings, but they need help. If you have questions, need additional information or if I can be of any assitance, please do not hesitate to call. Thanks for your consideration! Sincerely, JD JIM DUFFY. HCARB. LEER AP www.jimduffyarch.com 805.540.8896 Finance & Information Technology 990 Palm Street, San Luis Obispo, CA 93401 -3249 805.781.7130 slocily ory February 13, 2014 From: Wayne Padilla, FIT Director VIA: Michael Codron, Assistant City Manager Subject: Reductions Needed to Balance 2013 -15 Financial Plan RECEIVED FEB 13 2014 1 ; T'!T' fi k_ � ) Cf i AGENDA CORRESPONDENCE Date'° Itom _ A Council Member has requested information about the reductions needed to balance the 2013 -15 Financial Plan. These were reductions that occurred just prior to adoption of the financial plan. These reductions, which are shown in the table below, were made to allow for the program changes to allow for more Downtown Officers, wayfinding signs, bikeway improvements, and construction of the Jack House Gazebo. A previous memo on this topic was sent to the Council on December 10th, but it did not reflect the reduction that was made to the Fleet Fund as shown in the table below. At this time, Public Works has indicated that the reduced fleet funding is not impacting their plans for vehicle replacements. 13/14 14/15 Reduce Fleet Funding: $91,400 $91,400 Reduce Annual Paving: $19,300 $25,700 Reduce Storm Drain Replacements: $33,600 $50,000 Reduce Traffic Sign Maintenance: $40,000 Reduce Parking Lot Maintenance: $50,000 Totals: $184,300 $217,100 FEB 18 2014 Goodwin, Heather From: Marx, Jan Sent: Tuesday, February 18, 2014 7:35 AM To: Larry Pennington; Smith, Kathy; Christianson, Carlyn; Carpenter, Dan; Ashbaugh, John Cc: Mejia, Anthony; Goodwin, Heather Subject: RE: Money Thank you very much for your comments. I am including our city clerk staff in this response, so that your message is posted on our website as Agenda Correspondence and becomes part of the record for tonight's city council meeting. Thank you too for your service to the city and its residents! AGENDA All the Best, CORRESPONDENCE Jan Date -L 4- i*[ ltem #—I�_ Jan Howell Marx Mayor of San Luis Obispo (805) 781 -7120 or (805) 541 -2716 From: Larry Pennington [Inkpen @sbcglobal.net] Sent: Monday, February 17, 2014 7:53 PM To: Marx, Jan; Smith, Kathy; Christianson, Carlyn; Carpenter, Dan; Ashbaugh, John Subject: Money Dear Mayor and council members, I am writing this blanket note to you all with a suggestion for some of our city budget. I am a resident and quite concerned about safety and possible liabilities. I am the guy who wrote last December about the condition of Meadow Park. I have noticed some activity in the park, warning stanchions were put up around the heaves at the "Sendero" entrance and some planks have been replaced on the bridge near the building. I am also a temporary /part time employee of the city parks and recreation dept. Back in mid December 2013 1 received in my city email a note that the council had learned of a one time budget savings of $5.2 million that might be allocated during mid year budget hearings. That is good news. I am sure there are many areas that could use the shot of money. I would like to politely suggest the city use an adequate portion of these one time funds to catch up on deferred maintenance issues, such as the problems in Meadow park, and of course elsewhere. What is an adequate portion I don't know, but I think 10% could go a long way to help alleviate the problems. I know there are many demands for money and I am probably not the first to suggest that deferred maintenance be attended to. When the time comes to budget the money I hope you will consider my suggestion. Thank you, Larry Pennington Lnkpen @hotmail.com Goodwin, Heather From: Mejia, Anthony Sent: Tuesday, February 18, 2014 8:23 AM To: Goodwin, Heather Subject: FW: observation etc. Agenda Correspondence for today Anthony J. Mejia I City Clerk CJty Of gall WIS OMS[)o 990 Palm Street San l uis Obispo, CA 93401 tel 1805,781 7-102 From: Carpenter, Dan Sent: Monday, February 17, 2014 5:59 PM To: Mejia, Anthony Subject: FW: observation etc. FFEB18 2014 AGENDA CORRESPONDENCE Date -2-1 � 2 � 1 Item Please add this to Public Correspondence for Tuesday the 18th Council meeting. Thanks, DC Dan Carpenter San Luis Obispo City Council 805 - 431 -3174 From: Larry Pennington [Inkpen @hotmail.com] Sent: Monday, February 17, 2014 12:50 PM To: Carpenter, Dan Subject: observation etc. Councilman Carpenter, There has been a bit of activity over the last couple of weeks at Meadow Park. Ron Combs crew was doing something around the Sendero entrance and some warning stanchions were put out around the heaves there. A few planks have been replaced on the bridge from the parking lot to the building, less chance to turn an ankle in the gaps. I remind you that I am a temp /part time employee of the city P &R dept, but as a resident of SLO I am very concerned about conditions of safety, and possible liabilities. I get a few city communications. Back in mid December 2013 1 received in my city email a note that the council had learned of a one time budget savings of $5.2 million that might be allocated during mid year budget hearings. That is good news. I am sure there are many areas that could use the shot of money. I would like to suggest we use 5 -10% (or more ?) of these one time funds to catch up on deferred maintenance issues, such as the problems in Meadow park, and of course elsewhere. I am a novice in dealing with the "machine" and as such I ask if there is anything else I should do (besides being a pest) in asking the city to spend some of this found money on maintenance. I am sure I am not the only one to think of maintenance as a place for this money. Perhaps it is enough to mention it to you, and you are of course free to share any of this with the other council members. Thank you. Sincerely, Larry Pennington Lnkpen @hotmail.com Goodwin, Heather From: Sent: To: Subject: Agenda Correspondence. Anthony J. Mejia I City Clerk c;st,e� �,t SAI) IMS 0W.1;1)0 990 Palm Street Sara L uis Obispo, CA 93401 tel 1805,78-1,7302 Mejia, Anthony Wednesday, February 19, 2014 10:45 AM Goodwin, Heather FW: SLO City Building Department FEB 19 2014 AGENDA CORRESPONDENCE Date - Item# I From: Marx, Jan Sent: Wednesday, February 19, 2014 8:57 AM To: Grant Robbins; Smith, Kathy; Christianson, Carlyn; Carpenter, Dan; Ashbaugh, John Cc: Mejia, Anthony; Johnson, Derek Subject: RE: SLO City Building Department Thank you for your message, Grant. I appreciate your input. Last night council supplemented the Community Development budget to augment staff during this peak application period. I am including Derek Johnson in this response, so that he may get back to you regarding your specific suggestions. I also include our city clerk Anthony Mejia, so that your email is posted as agenda correspondence on our website. All the Best, Jan Jan Howell Marx Mayor of San Luis Obispo (805) 781 -7120 or (805) 541 -2716 From: Grant Robbins [grant @robbinsreed.com] Sent: Tuesday, February 18, 2014 5:04 PM To: Marx, Jan; Smith, Kathy; Christianson, Carlyn; Carpenter, Dan; Ashbaugh, John Subject: SLO City Building Department Dear Council Members, I love our City and take great pride in being a builder/ developer in the area and I look forward to continuing that success. That said, there is a flood of plans hitting the City and they cannot keep up. The economy has shifted, city staff has been reduced and code update deadlines have created this flood and now each of you has the opportunity to help continue the amazing forward progress our City is experiencing by approving the Building Departments request for budget augmentation to outsource building permit plan check services. The current City staff has done an incredible job trying to keep up with plan check schedules but timelines have shifted from 4 weeks to 6 weeks (or more). While this may not seem like a large issue but from a developers standpoint these weeks are critical. For example we are processing a project currently and if we shift just 4 weeks it puts us into the winter rainy season for pouring our concrete foundations which could cost tens of thousands more dollars in delays and /or weather protection - which could impact the economic viability of the project itself. Additionally I would like to request that if the City does augment the plan check process that the City staff get feedback from local builders/ developers/ architects for what plan check consultants have proven to be most efficient in their field. Some consultants have actually increased plan check times while "promising" improved durations. I say this from direct experience in other Cities on the Central Coast. Thank you for your consideration in this matter. Take care Grant GRANT ROBBINS 805.543.7277 (0) 1 805 234 4935 (C) 1308 MONTEREY STREET, SUITE 210 SAN LUIS OBISPO, CA 93401 www.robbinsreed.com RK.FIVED f,'=EA 14 2014 council mcmoizAnbur Date: February 12, 2014 TO: City Council FROM: Shelly Stanwyck, Parks and Recreation Director VIA: Katie Lichtig, City Manager AGENDA CORIS, PGNDE CE Dat�e.�) 1te# #_E51 SUBJECT: Parks and Recreation Golf Program Revenues and Expenditures This memorandum is in response to recent questions asked of a)Council Member by a constituent regarding the Parks and Recreation Golf Program's revenues and expenditures. The Golf program has been accounted for in' the General Fund since 2011 -12. Prior to the start of the 2011 -13 Financial Plan the Golf program had been accounted for most years (but not always) as an enterprise fund. According to the City's adopted Budget and Fiscal Policies for Recreation Programs (2013 -15 Financial Plan H -9) cost recovery goals for activities involving golf should be "high range" at 60% -100 %. As shown in expenditure and revenue charts below the Golf Program typically recovers an actual average of 71% annually which is within the City's range of cost ,recovery goals. A table comparing the Golf Program to two other similar facilities, SLO Swim Center and Damon - Garcia Sports Fields shows that those facilities which have "low range" cost recovery goals of 0 -30% and therefore recover at lower rates. The Golf program makes up 8% of the Parks and Recreation Department's overall budget. The figures below are derived from the 2011 -13 and 2013 -15 Financial Plans. Golf res Program Budget 534,300 509,077 547,600 509,016 546,500 556,700 Minor Capital Budget 7,500 8,298 7,500 14,221 7,500 7,500 Total Expenditures 541,800 517,375 555,100 523,237 554,000 564,200 *The 6% increase of the program budget is primad,� dues an increase in utility costs, * *One -time retirement costs were pulled firm the 2014 -1 S figures to keep the focus on on- oing expenditures in relation to previousyears. Golf Pro+ram Revenues Golf Course Revenue 292,700 316,300 292,700 307,200 291,700 291,700 Golf Cell Tower Revenue 57,000 57,000 _ 57,000 57,000 57,000 57,000 Total Revenue 349,700 373,300 349,700 364,200 348,700 348,700 sons Expenditures (Actual) 523,237 725,157 427,900 Revenues (Actual) 364,200 243,400 24,167 Difference 159,037 481,757 403,733 Cost Recovery 70% 34% 6%