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11/18/2004, - BUDGET WORKSHOP: ""SETTING THE TABLE"" FOR THE 2005-07 GOAL-SETTING AND FINANCIAL PLAN PROCESS"
I I council Mfi� tt-Is-oa AD ac EnoA Report I¢m NumLee _ CITY OF SAN LUIS OBISPO FROM: Ken Hampian, City Administrative Officer Bill Statler, Director of Finance& Information Technology SUBJECT: BUDGET WORKSHOP: "SETTING THE TABLE" FOR THE 2005-07 GOAL-SETTING AND FINANCIAL PLAN PROCESS CAO RECOMMENDATION. Review and discuss the accompanying status reports in preparation for the 2005-07 goal-setting and Financial Plan process: 1. Status of General Plan Implementation Programs 2. Long-Term Capital Improvement Plan, "End Game CIP:" Summary of Facility and Infrastructure Improvements Through General Plan Build-Out 3. Status of 2003-05 Goals and Objectives 4. Status of Current CEP Projects Specific actions recommended at this time: Delete existing funding for: Mission Plaza improvements previously approved by the Council in concept;and groundwater development. 5. General Fiscal Outlook 6. Follow-Up on"Pantry Items" Specific actions recommended at this time. Direct staff to,go forward with the following five "Pantry" items: a. Application Fee for CHC Review b. Adopt a Park/Creek/Open Space Program c. Annexation for Tax Saving Purposes d. Technology Infrastructure Cost Recovery e. Cost Recovery for Vehicle Towing Initiated by Police Department DISCUSSION As discussed in the August 17, 2004 agenda report to the Council outlining the proposed process and schedule for the 2005-07 Financial Plan, this "setting the table" workshop is the first "formal" step in this process. Its purpose is to provide a comprehensive review of the status of current plans, goals and policies. In short, it's a meaningful opportunity to consider "where we are and where we've been"before launching into"where do we want to go next." This is an especially appropriate start for Council goal-setting, as we have always defined the purpose of the City's budget process as asking ourselves:of the many goals, objectives and work programs set forth in our long-term planning and policy documents, which are we going to focus on in the next two years? i 1 Budget Workshop: 2005-07 Goal-Setting and Financial Plan Process Page 2 With this approach, the City's two-year budget process becomes our key tool in programming the implementation of these plans and policies by allocating the resources necessary to do so. In short, we do not start the goal-setting process from scratch with an empty plate: it needs to be informed by our adopted long-term plans, current two-year goals and fiscal outlook. Accordingly, the following materials have been developed for this workshop. Adopted Long-Term Plans and Goals These include the General Plan (and its many elements), Urban Water Management Plan, Pavement Management Plan, Short Range Transit Plan, Access and Parking Management Plan, Neighborhood Traffic Management Program, Bicycle Plan, Public Art Policy, Conceptual Physical Plan for the City's Center, Information Technology Strategic Plan and Facilities Master Plan. These plans were subjects of significant staff analysis, community involvement, and advisory body and Council deliberation before they were adopted. As such, these should be an important starting point in setting goals for the next two years. To facilitate taking a close look at these long-term plans as the first step in the goal-setting process, we have prepared two resource documents, which accompany this report: 1. Comprehensive overview of the current status of General Plan implementation programs. 2. An "end game" capital improvement plan (CIP)summarizing the costs of the new facilities and infrastructure that will be needed to implement our General Plan, or achieve the goals of other important plans and policies previously adopted by the Council. In preparing these reports, our goal was to make them comprehensive on one.hand, but concise and meaningful on the other. With this goal in mind,each of the reports is introduced by a short summary of key findings. Status of Current Two-Year Major City Goals,Other Objectives and CIP Projects Some of our Major City Goats may not be complete by June 2005; as such, the"carryover" work on them may be candidate major City goals for 2005-07. And even for those goals where the specific work programs for 2003-05 may be completed by June 2005, there may be "spin-off' tasks as a result. This is especially true for work programs in 2003-05 where the objective was to complete plans or studies: with those now in place, a likely "spin-off' into 2005-07 may be implementation of these studies. To assist with this review, we have prepared the accompanying reports: 1. Status of 2003-05 Goals and Objectives 2. Status of Current CEP Projects Each of these reports is introduced by a short summary of key findings. Budget Workshop:2005-07 Goal-Setting and Financial Plan Process Page 3 General Fiscal Outlook: Tough Fiscal Past, Tough Fiscal Future Along with long-standing plans and current goals, it is also important to place goal-setting in the context of our fiscal condition and outlook.. Tough Fiscal Past. As the Council is aware, the fiscal situation facing the City in 2003-05 was the toughest one in over ten years, since the "one-two punch" of the recession and State budget takeaways of the mid-1990's. We were facing a General Fund budget gap of$7 million, which we BUDGET BALANCING STRATEGY successfully closed through a combination of Closing the General Fund Gap expenditure reductions in operations and capital o New Revenues improvements, new revenues and use of reserves. ,e% Because of added State takeaways totaling $1.5 aReserves °IP million, we had to again revisit the General Fund 11% Expenditures:74%e budget in 2004-05. To accommodate this, we made further expenditure cuts (most notably in our paving program); re-instated the hiring and 0Opera4np Programs training chill; and for the first time since we 25% adopted our minimum reserve policy fifteen years ago of 20% of operating expenditures, we have gone below this level to 18%. While this is significant in signaling the tough fiscal times facing us, it is also consistent with the strategy adopted as part of the 2003-05 Financial Plan: to maintain reserves at policy levels as our first line of defense against even more State budget grabs. Tough Fiscal Future. As discussed in the 2004-05 Financial Plan Supplement, we continue to face significant fiscal challenges. On one hand, the recent passage of Proposition 1A improves our situation by protecting us from more State budget raids, and thus provides us with greater certainty and stability on this front than we've experienced in many years. However, it is important to stress that it only prevents future State budget cuts to cities: it doesn't return past takeaways, which currently cost the City over $3 million each and every year. Moreover, the City continues to face an uncertain outlook in our key revenues, operating cost pressures and the need to adequately maintain our existing facilities and infrastructure like streets, sidewalks, storm drains and parks. Combined, these forces translate into what is likely to be another tough budget season. This doesn't mean that we can't fund any new initiatives in 2005-07—but it does mean that doing so will be very difficult. The "yin and yang" nature of the relationship between our goal- setting process and fiscal reality is discussed further at the end of this report. General Fiscal Outlook. We plan to present a comprehensive look at our fiscal outlook when we present the results of our five-year General Fund fiscal forecast to the Council at the upcoming "Budget Foundation" workshop scheduled for December 14, 2004. However, in "setting the table" for this forecast, we have prepared the attached report outlining our General Fiscal Outlook, which highlights the key issues that will be facing us in the next two years. While conceptual, it presents a sobering look at the fiscal times ahead of us. j Budget Workshop: 2005-07 Goal-Setting and Financial Plan Process Page 4 Follow-Up on"Pantry"Items In the 2004-05 Financial Plan Supplement, one of our key budget balancing strategies was to follow-up on the "pantry" items identified as part of the 2003-05 Financial Plan process. Because of the uncertainties facing us at that time, we left several budget-balancers "in the pantry" that we could draw upon in the case key revenues did not perform as well as projected, the State took away more revenue or other unforeseen, adverse events emerged. Moreover, several of these ideas were not "fully cooked" then (which is why they were still in the pantry), but with more analysis and community review, they might be available in the longer term. The accompanying report takes a detailed look at ten of these "pantry" items, and recommends proceeding as follows: Go Forward Now 1. Application Fee for CHC Review 2. Adopt a Park/Creek/Open Space Program 3. Annexation for Tax Saving Purposes 4. Technology Infrastructure Cost Recovery 5. Cost Recovery for Vehicle Towing Initiated by Police Department Defer Action At This Time 6. Ambulance Company Rent Increase 7. GIS Cost Recovery 8. Alcohol Sales Permit Fee 9. 911 Communications Center Cost Recovery No Further Action Recommended 10. Residential Parking District Cost Recovery Workshop Summary While the goal-setting process can certainly be used to initiate goals that have never been on our radar before, it should start from where we are today, based on the long-term plans and objectives we have already adopted, and the high-priority programs and projects already underway. And we should place this in the context of our fiscal outlook. Hopefully, this workshop's first step. in "setting the table"for the goal-setting process provides a meaningful look at these issues. Next Steps in the Financial Plan Process:.Key Dates The following summarizes key dates for the goal-setting process before issuing the Preliminary Financial Plan: '-1 Budget Workshop: 2005-07 Goal-Setting and Financial Plan Process Page 5 When What Tuesday,December 14 Budget Foundation. Finalize plans for the goal-setting process;review Council Chambers Financial Plan policies and organization; review audited financial results 7:00 to 10:00 PM from 2003-04; and discuss the results of five-year fiscal forecast. Wednesday,January 12 Community Forum. Consider comments-and suggestions from Ludwick Community Ctr community groups, interested individuals and Council advisory bodies. 6:30 to 9:30 PM Saturday,January 29 Council Goal-Setting Workshop. Discuss candidate goals presented at Library Community Room the January 12 forum;consider Council member goals; prioritize and set 8:30 AM to 4:00 PM major City goals. Tuesday, February I Follow-Up to Council Goal-Setting if Needed. Continued Regular Meeting consideration of goal-setting at the next regularly scheduled Council meeting following the January 29 workshop if needed. Tuesday, February 15 Mid-Year Budget Review. Consider the City's fiscal status at the mid- Regular Meeting point of the fiscal year and make appropriation adjustments as needed. Tuesday April 12 Major City Goal Work Programs. Review and conceptually approve Council Chambers detail work programs to accomplish major City goals; and set strategic 7:00 to 10:00 PM budget direction as needed. As outlined in the calendar approved by the Council in August, we plan to finalize and issue the Preliminary Financial Plan by May 19, and hold the first three preliminary budget workshops on the evenings of May 26 (Financial Plan overview and General Fund operating programs), May 31 (General Fund capital improvement plan projects) and June 2 (Enterprise Fund programs, projects and rates). The Financial Plan is also scheduled to be a topic of discussion at the following two regular Council meetings (June 7 and 21), with Financial Plan adoption planned for the June 21 meeting. SUMMARY Importance of Goal-Setting in Tough Fiscal Times As noted above, we go into the 2005-07 Financial Plan process facing another tough budget season. This doesn't mean we can't fund new initiatives in 2005-07—but it does mean that doing so will be very difficult. Given current trends, it will be a major challenge to just continue current service levels and adequately maintain our existing facilities and infrastructure. On the surface, goal-setting and tough fiscal times may appear to be conflicting concepts—but they aren't. In fact, the need to set goals for the most important, highest priority things for us to do is even more important when resources are tight. And this is the essence of the budget process: of all the things we want to do in making our community an even better place to live, work and play, which are the most important? And what are the difficult resource trade-offs we have to make to do them? Budget Workshop: 2005-07 Goal-Setting and Financial Plan Process Page 6 ATTACHMENTS 1. Status of General Plan Implementation Programs 2. Long-Term Capital Improvement Plan, "End Game CIP:" Summary of Facility and Infrastructure Improvements Through General Plan Build-Out 3. Status of 2003-05 Goals and Objectives 4. Status of Current CIP Projects 5. General Fiscal Outlook 6. "Pantry"Follow-Up G:Budget Folders/Financial Plans/2005-07 Financial Plan/Council Goal-Setting/November 18 Workshop/Council Agenda Report Attachment 1 STATUS REPORT General • Implementation • ms November 2004 ������������� ► �� , Citv of San WIS OBISPO STATUS OF GENERAL PLAN IMPLEMENTATION PROGRAMS November 2004 TABLE OF • INTRODUCTION Overview 1 Report Organization 1 Findings 3 STATUS OF GENERAL PLAN IMPLEMENTATION PROGRAMS BY ELEMENT Land Use Element 5 Housing Element 9 Open Space Element 12 Circulation Element 15 Noise Element 18 Safety Element 19 Conservation Element 21 Energy Conservation Element 23 Parks and Recreation Element 24 Water and Wastewater Element 26 STATUS OF DOWNTOWN PLAN IMPLEMENTATION PROGRAMS 27 city of San WIS OBISPO Status of General Plan Im lementation Pro rams INTRODUCTION OVERVIEW The following schedules provide a concise yet comprehensive summary of the status of all General Plan implementation programs. As discussed in greater detail below, of the 405 individual implementation programs in the General Plan, 74% (296) of them are completed or have been integrated into the City's ongoing operations. Given the All Elements:Program Implementation Status ambitious nature of our General Plan and its thirty-year "end-game" time DIFFICULTY TO COMPLETE:26% horizon, we believe that this represents ❑ Hgh - significant progress in achieving Difficulty 8% General Plan goals. ❑Medulm Diffculty 13% - ❑COMPLETE! Of the remaining 26% (109) of ONGOING ❑. Low 74% programs that are not yet complete, we Difficulty have classified 5% (21) of them as 5% being relatively easy to achieve from a resource perspective; 8% (34) as being difficult to achieve; and 13% (54) as being somewhere in between. Report Focus: Why Report on the Status of Programs? The City's General Plan is composed of a"building block" hierarchy of goals, objectives, policies and programs. Goals and objectives are direction-setters. They describe desirable conditions and preferred outcomes as they are applied to specific situations. Goals are generally not quantifiable, time-dependent or suggestive of specific actions for their achievement. Objectives generally state an intermediate step toward attaining a goal. Policies are typically more specific statements that guide decision-making. Programs implement goals, objectives and policies. As such, monitoring our progress in implementing General Plan programs is an excellent way of monitoring our progress in achieving General Plan goals and objectives. And for this reason, it is the focus of this report. REPORT ORGANIZATION General Plan Elements. The report first organizes each of the implementation programs into one of our ten General Plan elements (presented in the order shown in the General Plan Digest): ■ Land Use (LU) ■ Safety (S) ■ Housing (H) ■ Conservation (CO) ■ Open Space (OS) ■ Energy Conservation (EC) ■ Circulation (CI) ■ Parks and Recreation (PR) ■ Noise (N) ■ Water and Wastewater(WW) Implementation Program Summary. A short "one-line" narrative is provided for each implementation program, referencing the specific General Plan Program number. (Each program is assigned a"line number" solely for easy internal reference within the report itself.) - 1 - Status of General Plan Implementation Proqrams- INTRODUCTION Lead Department. The lead responsible for implementing the program is presented. (In many cases, several departments work closely together in implementing the program; this simply indicates which department has the lead role in coordinating program implementation.) ■ Administration (ADM) ® Parks and Recreation (P&R) ® Community Development(CDD) i Police (PD) ■ Finance & Information Technology (F&IT) ■ Public Works (PW) ■ Fire (FD) ■ Utilities (UT) Implementation Status. All programs are organized into one of two major"status"categories: O If it's complete (or will be complete by June 2005) or has been integrated into City operations as an ongoing program, this is noted with a"C" (complete) or an "O" (ongoing) in the first status column of the summary. For easy reference, within each element, completed programs are listed first in the summary, followed by those that are ongoing. 0 If it won't be completed (or an ongoing program) by June 2005, then we have rated how difficult it will be to complete on an "order of magnitude" (qualitative) basis using the following coding: Low (L): Minimal staff effort and no consultant assistance will be needed to complete the analytical work and coordinate stakeholder-public outreach. While this is a qualitative assessment by the lead department, this generally means that less than 80 hours of staff work or no consultant assistance will be needed to implement the program. Medium (M): Significant staff effort and/or some consultant assistance will be needed to complete the analytical work and coordinate stakeholder-public outreach. Again, while this is a qualitative assessment by the lead department, this generally means between 80 to 500 hours of lead staff work and/or up to $25,000 for consultant assistance will be needed to implement the program. High (H): Major staff effort and/or consultant assistance will be needed to complete the analytical work and coordinate stakeholder-public outreach. Generally this means that more than 500 hours of staff work and/or more than $25,000 for consultant assistance will be needed to implement the program. For easy reference, within each element; the incomplete programs follow those that are complete/ongoing, with the "low" difficulty programs listed first, followed by those that are "medium and high." Downtown Plan. The Conceptual Physical Plan for the City's Center(Downtown Plan) is not a General Plan Element. However, several of its programs are closely linked to the General Plan, and as such, the status of its programs are provided for supplemental information at the end of this report. It is organized in the same manner as the status report on General Plan program implementation. -2- j Status of General Plan. Implementation Pro rams INTRODUCTION FINDINGS General Plan Programs Status Summary. As noted above, 74% of the City's General Plan implementation programs have been completed or integrated into the City's day-to-day operations. The following is a more detailed summary of the status of General Plan implementation programs by element: Plan_Summary: Status of General Programs Complete Difficulty to Complete Or Onqoing Low Medium High No. Pct No. Pct No. Pct No. , Total Pct Land Use 49 54"%a 2 2% 27 30% 13 14% 91 Housing50 72°!° 8 _ 1- 9 _ 13'/ 3 4%a 70 - - Open Space 41 71% 4 - 7% 6 _ _10°/6 7 12% 58 Circulation 51 77% 3 5% 10 -f 5-610 2 3% 66 - --- Noise 4 100% _ - _ _-_ _ - _ _ 4 Safety 32 94% __ _ 2 _60/o - _0% 34 Conservation 20 _740/6 1 4% 06% 6 22% 27 Ener Conservation 11 -85-% 2 150Ol 13 Parks and Recreation 35 89% 1 3% 3 8°/ 39 Water and Wastewater 3 1.000% 3 Total 296 F 740/6 21 _5... 54 13'/0 34 8%F 405 Resource Requirements. Based on our qualitative assessment of the resources need to complete the implementation of the remaining programs, the following is a "high-level assessment of the staff resources and consultant assistance that will ultimately be needed to complete these programs at some point: High-Level Resource Assessment Remaining Staff Effort Consultant Programs FTE's' Cost" Assistance Total Low Dfficulty 21 1.0 136,400 136,400 Medium 54 9.2 1,271,200 1,350,000 2,621,200 High 34 20.0 21760,000 2,550,000 5,310,000 Total 109 i 30.2 $4,167,600 $3,900,000 1 $8,067,600 Annual full-time equivalent(FTE) "Includes salary, benefits and indirect costs But What's Their "Value?" These summaries show which programs remain undone, and the resources that would be needed to complete them. However, they don't address their relative value to the community compared with the effort that would be required to complete them. For example, it might be tempting to direct our resources to finishing-up the "low difficulty" programs to get them off our plate. However, this should be weighed against the value likely to be derived. In this case, we might have a greater impact in improving the community's quality of life if we focused the same level of resources towards accomplishing a fewer number of"high value" (but relatively higher effort) programs. On the other hand, we would want to avoid undertaking high-effort but lower-value programs. -3- Status of General Plan Irnlementation Pro rams INTRODUCTION In his book The Seven Habits of Highly Effective People, Stephen Covey presents a paradigm for assessing these "value versus effort" trade-offs, which can be summarized as follows in the context of allocating resources towards completing General Plan programs: 3 0 Quadrant A Quadrant B Low Effort, High Value Low Effort, Low Value H O — LL LL W Quadrant C Quadrant D High Effort, High Value High Effort, Low Value s as High - _ Low VALUE In this model, we would want to first go to those programs falling in "Quadrant A:" low effort but high value." (These are the proverbial "low hanging fruit.") After this, Quadrants B and C are a "toss-up." However, in all cases, we would want to avoid any programs that might fall into Quadrant D. Ultimately, assessing the value of individual programs and directing resources towards completing them is the Council's decision (and in the final analysis, this is what the City's goal- setting and budget process is all about.) However, the staff can prepare an "order of magnitude" assessment of those programs we believe would have the most near-term benefits relatively quickly if the Council believes that this would be helpful background information in the goal- setting process. Downtown Plan Programs As reflected in this summary, six of the fifteen Downtown Plan implementation programs have been completed or integrated into the City's ongoing programs. 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Summary of Facility and Infrastructure Improvements Through General Plan Build-Out November 2004 �r'L'I'I C1� O San WIS OBIS O v � yp �-J l LONG-TERM CAPITAL IMPROVEMENT PLAN November 2004 TABLE OF • INTRODUCTION Overview 1 Report Organization 2 Summary 3 CAPITAL IMPROVEMENT PLAN PROJECT SUMMARY BY FUNCTION Public Safety 4 Police and Fire&Environmental Safety Public Utilities 5 Water and Wastewater Transportation 6 Streets 6 Pedestrian & Bicycle Paths 7 Creek& Flood Protection 7 Parking 9 Transit 9 Leisure, Cultural and Social Services 10 Parks&Recreation, Adobe Restoration and Public Art Community Development I 1 Open Space Protection and Trails General Government 12 Information Technology and Buildings Cost Summary by Function 12 RAILROAD HISTORIC DISTRICT AND MID-HIGUERA AREA IMPROVEMENTS Railroad Historic District Improvements Summary 13 Mid-Higuera Area Improvements Summary 14 city of sAn tUIS OBISPO Lon -Term Capital Improvement Plan INTRODUCTION OVERVIEW This report presents the City's "end-game" capital improvement plan (CIP), summarizing facility, infrastructure, equipment and land costs needed to serve the City at build-out under the General Plan. As presented in the "sidebar" chart, these improvements total about $768 million, with transportation improvements accounting for about half of these Long-Term CIP By Function:$768.7 Million costs. O G°neral O Community Government Development Key Assumptions UPublie S°lely " The following are key assumptions underlying the costs presented in this CiPubiio Utllitlos ,9% report: O Tr°nyrott°,ion 50% 1. New Facilities Only. These costs only reflect new improvements O Leisure,Cultur: ° needed to support General Plan ss°elaisorvie build-out, based on current 21% policies, plans and goals in place today. Recurring, maintenance oriented-improvements, such as pavement maintenance, are not reflected in these costs. While they are significant (the "Maintenance-Only CIP" prepared as part of the 2003-08 General Fund fiscal forecast two years estimated that annual costs in the General Fund alone to adequately maintain the facilities, infrastructure and equipment we already have in place is about $6 million), these are incurred to adequately maintain what we already have in place today. This report focuses on the new facilities and infrastructure needed to support the City at build-out. 2. Not Just for"New Development." The improvements presented in this report are not needed just to support new development: in many cases, they address current deficiencies as well. For example, under Parks and Recreation, we estimate that it will cost$85 million to achieve our General Plan standard of 10 acres of park per 1,000 residents for our existing population: including joint-use facilities, we currently have about 5 acres of park per 1,000 residents, which is only about half of our adopted goal. This means that in order to achieve this General Plan goal for our existing residents, we need to acquire and develop about 200 acres of parks. At $425,000 per acre for land and improvements, this results in a cost of $85 million. Another example is undergrounding existing utilities, which is estimated to cost$20 million. This is driven by the development in place today. 3. Funding Sources. The costs presented in this report do not address funding sources. In many cases, this will be the responsibility of new development. For example, under Parks and Recreation, we estimate that the cost of meeting the need for parks for new development (again, based on achieving the General Plan goal of 10 acres of park per 1,000 residents) is about $50 million. However, it is the City's policy that new development is responsible for this cost. Additionally, it is likely that grant sources will cover some of these costs, - 1 - Lon -Term Capital Improvement Plan INTRODUCTION especially in the transportation area. And many of these projects will be financed through our enterprise funds, such as water, sewer and parking. In short, this report focuses on presenting the "inventory" of improvements needed at some time in the future, as a starting point in the goal-setting process. Crafting funding solutions for implementation based on Council priorities is the next step in the process, and an integral part of the Financial Plan process. 4. Railroad Historic District and Mid-Higuera Area Improvements. The following cost schedules do not include costs for CIP improvements specifically to help implement these two special planning areas, as cost information has not yet been developed. However, to ensure that these do not fall off of our "policy radar," a summary of the types of improvements needed to help implement these plans is provided at the end of this report (beginning on page 13). Subsequent "End-Game CIP's" will include cost estimates for these. REPORT ORGANIZATION Function Groupings. The report organizes CIP project into the six major functional areas used in the City's Financial Plan: Public Safety Police Protection, Fire & Environmental Safety Public Utilities Water, Wastewater Transportation Streets, Pedestrian & Bicycle Paths, Creek& Flood Protection, Parking, Transit Leisure, Cultural and Social Services Parks &Recreation, Adobe Restoration, Public Art Community Development Open Space Protection, Trails General Government Information Technology; Buildings Goal and Policy Links. For each project, the report shows the "goal or policy link" that is the basis for the project. In most cases, these links come directly from the General Plan, and the section number is provided. In others, the link may be to an adopted master plan. For virtually all projects, there is a link to a major policy document approved by the Council. -2- Long-Term Capital Improvement Plan INTRODUCTION Costs: High Level Estimates. In most cases, costs are "order of magnitude, reconnaissance level' estimates. Only in very few cases have we formally studied the project; and we have gone to the design phase in even fewer. As such, these represent the staff's best assessment of costs based on what we know today. SUMMARY In placing these projects in the context of the 2005-07 goal-setting and Financial Plan process, these costs — even at a "high level' — provide an important starting place in assessing which of these projects should be a high priority over the next two years, given its likely cost and our tough fiscal outlook. -3- Long-Term Capital Improvement Plan PROJECT . . Pro'ect Descri tion I Plan or Policy Link Cost PUBLIC SAFETY Police Protection - _ Land Ac uisition for New Police Headquarters Police Facilities Master Plan 8,645,000 New Police Headquarters Facility Police Facilities Master Plan 33,04.4,000 Total Police Protection 41,689,000 Fire and Envitonmental_Saf6t _ ___ Equipment Tillered Quint Pending Fire Master Plan 800,000 Type III Fire Engine Wildland Fires Pending Fire Master Plan 250,000. Prevention Ins ector Vehicles 4 Pendinq Fire Master Plan 100,000 Fire Simulator - Pendin, Fire Master Plan 350,000 Audio-Visual Equipment Public Outreach Pending Fire Master Plan 20,000 Pen Based/Tablet Computers Field Insp ectors Pending Fire Master Plan - 18,000 Rescue Squad Pending Fire Master Plan 75,000 Facilities _ Fire Station 2 Re lacement/Rehabiliation Pending Fire Master Plan 4,000,000 Fire Station 3 Replacement Pending Fire Master Plan 4,000,000 Fire Station 4 Replacement/Rehabilitabon Pending Fire Master Plan_ _ _ _ 4,000,000 Warehouse Building Sta. 1 Pending Fire Master Plan 215,000 EOC/Instructional Facility Expansion Sta. 1 Pending Fire Master Plan_ 285,000 Car Port Station No. 1 Pending Fire Master Plan 150,000. Additional Modules to Spillman MDC S .tem Pendinq Fire Master Plan 78,000 Storage/Garage Sta.4) Pendin Fire Master Plan 21.5,000 Total Fire and Environmental Safety 14,556,000 TOTAL PUBLIC SAFETY $ 567245,000 -4- Lon -Term Ca ital Im rovement Plan PROJECT Pro'ectDescri tion Plan or Policy Link Cost PUBLIC:UTI.L.ITI.E.S-- Water Services Water Reuse- Reclaimed Water Distrib Water Element, General Plan 16,000,000_ Nacimiento Pipeline Water Element, General Plan- 58,000,000 Water Treatment MasterPlan Implementation Water Master Plan, October 2000, 8,035,000 _ prepared b y Boyle Engineering. Water Distribution Master Plan Implementation Water Master Plan,October 2000, 6,801,000 prepared by Boyie Engineering Water Reuse Master Plan Implementation Water Reuse Master Plan, Sept. 2004 7,000,000 Prepared by Dudek and Assoc. Total Water Service _ 95,836,000 Wastewater Services _ Collection Tank Farm Lift Station/Sewer Improvements Wastewater Master Plan, Oct 2000 7,800,000 prepared by Brown and Caldwell. Calle Joaquin Lift Station Wastewater Master Plan, Oct 2000 900,000 prepared by Brown and Caldwell.. Silver City Lift Station Wastewater Master Plan, Oct 2000 180,000 prepared by Brown and Caldwell. Treatment and Reclamation Master Plan Implementation (plant WastewaterMaster Plan, Oct 2000 19,000,000 improvements to meet General Plan o prepared by rown and Caldwell. Projected Treatment Requirements Improvements Estimated by Brown and Caldwell — 20,000,000_ Total Wastewater Service 47,880,000 TOTAL PUBLIC UTILITIES $ 143,716,000 -5 - Lon -Term Capital Improvement Plan PROJECT . . Project Descrition Plan or Policy Link Cost TRANSPORTATION Streets New Roads Prado Road- Broad to Hi uera Circulation Element A.1 9,832,000 Prado-Hi uera Intersection Margarita Area Specific Plan 286,000 Prado Road-Hi uera to US 101 Circulation Element A.1, B.4 5,200,000 Buckle-Road: Extend from Vachell to Hi uera Circulation Element A.3 2,000,000 Bullock Lane-extend to Tank Farm Road Circulation Element A.4 1,500,000 Sacramento Drive- Extend to Orcutt RoadCirculation Element A.5 750,000 Bishop Street: Extend across UPRR to Broad Circulation Element A.6 12,000,000 Santa Fe Rd: Connect with future Prado Rd I Circulation Element A.7 5,400,000 Road Widening Projects Hi uera Street-High to Marsh Circulation Element B.1 3,500,000 Orcutt Road- Broad to Johnson Circulation Element B.2 1,500,000 Tank Farm Road- S Hi uera to Broad Circulation Element B.3 4,000,000 South Hi uera- Madonna to Prado Road Circulation Element B.5 500,000 LOVR - Madonna to US 101 Circulation Element B.6 2,500,000 Santa Rosa Street-Olive to Foothill Road Circulation Element B.7 3,000,000 Santa Barbara Street- Upham to Broad 600,000 Santa Barbara Street: Leff to Upham 250,000 Freeway Interchan es Prado Road Interchange Circulation Element C.1 22,000,000 LOVR Interchange Circulation Element C.2 15,000,000 Route 101/HWY 1 Santa Rosa Circulation Element C.3 32,000,000 Broad Street/US 101 (Ramp Modifications Circulation Element C.4 1,500,000 Madonna/Hwy 101 Reimbursement Transportation Impact Fee Study, 1994 703,800 Higuera Reimbursement: Madonna to High I Transportation Impact Fee Study, 1994 240,000 Other Street Projects Monterey Street- Santa Rosa to Grand Circulation Element D.1 2,500,000 Orcutt Road Grade Separation at UPRR Circulation Element D.2 14,000,000 Prefumo Canyon Road-Landscaped median Circulation Element D.3 400,000 Broad Street Dogleg Circulation Element D.5 350,000 Misc. Congestion relief projects Circulation Element 2,000,000 Brizzolara Soundwall Circulation Element 750,000 Neighborhood Traffic Management Circulation Element, LU 2.1.3. 800,000 Traffic Safety Mitigation Circulation Element 700,000 LOVR Landscaped Medians Circulation Element 550,000 Broad Street Landscaped Medians S of Prado Draft Airport Area Specific Plan 2,100,000 Broad Street Corridor Enhancement Circulation Element 2,000,000 Santa Rosa Street Corridor Enhancement Circulation Element 1,500,000 Foothill Road Corridor Enhancement Circulation Element 1,500,000 Undergrounding of Overhead Utility Lines Circulation Element 20,000,000 Traffic Model Update (every 5 ears Circulation Element 7.8 200,000 Citywide Trip Reduction Program Circulation Element 700,000 Circulation Element Update (every 5 ears Circulation Element 200,000 City Assistance: Neighborhood Improvements Housing Element 7.3.3 5,000,000 Ongoing Traffic Monitoring: $20,000 annually Circulation Element 7.6 400,000 -6- Lona-Term Ca ital Im rovement Plan PROJECT e • SUMMARY Project Description I Plan or Policy Link Cost Traffic Signals, Street Lights& Signals New Traffic Signals 1 every 2 ears Circulation Element 1,500,000 Traffic Signal Modifications $40,000/ ear Circulation Element 800,000 Traffic Signal System upgrade Circulation Element 750,000 Video Detect/Surveillance Circulation Element 1,000,000 Traffic Signal Communications Circulation Element _ 1,500,000 Downtown Street Lights/Signal Pole Painting Circulation Element 500,000 New Street Lights $15,000 ear Circulation Element 300,000 Street Light Modifications Circulation Element 300,000 Downtown Pedestrian Signals Improvements Circulation Element, CC action 300,000 Model air pollution behavior/educate public Circulation Element, LU 1.18.1 60,000 Billboard Removal Program Circulation Element 14.11 2,000,000 Develop Transportation Work Program Circulation Element 15.12 60,000 Acquire 975 Broad Street, Extend SLO Creek Circulation Element 2,000,000 Path West of Nipomo Crosswalk Lighting Systems Circulation Element 250,000 Bridge Replacements Marsh St. - SLO Creek Land Use Element 6.4.6E, OS 3.2.1 E 1,300,000 Broad St. Stenner Creek Land Use Element 6.4.6E, OS 3.2.1 E 400,000 Broad St. - SLO Creek Land Use Element 6.4.6E, OS 3.2.1 E 750,000 Ni omo St. -Stenner Creek Land Use Element 6.4.6E, OS 3.2.1 E 500,000 Chorro St. -SLO Creek Land Use Element 6.4.6E, OS 3.2.1 E 300,000 Morro St. - SLO Creek Land Use Element 6.4.6E, OS 3.2.1 E 550,000 Bianchi Ln. -SLO Creek Land Use Element 6.4.6E, OS 3.2.1 E 750,000 California Ave. - SLO Creek Land Use Element 6.4.6E, OS 3.2.1 E 1,700,000 Marsh St. - SLO Creek 101 IC Land Use Element 6.4.6E, OS 3.2.1 E _ 3,500,000 MurraySt. -Stenner Creek Land Use Element 6.4.6E, OS 3.2.1 E 550,000 Chorro St. -Stenner Creek Land Use Element 6.4.6E, OS 3.2.1 E 700,000 Prado Rd. -SLO Creek Land Use Element 6.4.6E, OS 3.2.1 E 1,300,000 Johnson Ave. - SLO Creek Land Use Element 6.4.6E, OS 3.2.1 E 800,000 Total Streets 204,331,800 Creek and Flood Protection Cuesta Park Detention Facility Safety Element 1.1 F, LU 6.4.31F, OS 3.2., 8,000,000 Mid-Hi uera Bypass Channels Safety Element 1.1 F, LU 6.4.31F, OS 3.2., 3,900,000 Elks Lane Bypass Channels Safety Element 1.1 F, LU 6.4.31F, OS 3.2 9,500,000 Stenner Creek Bridge Replacements Safe Element 1.1F, LU 6.4.3F, OS 3.2. 2,000,000 Channel Modifications near LOVR Safety Element 1.1 F, LU 6.4.3F, OS 3.2. 5,000,000 Total Creek and Flood Protection 28,400,000 Pedestrian and Bicycle Paths _ Pedestrian Adopt a pedestrian transportation plan Circulation Element, Cl 4.7 55,000 Complete community sidewalk system ($100,000/year) Circulation Element, CI 4.8 2,000,000 Continue program of replacing existing curbs with handicapped ramps ($25k/year) Circulation Element, Cl 4.9 500,000 Repave Pedestrian Crossings and install pedestrian Bulb outs Circulation Element 500,000 Monterey Street Civic Center Plaza Installation Circulation Element 2,275,000 Garden Street Makeover Circulation Element D.4 300,000 South Hi uera Street Sidewalks Approved STIP Grant 325,000 Complete Downtown Mission-Style Sidewalks Downtown Plan; Resolution No. 9114 4,000,000 -7- Long-Term Capital Improvement Plan PROJECT s . Pro ect Description Plan or Policy Link Cost Bicycle Paths Bob Jones Trail Prado to LOVR 2002 Bike Plan 2,200,000 Prado Road Bike Bridges 2002 Bike Plan 500,000 Bob Jones Trail Elks to Prado 2002 Bike Plan 1,500,000 Bob Jones-Trail Madonna to Elks 2002 Bike Plan 1,200,000 Elks Lane Parallel Bike Bride 2002 Bike Plan 350,000 Bob Jones Trail Marsh to Madonna 2002 Bike Plan 1,400,000 Madonna Road Underpass 2002 Bike Plan 150,000 Bob Jones Trail LOVR to Barn 2002 Bike Plan 500,000 Prefumo Ami Calle Joaquin uin to Madonna 2002 Bike Plan 930,000 Madonna Road Bridge to Laguna Park 2002 Bike Plan 1,600,000 Railroad Bike Path (Depot to Marsh) 2002 Bike Plan 2,600,000 Railroad Bike Path Marsh to Hathaway) 2002 Bike Plan 6,400,000 Railroad Bike Path (Hathaway to Foothill 2002 Bike Plan 350,000 Railroad Bike Path Foothill to Campus) 2002 Bike Plan 155,000. Railroad Bike Path Foothill Bridge) 2002 Bike Plan 1,700,000 Path Along n/Orcutt to Laurel 2002 Bike Plan 130,000 Path Along Creek to Southwood 2002 Bike Plan 350,000 Railroad Bike Path Laurel to Tank Farm 2002 Bike Plan 1,100,000 Bridge Over Tank Farm Road 2002 Bike Plan 1,500,000 Bridge Over RR CEJ Fairview 2002 Bike Plan 200,000 Unde ass at-Industrial Way 2002 Bike Plan 550,000 Bridge From S. Park to Lawrence Drive 2002 Bike Plan; 2001-03 Financial Plan 3,100,000 Railroad Bike Path (High to Roundhouse 2002 Bike Plan 230,000 RR Bike Path Roundhouse to McMillian 2002 Bike Plan 720,000 Acatia Creek BP Rockview to SFC 2002 Bike Plan 600,000 Acatia Creek BP SFC to Tank Farm 2002 Bike Plan; AASP 250,000 Acatia Creek Underpass @ SR 227 2002 Bike Plan 350,000 Union Oil Prop BP (Tank Farm to Buckle 2002 Bike Plan; AASP - 1,500,000 Buckley Road Path Broad to Vachell 2002 Bike Plan; AASP 3,300,000 Tank Farm Crk. BP (Tank Farm to Vachell) 2002 Bike Plan;AASP 1,400,000 Morro Street BB Santa Barbara to Pismo 2002 Bike Plan 50,000 South Street Widening for BP 2002 Bike Plan 50,000 Bikeslot at California-Foothill 2002 Bike Plan 155,000 Bikeslot at South-Broad 2002 Bike Plan 136,000 Bikeslot at S.Hi uera-LOVR 2002 Bike Plan 200,000 Bike Path Flora to Fixlini 2002 Bike Plan 300,000 Laguna Lake Park to Foothill 2002 Bike Plan 1,600,000 Marsh Street Interchange Mods 2002 Bike Plan 300,000 South Hills Path (Margarita Area to Exposition) 2002 Bike Plan; MASP 1,500,000 Total Pedestrian and Bic cle Paths 51,061,000 -8- Lona-Term Ca ital Improvement Plan PROJECT , . Project Description I Plan or Polic Link Cost Parkin _ NARF Parking Access and Parking Management Plan 30,000,000 Parking Meter Replacement Access and Parking Management Plan 250,000 New Parking Structure 1 every 5 ears Access and Parking Management Plan 40,000,000 New Parking Lot acquisition Access and Parking Management Plan 6,000,000 Structure Equipment Update ($150k/every 5 yrs) Access and Parking Management Plan 600,000 Structure Repainting $150k/eve 5 ears Access and Parking Management Plan 600,000 New Meter Installations - E/o Santa Rosa Access and Parking Management Plan 50,000 Meter&Citation Software Upgrade (every 5 yrs) 400,000 PDR Activities $50 ear Access and Parking Management Plan 1,000,000 Enforcement Vehicle replacement Access and Parking Management Plan 100,000 Access and Parking Management Update Circulation Element 12.4, Access and 200,000 $50,000 ever y 5 years Parking Management Plan Develop Downtown Park and Ride Lots Circulation Element 12.6, Access and 2,000,000 Parking Management Plan Elastomeric roof of Marsh Expansion roof Access and Parking Management Plan 80,000 Additional Enforcement Vehicle Access and Parking Management Plan 25,000 Sedan-Pick up replacement Fleet Replacement Policy 40,000 Garage Maintenance$50k every 5 years Access and Parking Management Plan 200,000 Total Parking 81,545,000 Transit- —capital ---- - - Bus Stop Improvements $20,000/ ear Short Range Transit Plan 400,000 Bus Replacements 3 every 3 ears Short Range Transit Plan 6,500,000 NARF-Transit Short Range Transit Plan 2,500,000 RTC Transfer Point Upgrade Short Range Transit Plan 500,000 Major Bus Engine/Transmission Replacement Short Range Transit Plan 1,000,000 Freight Warehouse Rehabilitation Short Range Transit Plan 1,300,000 Automatic Vehicle Location System Short Range Transit Plan 200,000 Capital Costs of Contracting ($50"ar) Short Range Transit Plan 1,000,000 Vehicle Electronic Headsi ns Upgrade Short.Range Transit Plan 250,000 Voice Enunciation System Short Range Transit Plan 250,000 FTA Security Improvement Requirements 250,000 Transit Scheduling Software Short'Range Transit Plan 60,000 Bus Yard Concrete Resurfacing Short Range Transit Plan 200,000 Automatic Bus Washer Short Range Transit Plan 250,000 Expand Bus Yard 3,000,000 Planning Short Range Transit Plan Update (every 3yrs) I Short Range Transit Plan 195,000 Long Range Transit Plan Update (every 5 yrs) I Short Range Transit Plan 160,000 Total Transit 18,015,000 TOTAL TRANSPORTATION $383,352,800 -9- I _ Lon -Term Ca ital Improvement Plan o - • s Pro'ectDescri tion Plan or Polic Link _ Cost LEISURE, CULTURAL AND sociAL sawcEs Parks and Recreation Laguna Lake Park Master Plan _ Parks and Recreation Element 2.552 2,500,000 Margarita Area N/H Park MASP/Parks& Recreation Element (2.51 4,200,000 Orcutt Area N/H Park OASP/Parks &Recreation Element (2.54 3,000,000 Other Parks to Meet 10 acres/1,000 Residents Goal Current population(44,000):short 200 acres I Parks and Recreation Element (2. .1) 85,000,000_ Future population(56,000):120 acres-(less costs above) Parks and Recreation Element 2.1.1 41,300,000 Other Improvements Mini Parks Parks and Recreation Element 2.40 1,000,000 Bocci Ball Parks and Recreation Element 2.40 150,000 Tennis Cddrts Parks and Recreation Element (2.40)- 600,000 Sinsheimer Park Master Plan Parks and Recreation Elernent 2:562 2,000,000 Community Center Parks and Recreation Element 2.54 8,000,000 Therapy Pool Parks.and Recreation Element 2.54 225,000 Meadow Park Upgrades Parks and Recreation Element 2.54 250,000 Sand Volleyball Facility Erne�sdri Park Parks and Recreation Element 2:57.5 100,000 Golf Course Parks &Recreation Element 1.33.2 200,000 Total Parks and Recreation 148,525,000 Cultival Services_ _ Adobe Restoration - Parks and Recreation-Element 2.57.5 3,000,000 Public Art @ 1%of CIP Costs Art:in Public Places Policy 7,580,000 Total Cultural Services 10,580,000 TOTAL LEISURE, CULTURAL AND SOCIAL SERVICES 159,105,000 - 10- Lon -Term Capital Improvement Plan PROJECT . Pro'ect Descri tion Plan or PolicI Link Cost COMMUNITY • - Natural Resources Open Space Acquisition,Trail Development Open Space Element 9,850,000_ Total Natural Resources 1 9,850,000 TOTAL COMMUNITY-DEVELOPMENT 9,850,000 - 11 - Long-Term Capital Improvement Plan PROJECT • - Project Descri tion I Plan or Policy Link Cost GENERAL GOVERNMENT Information Technology Document Management IT Strategic Plan, March 2001 650,000 E-Government IT Strategic Plan, March 2001 250,000 Technology Mgt Tools/Security Improvements IT Strategic Plan, March 2001 225,000 Technology Infrastructure Improvements IT Strategic Plan, March 2001 813,000 Storage Area Network IT Strategic Plan, March 2001 300,000 Telemetry System Improvements IT Strategic Pian, March 2001 1,558,000 Total Information Technology 3,796,000 GeoData Services Aerial Photos (every four ears GIS Implementation Plan 200,000 Plotters and Scanners (every four ears GIS Implementation Plan 100,000 Servers-Web and GIS (every four ears) GIS Implementation Plan 75,000 Total GeoData Services 375,000 Buildings Conceptual Physical Plan for City Ctr; City Hall Expansion Facilities Master Plan: 1988-2010 12,000,000 Corp Yard Admin Building Reconfi uration Facilities Master Plan, 1998-2010 300,000 Total Buildings 12,300,000 TOTAL GENERAL GOVERNMENT $16,471,000 SUMMARY BY FUNCTION Public Safety 56,245,000 Public Utilities 143,716,000 Transportation 383,352,800 Leisure, Cultural and Social Services 159,105,000 Community Development 9,850,000 General Government 16,471,000 Total $768,739,800 - 12- Lon -Term Capital Im rovement Plan RAILROAD HISTORIC Future Pedestrian Trail/Bikeway to Lizzie Street. As part of the approved campus master plan for French Hospital, install a bikeway and trail linking the railroad bikeway on the east side of the railroad tracks to the traffic signal on Johnson Avenue at Lizzie Street. Bikeway Access Ramp. Construct a bikeway on city-owned land adjacent to Johnson Avenue to provide access for southbound bicyclists onto the railroad bikeway. Future Bikeway Crossing. Install a bridge over Johnson Avenue to allow future extension of the railroad bikeway north to Cal Poly University. Penny Lane Bridge. Install a pedestrian bridge over the railroad right-of-way linking Fairview Street with Penny Lane to allow a north-south crossing linking neighborhood commercial uses at Marsh Street and Johnson Avenue and in the Mill Street area, with the Johnson Avenue and Ella Street neighborhoods.. New Bikeway: Install new bikeways along both sides of the railroad right-of-way where possible, with minimum dimensions of 8 ft. wide for the paved bikeway plus 2 ft. wide shoulders, including directional/safety striping, lighting and landscaping. Expanded Passenger Loading Zone. Install an expanded passenger loading zone in the parking lot north of the railroad depot to allow passengers to disembark from buses and cars and to unload luggage without blocking traffic on Railroad Avenue or Santa Rosa Street. As an alternate location, provide a turn out along the north side of Railroad Avenue opposite the Railroad Depot for an automobile passenger loading zone. Corridor Paha Tree Planting. Plant Palm Trees (Phoenix Canariensis) on 500 - 1000 ft. centers to expand the historic Southern Pacific Railroad theme planting as gateway enhancement to the City. Rehabilitate Historic Southern Pacific Freight Warehouse. Acquire the historic Southern Pacific Freight Warehouse and take steps to preserve, stabilize and eventually restore the structure for adaptive reuse, including its possible use for railroad displays or as a railroad museum. Lawrence Drive Bridge. Acquire right-of-way and install a pedestrian/bicycle crossing to allow access from the Stoneridge/Lawrence DriveNilla Rosa neighborhoods to Sinsheililer Park. - 13- i Long-Term Capital Improvement Plan MID-HIGUERA AREAn LAN Marsh Street Bridge. The City will analyze, and if feasible and desirable, modify or replace the Marsh Street Bridge to increase its creek flow capacity, while allowing the grade of the new bridge to align with the Higuera-Marsh intersection. Bypass Channel. The City will analyze, and if feasible and desirable, design and install a bypass/overflow channel parallel to the creek in this reach on the City-owned open space. This channel will replicate, to the extent practical, natural riparian features. Higuera Street Widening. Higuera Street will be widened to four lanes for the area shown in Phase 1. The right-of-way will also include bike lanes and a landscaped median with mid-block turn lanes. At its intersection with Marsh Street, two dedicated left turn lanes may be designed. To widen the street, 26 feet of additional right-of-way will be needed. This will be taken strictly on the west (freeway) side of Higuera Street. This widening will require modifying, moving or demolishing certain existing buildings, mobile homes and other structures in the planned right- of-way. Bianchi Lane Realignment. Bianchi Lane will be realigned to the south to align with High Street at the traffic signal. This realignment is planned in conjunction with the Higuera widening and designed to minimize impacts to the mobile home park. Pacific-Higuera-Walker Street Improvements. Walker Street will end in a cul-de-sac near the Pacific Street intersection. Pacific Street will be realigned to a 90 degree approach angle at Higuera, with a northbound right turn lane and a southbound left turn lane. The area that remains from the Walker closure will be landscaped, provided with a pedestrian/emergency access between the blocks, with a mini-plaza as shown in Figure 31 of the Plan. Other Streetscape Improvements. Parker Street will be improved with curbs, gutters, sidewalks, street trees, benches and decorative lighting fixtures as suggested in detail C of the Short-Range Concept Plan. Street trees, decorative lighting fixtures and benches will be installed on Higuera Street as shown in the plan, and Madonna Road will have a landscaped median as shown on the Long Term Concept Plan. The City will underground utilities, as feasible, and will seek removal of the billboards in the plan area. Creek Corridor Natural Area. Restore San Luis Obispo Creek in the area of the Bypass Channel and acquire privately held land as it becomes available to expand the open space area along the creek. Creek Bikeway/Path and Bridge. Install a bikeway along San Luis Obispo Creek (Bob Jones City-to-Sea bikeway) and install a ped/bike bridge across the creek at a point just north of South Street. Acquire Additional Property for Public Parking. Evaluate options for leasing or purchasing property for two public parking lots in the Mid-Higuera Enhancement Area. - 14- Attachment 3 2003=05 Financial Plan STATUS OF GOALS AND OBJECTIVES As Of November 1, 2004 �� city of san tuis OBi S O 2003-05 Financial Plan STATUS OF GOALS AND OBJECTIVES As of November i, 2004 TABLE OF CONTENTS INTRODUCTION OTHER COUNCIL OBJECTIVES Overview 1 Transportation Report Card: Major City Goals 1 Laurel Lane/Orcutt/Bullock Realignment 20 Report Card: Other Council Objectives 2 Santa Barbara Street Widening 20 Action Plan Changes 2 Waterways Management Plan Next Report 3 Implementation Program 20 MAJOR CITY GOALS Palm-Nipomo Parking Structure Plans 20 Short-Range Transit Plan 20 Public Utilities Community Development Long Term Water Supply 4 Airport Area Annexation 20 Dalidio Property Annexation 20 Transportation Auto Center Expansion 21 Downtown Improvements: Street and Sidewalk Maintenance 6 Cultural Center Development 21 Los Osos Valley Road Interchange 7 Railroad Safety Trail 8 Leisure& Cultural Services Therapy Pool 9 Community Development Housing 10 Neighborhood Wellness 11 South Broad Street Corridor Plan 12 Downtown Improvements: Monterey.Plaza 13 Economic Development: TOT 14 Economic.Development: Sales Tax 16 General Government Lona-Term Fiscal Health 18 cityo San LUIS OBISPO INTRODUCTION OVERVIEW benchmark, at November 1, 2004 we are about 6701v through the two-year Financial Plan period. Half of the goals exceed this level, with most goals This report details the status of major City goals set showing good progress. by the Council as part of the 2003-05 Financial Plan. In general, we are on- Organization. The "report card" is followed by a track in accomplishing off rit•• • . short summary of notable changes from the original these objectives based on action plan. Following this is a more detailed report the work programs Many of these are on each goal and objective, which shows the adopted by the Council. multi-year goals that objective, action plan as adopted b the Council, any activities associated with them revisions (additions are shown in italics; date Report Card. The that go beyond the changes since the 2004-05 Financial Plan following is a quick two-year 2003-05 Supplement review are also shown in italics and "report card" on the time frame. highlighted in a separate column; and deletions are status of major City goals shown in strikeout) and a brief status summary as of based on the "action plans" approved by the Council June 2004. as part of the 2003-05 Financial Plan. As a Report Card: Major City Goals Long-Term Water Supply I Street and Sidewalk Maintenance Los Osos Valley Road Interchange Railroad Safety Trail I I I Therapy Pool I I i I I Housing V I I I Neighborhood Wellness I I i I South Broad Street Corridor Monterey Plaza I i I I I Economic Development:TOT Economic Development: Sales Tax Long Term Fiscal Health 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% - I - INTRODUCTION- Report • , • Report Card: Other Council Objectives • "GbCiD '" ��' Lau rel/Orcutt/BUI lock - - Realignment Santa Barbara Street Widening Waterways Management Plan Palm-Nipomo Parking Structure Plans Short-Range Transit Plan Airport Area Annexation Dalidio Property _ - --- _ .. Annexation Auto Center Expansion Downtown Cultural Center Development 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ACTION PLAN CHANGES Los Osos Valley Road Interchange. The late date - in starting Phase A of the Project Report has caused the completion date to be extended to December As noted above, in general we are on-track in 2004, thus lengthening the timeframe for remaining accomplishing these objectives based on the work project components. Construction of Phase I programs adopted by the Council. However, notable improvements (Calle Joaquin) by Costco has been changes from the original action plans include the delayed most likely until Summer 2005 due to delay following. on obtaining an Army Corps permit. Major City Goals Railroad Safety Trail. UPRR delays in reviewing minor revisions to the alignment plans and Long-Term Water Supply. Difficulties have been subsequently granting final approval have pushed encountered with the construction of the water tasks associated with right of entry permits, land reclamation facility improvements component of the surveys and preparation of a legal description of the Water Reuse project and completion of those area for acquisition; into March of 2005, and improvements is now estimated to be June 2005. executing a contract of sale to June 2005 With the focus shifting to Nacimiento Pipeline Project, the development of an expanded Neighborhood Wellness. Preliminary research for groundwater program has been deferred at this time. the Rental Inspection Ordinance is complete with -2- INTRODUCTION• , • staff currently meeting to review and finalize a NEXT REPORT conceptual proposal. Staff now anticipates a Council study session in January 2005 (pushed back from November 2004) to receive public input and We will present the next "formal report" to the Council direction. Council in February 2005 as part of the 2004-05 Mid-Year Budget Review. In the interim, we will South Broad Street Corridor Plan. The estimated keep the Council up-to-date on the status of major completion date for this goal has been extended to projects through agenda reports, Council Notes and August 2006 because 1) the project is being pursued other briefing opportunities. only as resources are available, and 2) staff workloads associated with other projects, in particular, the adoption of the Margarita Area Specific Plan, have taken priority. Downtown Improvements: Monterey Plaza. With the time required for additional staff work, advisory body review and Council summer schedules, Council review of the Monterey Plaza plan has been delayed from September to November 2004. Economic Development. Transient Occupancy Tax. Work on the Tourism Task Force has been delayed to November 2004 (from July) to better accommodate the "off-season" schedules of the local lodging industry. Other Council Objectives Santa Barbara Street Widening. State funding shortfalls continue to delay funding of this project at least until FY 2005-06. Airport Area Annexation. Due to staff workloads associated with adoption of the Margarita Area. Specific Plan, Planning Commission review of the Airport Area Specific Plan is expected to begin in January 2005, with public hearings and Council review pushed back to May 2005. Dalidio Property Annexation. Action by LAFCO is on hold at the request of the applicant pending the outcome of the three referendums. -3 - MAJOR CITY GOALS LONG-TERM WATER SUPPLY Objective. Continue aggressive efforts to develop permanent, reliable water supplies to meet City General Plan needs, including all options consistent with Council policy. Action PlanTask - Original Revised Water Reuse 1. Complete design of required user site modifications. 12/03 12104 2. Complete Water Reuse Master Plan defining the logical expansion of the 11/04 Complete water reuse system and include funding for associated CIP in the 2005-07 Financial Plan. 3. Complete construction of the water reuse project backbone pipeline 12/04 6/05 system;Water Reclamation Facility improvements and user site modifications. Ground Water Development — _-- 4. Issue RFP for groundwater development and treatment system feasibility 12/03 Complete analysis. 5. Select engineer and begin design. 3/04 Complete 6. Complete design, invite bids for construction and award contract. 6/05 Deferred (Construction is scheduled for completion by June 2006). Conservation 7. Develop program elements and required informational and programmatic 12/03 Complete resources. 8. Develop monitoring and evaluation program. 3/04 Complete 9. Fully implement landscape and non-residential program. 4/04 Complete 10. Present program evaluation report to Council. 6/05 Nacimiento Pipeline 11. Present project reservation agreements and full project information to 1/04 Complete Council for consideration. Salinas Reservoir Expansion 12. Review options and issues with Council for consideration of possible 6/04 Complete project. Status Summary: 90% Complete. With the Approval of the City's participation in the Nacimiento Pipeline Project, progress on achieving a dependable long-term water supply for the City has taken a major leap forward. This action has also resulted in the Council's reconsideration of the priority for our other water supply efforts. On June 15, 2004, Council considered a revised project priority and placed Salinas Reservoir expansion in Tier 3. As such, actions relative to the Salinas Project are, at this time, considered complete. Additionally, with the focus shifting to Nacimiento, the priority for development of an expanded groundwater program has been lowered to Tier 2. Phase 1 design services for an expanded groundwater program have been completed and will be presented to Council in December. Staff does not anticipate proceeding forward with final design and construction of groundwater treatment facilities at this time. Staff has received and reviewed the consultant's recommendations for the Water Reuse project user site modifications and has been working with the State Regional Water Quality Control Board and Department of Health Services to simplify the approach to user site modifications to reduce cost while maintaining compliance. A new consultant is being brought on board to complete the design of the user site modifications. This effort will require some additional time to complete. Staff anticipates completion of the user site modifications by -4- MAJOR GOALS December 2004. The construction of the backbone distribution system pipeline has been completed. Difficulties have been encountered with the construction of the water reclamation facility improvements component of the project and completion of those improvements is now estimated to be March 2005. -5- MAJOR CITY GOALS STREET AND SIDEWALK MAINTENANCE Objective. Continue maintenance of streets and sidewalks at a moderate level. Action Plan Task Prigin-a.1 Revised 1. Continue the program of monitoring the condition of existing sidewalks. Ongoing 2. Continue to repair damaged sidewalks, curbs and gutters using City staff. Ongoing 3. Continue implementation of the 1998 Pavement Management Plan for Ongoing Areas 7 and 8. 4. Pursue State grant funding for pavement projects. Ongoing 5. Continue to retrofit existing curbs for disabled access using CDBG funds. Annually in Fall 6. Continue contracts of$60,000 per year to repair damaged sidewalks in Annually in Complete Area 7. Spring 7. Establish permit guidelines to expedite sidewalk repairs by private 1.2/03 property owners. Complete Status Summary: 50% Complete. All work is ongoing and on schedule: Area 8 inventory is complete; Area 7 paving is complete;200405 paving is to occur as planned in Spring 2005; Community Development Block Grant funded ramps for the disabled for Area 8 were designed this Fall, with actual construction set for Spring 2005. -6- MAJOR CITY GOALS LOS OSOS VALLEY ROAD INTERCHANGE Objective. Continue working towards improvements at the Los Osos Valley Road/Highway 101 interchange. Action Plan Task Original Re- vis-ed-1. Obtain CalTrans approval of the PSR-PDS. 7/03 Complete 2. Finalize plans for Phase 1 improvement/mitigation strategies not requiring 7/03 Complete Cal Trans approval (non-interchange improvements), such as relocation of Calle Joaquin. 3. Prepare Request for Proposal for the CEQA Environmental Impact Report 9/03 Complete (EIR), NEPA Environmental Impact Statement(EIS)and Project Report. 4. Pursue Advance Development Funding for the EIR/EIS, Project Report 9/03 Complete and PS&E. 5. Hire consultant and begin preparing Initial Study,EIR/EIS and Project 12/03 Complete Report. 6. Complete design of Phase I (Calle Joaquin Realignment) improvements 3/04 Complete and invite construction bids. 7. Complete Phase A of Project Report process to narrow possible designs 10/04 12/04 and speed environmental documentation for the project. 8. Complete Draft Project Report. 5/04 06/05 9. Complete Administrative Draft EIR/EIS. 6/04 04/05 10. Complete negotiations for CalTrans cooperative agreement. 6/04 03/05 11. Award contract and begin construction of Phase 1 improvements. 7/04 Summer 05 12. Complete construction of Phase 1 improvements. 6/05 01/06 Status Summary: 25% Complete. Phase 1 improvements are 100% designed, but Costco has not invited construction bids pending formal Army Corps of Engineering permitting and acquisition of all needed property. Depending on Army Corps permit requirements, Calle Joaquin Realignment may be delayed due to wet season building restrictions. The Council approved splitting the Project Report into two phases (A & B) to speed the overall project schedule and save expenses. Although the Project Development Team has met and begun work on Phase A of the Project Report, which now includes both conceptual geometry and environmental documentation, the late date in starting has caused the completion date to be extended to December 2004, therefore pushing back the timeframe for remaining project components. -7- MAJOR CITY GOALS BIKEWAY IMPROVEMENTS: RAILROAD SAFETY TRAIL Objective. Acquire right-of-way and property for extension of the Railroad Safety Trail from the Jennifer Street Bridge to Cal Poly. Action Plan Task • . 1. Secure Union Pacific support for the final schematic design of the bike 9/03 Complete path between the AMTRAK passenger depot and Foothill Boulevard. 2. Secure rights of entry permits from UP, complete land survey and prepare 2/04 03105 a legal description of the area proposed for acquisition. 3. Complete negotiations and execute a contract of sale with UP to acquire 4/05 06/05 the property. Status Summary: 14% Complete. Staff received feedback from UPRR staff that a positive recommendation for alignment could be made to the UPRR Board of Directors with minor revisions to the plans. Those changes were made and submitted and staff has been awaiting an answer for 3 months. Some progress has been made: two levels of approvals have been received within UPRR and a final approval is pending. Once the final approval is received, staff will begin negotiations on UPRR license agreement, property description and liability issues. These delays have pushed back all remaining completion dates for key milestones. -8- MAJOR CITY GOALS THERAPY POOL Objective. Pursue development of a warm water therapy pool at the Swim Center through a financing program for its construction and on-going operation that does not use general-purpose revenues. Action Plan Task Qriginal Revised 1. Receive funding approval from the State 1/04 Complete deAatiees- 2. Select a consultant 3/04 Complete 3. Begin study and environmental review. 3/04 Complete 4. Complete study and environmental review and begin design. 9/04 Complete 5. Complete design; invite construction bids and award contract. 4/05 6. Begin construction. 6/05 Status Summary: 30% Complete. The State has approved its funding and the grant will be managed by Public Works. At this point, staff will be proceeding under the assumption that the State grant will be the only source of outside funding. A contract for the design work was entered into in July 2004, with preliminary design expected by late November. The expanded pool idea is no longer an option, as a combination therapy pool-swim club workout pool has been deemed incompatible. There is adequate space in the pool complex for the swim club to build a separate workout pool if they are able to raise sufficient funds for construction and operations. -9- MAJOR CITY GOALS HOUSING Objective. Adopt a Housing Element that expands housing opportunities for very low, low and moderate income households, preserves and enhances residential neighborhoods and complies with state laws including CEQA; and encourage and support Cal Poly's efforts to provide more on-campus housing consistent with their adopted master plan for housing and enrollment. Action Plan Task Original Revised 1. Implement existing affordable housing incentive and inclusionary housing Ongoing programs. 2. Encourage the Chamber of Commerce to implement programs that achieve Ongoing their goals for producing workforce housing. 3. Continue working closely with the County-wide Housing Trust Fund. Ongoing 4. Continue working closely with Cal Poly in encouraging and supporting Ongoing their efforts to provide more on-campus housing consistent with their adopted master plan. 5. Coordinate preparation and administration of annual Community Annual Development Block Grant program. Cycle 6. Update the General Plan Housing Element 12/03 Complete a. Complete background analyses and documentation. " b. Identify issues through Housing Element Task Force. " c. Draft policies and programs. " d. Begin preparing EIR. " e. Hold town hall meeting. " f. Hold Planning Commission study session. " g. Hold Council study session. " h. Complete environmental review. " i. Submit draft for State Housing and Community Development(HCD) " review. " j. Hold Planning Commission public hearings. " k. Hold Council public hearings and adopt update. " I. Submit for final HCD certification. Complete in. Begin implementation. ongoing Status Summary: 85% Complete. Most of these tasks are ongoing and are moving forward as predicted. The Housing Element Update was adopted on March 30, 2004. Staff submitted the Element to HCD, and certification is expected by the end of 2004. With the initial five programs approved by the Council in October 2004, implementation will be an on-going process. - 10- MAJOR CITY GOALS NEIGHBORHOOD WELLNESS Objective. Improve neighborhoods and neighborhood involvement by continuing to implement the neighborhood wellness program, including consideration of a rental inspection ordinance. Action Plan Task g nal Revised 1. Maintain and support all existing neighborhood wellness programs Ongoing currently in place. 2. Continue encouraging formation and involvement of new voluntary Ongoing neighborhood groups by use of the Neighborhood Managers Coffee program,WIN,Neighborhood Services Team,Neighborhood Planner and similar outreach strategies. 3. Continue involving residents early in the public review of proposed Ongoing projects by a more defined Neighborhood Planner program in Community Development, including expanding the Neighborhood Planner duties to include two-year terms,an annual neighborhood issues conference and attendance at City neighborhood meetings and coffees. 4. Continue contract Building Inspector position to support continued high 7/03 Complete levels of building applications and allow the continuation of a full-time Code Enforcement Officer. 5. Evaluate.a cost recovery program for code enforcement efforts as a 12/03 Complete strategy to reduce and deter repeat offenders while generating increased revenues, and present findings and recommendations to the Council. 6. Research a Rental Inspection Ordinance in an effort to provide a safer 9/04 1/05 housing environment for renters and present findings and recommendations to the Council. Status Summary: 75% Complete. Staff, working with Cal Poly and Cuesta College established a collaborative, cost effective Community Solutions Program that is available to residents and students living in the City to resolve conflicts and community challenges. Known as "SLO Solutions" the program was launched with a media campaign September 23,2004. The preliminary background research for the Rental Inspection Ordinance is complete with Community Development, Police and Fire staff currently meeting to review and finalize a conceptual proposal. Staff anticipates a Council study session to receive public input and direction from Council in January 2005. - 11 - MAJOR CITY GOALS SOUTH BROAD STREET CORRIDOR PLAN Objective. Adopt General Plan and zoning amendments to create a mixed-use residential neighborhood along the South Broad Street corridor from South Street to Orcutt Road and seek grant funding to implement the Land Use Element special design area program and create a neighborhood concept plan for the area. Action Plan Task Original Revised 1. Identify housing targets as part of the adopted Housing Element update. 12/03 Complete 2. Hold community meeting/issue identification meeting to develop a schematic 5/04 Complete concept plan. 3. Develop work program for concept plan/General Plan amendment/rezoning. 3/04 3105 4. Hold additional community meeting to discuss concept plan. 11/04 5105-8105 . 5. Council initiation of concept plan/General Plan amendment/rezoning program 9/04 9105 6. Prepare concept plan & environmental review 1/05 10105-1106 7. Sehematieoncept plan study session review at Planning Commission 8/04 1106 8. RefiFt, sehe...atie illus«...,.:an-4 , at. ith #10 and#, ,. Concept plan 6/05 3106 approval at Council 9. Prepare Fiscal Impact Analysis (Gene ffeat with#9 and#10) 7/05 4106 10. Hold Planning Commission hearings on GPA and rezoning 3/05 6106 11. Hold Council hearing and adopt General Plan amendment/rezoning 6/05 8106 12. Continue to seek grant funding for preparation of a€ellew-tip neighborhood Ongoing Ongoing concept plan Status Summary: 5% Complete. The March 2004 updated Housing Element includes direction to intensify housing in this and similar areas. The City received a minor "grant' through CalTrans for a two-day neighborhood outreach "charrette" program that was held in May 2004 (step 2). The neighborhood charrette provides the foundation for a concept plan to be prepared by City staff with community assistance. This concept plan will address neighborhood issues spelled out in Land Use Element section 8.3 such as renovation of streetscapes, landscaping and building facades in addition to circulation improvements, street furniture and other design issues. The concept plan will also help implement Housing Element program 6.3.7 that encourages mixed- use and infill housing. In October 2004, the City applied for another grant ($100,000) to support the preparation of the concept plan. If grant funds do not become available, the concept plan will be completed using City resources. This will extend the original estimated completion date for this goal. No additional funding, however, is requested at this time. - 12- MAJOR CITY GOALS DOWNTOWN IMPROVEMENTS: MONTEREY PLAZA Objective. Pursue the creation of a"Monterey Plaza"for civic gatherings and passive recreation, dependent upon the start-up of the Copeland's Court Street retail-commercial and the Palm-Morro parking projects. Action Plan Task .,original_ Revised 1. Consultant completes concept plan. 7/03 Complete 2. Council reviews concept plan and forwards it for advisory body review. 9/03 Complete 3. After advisory body and public review,Council identifies preferred design 7/04 11104 concept(s) and establishes the scope of technical and environmental studies (such as circulation, access,utility and drainage analysis, and project phasing) for additional study. 4. Consultants complete technical and environmental studies, and project 6/05 Completion design is modified as necessary to address findings. dependent on funding Status Summary: 15% Complete. After being unresponsive, the consultant has finally provided the City with final drawings that the staff has forwarded to the advisory bodies and Council. Although the revised drawings are not quite what staff had requested for a complete submittal to the Council, with.additional work by staff they will be adequate to proceed to conceptual review. Council review of the concept plan is scheduled for November 2004. As this is an unfunded program, completing technical and environmental studies will require a specific budget allocation from Council. - 13- MAJOR CITY GOALS ECONOMIC DEVELOPMENT: TRANSIENT OCCUPANCY TAX Objective. Encourage and promote projects that will increase lodging and conference facilities in order to generate additional Transient Occupancy Tax revenues. Action Plan Task Original Revised 1. Refocus existing resources toward Direct Advertisement of the City. Ongoing Complete Develop a focused advertising and PR campaign for the City that establishes a stronger identity for the City as a tourist destination with a wide variety of activities to undertake during a stay. 2. Work with various organizations for tourist promotional purposes Ongoing benefiting both the City and the organizations. 3. Work with property owners and real estate brokers to explore increasing Ongoing Bed and Breakfast opportunities,consistent with City land use and zoning policies. 4. Complete assessment of local lodging industry conditions by identifying 9/03 Complete all such properties in the City;identifying all property owners and their managers; and identifying future expansion locations for tourist serving businesses. 5. Assess transportation opportunities for visitors and if necessary make 9/03 Complete service improvements. Strongly consider extending trolley service to the Monterey Street Hotel Area. 6. Present recommendations for improved tourism transportation and trolley 12/03 Complete service to Council for approval. 7. Establish aTask Force of local tourism experts to develop a transient 7/03 11104 occupancy tax enhancement strategy. a. Explore ways to coordinate efforts amongst property owners and 1/04 3105 ways to cooperatively book rooms to prevent business losses to other communities. Explore ways to increase midweek business travel. b. Present Tourism Task Force recommendations to Council. 3/04 3105 8. Update advertising conversion study completed approximately four years 6/04 Complete ago. - 14- I MW MAJOR CITY GOALS Task Original 9. Explore reuse of large properties on Monterey Street, including sites 6/04 Complete occupied currently by auto dealers (some of whom are expected to relocate). 10. Explore possibility of using the Veterans Memorial Building for 9/04 12/04 convention center purposes, work closely with the Veterans and the County in this effort. 11. Upon construction, encourage the Dalidio Project hotel to work with the 1/05 Pending Embassy Suites and develop a coordinated effort to use rooms to support referendum existing conference services at the Embassy Suites. Status Summary: 70% Complete. Council's adoption in July 2003 of a Tourism Marketing Plan established six objectives for the City's community promotions. The February 2004 approval of the community promotion brand, "San Luis Obispo, Experience the SLO Life" has resulted in staff and the City's promotions contractors implementing a focused advertising and public relations campaign. A market research study was completed in November. The study will assist in further refining the focus of the City's community promotions. Work on other Tourism Marketing Plan objectives continues, with many strategic alliances strengthened. Specific outreach has been undertaken with respect to the new director of SLO Vintners and Growers Association and the "Fall Harvest Festival." New inroads have been made with Cal Poly's Week of Welcome. Significant projects with the arts community have included the Plein Aire Festival (with advertising directed to residents of the Southwest) and Trout About Downtown. Construction continues on a Bed & Breakfast on Santa Barbara Street. Staff continues to work with hotel developers including the Motel Inn remodel and expansion and various Calle Joaquin hotel projects. A report on the assessment of the local lodging industry is forthcoming. Staff has also worked with many interested parties inquiring about additional locations for hotel development. Trolley service to the upper Monterey Street area hotels continues to receive positive feedback. All local hotels were provided with new materials produced by Barnett, Cox and Associates including a local map and a"things to do" list. Work on the Tourism Task Force will be coordinated late fall and early winter to better accommodate the "off-season" schedules of the local lodging industry. - 15 - MAJOR CITY GOALS ECONOMIC DEVELOPMENT: SALES TAX Objective. Encourage and promote retail projects that will increase sales tax revenues. Action Plan Task Original Revised 1. Identify retail types that would complement and augment existing market Ongoing conditions. Develop a retail recruitment strategy to encourage new retailers to locate in San Luis Obispo on properties zoned for this purpose. Use direct mail and attendance at industry events to support recruitment strategy. Hold quarterly meetings with local real estate brokers and property owners. 2. Continue to contract with Hinderliter deLlamas (HdL)for sales tax Ongoing Complete analysis services to analyze market conditions. thru 2"d Quarter 2004 3. Continue to conduct demographic research and information gathering Ongoing Complete about the City, its residents,its visitors and the region to provide to individuals,businesses,real estate professionals and others in analyzing San Luis Obispo for their business purposes. Continue to use the UCSB Economic Forecast Project as a data source. 4. Continue to facilitate and coordinate City involvement in major Ongoing development projects as directed by the Council. • In particular,continue to facilitate the Copelands Project toward Complete construction. • Continue involvement in the proposed San Luis Marketplace Project Complete through negotiations, Development Review, EIR, Annexation and Pre- zoning and Agreements for Sales Tax Reimbursement. • Continue involvement in the Airport Area Specific Plan and Annexation. Ongoing 5. Continue to conduct"economic gardening" in the retail industry through Ongoing existing customer service oriented programs like the Quick Response Team,the Economic Development Program's involvement in major development projects,the Economic Development Program's high level of customer service to individuals, businesses and real estate professionals. 6. Continue to support the Downtown Strategic Plan. Focus support on Ongoing efforts that maintain the retail health of Downtown and increase customer sales in a sustainable way. 7. Explore training opportunities, with local agencies like Cuesta College Ongoing Complete Institute for Professional Development,Private Industry Council, Small Business Development Center and others to assist local retailers in improving their marketing efforts and their"E" Business presence. 8. Promote shopping as an activity for visitors to San Luis Obispo. Ongoing - 16- MAJOR CITY GOALS Task Original . 9. Continue to work with auto dealers in the City. When possible,pursue the Ongoing expansion of the Auto Park Way area. Consider broadening the program of incentives to auto dealers who relocate out of downtown to Auto Park Way to include those who relocate out of downtown to other acceptable sites in the City. Continue to assist Stanley Motors in its efforts to relocate to a larger, new facility. Work closely with remaining Downtown auto dealers to find new locations that are more functional. Explore the reuse of Downtown auto dealer locations for other retail purposes. If space is available,encourage new car lines to locate in San Luis Obispo. 10. Advocate for legislation to extend sales tax to include Internet sales. Ongoing 11. Conduct an assessment of current retail conditions by surveying existing 9/03 Complete retail centers,identifying the types of retail business located in existing centers, identifying retail center property owners or representatives. 12. Develop a"Shop Locally" marketing and PR campaign to encourage 11/03 11/04 residents to purchase goods in the City. Focus on branding San Luis Obispo as the shopping destination for the region. Work with the Chamber of Commerce, Downtown Association and others to coordinate efforts and message about shopping in San Luis Obispo. 13. Explore the potential annexation of the McBride Property and Gap 2/04 Complete Property if the Dalidio Property is annexed. 14. Work with each retail area in the City to define itself and develop, when 9/04 Ongoing possible, niche-marketing efforts. Work closely with property owner and businesses in each area. Status Summary: 70% Complete. Staff continues to work on a strategy for further enhancing the retail sector, which will include a competitive assessment and discussion of market opportunities. Work with the City's sales tax advisor (Hinderliter deLlamas) continues, as does involvement with the UCSB Economic Forecast Project. The Copelands Project is under construction and on time to open in 2005. Staff has provided Costco with continual assistance during the processing of its building permit and other agency permits. Involvement in major development projects continues including; the Airport Area Specific Plan and the anticipated Chinatown Project. Action by LAFCO on the Dalidio property annexation is on hold at the request of the applicant pending the outcome of the three referendums. Staff has provided high levels of customer service, and particular attention to Quick Response Team Meetings, to professionals seeking office space (health care professionals in particular), to several automobile dealerships, and to many locally owned small businesses in the downtown and neighborhood and regional commercial centers. Work with Cole Motors and Smith Volvo continues as they work to complete their relocations to Broad Street. Staff has worked with a potential developer of the McBride Property and will continue to work with the Madonna family in regard to the "Gap Property." At this point, further action will not occur pending the results of the potential referendum election. A Shop Locally program will be undertaken during the holiday shopping season. The Seismic Coordinator has begun outreach to the tenants of URM buildings in the Downtown to access their needs during the retrofit process. An Economic Recovery Plan for local businesses in the event of a disaster is in the process of being developed. - 17- MAJOR • LONG-TERM FISCAL HEALTH Objective. Develop a comprehensive strategy for preserving essential services, adequately maintaining existing facilities and infrastructure, and protecting the City's fiscal health. Action Plan Task . Original Revised 1. Organizational Productivity. Continue organizational vitality program Ongoing in improving productivity and customer service. 2. Fiscal Independence. Support AB 1412 (Wolk), which would allow local Ongoing Complete voters to approve an increase of 0.25% or 0.5%in the local sales tax rate without special legislation. 3. Legislative Advocacy. Continue working closely with our employee Ongoing associations, the League of California Cities,other local governments, professional associations and other groups to prevent further State raids on city revenue sources. 4. Review and Monitor the City's Fiscal Condition. Continue to Ongoing effectively review and monitor the City's fiscal condition on an ongoing and timely basis, including on-line access to financial data,quarterly newsletters, focused reporting on key revenues, mid-year budget reviews and preparation of annual financial reports (CAFR) in accordance with generally accepted accounting principles and nationally recognized excellence in financial reporting guidelines. 5. Analyze Feasibility of Revenue Ballot Measure in 2004. Use professional assistance in analyzing the feasibility of a revenue ballot measure in March or November 2004: a. Enter into an agreement with The Lew Edwards Group. 7/03 Complete b. Complete the feasibility analysis and present the results to the Council 11/03 Complete for a"go/no-go"decision in taking the next step in preparing for a revenue measure in 2004. Status Summary: 80% Complete. The following highlights the status of key milestones. Legislative Advocacy. Staff continues to work closely with the Regional Coordinator for the League of California Cities to develop and implement a legislative response strategy for dealing with State takeaways, including support for Proposition I on the November 2004 ballot. Review and Monitor the City's Fiscal Condition. In addition to ongoing financial reports, we presented the Council with a formal "first quarter review" of the City's financial condition on November 4, 2003. On January 6, 2004, we presented the Comprehensive Annual Financial Report for 2002-03 to the Council; and presented the Mid-Year Budget Review to the Council on February 17, 2004. For the 2004-05 Financial Plan Supplement, we presented comprehensive rate reviews and multi-year forecasts for the enterprise funds to the Council on June 1, 2004; and the Preliminary Budget to the Council on June 15, 2004. We have also continued to issue quarterly financial newsletters—including an interim report on General Fund financial results for 2003-04 in August 2004—as well as ongoing focused reports on sales tax revenues,TOT revenues, and cash and investments. - 18- MAJOR • Analyze Feasibility of Revenue Ballot Measure in 2004. On November 4, 2003, we presented the Council with the results of the revenue ballot measure feasibility assessment. The Council concurred with the report recommendation not to go forward with a measure at this time, but to return to the Council at a later date with an analysis of the feasibility of forming an assessment district or adoption of property-related fees to assist with funding storm drainage maintenance and improvements in conjunction with the Storm Drainage Master Plan. OTHER • OBJtCTIVES Laurel iane/Orcutt/Bullock Realignment per the Conceptual Physical Plan for the City's. Center. Objective. Complete the realignment of Laurel Lane/OrcuttBullock Streets. Status Summary: 35% Complete. A Council study session was held to reduce the number of Status Summary: 7% Complete. Due to state project alternatives. A second design contract is funding shortfalls, the Union Pacific Railroad has under negotiation to prepare final conceptual layouts postponed installation of the new railroad crossing for return to Council. protection for one year. In the interim staff has prepared paving and construction plans to coordinate Short-Range Transit Plan with that work. When the state funding is available, staff will request UPRR to complete the crossing Objective. Implement the Short-Range Transit work and bid the project. Preliminary design is Plan. complete. Status Summary: 85% Complete. The new bus Santa Barbara Street Widening schedule and stops were implemented in January 2004. Ridership is increasing along modified routes. Objective. Complete the existing widening project The second year implementation is underway, for Santa Barbara Street from Highway 227/Broad including bus stop improvements and installation of Street to Roundhouse. schedule holders, subject to FTA grant acquisition. Status Summary: 0% Complete. State funding Airport Area Annexation shortfalls have delayed funding of this project at least until FY 2005-06. Objective. Annex the Airport Area. Waterways Management Plan Status Summary: 80% Complete. Public Implementation Program hearings and specific plan adoption are necessary before the airport area can be annexed to the City. Objective. Upon completion of the Waterways Planning Commission hearings on the AASP are Management Plan, adopt an implementation scheduled to begin in January 2005, with public program. hearings and Council review to occur in May 2005. The Margarita Area Specific Plan has been adopted Status Summary: 60% Complete. The Council and the EIR for both specific plans was certified by has adopted the Plan. The design element has been the Council in October 2004. Annexation of the implemented; the storm water quality program has Margarita area is expected to begin late in January been implemented; the stream maintenance 2005. guidelines were partially implemented this fall and will be fully implemented by next fall; Dalidio Property Annexation implementation of creek and flood protection projects will depend on significant funding that is Objective. Annex the Dalidio property. simply not available and therefore it is not anticipated that any of this program will be Status Summary: 90% Complete. Applications implemented. The Army Corps of Engineers ishave been made to annex the Dalidio property into currently working on the NEPA clearance for the the City and develop the site with a retail power Plan. The Zone 9 advisory committee is discussing center known as the San Luis Marketplace. The what work is needed to begin studies for flood property will also accommodate the development of protection projects. a hotel, business park, affordable housing, access and freeway infrastructure, and on and off-site open Palm-Nipomo Parking Structure Plans space. The annexation, prezoning, and development applications were approved and the Final Objective. Complete an environmental assessment, Environmental Impact Report (EIR) certified by the preliminary studies and evaluation of options for a City Council on July 7`s, 2004. The City Council new parking structure at Palm and Nipomo Streets subsequently entered into a Development Agreement 20- OTHER COUNCIL s with the project applicant on August P, 2004. Downtown Improvements: Annexation of the property into the City, which will Cultural Center Development fully complete this objective, will require approval by the Local Agency Formation Commission Objective. Encourage development of a Cultural (LAFCO). Action by LAFCO is on hold at the Center (such as the Art Center, Mission Museum, applicant's request pending the outcome of three Historical Museum, Little Theater and Children's referendums that have been filed by citizens on the Museum) in the Mission Plaza extension area as Council's project approvals. illustrated in the Conceptual Physical Plan for the City's Center, and support this.effort through the Auto Center Expansion existing Partnership Policy where possible. Objective. Continue to explore the possibility of Status Summary: 50% Complete. Staff continues expanding Auto Center sites via annexation of the to work with the Community Partners in terms of McBride and"gap"properties. expansion and renovation of facilities, Grants-in-Aid funding and general liaison support. In October of Status Summary: 25% Complete. Conversations 2004, City Council approved a new parking in-lieu with the property owners continue, although staff fee category for Community Partners to encourage has nothing promising to report. development of new facilities. The Children's Museum has demolished their old building and has received building permits to begin their new facility. The Art Center's plans for their new facility are currently undergoing ARC review. -21 - Attachment 4 2003=05 Financial Plan STATUS OF CIP PROJECTS As of November 1, 2004 City of san WIS OBI s o 2003-05 Financial Plan STATUS OF CIP PROJECTS As of November 1, 2004 TABLE OF CONTENTS INTRODUCTION Overview 1 Report Organization 1 Findings 3 Summary 4 STATUS REPORTS Major CIP Projects 5 All CIP Projects Capital Outlay Fund 6 Community Development Block Grant Fund 9 Law Enforcement Grant Fund 9 Transportation Impact Fees Fund 10 Fleet Replacement Fund 10 Parkland Development Fund 11 Open Space Protection Fund 11 Water Fund 12 Sewer Fund 13 Parking Fund 14 Transit Fund 15 Golf Fund 16 Whale Rock Reservoir Fund 17 cityo San tUIS OBISPO INTRODUCTION OVERVIEW The purpose of this report is two-fold: to provide the Council with a concise yet comprehensive summary of the status of the City's Capital Improvement Plan (CIP) projects; and from this, to make recommendations regarding any projects where funding should be deleted given the status of the project in freeing-up resources that can help us in balancing the budget for 2005-07. The Good News: Projects Are On Track. As discussed in greater detail below, we are making excellent progress in achieving our CIP goals: of 195 projects that have been active in 2004-05: 1. 60% (116) are either completed or under construction. 2. 9% (17) have been designed and are either out to bid or are ready to do so. 3. 12% (24) are under design. 4. 4% (8) are simply waiting for CIP Project Status By Phase reimbursement requests from grant sub-recipients or o Pending 60°�Complete or ReimbrsmntJ)13 Under Construction property owners. ani. 5. 15% (30) are under study, in otmd15%td� most cases with preliminary aCompleted work completed and are now aUnder Design Projects ready for the design phase. 12% 36% The Bad News: No Significant O Design "New Funds" Opportunities. Completed: nstruciton ReadyforBid orAcquisiton Given our substantial progress on 9% Undemay approved projects, we have not 24% identified any significant "new funds" opportunities. For those projects that are under design or study, virtually all of them have compelling reasons to remain funded. There are two exceptions to this, which are discussed below in greater detail: Mission Plaza improvements previously approved by the. Council in concept; and groundwater studies and development in the Water Fund. REPORT ORGANIZATION Status of Major City Projects This one-page chart concisely presents the status of our progress to-date on 22 major CIP projects by presenting the "percent complete" based on the phase that it is in: construction, design or study. As reflected in this summary, we are making excellent progress on our major CIP projects. Status of All CIP Projects This report summarizes the status of all 195 CIP projects with activity in 2004-05 organized as follows: - t - INTRODUCTION Primary Funding Source. Projects are first presented by their primary funding source: 1. Capital Outlay Fund (Along with grant 6. Open Space Protection Fund funds; the General Fund is the primary 7. Parkland Development Fund funding source for this fund.) 8. Water Fund 2. Community Development Block Grant 9. Sewer Fund (CDBG) Fund 10. Parking Fund 3. Law Enforcement Grant Fund 11. Transit Fund 4. Transportation Impact Fees Fund 12. Golf Fund 5. Fleet Replacement Fund 13. Whale Rock Reservoir Fund Project Status. Within each fund, projects are presented in one of five "phase" categories: 1. Construction or acquisition completed 2. Construction or acquisition underway 3. Design completed and the project is ready or out to bid 4. Under design 5. Under study Supplemental Information: Projects in Design or Study. In the case of projects that are completed or under construction, by their very nature there are no significant "new funds" opportunities. As such, in surfacing candidate projects for deletion, the CIP • . .. Review Committee focused on those As part of the 2004-05 budget preparation projects under design or study, since this process,the CIP Review Committee took an fin- is where the Council has the greatest depth analysis of completed and lagging CIP discretion and flexibility in curtailing projects,with the goal of freeing-up resources for funding, especially for any subsequent higher priority purposes. As a result of this construction phases. process, the Committee identified (and the Council approved) $524,200 in CIP project balances financed by the General Fund that should be For these projects in these early phases, closed and made available for other purposes. the report provides the following supplemental information regarding the then a"follow-on"step, the CIP Review Committee then undertookk the more difficult task from a policy following "high-priority" criteria for perspective: reviewing the status of projects that retaining the project (which are among the should be deferred or deleted in light of the City's same criteria used by the CIP Review fiscal situation. in short,while we may be making Committee in initially evaluating CIP excellent progress in the study or design phase, budget requests): the CIP Review Committee looked for those projects where we should set-aside our previous policy commitment to the project in light of 1. Is there significant outside funding? competing needs. 2. Is the project needed to meet As discussed below, this subsequent"policy" significant public health or safety review did not yield significant"new funds" concerns? candidates. One key reason for this that—in accordance with our 2003-05 budget-balancing 3. Is it needed to adequately maintain, strategy--our General Fund CIP is now geared to repair or replace existing essential maintenance work, and there are few "enhancement-type" projects. infrastructure, facilities or equipment? -2- INTRODUCTION 4. Does it help achieve a Major City Goal? 5. Will it result in significant operating cost savings or productivity improvements? 6. Does it achieve some other high-priority criteria? (In this case, an added note is provided describing the factor. There are only nine projects with supplemental information in this category. In most cases, the reason is either: it helps achieve an "Other Important Council Objective; it complies with the City's public art policy; or it is required as EIR mitigation measure or by a federal regulatory agency.) 7. What will be the City's savings if the project is stopped now? In several cases, there are none, since the project maybe wholly funded by a grant source. For example, this is the case for all CDBG Fund and Law Enforcement Grant Fund projects. In some cases, there may be significant outside funding, but there are also City funds committed to the project. In this case, only the actual City savings by discontinuing the project are shown in this column. FINDINGS As reflected in this summary, every project in the design or study phase meets at least one of these high-priority criteria (and many meet more than one). This is not surprising, given the high-level of scrutiny that each received before being approved by the Council, and the detailed reviews that we have already undertaken in our efforts to free-up CIP funding for higher-priority needs. Nonetheless, undertaking this type of detailed review on an ongoing basis is an important part of effective CIP management. However, as noted above there are two projects that we recommend deleting at this time, Mission Plaza Improvements. The Council originally approved this funding as part of the 2001-03 Major City Goal for Downtown Improvements, which included a work program to implement the "Mission Plaza Dogleg." When this concept went to the Council in June 2002 with the various street closure options, the Council did not approve the "dogleg" concept of closing this street area. However, the Council approved in concept pursuing other Mission Plaza and street-related improvements, such as bulb-outs and decorative street paving patterns. The Architectural Review Commission (ARC) reviewed and approved a revised project concept in Fall 2003, with the following features: 1. Expanding the amphitheater and adding a central walkway installing new seating, planters and landscaping. 2. Redesigning the area between restrooms and the Art Center, including terracing and new walkway and stairs to align with existing pedestrian bridge. 3. Installing new paving, including decorative pavers in street and plaza. 4. Building bulb-outs and enhanced crosswalks. 5. Installing new signage. Since the conceptual design is complete, with Council approval we could move forward with construction documents in about six months. However, we have not brought forward the revised -3 - INTRODUCTION concept for Council approval of the plans and environmental documents for two reasons: resource limits due to staffing vacancies in the Engineering Division; and limited construction funds. The concept approved by the ARC is likely to cost about $300,000 to implement compared with the $98,000 currently available. We recommend deleting funding for this project at this time for the following reasons: 1. Current funding is not adequate for the current concept:about another$200,000 is required. 2. Significant effort would be required by Engineering to complete plans and specifications, and given other high-priority projects, it is not clear that this would be an effective use of limited resources given the lack of available funding to undertake construction. 3. The 2003-05 Financial Plan strategic focus on CIP projects in the General Fund that takes care of what we already have versus enhancements. 4. Competing high-priority Downtown improvement projects that are already designed and ready for bid, such as the Garden Street Makeover. (Although the current cost estimate for this project is similar: $300,000.) 5. Other cost pressures facing us in 2005-07, such as maintenance of the Damon-Garcia sports fields and higher acquisition and construction costs (and related debt service costs) for 919 Palm Street, public safety dispatch improvements and radio system upgrade. If the Council is interested in pursuing these improvements, then we recommend that this emerge as part of the Council goal-setting process, where it can be considered in the context its likely to cost ($300,000 rather than the $98,000 currently available) and other City priorities.. Groundwater Studies and Development. The Phase 1 study for the Groundwater Development Project has recently been completed and will be presented to Council on December 7, 2004. This study evaluated project alternatives including well sites, water treatment plant facility locations, alternative treatment technologies, initial environmental impact analysis and cost. As part of the 2004 Water Resources Status Report, the Council supported moving the Groundwater Development Project to a "Tier 2" level. With the Council's recent decision on the Nacimiento Project, combined with the high cost for groundwater development identified in the Phase 1 report, we recommend that Council defer any additional work relative to increasing groundwater use at this time. The reasons for doing so, which will free-up about $460,000 in Water Fund working capital that can be used for other purposes (including mitigating future rate increases), will be detailed further in the December 7 report to the Council. SUMMARY This detailed review of our current CIP projects shows that we are making excellent progress in our CIP goals, and that the projects underway continue to make sense from a priority and policy perspective. However, the "flip side" of this finding is that this review did not surface any significant "New Funds," largely due to our ongoing review efforts and the high-level of scrutiny that each project received before being approved by the Council. Nonetheless, as noted above, undertaking this type of detailed review on an ongoing basis is an important component of effective CIP management. -4- I I status ®f maJOR cIp PROJects 2004-05: Second Quarter As of November 1,2004 Percent Complete r - 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% AWil. -\:Ala-".+3rJ�u1111`�l1LiU•.��uuytNLL Water Reuse 2003-05 Paving Program Foothill Bridge Replacement = - Bill Roalman Bicycle Boulevard - Palm-Morro Parking Structure/Offices Damon-Garcia Athletic Fields Ludwick Center Remodel Energy Conservation Projects G QUM Water Facilities Master Plan Projects Tank Farm Sewer& Lift Station v - Laurel Lane/OrcuttBullock Realignment Santa Barbara Street Widening EI Chorro Park Athletic Fields Radio System Upgrade u Groundwater Development Wastewater Facilities Master Plan Projects Higuera Street Widening LOVR Interchange Railroad Trail: Jennifer Bridge to Cal Poly Palm-Nipomo Garage Therapy Pool Public Safety Dispatch Upgrade -5 - I I N � m CL o. 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LL m O U m m « c w y > U U cv y V .m G � p O o CD N a E a — - 0 0 0 a IL c .0 0f S W w Q:a m m C C Q F o m .N 2 m E U X C W N y 0 c.li W o Q Z m y a`ni o E ¢ c Q CL ami m 0 = U ¢ a) ca 3 c ° LL cc - 3 c c c m 00 o c - m c v 'w p i v� XX U a 0 ¢ 7 c ` `o C 0 - p c c c _ - '- V p o a p w " m 7 V m m 2 0 X X X 'o c c v E o p V U o U m _CL of o ar a Il ca ■ 2 C C ca • D ■ c ■ 0 c E 0 r m m E cj ca z �c m os a U _ Q p Co Mm i N a) S] >` 0 N C ca Co O 0 L c c m 9 = N U Y 2 �' Q. o m m ■ m v o` d d U : tj � JVJ � >. � O of Attachment 5 2005=07 Financial Plan GENERALFISCAL OUTLOOK Tough Fiscal Past, Tough Fiscal Future November 2004 ',ri�r�'I' city ®f San tuis OBISPO 2005-07 Financial Plan GENERAL FISCAL OUTLOOK November 2004 TABLE OF CONTENTS OVERVIEW Tough Fiscal Past 1 One Bright Spot: Passage of Proposition IA 1 Tough Fiscal Future 2 KEY BUDGET DRIVERS AFFECTING OUR FISCAL OUTLOOK Uncertain Revenue Outlook 3 Sales Tax 3 Transient Occupancy Tax Revenues 4 Interest Earnings 4 Economic Summary 5 Operating Cost Pressures 5 Damon-Garcia Sports Fields 5 Retirement Costs 5 New Debt Service Costs 6 Infrastructure and Facilities Maintenance 7 SUMMARY 7 cityo san lues oBISPO r 2005-07 Financial Plan GENERAL FISCAL OUTLOOK OVERVIEW Tough Fiscal Past, Tough Fiscal Future Tough Fiscal Past. As the Council is aware, the fiscal situation facing the City in 2003-05 was the toughest in over ten years, since the "one-two punch" of the recession and State budget takeaways of the mid-1990's. We were facing a General Fund budget gap of $7 million—about BUDGET BALANCMG STRATEGY 20% of our General Fund revenues—which we Closing the General Fund Gap successfully closed through a combination of o New Revenues expenditure reductions in operations and capital 15., improvements, new revenues and use of reserves. o Reserves o CIP Because of added State takeaways totaling $1.5 11% — 491/6 million, we had to revisit the General Fund Expend1tures:74% budget in 2004-05. To accommodate this, we made further expenditure cuts (most. notably in a operatng our paving program); reinstated the hiring and R25�s training chill; and for the first time since we adopted our minimum reserve policy fifteen years ago of 20% of operating expenditures, we have gone below this level to 18%. While this is significant in signaling the tough fiscal times facing us, it is also consistent with the strategy adopted as part of the 2003-05 Financial Plan: to maintain reserves at policy levels as our first line of defense against even more State budget grabs. One Bright Spot: Passage of Proposition IA. The recent passage of Proposition 1A on November 2, 2004 significantly improves our fiscal situation by shielding us from more State budget raids, and thus provides us with greater certainty and stability on this front than we've experienced in many years. However, it is important to stress that it only helps prevent added State budget cuts to cities in the future: it doesn't return • .. ., any past takeaways, which currently cost the City over$3 After being mugged yesterday, million each and every year (and total over $22 million knowing that you aren't likely to over the past sixteen years). get mugged again tomorrow is certainly a good thing. It is also important to note that Proposition lA does not But it doesn't make you any better create an impervious firewall from more State raids: they off today: you won't get back what are still possible, but they are much harder to do. The has already been stolen; your Ground Rules: If two-thirds of the legislature declares a paycheck from your"day job" isn't fiscal emergency, then funds can be taken away from going to get any bigger; and your local government, but only as a loan that must be repaid cost of living isn't going to get any smaller. within three years; the amount cannot be more than $1.3 On the other hand, you weren't billion; it cannot occur more than twice in a ten-year mugged again, so you're better off period; and no new takeaways can be made if a past than you would have been—just takeaway has not been repaid. This is a high hurdle to not better off than you are now. overcome, certainly, but not an impossible one. - 1 - 2005-07 Financial Plan GENERAL FISCAL OUTLOOK In exchange for this reasonable assurance (but not guarantee) of"no mas, no mas" in the future, local governments agreed to give the State $1.3 billion per year for two years (in 2004-05 and 2005-06), for a total of$2.6 billion. The City's share of this is about$675,000 per year, or$1.35 million over two years. After this, we should return to our prior situation, which, as noted above, is continuing to lose $3 million per year to the State. In short, while passage of Proposition 1A was essential for our future fiscal health and stability, it does not improve our current fiscal situation: it simply deters the State from making it worse. Tough Fiscal Future. Even with the important passage of Proposition IA, we continue to face significant fiscal challenges. As detailed below, there are three key drivers: 1. Uncertain outlook in our key revenues, including sales tax, transient occupancy tax and interest earnings. 2. Operating cost pressures, most notably new maintenance costs for the Damon-Garcia Sports Fields, retirement costs and new (but previously projected) debt service costs for three important capital improvement plan (CIP) projects launched in 2003-05 919 Palm Street offices, radio system upgrade and public safety dispatch center improvements. 3. Need to adequately maintain our existing facilities and infrastructure like streets, sidewalks, storm drains and parks. In comparison with the tough fiscal outlook facing us two years ago, there are aspects of the current situation that are even tougher: Fewer Budget Balancing Options Remain. In closing the $7 million budget gap two years ago, we: 1. Reduced operating expenditures (and related services) by $1.7 million. 2. Implemented $1.1 million in new revenues (primarily user fees). 3. Significantly reduced our capital improvements (by about$3.5 million from target levels). 4. Used$800,000 in reserves. In short, we've already used these budget-balancers and they are now part of our current base: we can't "count them twice." Coming on top of these, this means that any further service reductions will be much more difficult to implement, especially in light of the fact that police and fire protection accounts for over 50% of General Fund operating costs; and new revenues options under Proposition 218 are few and far between (and if they were likely budget-balancers, we would probably have used them already). Lower Reserves. As noted above, we went below our policy level in 2004-05 for the first time since we adopted our minimum reserve policy fifteen years ago. While this was consistent with our adopted strategy of using reserves as our first line of defense against even more State budget -2- I I 2005-07 Financial Plan GENERAL FISCAL OUTLOOK grabs, it means we will go into the 2005-07 Financial Plan process with a lower level of reserves than we did two years ago: we began 2003-05 with General Fund reserves that were 30% of operating expenditures, compared with our current projection of 18%. Combined, these forces translate into what is likely to be another very tough budget season. KEY BUDGET DRIVERS AFFECTING OUR FISCAL OUTLOOK FOR 2005-07 O Uncertain Revenue Outlook As shown in the sidebar chart, sales tax, property tax and transient occupancy tax (TOT) are the City's top three General Fund revenues, accounting for about two-thirds of all funding sources. While property tax revenues continue to perform well, sales tax and TOT revenues 2004-05 General Fund Revenues: are major concerns. $37.9 Million OOther Sales Tax. Our budget-balancing efforts 3% in 2003-05 were driven b the results of a °Charges Service Y charges five-year fiscal forecast showing a 13% "systemic" General Fund annual budget o cher 0Sales Tax gap of$7 million annually as far as the eye Taxes 31% could see. However; this assumed new 10% O Vehicle - revenues from the following sources Ucense - (without them, the gap would have been Fees even larger): 1% O utility 0Property 1. Home Depot Users Tax TeX 2. Copeland Court Street Project 100 OTOT 22% 3. Costco 4. San Luis Marketplace 5. Airport Area Annexation Of these retail projects, Home Depot is on-line, and performing as expected (about $250,000 in "net" revenues, after accounting for transfer affects from businesses that existed before it opened); and the Copeland Court Street project—with estimated revenues of $200,000 annually—is under construction and is scheduled to open in Spring 2005. While the Costco project has received City approvals, it has not yet started construction. Estimated "net" revenues from this project are $500,000 annually, and at best, we will not see these revenues until later in 2005. However, even under the best of circumstances, net revenues from the San Luis Marketplace (estimated at $750,000 annually) and the Airport Area annexation (estimated at $450,000 initially upon annexation, and $150,000 at build-out) are not likely to be received in 2005-07. In the case of the San Luis Marketplace, the timing of receipts—if any at all—depends upon the results of the referendum and law suit. All other things being equal, this means we are facing a shortfall of$1.2 million in 2005-07 compared with our forecast two years ago. -3 - 2005-07 Financial Plan GENERALOUTLOOK TOT Revenues. Based on past trends, the forecast two years ago assumed that TOT revenues would grow by 5%. The actual results have been much worse than this. In 2002-03, TOT grew by only I% (following a decline of 3% from _ the prior year); and by only 2% in 2003-04. ho;,,,ttotei Occupancy awe Based on this, we reduced our estimate for San Luis Obispo County ,Q. 2004-05 to a relatively optimistic 3%. These trends are consistent with results " County-wide, which show declining hotel occupancies from their peak in 2000, decreasing steadily thereafter in the wake of the "dot.com" meltdown and "9/11." ' Based on results for the fust quarter of 2004- HI - •fc na Feu ,sn nw IM „q *fn xm :oa :w sn mei_ 05, which includes the most important tourist Smnrs:.Smrrl;Trm:.l P.wcairii months of the year, we may not meet even this modest projection. As shown below, TOT revenues continue their roller coaster ride. But even with a 13% increase in September compared with last year, year-to-date revenues are up by less than I%. Achieving an increase of 3% will require significant gains in the tat Qtr 2004-05 TOT Revenues remaining "low season" months to offset Percent Change from Same Qtr Last Year the declines in July and August. July Again, all other things being equal, even if we achieve the 3% growth estimate for August 0 2004-05, this means we are facing a shortfall of about $500,000 compared September - with our forecast two years ago. Year-to-Date 0 Interest Earnings. The forecast two years ago projected General Fund -6.0% -3.0% 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% interest earnings of about $600,000 annually. However, due to historically low interest yields (less than 2% per year) and lower fund balances, General Fund interest earnings in 2003-04 (before downward adjustments for changes in market value) were $220,000. This is about $400,000 less our forecast two years ago. In summary, these three factors alone mean about $2.1 million less annually in 2005-07 than our forecast two years ago. -4- � A 2005-07 Financial Plan GENERAL • OUTLOOK Economic Summary. The City's revenues do not occur in a vacuum: they are reflective of national, state and regional trends. The recent forecast for San Luis Obispo County by the UCSB Economic Forecast Project (UCSB) underscoresthe economic challenges facing the region and the City. For Real Cross County Product per Capita Growth pacem fan Luis Obispo County example, as shown in the sidebar chart in 7 real terms the "Gross County Product" e per capita has declined each year for the - 3 last three years. a -- nnn While UCSB does not forecast continued declines for the next five years, it expects $ 1987 7792 1993 100. 1995 1000 1947 1900 7499 2000 2007 2002.200.7 2000 only a modest recovery. In short, while it is possible that the City might experience Source: robust growth from our current base in lifting us out of our current fiscal difficulties, this isn't likely. The fact is that without some significant "bumps" in our sales and TOT base, we are going to face significantly constrained revenues for the foreseeable future. © Operating Cost Pressures Damon-Garcia Sports Fields. As highlighted in the 2003-05 Financial Plan, maintaining and managing these fields will cost about $250,000 per year. 2005-06 will be our first full year with these added costs. Retirement Costs. Like the sports fields, this is not a new cost concern on our radar. However, it has certainly not gone away. As the Council is aware, our retirement contributions to the California Public Employees Retirement System (PERS) have soared in the last several years. While there are several reasons for this, which we have previously detailed for the Council, the most significant one has been PERS investment returns. PERS Investment Yields 25.0% As shown in the sidebar chart, these 20.0 have vacillated widely over the past eight years, ranging from gains of 0 15.00/0 20% in 1996-97, to losses of 7% in 10.0% - 2000-01. These compare with PERS actuarial estimated annual returns of E 5.0% 8.25%. nr m - i' 0.0% While PERS uses a "smoothing" -5.00/0 - method that averages returns over a -10.0°/0 three-year period in setting rates, the 1997 1998 1999 2000 2001 2002. 2003 2004 high volatility in interest yields has Fiscal Year Ending resulted in high volatility in the City's employer contribution rates. For -.5- i 1 2005-07 Financial Plan GENERALOUTLOOK example, as recently as 2001-02, the City's "normal" employer contribution rate (the amount actuarially required to exactly match current contributions with future liabilities) was 14% of salary for sworn public safety employees and 7% for all other employees. However, because of "excess assets" generated by investment gains in the mid-1990's, the City's required contribution rates PERS Employer Contribution Rates were actually 0% for both groups. 35.0% 30.0% In short, as shown in the sidebar 25.0% chart, the City's required employer 20.0% — contribution rates have risen from 0% for both groups in 1999-01 to rates of 15.0% 29.5% in 2004-05 for sworn 10.0% n TI employees and 13.7% for all other 5.0°i° employees. 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 What causes this big swing? There Fiscal Year Ending are two factors. First, investment F l7Sworn [3Non-Sworn losses wiped-out the excess assets (and in fact cause unfunded liabilities); as such, there are no longer any credits against the "normae' rate. Second, rates now have to increase above the "normal" level to begin amortizing the unfunded liabilities. As reflected in the chart above, we recently received our rates from PERS for 2005-06 (and projected rates for 2006-07), which reflect continued increases in contribution rates, albeit at a much lower rate of increase than the past two years. Can it get better? If PERS most recent yield trends continue, then at some point we can expect that contribution rates will steadily decline to more closely resemble "normal" contribution rates. However, because of PERS "smoothing" methodology, this will take several years. Moreover, under previously negotiated agreements, our sworn fire staff s retirement benefits will increase from "3% at Age 55" to "3% at Age 50" in January 2006. At that time, we can expect another increase in contribution rates. In short, for the next two years, PERS improved investment yields will more likely result in stabilization of rates rather than a significant decline. New Debt Service Costs. There are three key CIP projects in the 2003-05 Financial Plan that are funded by debt financings: 919 Palm Street offices, radio system upgrade and public safety dispatch center improvements. As planned, there will no debt service costs for these projects in 2004-05. However, there will be at some point.in 2005-07. Moreover, while the costs will be spread over several years at (fortunately) historically low interest rates, current cost estimates for all three of these projects are higher than the existing budgets for them. We are in the process of finalizing these cost estimates and developing mitigation strategies, and plan to present the results of this analysis to the Council in January 2005. However, this is likely to result in higher debt service costs than those identified in the 2003-05 Financial Plan. At this point, assuming we can lease 955 Morro at market rates after -6- 2005-07 Financial Plan GENERAL FISCAL OUTLOOK Public Works relocates to 919 Palm Street, net debt service costs for these three projects combined are likely to be.about$850,000 annually. 0 Infrastructure and Facilities Maintenance The forecast we prepared two years ago estimated that adequately maintaining, repairing or replacing existing General Fund facilities, infrastructure and equipment we already have in place would cost about $6 million annually. This excludes any enhancements or `-`betterments." To place this is context: 1. In the prior two years (2001-03), our total General Fund "pay-as-you-go" CIP appropriations—including "betterments"—averaged about$4.7 million. 2. For 2004-05, total General Fund CIP appropriations are $2.3 million. This significant reduction in capital improvements—most notably pavement maintenance, which we have cut by $1.3 million annually since 2003—directly reflects the increasing fiscal difficulties facing the City, and the tough decisions we have had to make in preserving critical day-to-day services like police and fire protection. The Short Story: There will be significant adverse consequences in the condition of our existing facilities and infrastructure if we continue to fund CIP improvements at current levels.. SUMMARY The purpose of this "general fiscal outlook" is to highlight the key factors that are likely to affect us financially over the next two to five years. As reflected in this "high-level" look, we continue to face significant fiscal challenges in the near future. We will be better able to place these in a more "empirical" context, along with other key factors, after we have finalized the five-year General Fund forecast, which we plan to present to the Council on December 14, 2004.. As we begin the goal-setting process for 2005-07, it is important to keep in mind that just because we are facing very challenging fiscalcircumstances doesn't mean that we can't fund new initiatives in 2005-07—but it does mean that doing so will be extraordinarily difficult. On one hand, it will be a major challenge to simply continue current "core" service levels and adequately maintain our existing facilities and infrastructure. On the other hand, the option of changing our current priorities and reallocating resources to accommodate new ones always exists—although it is important to stress that this is much easier said than done. On the surface, goal-setting and tough fiscal times may appear to be conflicting concepts—but they aren't. In fact, the need to set goals for the most important, highest priority things for us to do is even more important when resources are tight. And this is the essence of the budget process: of all the things we want to do in making our community an even better place to live, work and play, which are the most important? And what are the difficult resource trade-offs we have to make to do them? -7- Attachment 6 2005=07 Financial Plan "Pantry" Follow-up November 18, 2004 City Of San WIS OBI s o 2005-07 Financial Plan "PANTRY" FOLLOW-UP November 18, 2004 TABLE OF CONTENTS INTRODUCTION Background,Report Organization and Recommendation Summary............................................................1 "PANTRY"ITEMS Go Forward Now Application Fee for CHC Review.......................:...............:.....................................:...................................3 AdoptA Park/Creek/Open Space..................................................................................................................7 Annexation for Tax Saving Purposes............................................................................................................9 Technology Infrastructure Cost Recovery ......................................................... .........................;.............,11 Cost Recovery for Vehicle Towing Initiated by Police Department...........................................................14 Defer Action At This Time Increase Ambulance Company Rents......................:...................................................................................16 GISCost Recovery.............................:.......;..,..............:...... ............_;.. ...............:.......................................18 AlcoholSales Permit Fee............................................................................................................................20 911 Communications Center Cost Recovery ......... .....:..............................................................................21 No Further Action Recommended Residential Parking District Cost Recovery................................................................................................22 city of sAn tUIS OBISPO INTRODUCT-10-N BACKGROUND As part of the 2003-05 Financial Plan process, staff identified a list of potential budget-balancing ideas that became known as the "pantry" items. While they appeared to have merit on their surface, they were placed "in the pantry" because more research and analysis was required about their feasibility, including their actual cost-saving or revenue producing capability. Over the past two years, we have completed this analysis in determining the obvious "low hanging fruit," the challenging to implement and the simply unfeasible. This report summarizes the results of this research and makes recommendations for future action on each item. REPORT ORGANIZATION The "pantry" items are organized into three main categories reflecting the recommendations of staff as follows: Go Forward Now Defer Action At This Time No Further Action Recommended Each "pantry" item write-up consists of a recommendation, a proposal summary, a fiscal impact analysis, requirements for implementation and alternatives (when they reasonably exist). Two "Pantry Items" Not Reviewed At This Time. A total of twelve "pantry" ideas were initially considered, of which ten are included in this report. Because of their complexity and sensitivity, two of the proposed ideas—Paramedic Cost Recovery and Fire Engine Company Inspection Cost Recovery— have been excluded from review at this time, and will be brought to Council in a different context, most likely in a Spring 2005 study session for paramedic cost recovery; and as part of a planned, comprehensive update to the Cost of Services Study in 2005-07 for inspection fees. RECOMMENDATION SUMMARY Go Forward Now. Staff recommends that we go forward with the following items at this time. Estimated Annual Budget-Balancing,Impact(See Note:Below Amount 1. Application Fee for CHC Review $68,500 2. Adopt A Park/Creek/Open Space Unknown 3. Annexation for Tax Saving Purposes 2,800 4. Technology Infrastructure Cost Recovery 62,000 5. Cost Recovery for Vehicle Towing Initiated by Police Department 20,000 Total $1439400 Note: These reflect the mid-range of estimated cost savings or new revenues once they are fully implemented on an annual basis. In several cases,first year amounts may be less than this due to start-up costs;and in others, such as tax savings from open space annexations, may not be available immediately. Defer Action At This Time. We believe the following proposals should be deferred at this time, either because they need additional research or the timing is not appropriate: 6. Ambulance Company Rent Increase 7. GIS Cost Recovery 8. Alcohol Sales Permit Fee 9. 911 Communications Center Cost Recovery - 1 - 1 i INTRODUCTION No estimates for the budget-balancing impact for these ideas have been developed at this time. In most cases, additional research is needed to determine this, which is why deferral is recommended at this time. No Further Action Recommended 10. Residential Parking District Cost Recovery There is no need to implement additional cost recovery for residential parking districts: as shown in the research for this,current practices already provide sufficient recovery. -2- "PANTRY" • , APPLICATION FEE FOR CHC REVIEW Recommendation Go Forward Now. Except for requests to add properties to the Master or Contributing list, implement an application fee for proposals requiring review by the Cultural Heritage Committee(CHC). Proposal Summary Historically, the City Council made the determination that CHC review is a public service that should encourage historical review of buildings and development projects, and therefore no fees have ever been recovered for CHC review of proposals. CHC review fees could be justified at this time based on the more recent direction to implement full cost recovery for project review by Community Development staff. There are two distinct situations where Community Development staff provides work for the Committee which could warrant cost recovery. 1. The first, projects with development, is for applications that go before the CHC that are related to Architectural Review Commission or Planning Commission permits. These are for private development action, generally in historic districts or involving Master List or Contributing property. At the present time there is no additional fee collected for CHC review, although additional staff time is required for this review. These are the most common CHC reviews with 28 projects forwarded to the Committee in the past year. I. The second situation, projects without development, is for applications that go before the Cultural Heritage Committee that are not related to any other required permits. This would be for private development action, not Architectural Review Commission or Planning Commission related, such as historic inquiries and requests to add or remove properties from Master or Contributing list. These are less common, with about six applications per year under the present rules. This number could decrease if people felt the fee was too high. Fiscal Impact In the past year, 28 projects with development were forwarded to the Cultural Heritage Committee for their review and recommendations. At that level, as noted on the attached Exhibit"A," full cost recovery would require a fee of $2,134 per project, which would generate about $59,700 per year. Under the present system, because building permits are anticipated for this type of review, only 45% of the fee would be collected at the time of application. The remaining 55% would be collected with building permits. Approximately six projects without development per year go before the Cultural Heritage Committee for their review and recommendations. Half of these are for adding a property to the Master or Contributing list and therefore would be exempt from fees under the recommended proposal. Full cost recovery, as noted on the attached Exhibit `B," would need to be $2,928, which would generate about $8,750 per year. The per project cost is higher for these applications than for projects with development due to the inclusion of file creation and management costs that are already covered in projects that have planning applications. To avoid discouraging requests to add properties to the Masteror Contributing list, we do not recommend a fee for this service. -3 - • • APPLICATION FEE FOR CHC REVIEW Implementation What Who Wheg 1. Review proposal with the Cultural Heritage Committee and CDD 1/05 stakeholders 2. Hold public hearing & obtain Council approval to revise fee schedule CDD 3/05 3. Implement fee schedule CDD 5/05 Alternatives 1. Continue the current policy of not charging fees for CHC review. This would be inconsistent with the recent Council policy change of trying to achieve full cost recovery for most planning services. 2. Implement full cost recovery for all CHC reviews, including additions to the Master and Contributing properties list. This is likely to discourage many from applying for this. 3. Implement full fee recovery for projects with development only, because these referrals are part of a review involving more significant changes and the fee is a much smaller proportion of the total project costs. 4. 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'Y 'e - e a C Yu a � cc OEn `�.� $ L eG •v � LeU 'ueo 1 V C Y V �V O'ff ,n, 4E O E � kzz ¢ = � yEy3ahzc �nac � � ya �° � Fz �n` ti � E � 'ou �% � �E :� 'ouh = cu. d —N f'1 Q Vl •D f� O] C\ O — N Nt Q h �D l� m P O — N nl Q vl `G r W P O — N. N Q h �O I 0 < — - - - - - - - - N N N N N N N N N N N1 t�1 Nf M M N t•1 l i I "PANTRY" s . • ■ ADOPT A PARK/CREEK/OPEN SPACE Recommendation Go Forward Now. Include certain parks, creeks and open space locations as adoptable elements in the Parks and Recreation Department's Gift Catalog. Proposal Summary In recent years, City of San Luis Obispo Parks and Recreation and Natural Resources staffs have conducted an informal volunteer program on City-owned open space and park lands, as well as along the City's many creeks. These activities have generated thousands of person-hours of effort in trail building, plantings, litter cleanup and other beneficial activities. These activities tend to be focused on specific efforts, such as the building of a particular trail, or the planting of a grove of trees. Now there is interest in a more concerted effort to expand citizen interest in these kinds of projects to amore sustained interest in a given park, creek, or open space through a "site adoption" process. Similar activities have worked in some communities, such as a well-known "Adopt-a-Median" program in Santa Maria, or the Community Forest in Santa Margarita. Last year, the Parks and Recreation Department published a Gift Catalog. This is a listing of opportunities to make donations to the City for specific facilities and programs. Among those opportunities could be the adoption of specific areas such as an open space, park or creek. Generally, rather than asking citizens to perform actual maintenance work, donors would agree to reimburse the City for the costs associated with basic site maintenance. Staff recommends this approach to assure that consistent and appropriate basic maintenance occurs. However, should donors also be interested in volunteer service projects, arrangements could be made for them to provide an expanded level of maintenance. In order to place a value on the donations, Ranger Service and Parks Maintenance staff, using historical data, can calculate the amount of staff time and supplies that were expended on each open space, creek or park area. That cost would then be listed in the gift catalog, along with a description of what the donation would accomplish. Fiscal Impact Each year the City expends approximately $1.4 million for Parks maintenance and another $120,000 for open space upkeep. The impact of any donation would be a reduction in operating expenses in the Ranger Service or Parks Maintenance Programs. Until maintenance values are determined and advertised in the gift catalog, it is difficult to predict what the actual cost benefit would be to the City, although even the smallest of donations would be helpful. There would only be minor expenses associated with administering this program, such as public recognition of the adoption. Implementation The listing of open spaces, parks or creeks for adoption will not guarantee any donations. The key to a successful program is publicity. The Parks and Recreation Department will publicize the adoption program through the normal media outlets. However, the most effective method of securing these types of donations is through public presentations. The Parks and Recreation director, Natural Resources Manager (NRM), and Ranger Services Administrator will need to make regular presentations to community groups and service clubs about the program. Another possibility is to advertise over our government access channel (television). The ability to attract adoptions will be determined by the success of our advertising efforts. -7 - "PANTRY" • FOLLOW-UP• • ADOPT A PARK/CREEK/OPEN SPACE What Who Wheim 1. Calculate costs of adopting appropriate open space, creek or park Parks and sites Recreation or 3/05 Public Works 2. List open space adoptions in the Gift Catalog Parks and 4/05 Recreation Parks and 3. Publicize the adoption opportunities Recreation On going and NRM 4. Implement individual adoptions,including appropriate Parks and On going recognitions. Recreation Alternatives None are recommended. Staff believes that this program can be implemented fairly easily. Its effectiveness will be dependent upon our ability to advertise the Gift Catalog opportunities. -8- • • a ANNEXATION FOR TAX SAVING PURPOSES Recommendation Go Forward Now.. Pursue annexation of the City's Reservoir Canyon Natural Reserve. Proposal Summary City staff, in recent years, has undertaken several open space annexations in various parts of the City Greenbelt. These have been done to effect cost savings and to ensure that City regulations for those lands can be enforced. Sites annexed include parts of Bishop Peak Natural Reserve, Cerro San Luis Natural Reserve and Irish Hills Natural Reserve. Another annexation that has some potential in this regard is Reservoir Canyon Natural Reserve. This potential annexation would carry some significant cost savings over the long run, and for that reason, it is considered the most important possible annexation at this time. Fiscal Impact The City of San Luis Obispo owns and manages some 487 acres of natural lands in the Reservoir Canyon area, in the unincorporated area. While these lands are not currently adjacent to the City limit, City staff anticipate the donation of a one-half interest in fee title to that portion of the Bowden Ranch which lies in the unincorporated area and would physically connect the Reservoir Canyon properties with the City limit. This means that all of those lands could be annexed. In 2003-04, the City paid $2,825.68 in property taxes on the Reservoir Canyon properties. This cost will continue into the future, increasing at.2% per year as allowed by Proposition 13. Therefore, over the next ten years, the tax cost would be $30,940.40. This cost can be eliminated by annexation. However, in order to do this, the intervening owner(s) must be agreeable, and the City will have to pay various surveying costs and LAFCO and other fees totaling between $10,000 and $15,000. There would also be some tax consequences to the Bowden Ranch donation until that site is annexed; however, since that property is burdened with a conservation easement this cost is expected to be minor. By comparing the cost of annexation to the ongoing costs of no annexation, it is estimated that the City would save between $15,000 and $20,000 over the next ten years, and the annual savings of over $3,377 (the year ten tax cost) would continue into the future beyond that time. As noted above, the annexation also has the value of ensuring that the City can enforce its own regulations governing use of open space lands, which technically we cannot do if the land is outside the city limits. Implementation There are several tasks that need to be completed to implement this proposal. First and most important is to secure the intervening property and make it part of the annexation. (This is expected to occur early next year.) Second, it will be necessary to create the survey documents accurately describing the annexation area. Third, it will be necessary to complete and submit to the LAFCO a complete annexation package. And finally, there will be various ancillary agreements, including the tax sharing agreement with the County. Of these, the major cost will be in the survey work and the LAFCO submittal. The other items will require staff time but do not represent a major cost consideration. Indeed, if the donation does not occur, or the co-owners do not support the annexation, it may not be possible to make the annexation occur successfully. However,we would know this before bearing any significant costs. -9- "PANTRY" FOLLOW;-UP ANNEXATION FOR TAX SAVING PURPOSES It is expected that the annexation process would take approximately one year. This is based upon our experience with both the Bishop Peak and Cerro San Luis open space annexations, and the Foster property annexation in the Irish Hills Natural Reserve. What Who When 1. Accept donation of 50% interest in Bowden Ranch property Council 3/05 2. Create survey documents describing the annexation area Administration 6/05 3. Coordinate pre-zoning with Planning Commission&City Council CDD 6/05 4. Develop and submit annexation request to LAFCO Administration 9/05 5. Implement necessary follow-up activities Administration 3/06 It should be pointed out that there are two other open space annexations that staff has been considering: the County managed 104 acre portion of Bishop Peak Natural Reserve, and the small property at the corner of Highway 1 and Highland Drive. These annexations would not involve any cost savings but would provide greater City control over enforcement and, in the case of Bishop Peak, would end confusion over responsibilities such as police authority in accidents involving injury or death. This has been a source of confusion in past years. If it is determined to go forward with the Reservoir Canyon annexation, staff will explore with the LAFCO the possibility of including the other two, combining annexation sites to affect any cost savings in the application process. Alternatives The first step above should tell us whether or not the concept is a viable one. If it is not viable, one possible alternative would be to place the properties into a Williamson Act contract, which could lower their assessed value and result in tax savings of some unknown but possibly significant amount. This however would not address the issue of having City rules and regulations apply to City-owned lands in the unincorporated area - to- • • ■ TECHNOLOGY INFRASTRUCTURE COST RECOVERY Recommendation Go Forward Now. Authorize the CAO to enter into a two-year"pilot"agreement with the City of Grover Beach to provide them network services for an estimated first-year fee of$75,000 and second-year fee of $77,500. Net revenues will be less than this due to offsetting installation and ongoing support costs: adjusting for these, net revenues to the City will be about $82,000 over the fust two years ($41,000 per year on average); and will increase to about$65,000 annually thereafter if'the pilot program is successful and we continue to provide these services to Grover Beach. Proposal Summary Overview. The City has made a significant investment in its information technology (IT) infrastructure and network—both from a hardware and human resources perspective—which can serve as a foundation for providing focused services to other government agencies with minor incremental costs. Based on their interest, we recommend contracting with the City of Grover Beach to provide them with "network services," with the possibility of expanding this service to other agencies if this pilot program with Grover Beach is successful. Background. The City of Grover Beach recently evaluated their IT needs, and concluded that they need to make significant improvements to their current situation. For example, they are not able to share files (they rely upon their"sneaker net" for this: to share files, users must copy the file onto a floppy disk and walk it over to each user who needs a copy);and there is no"desktop"email (only one employee citywide has email access), very limited Internet access and no routine citywide back-up of user files. After analyzing their options—including designing, implementing and supporting their own network, versus contracting with the City of San Luis Obispo—their Council unanimously supported the concept of contracting with us. Scope of Services. At least for the initial pilot term of two years, we would focus on providing Grover Beach with "network services," which would be limited to the following uses of our existing technology infrastructure: 1. Network server storage 2. Tape backup and restoration 3. Email and calendaring 4. Network security (firewall, antivirus, spam-blocking) 5. Internet access and monitoring 6. Web site hosting These are core services that are already in place, and can be expanded with minor incremental costs: in essence, with about 50 users, serving Grover Beach would be like supporting an expanded department, not a new system. Services we would not support in the initial two-year term are desktop user support (except on a time and materials basis), user training or "applications." Grover Beach would also be responsible for all "desktop" hardware and software costs. Term. As discussed above, we recommend an initial term of two years in evaluating this concept on a pilot program basis. On one hand, this is long enough for us to recover our costs and earn a reasonable return on our investment. On the other hand, it minimizes the time period if this approach is not working for either Grover Beach or us. - 11 - s FOLLOW-UP• ■ TECHNOLOGY INFRASTRUCTURE COST RECOVERY Pricing Strategy. As discussed below, we recommend providing Grover Beach with "all-inclusive, turnkey service" for a fixed annual fee. While we considered a two-tier pricing structure with a one-time installation charge with corresponding reduced ongoing charges, we believe that there are advantages in presenting a straightforward "leasing" concept. It reduces Grover Beach's "entry costs," while providing longer term cost recovery for the City if the two-year pilot program is successful and we extend the contract term. It also makes sense from ownership and equity perspective, since the installation costs we will incur will not result in any tangible assets for Grover Beach. On the other hand, to the degree that Grover Beach will benefit from selected purchases (such as switches and desktop user licenses at their sites), then they will be responsible for any direct purchase costs. Connectivity. There are several options for connecting Grover Beach to the City's network. The best approach for seamless connectivity would be to piggyback onto the Charter Cable's fiber line that runs from San Luis Obispo to Grover Beach. We could also lease a high-speed"T-1"line from SBC. In either case, Grover Beach would be responsible for any one-time or recurring costs for data communications. Service Levels. The agreement will need to clearly outline agreed upon service levels such as system "up-time" and trouble-shooting response times. Fiscal Impact Revenues. During the first year, we propose charging Grover Beach $125 per month per workstation connected to our network. With an estimated 50 workstations, this would be $75,000 in the first year, increasing by 3.5%in the second year. Costs. There will be one-time costs of $40,000 for hardware ($2,000), network user software licenses ($7,000), cabling ($1,000), installation ($25,000) and contingencies ($5,000). Additionally, there will be $15,000 in ongoing temporary staffing costs to ensure that existing City users are not adversely affected by the expanded services to Grover Beach. Two-Year Summary. Assuming 50 workstations supported at Grover Beach, the following summarizes net revenues over the next two years: Year I Year 2 Total Revenues 75,000 77,500 152,500 Expenditures One-Time Installation Costs 40,000 40,000 Ongoing Cosfs:Temporary Staffing 15,000 15,500_ 30,500 Net Revenue $20,000 $62000 $82,000 Other Services. The City will offer "desktop" services on a time and material basis, subject to agreed- upon response times, as follows: New Workstation Ordering,Configuration and Installation (Per Unit) $380 Workstation Relocation(Per Unit) $190 Printer Installation/Relocation(Per Unit) $190 All Other On-Site Services: Per Hour,With Two-Hour Minimum $95 - 12- TECHNOLOGY INFRASTRUCTURE COST RECOVERY Implementation The following summarizes key action steps leading to the delivery of network services to Grover Beach by July 2005: what ---When 1. Council authorizes CAO to enter into agreement with Grover Beach. 11/04 2. Negotiate and finalize agreement with Grover Beach 1/05 3. Complete City of San Luis Obispo network conversion from Novell to Microsoft. 4/05 4. Finalize Grover Beach installation plan, order equipment and begin installation 5/05 5. Complete installation and begin providing network services 7/05 Alternatives 1. Do not go forward with recovering our infrastructure costs. Given its net revenue generating ability with minimal potential for adverse impacts, and a ready customer for a pilot program, we do not recommend this option. 2. Expand the number of cities and/or expand the scope of services. Until we have successfully provided focused services to at least one agency, we do not recommend this option. - 13- •ANTRY" FOLLOWTP COST RECOVERY FOR VEHICLE TOWING INITIATED BY POLICE DEPARTMENT Recommendation Go forward now. Implement cost recovery for vehicle towing using one of the following methods based on additional research on the most reasonable and cost-effective approach: franchise agreement or a flat- fee per tow agreement with the private tow companies for police initiated tows, or tow release fee for all impounded vehicles paid by the vehicle owner. Proposal Summary Currently the Police Department administers all police tows, primarily using a couple of local tow services on a rotational basis. The City does not collect a franchise towing fee or a flat-fee from these private tow companies that provide the service. Additionally, the Police Department does not currently charge a towed vehicle release fee for qualifying types of tows. Establishing either a franchise agreement or a flat-fee per tow with private tow companies, or a tow release fee to be paid by the vehicle owner could off-set the actual City costs for administration of these public safety services. Preliminary research has provided the following information: 1. Many cities in California have set up programs where they collect franchise fees from their respective tow companies. For instance, some large metropolitan cities charge 50% of the fees that a tow company collects from the owner of the towed vehicle. Other cities charge a lesser fee, such as San Jose at 13%, Newport Beach at 10% and Salinas, which (as of May 2004) was proposing a 10% franchise fee. Currently the City of Arroyo Grande has an exclusive tow contract with a tow company, but it does not collect a franchise fee. Several agencies that have entered into franchise agreements entered into 5-year contracts with the tow operators. This long-term contract allows tow operators to amortize their capital equipment expenses required by the contract. 2. The California vehicle code authorizes agencies to collect a flat-fee from private tow companies for police initiated tows. Initial research indicates that police agencies are charging private tow companies between$40-$50 flat-fee per tow. . 3. Many cities in California require a release fee for impounded vehicles from the vehicle owner. This fee is as high as $125 per vehicle. Fiscal Impact The fiscal impact will bemore clearly determined pending additional research. Initial estimates for a percentage based franchise fee range from $10,000 - $30,000 annually based on service activity in 2003 when the Police Department towed 402 vehicles. 1. If a 10% franchise tow agreement was in place, the Police Department would have generated approximately $10,000 in franchise fees for 2003. 2. If the flat fee was implemented, the Police Department would have generated between $16,000 and $20,000 in cost recovery fees for 2003. 3. Annual cost recovery estimates generated from the implementation of a release fee for impounded vehicles to be paid by the vehicle owner will require additional legal research. Through this research, staff will determine the types of tows this fee could be legally imposed upon, and if the tow release fee could be implemented in combination with a tow franchise agreement. - 14- "PANTRY" FOLLOW-7P COST RECOVERY FOR VEHICLE TOWING INITIATED BY POLICE DEPARTMENT The City currently does not charge the tow companies a franchise fee or a flat-fee for police initiated vehicle towing. Nor does the City currently charge a tow release fee to the vehicle owner for all qualifying types of tows. For billing purposes, the Police Department would provide a quarterly report to Finance on the tow activity and parties responsible for payment. The Finance Department would invoice the tow companies and collect the fees. Implementation Additional research will be conducted to determine the appropriate direction and subsequent next steps for cost recovery on the administration of vehicle towing initiated by the Police Department. What Who When 1. Research cost recovery options for police initiated towed vehicles PD 12/04 2. Identify most reasonable and effective fee option PD 1/05 3. Identify appropriate cost recovery fee structure PD/F&IT 1/05 4. Present idea to Downtown Association PD 2/05 5. Return to Council for approval. PD 3/05 6. Develop procedure for administrating and collecting new fee PD/F&IT 3/05 7. Negotiate agreement with tow companies or implement release fee PD/Attorney 4/05 Alternatives Do not move forward with additional research and do not consider cost recovery options for police initiated vehicle tows. This alternative is not recommended, as a cost recovery method would help off-set current public safety service costs. - IS- I MW "PANTRY" FOLLOVV�-UP AMBULANCE COMPANY RENT INCREASE Recommendation Defer Action At This Time. Continue with the current rent agreement through the end of its term (July 2007, which includes two remaining one-year extension periods after the conclusion of its initial term in July 2005). This recommendation is based on research showing that, in the past two years, although.Fire Department costs (including utilities) have increased, commercial rental costs in the area have remained generally the same; and as such, attempting to increase the rent when the initial term expires in July 2005 may result in losing the tenant. Proposal Summary Background. In 1997, the City entered into a lease agreement with San Luis Ambulance (SLA) for the rental of space at Fire Station No. 1 in the amount of$1,500 per month. The agreement provided for the use of two bedrooms, office space, apparatus floor space for one ambulance and outside parking for one additional ambulance. It also included use of the bathrooms, kitchen, weight room, dining room, day room facilities and parking for SLA personnel. There was no provision for future rate increases. In 2002, the Fire Chief researched the cost of rental units in San Luis Obispo to determine if rates should be raised for SLA's use of Fire Station No. 1. The results were as follows: Two-bedroom condo with weight room and parking in SLO $1,400 Apparatus Floor Space 540 Office Area 300 Supplies 150 Total $2,390 Because of SLA's objection to raising the rental rate to $2,390, staff negotiated a compromise at $1,800 per month, with annual CPI adjustments, not to exceed 5%. The increase in rent also included the use of laundry facilities and janitorial supplies provided by the Fire Department. The contract was signed in July 2002 and is currently in effect. The initial term of the contract expires in July 2005; however, it provides for two, one-year extensions under current contract conditions. In this case, the agreement would be extended to July 2007. Recent Look at the Market. In 2004, staff again explored a rental fee increase to more accurately reflect market rates and increasing operating costs(e.g. utilities). Based on local rental management company estimates, rental costs have remained constant for the past two years, although operating costs have increased. Given current market circumstances, we believe that renegotiating the rent for a significant increase at the end of the initial term (July 2005) will not be successful, and has the potential of losing a "tailor-made" renter. Accordingly, we recommend deferring consideration of a significant rate increase until July 2007, when the agreement, including extension periods, will expire. Fiscal Impact If we could increase the rent from its current level of $1878 to $2,400 per month, this would generate added rent of about $6,200 per year. However, as noted above, current market circumstances do not support an increase at this time. - 16- AMBULANCE COMPANY RENT INCREASE Implementation To implement the increase, the City would need to enter into a new contract with SLA when the initial term of the current one expires in July 2005. Alternatives 1. Begin negotiations with SLA to increase its current rent from $1,878 per month to something closer to $2,390 per month. This would require negotiating a new agreement with SLA. Based on the response from SLA in 2002 negotiations, it is likely that SLA could choose not to renew the contract, in which case the City would loose the $22,500/year it currently collects in rental income, unless another tenant can be identified. This is unlikely. 2. Terminate the contract in July 2005 and use the space for City operations. While added space would be of value to Fire Department, we do not recommend the loss of$22,000 in annual revenues at this time given the City's current fiscal situation. - 17- i "PANTRY" FOLLOW- P GIS COST RECOVERY Recommendation Defer Action At This Time. As discussed below, there are several options available to us in recovering the costs of our geographic information system (GIS). However, more research is necessary to determine if the services would be favorably received and if so, what revenue could be generated. Additionally, we need to further evaluate the impacts on GIS and Information Technology (IT) staff as well as existing hardware and software resources. Proposal Summary The following five alternatives for marketing GIS services have been identified. The alternative with the best marketability, and the highest revenue generation relative to the least impact on City resources should be the alternative the City chooses to begin the GIS cost recovery initiative. More research is needed to determine which alternative would meet these criteria. 1. Set up a web map link for all non-home based businesses within the City. This would display businesses within a selected geographic area by business type and allow a search by name or type. Any business or business organization could link to the map at no charge. The map would also be available directly from the City website and from various search engines. Any business could add a link from the map to their business website for a fee. GIS staff time is required to set up and maintain the map site and business website links, and IT staff time is also likely in supporting the underlying infrastructure. However, it is likely that no significant hardware or software investments will be required. 2. Host basic zoning information websites for other local government agencies., The map website would include links to specific information about the different zoning designations. Benefits to clients include more efficient use of staff time, better customer service and very low implementation cost for participants. City staff time would be requited to market this application to other agencies in the region. GIS staff time is required to set up and maintain the map site, and IT staff time is also Likely in supporting the underlying infrastructure. However, it is likely that no significant hardware or software investments will be required. 3. Develop and maintain GIS data for local agencies. This service can range from ground-up development to routine maintenance of an agency's existing GIS data. GIS and IT staff time would be required; however, it is likely that no significant hardware or software investments will be required. 4. Provide geographic analysis services for other agencies. This service would be potentially very time consuming. Revenue would be intermittent,but potentially lucrative. 5. Develop password protected Internet information services for other agencies based on the concept of the City's InfoSLO application. This alternative is in development within the City, and as such is not ready to be marketed to other agencies at this time. It is anticipated that the assistance of outside contractors would be required to get this application developed to desired specifications. GIS staff time is required for data updates, and IT staff time is also likely in supporting the underlying infrastructure. - 18- "PANTRY" s • • . • GIS COST RECOVERY Fiscal Impact Any of the alternatives produce a new revenue source based on a fee for service. Estimates of potential revenue have not been determined and require further research. Depending on the alternative selected, there may be an impact on GIS and IT services to the City organization. Again, this would need further research to determine the magnitude of the impact. If the GIS Division is utilized for geographic analysis and/or mapping projects that have in the past been routinely contracted out, the City could realize a savings. Implementation Implementation requirements for each alternative are yet to be determined. The lead Department/Division for implementation of any of the potential alternatives is Public Works/GIS, with support from the IT Division. Marketing strategies for introducing and selling this new information service will be determined by the alternative selected. What Who Whe 1. Conduct research. PW-GIS/F&IT 2/05 2. Select alternative(s) with greatest potential benefit. PW-GIS/F&IT 2/05 3. Return to Council for permission to market services PW-GIS 3/05 4. Create prototype(s). PW-GIS TBD 5. Create marketing plan. PW-GIS TBD 6. Develop service agreement template. PW-GIS TBD 7. Contact potential clients. PW-GIS TBD - 19- "PANTRY" FOLLOW-UP• s ALCOHOL SALES PERMIT FEE Recommendation Defer Action At This Time. We do not recommend establishing a City alcohol sales permit at this time. The model researched by staff is in place in the City of Santa Cruz and involves a significant level of service in return for the fee, including the creation of a unit with full-time staff and a program of education, training, monitoring and compliance. Along with helping to offset the cost of current efforts, the Alcohol Sales Permit Fee is a viable method to enhance Police Department resources to deal with alcohol-related crime in the future by adding personnel, specifically focused on this area and funded by the fee. Due to the controversial nature of this fee, especially with the alcohol service community, we would need to approach the program with a sound vision and considerable sensitivity. The Police Department will coordinate policy discussions with the CAO and appropriate City staff to consider this concept. Proposal Summary In 1998, the City of Santa Cruz approved the Police Department's Alcohol Education, Monitoring and Compliance Program. The Santa Cruz City Council adopted a multi-tiered Alcohol Sales Permit Fee, whereby businesses that sell alcoholic beverages are assessed fees based upon a designation as being either a "high risk" or "low risk" business, the hours of alcohol sales, and the volume (in dollars) of wholesale alcohol purchases by the business. A complex formula is utilized to assess the Santa Cruz alcohol-selling businesses for the exact costs of operating the Alcohol Education, Monitoring and Compliance Program, which has full-time staffing of two police officers and one records clerk paid for by the fees. The San Luis Obispo Police Department, in consultation with the CAO and others, will research this program in greater detail to determine, at a policy level, its appropriateness for the City of San Luis Obispo. Considering the magnitude of alcohol-related issues here, it may well be worth pursuing in the near future as a method of improving enforcement of alcohol-related crimes. Fiscal Impact If an Alcohol Education, Monitoring and Compliance Program were modeled after the Santa Cruz program, it could produce significant benefits, but is not likely to result in significant net monetary gains or losses to the City, since the fees would largely be used to offset the costs of additional resources. This, in fact, is the primary reason that the program is not being recommended for implementation at this time. Implementation Over the next six months, staff will continue to document Alcohol Education, Monitoring and Compliance Programs and associated fees, and will return to City Council in the summer of 2005 for approval to move forward with a program concept. -20- ■ n FOLLOW-UP• ■ 911 COMMUNICATIONS CENTER COST RECOVERY Recommendation Defer Action At This Time. Going forward with cost recovery for the City's 911 emergency communications center is not recommended at this time. While this may be a viable cost recovery concept in the future, there is litigation currently underway with several cities regarding its "fee versus tax" nature. Accordingly, any consideration of this fee should be deferred until the legal issues are resolved. Proposal Summary The purpose of this fee is to recover City costs that the state 911 fund does not cover. These fees are attached to the telephone subscriber's phone bills, who benefits from the City providing a reliable emergency dispatch system via the phone system. The City's emergency communications center has an antiquated radio system and is in critical need of an upgrade. Such a fee could help fund the upgrade project as well as assist in funding day-to-day operations. Several cities have implemented this type of fee and are currently using them, including San Francisco, Santa Cruz and Union City. Other cities have implemented the ordinance recently, but are in litigation regarding whether this is a fee for service that can be adopted by the Council, or a tax that requires voter approval. Fiscal Impact There are many different methodologies currently being used by other agencies to determine their communication center costs. For example, direct annual costs associated with our communications center are about$1.7 million, excluding indirect costs and future debt service costs for the new communications center. Therefore, if full cost recovery is desired, these fees could generate over $2 million in offsetting revenues to the city. Based on an estimate of 46,000 phone lines in the City, generating $2 million annually would result in an average cost per line of$3.50 per month. This cost would vary depending on service type,and would probably be lower than this for residential customers. Implementation If the outcome of the current litigation on this fee confirms its fee nature, we may want to reconsider this concept at that time. Alternatives We could develop more detailed cost and revenue data and options in preparation for serious Council consideration of adopting this type of fee in the near term. However, given the litigation underway in other cities at this time, we do not recommend doing so. -21 - RESIDENTIAL PARKING DISTRICT COST RECOVERY Recommendation No Further Action Recommended. After evaluating the current costs and revenues associated with ongoing enforcement and maintenance of residential parking districts, it has been determined that there is no adverse fiscal impact and therefore no additional cost recovery is needed or recommended. With regard to establishing an application fee to cover costs associated with the formation of residential parking districts, again no fee is recommended, since this would provide a significant roadblock to application requests that the City's policy would otherwise seem to encourage. Moreover, current "net" enforcement revenues already cover this cost. Proposal Summary 1. Review the costs and revenues associated with ongoing enforcement and maintenance of residential parking districts; and 2. Review the need for a residential parking district application fee to support City costs of establishing a district. Fiscal Impact Ongoing Enforcement and Maintenance As outlined in Exhibit A, an analysis of financial operations for 2003-04 shows that revenues associated with residential parking districts (specifically, residential permit violations) were $51,800. Due to timing differences in when citations are issued and when they are actually paid, the number of citations issued in 2003-04 is less than the number actually paid in the year. In addition, the amounts paid may include late fees, so revenues are often in excess of the issued face value of the citation. Expenditures for the same time frame were$38,000. This reflects net revenues of$13,800. These amounts represent the basic operating and revenue figures for administering the parking districts. However, they do not take into account the fact that when enforcement personnel are in the outlying permit districts, there is decreased visibility for meter payment. A cost analysis estimates lost meter revenues of$4,000 - $6,000. While the"lost opportunity cost" Therefore, the net difference in terms of overall revenue is less, in performing other types of but still represents a return of about $8,000 annually. (This enforcement is a factor, it does conclusion is consistent with the cost analysis presented to the not argue for higher cost Council in 1997, which showed net revenues, after accounting for recovery from residential permit lost meter revenues,of$6,000.) enforcement. However, it may argue for augmenting resources Parking District Formation for downtown parking enforcement: if added Based on the revised formation policies, it costs approximately enforcement staff means added $3,000 to form a new parking district (or add-on to an existing net revenues that are greater than the cost,then this makes one). This estimate is based on a number of assumptions, and is sense to do on its own merits. "order of magnitude" at best: staff has not yet processed a request under the new guidelines adopted by the Council in September 2004, so we don't have a comparable experience to draw upon; and the staff effort is related to the number of residences involved. In analyzing each of the steps involved under the new guidelines, Exhibit B summaries estimated staff time and costs. -22- "PANTRY" FOLLOIMP RESIDENTIAL PARKING DISTRICT COST RECOVERY However, we do not recommend creating application fees at this time for two reasons: 1. This would provide a significant roadblock to application requests that the City's policy would otherwise seem to encourage. Given the neighborhood preservation principle underlying parking districts, it is akin to blaming the victim. Since there is no intent to limit access to the service, and the neighborhood is not the "driver" for the need, the City's cost recovery policies support very low or no cost recovery for this type of service. 2. This cost is fully offset by"net"enforcement revenues. Alternatives There are no reasonable alternatives. Increasing fines would produce additional revenue; however, the residential parking districts are already fully recovering the costs of serving them. -23- "PANTRY" s . • RESIDENTIAL PARKING DISTRICT COST RECOVERY Exhibit A PARKING DISTRICT ENFORCEMENT REVENUES AND COSTS Revenues Officer# Cites Issued Issued Face Value Cites Paid Paid 10820 204 $4,080 209 $4,880 12542 14 $280 14 $413 22570 1 $20 1 $20 26587 76 $1,520 92 $2,305 32857 6 $120 18 $530 45856 3 $60 3 $90 52280 20 $400 17 $380 60692 _ 239 $4,780 215 $4,820 67645 50 $1,000 90 $2,060 59620 17 $340 27 $830 66800 1307 $26,140 1281 $29,921 68449 129 $2,580 169 $4,551 72230 45 $900 -441 $1,040 Total Citations 2111 $42,220 2180 $51,840 Expenditures Category Basis Total Enforcement PEO's $43.66' per hour @ avg of 10 hrs per week for 42 weeks $ 18,337 SNAP $16.00 per hour CEJ avg of 4 hrs per week for 52 weeks $ 3,328 Citation Processing $1 per citation @ 2180 citations $ 2,180 Permit Processing_ Admin Asst$46.14 per hour @ avg 120 hrs $ 5,536 Printing/Postage Actual cost $ 7,648 Annual Maintenance_ Signs& Poles $ 1,000 Total" $ 38,029 . Includes benefits, equipment and all indirect costs per adopted hourly rate schedule "Expenditures do not include one-time installation costs ($1,500 to$2,500 depending on the size of the district) Net Revenues - $13,811 Estimated loss in meter revenues$4,000 to$6,000 25 per day @ $0.80 x 5 days=$100 x 42 weeks=$4200 ($5,000) Estimated Net Revenues- Including Lost Meter Revenue $8,811 -24- . "PANTRY" • • • • RESIDENTIAL PARKING DISTRICT COST RECOVERY Exhibit B PARKING DISTRICT FORMATION COSTS _Staffing- - - Staffing Hours Parking Administrative Manager Assistant Total Initial Meeting 2.0 2.0 Generate Initial Map& Survey Documents 0.5 1.0 1.5 Town Hall Meeting (including preparation) 3.0 3.0 6.0 Generate Final Survey 0.5 1.0 1.5 Total Hours 6.0 5.0 11.0 Hourly Rate 75.08 49.35 Total Staffing Cost $ 450.48 .$` 246.75 $ 697.23 Other Costs Printing 200 Mailing 150 Signs/Posts _ __ _ _. 2,000 TOTAL -25 -