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Preliminary 2015-17 Financial Plan - Significant Operating Program Changes
Financial Plan Significant Operating Program Changes 2015-17 Preliminary 2015-17 Financial Plan JAN HOWELL MARX, MAYOR JOHN ASHBAUGH, VICE MAYOR CARLYN CHRISTIANSON, COUNCIL MEMBER DAN CARPENTER, COUNCIL MEMBER DAN RIVOIRE, COUNCIL MEMBER Katie Lichtig, City Manager Prepared by the Department of Finance & Information Technology Wayne Padilla, Director of Finance & Information Technology Jason Stilwell, Interim Director of Financial Planning and Information Technology Michelle Bulow, Administrative Assistant Significant Operating Program Changes SIGNIFICANT OPERATING PROGRAM CHANGES TABLE OF CONTENTS Section 1 INTRODUCTION Overview 1-1 Section 2 SIGNIFICANT OPERATING PROGRAM CHANGES SUMMARIES Summary of Increases by Department 2-1 Summary of Increases by Function 2-4 Section 3 SIGNIFICANT OPERATING PROGRAM CHANGE REQUESTS Request List 3-1 Public Safety Police 3-3 Fire 3-14 Public Utilities Administration 3-23 Sewer 3-31 Transportation Transportation Planning & Engineering 3-37 Parking 3-44 Transit 3-46 Leisure, Cultural, and Social Services Ranger Services 3-60 Laguna Lake Golf Course 3-65 Community Development Community Development Administration 3-70 Long Range Planning 3-79 Building & Safety 3-86 CIP Project Engineering 3-89 General Government Administration & Records/City Clerk 3-94 Revenue Management 3-96 Risk Management 3-99 Fleet 3-103 SIGNIFICANT OPERATING PROGRAM CHANGES Section 1 INTRODUCTION SIGNIFICANT OPERATING PROGRAM CHANGES OVERVIEW This document summarizes and compiles the supporting materials used in developing the significant operating program changes recommended by the City Manager for inclusion in the 2015-17 Financial Plan. When considering the requests, the following prioritizations were utilized: 1. The request is mandated by Federal and/or State law 2. The situation presents a health and safety issue 3. Service Level Enhancements align with a City Council Major Goal or Objective 4. The request will restore service levels to meet the public’s expectations. The City’s financial policies stipulate that a request has to be submitted if the change exceeds $7,500 for: 1. Major service curtailments or expansions. 2. Any increases or decreases in regular positions. 3. Significant one-time costs. 4. Major changes in the method of delivering services. 5. Changes in operation that will significantly affect other departments or customer services. 6. Changes that affect current policies. Each recommended request provides the following information: 1. Functional area affected 2. Request title 3. Summary of Change, Fiscal Impact, and Service Level Impact 4. Key objectives 5. Factors driving the need for change 6. Goal and Policy Links 7. Program Work Completed 8. Environmental Review 9. Program Constraints and Limitations 10. Stakeholders 11. Implementation 12. Key Program Assumptions 13. Program Manager and Team Support 14. Alternatives 15. Operating program affected 16. Cost summary 1-1 SIGNIFICANT OPERATING PROGRAM CHANGES Section 2 REQUEST SUMMARIES SIGNIFICANT OPERATING PROGRAM CHANGES SUMMARY OF INCREASES BY DEPARTMENT 2015-16 2016-17 Administration City Clerk Laserfiche Document Management Ongoing Support 14,200$ 14,200$ City Attorney City Attorney Development Services Staffing, Contract Services & CDD Reorganization 50,000$ 275,000$ Community Development Community Development-Various Development Services Staffing, Contract Services & CDD Reorganization 191,731$ 1,030,372$ Long Range Planning LUCE Implementation and Fee Update 210,000$ Neighborhood Match Grants 5,000$ 10,000$ Building & Safety Rental Housing Inspection Program 301,164$ 449,312$ CIP Project Engineering Capital Improvement Program Engineer -$ -$ Project Management Software Ongoing Support 27,000$ 25,200$ Fire Emergency Response Emergency Responders Personal Protective Structural Fire Fighting Equipment 110,464$ -$ Fire Apparatus and Public Works Vehicle & Equipment Maintenance Services 26,000$ 26,000$ Hazard Prevention Development Services Staffing, Contract Services & CDD Reorganization 154,351$ 149,593$ Training Services Rescue Training for Fire Emergency Responders 59,776$ Technical Services Slurry Seal at Fire Station 1 22,000$ Finance and Information Technology Revenue Management Business License Compliance Services 32,000$ 30,000$ Human Resources Human Resources Development Services Staffing, Contract Services & CDD Reorganization 3,842$ -$ Risk Management Increase in Liability Insurance 294,163$ 556,942$ Increase in Workers'Compensation Insurance 388,016$ 690,956$ 2-1 SIGNIFICANT OPERATING PROGRAM CHANGES SUMMARY OF INCREASES BY DEPARTMENT 2015-16 2016-17 Parks & Recreation Ranger Program Ranger Service Staffing 73,686$ 77,298$ Golf Course Parks & Recreation Reorganization to Enhance Golf & Senior Programs -$ -$ Police Police Administration Animal Control Services Contract 11,610$ 20,871$ Patrol Public Safety Video Cameras 32,378$ Support Services Communications Technician 96,228$ 101,712$ Public Works Creek & Flood Control Wastewater Collection Minor Capital 9,000$ -$ Vehicle & Equipment Maintenance Fire Apparatus and Public Works Vehicle & Equipment Maintenance Services 20,000$ 20,000$ Transportation Planning/Engineering Development Services Staffing, Contract Services & CDD Reorganization 77,826$ 80,597$ LUCE Implementation and Fee Update 200,000$ 50,000$ Transportation Planner/Engineer Position: Contract to Regular Conversion -$ -$ Bicycle Transportation Plan Implementation 68,900$ 73,100$ Parking Parking Services Staffing-Administrative Hearing Officer -$ -$ Assistant Parking Services Manager 53,000$ 58,400$ Transit Transit Marketing & Advertising Augmentation 60,000$ 60,000$ Short Range Transit Plan Service Change 500,000$ 500,000$ Transportation Program Assistant (Transit)57,800$ 62,300$ Utilities Utilities Administration Water & Sewer Administration & Engineering Contract Services 75,000$ 15,000$ Staffing Due to Utilities Department Reorganization 273,400$ 273,900$ Water Distribution Control Systems Staffing 105,100$ 106,200$ Wastewater Collection Wastewater Collection Minor Capital 37,400$ 20,000$ Control Systems Staffing 118,750$ 117,900$ 2-2 SIGNIFICANT OPERATING PROGRAM CHANGES SUMMARY OF INCREASES BY DEPARTMENT 2015-16 2016-17 Water Quality Lab National Pollutant Discharge Elimination System Permit- Studies and Analysis 17,000$ 17,000$ Water Quality Laboratory Analyst 77,157$ 81,227$ Whale Rock Control Systems Staffing 11,850$ 11,700$ TOTAL 3,865,792$ 5,004,780$ Summary By Fund General Fund 2,479,335 3,681,153 Enterprise Funds Water Fund 291,800$ 253,150$ Sewer Fund 412,007$ 378,077$ Parking Fund 53,000$ 58,400$ Transit Fund 617,800$ 622,300$ Whale Rock 11,850$ 11,700$ TOTAL 3,853,942$ 5,004,780$ 2-3 SIGNIFICANT OPERATING PROGRAM CHANGES SUMMARY OF INCREASES BY FUNCTION 2015-16 2016-17 Public Safety Police Administration Animal Control Services Contract 11,610$ 20,871$ Police Patrol Services Public Safety Video Cameras 32,378$ Police Support Services Communications Technician 96,228$ 101,712$ Fire Emergency Response Emergency Responders Personal Protective Equipment 110,464$ Fire Apparatus & Public Works Vehicle & Equipment Maintenance Services 26,000$ 26,000$ Fire Hazard Prevention Development Services Staffing, Contract Services & CDD Reorganization 154,351$ 149,593$ Fire Training Services Rescue Training for Fire Emergency Responders 59,776$ Fire Technical Services Slurry Seal at Fire Station 1 22,000$ Public Utilities Utilities Administration Administration and Engineering Contract Services $ 75,000 $ 15,000 Staffing Due to Department Reorganization $ 273,400 $ 273,900 Water Distribution Control Systems Staffing $ 105,100 $ 106,200 Wastewater Collection Wastewater Collection Minor Capital $ 37,400 $ 20,000 Control Systems Staffing $ 118,750 $ 117,900 Water Quality Laboratory National Pollutant Discharge Elimination Permit-Analysis $ 17,000 $ 17,000 Water Quality Laboratory Analyst $ 77,157 $ 81,227 Whale Rock Control Systems Staffing $ 11,850 $ 11,700 2-4 SIGNIFICANT OPERATING PROGRAM CHANGES SUMMARY OF INCREASES BY FUNCTION 2015-16 2016-17 Transportation Creek & Flood Control Wastewater Collection Minor Capital 9,000$ -$ Transportation Planning/ Engineering Development Services Staffing, Contract Services & CDD Reorganization 77,826$ 80,597$ LUCE Implementation and Fee Update 200,000$ 50,000$ Transportation Planner/Engineer Position: Contract to Regular Conversion $ - $ - Bicycle Transportation Plan Implementation $ 68,900 $ 73,100 Parking Parking Services Staffing-Administrative Hearing Officer $ - $ - Assistant Parking Services Manager $ 53,000 $ 58,400 Transit Transit Marketing & Advertising Augmentation $ 60,000 $ 60,000 Short Range Transit Plan Service Change $ 500,000 $ 500,000 Transportation Program Assistant $ 57,800 $ 62,300 Leisure, Cultural, and Social Services Ranger Services Ranger Service Staffing 73,686$ 77,298$ Laguna Lake Golf Course Parks & Recreation Reorganization to Enhance Golf & Senior Programs -$ -$ Community Development Community Development-Various Development Services Staffing Reorganization 191,731$ 1,030,372$ Long Range Planning LUCE Implementation and Fee Update 210,000$ -$ Neighborhood Match Grants 5,000$ 10,000$ Building & Safety Rental Housing Inspection Program 301,164$ 449,312$ CIP Project Engineering Capital Improvement Program Engineer -$ -$ Project Management Software Ongoing Support 27,000$ 25,200$ 2-5 SIGNIFICANT OPERATING PROGRAM CHANGES SUMMARY OF INCREASES BY FUNCTION 2015-16 2016-17 General Government Administration/Records Laserfiche Document Management Software Support 14,200$ 14,200$ City Attorney Development Services Staffing, Contract Services & CDD Reorganization 50,000$ 275,000$ Revenue Management Business License Compliance Services 32,000$ 30,000$ Human Resources Development Services Staffing, Contract Services & CDD Reorganization 3,842$ -$ Risk Management Increase in Liability Insurance 294,163$ 556,942$ Increase in Workers Compensation Contribution 388,016$ 690,956$ Vehicle & Equipment Maintenance Fire Apparatus & Public Works Vehicle & Equipment Maintenance Services 20,000$ 20,000$ TOTAL 3,865,792$ 5,004,780$ 2-6 SIGNIFICANT OPERATING PROGRAM CHANGES Section 3 SIGNIFICANT OPERATING PROGRAM CHANGES Public Safety Police Animal Control Services Contract 3-3 Public Safety Video Cameras 3-6 Communications Technician 3-9 Fire Emergency Responders Personal Protective Structural Fire Fighting Equipment 3-14 Rescue Training For Fire Emergency Responders 3-17 Slurry Seal at Fire Station 1 3-21 Public Utilities Utilities Administration Staffing Due to Utilities Department Reorganization 3-23 Water and Sewer Administration & Engineering Contract Services 3-25 Control Systems Staffing 3-28 Sewer Wastewater Collection Minor Capital 3-31 NPDES Permit Studies and Analysis 3-33 Water Quality Laboratory Analyst 3-35 Transportation Transportation Planning and Engineering Transportation Planner/Engineer Position: Contract to Regular Conversion 3-37 Bicycle Transportation Plan Implementation 3-40 Parking Parking Services Staffing – Administrative Hearing Officer 3-44 Assistant Parking Services Manager 3-46 Transit Transit Marketing & Advertising Augmentation 3-49 Short Range Transit Plan Service Change 3-53 Transportation Program Assistant (Transit) 3-56 Leisure, Cultural, and Social Services Ranger Services Staffing 3-60 Laguna Lake Golf Course Parks & Recreation Reorganization to Enhance Golf and Senior Programs 3-65 Community Development 3-1 SIGNIFICANT OPERATING PROGRAM CHANGES Community Development Administration Development Services Staffing, Contract Services and Community Development Reorganization 3-70 Long Range Planning LUCE Implementation and Fee Update 3-79 Neighborhood Match Grants 3-83 Building & Safety Rental Housing Inspection Program 3-86 CIP Project Engineering Capital Improvement Program Engineer 3-89 Project Management Software Ongoing Support 3-92 General Government Administration & Records/City Clerk Laserfiche Document Management Software Ongoing Support 3-94 Revenue Management Request for Business License Compliance Services 3-96 Risk Management Increase in Liability Insurance 3-99 Increase in Workers Compensation Annual Contribution 3-101 Fleet Fire Apparatus and Public Works Vehicle & Equipment Maintenance Services 3-103 3-2 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) ANIMAL CONTROL SERVICES CONTRACT SUMMARY OF CHANGE: Contract increase for Animal Control Services with the County of San Luis Obispo. FISCAL IMPACT: On-going costs of $11,610 in FY 2015-16 and an estimated $20,871 in FY 2016-17. SERVICE LEVEL IMPACT: The City contracts with the County of San Luis Obispo Animal Services Division to provide animal care and control functions to the City of San Luis Obispo. Costs associated with services provided by the County have increased. KEY OBJECTIVES Continue contracting with the County of San Luis Obispo for animal care and control services. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE The City is currently under a three year term contract with the County which is set to expire on June 30th, 2016. The City has contracted with the County of San Luis Obispo for Animal Care and Control Services for many years. Services provided include: emergency and non-emergency response of Animal Services Officers for injured and stray animals; investigative services for animal bites, abuse, and neglect; sheltering and quarantine services; dog licensing; animal adoption and other services as required either by State law or City Municipal Code. The Police Department administers the contract on behalf of the City. Contract Cost Methodology In 2009 the City was notified by the County that contract costs would be substantially increasing mostly due to the fact that the County was not obtaining full cost recovery from all the cities they contracted with. In light of this, all seven contract cities in the County formed a committee to further analyze the services and costs associated with animal care and control; included in this committee were representatives from County Administration and Health Agency, County Animal Services Manager, Police Chiefs from San Luis Obispo and Arroyo Grande, and the City of San Luis Obispo’s Finance Director. The committee discovered that a new cost methodology was greatly needed. Prior to 2009, the County allocated costs to contract cities by assigning a “service factor”. This measured certain services to determine if a city was using more or less services in proportion to that city’s population. According to the committee’s findings, this method was deficient in accurately allocating costs and revenue based on services used by each city. The committee compared two other types of cost allocation methods that were being used by other counties in the state. These methodologies were: 1. Per Capita – Costs and revenue are allocated to cities and County based only on the percentage of resident population in each jurisdiction. This method, although easy to administer, assumes each city and the County are using about the same level of service proportional to their population. Unfortunately, residents in different cities are not all generating the same amount of revenue or using the same amount of services – so this method does not work with our county. Some cities use services at a higher rate or generate greater revenue than others; therefore, using this method would cause cities using fewer services and/or generate more revenue having to subsidize other cities that use a disproportionately higher share of services. For the City of San Luis Obispo, analysis showed (at that time) that our City utilized a lower proportion of services compared to other cities in the county. 3-3 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) ANIMAL CONTROL SERVICES CONTRACT 2. Service-based – Costs and revenues are based on each city’s actual use of services and revenue generated. Actual use is based on the following: actual field calls, animal impounds, and licenses issued. This method provides a more direct relationship between actual amount of service being provided, and actual revenue generated by the city. Cities that have a lower rate of service and/or generate more off-setting revenue pay lower contractual fees than cities with higher usage rates. After the committee reviewed what the County was already using for cost allocation, and reviewing the other two alternate methods, it was agreed that the service-based model was the fairest and most accurate way to allocate costs and revenue. This new cost allocation method began in 2010. The following are the four facets of service the “service-based” methodology is based on: 1. Field service 2. Licensing 3. Shelter operations 4. Education services Per the contract, the determination of cost of service will be calculated by determining the average percentage of service allocated to the City over the preceding three (3) years for each of the services described above and multiplying the percentage against the Animal Services operational cost for each facet. The average annual revenue generated from fees/fines from the preceding three (3) years will be applied against the city’s total service cost. Notification of Costs for FY 2015-16 On January 21st, 2015, the County held a meeting with all agencies and announced costs for FY 2015-16. Per the County, some agencies are realizing increases in costs due to the following factors: operational cost increases with the most considerable impact related to a 2.3% COLA coupled with increase in worker’s compensation rates for the County services and supply expenses increased for shelter operations and cities with more utilization of shelter services resulted in a more significant rise in service costs Specifically for the City of San Luis Obispo, increases were attributed to: increase in shelter services used, and a small increase in the revenue projected associated with that usage o shelter services increased in these categories (which affected the overall 3 year average): strays, confiscations, owner requested euthanasia o overall costs associated with shelter services for the County have increased due to COLA and supply costs – which, in turn, affects the City’s costs for those services field service usage remained flat in the 3 year average, though a drop in revenue in the 3 year average (1.5%) is affecting the net cost to the City decreased or unchanged rates for other cities, affect the overall percentage distributed among the cities 3-4 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) ANIMAL CONTROL SERVICES CONTRACT GOAL AND POLICY CRITERIA 1. Needed to address a health & safety concern: By continuing the City’s contractual obligation through June 2016 and beyond; the County will continue to provide animal shelter services and field services for the City of San Luis Obispo and enforce local ordinances. 2. Needed to provide a level of service that is a priority for a significant contingent in the community: The community has been receiving these services for numerous years; the Department does not have the resources to provide these services directly to the public. STAKEHOLDERS Police Department County of San Luis Obispo Animal Services Division Community IMPLEMENTATION The City’s current contract with the County does not expire until June 30, 2016, so implementation would begin immediately. Staff from the Police and Finance Departments will be involved in reviewing the County’s cost methodology for the next contract period (FY 2016 – 19). PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Police and Finance & Information Technology ALTERNATIVE: Deny the request or Change Amount of Request. If the department’s budget is not increased to reflect new costs for the Animal Control agreement, the City will be unable to continue to receive services from the County related to animal services. Currently there is no other alternative; the department does not have adequate resources to provide this scope of service to the community. OPERATING PROGRAM 80100 – Police Administration COST SUMMARY Line Item Description Account No.2015-162016-17 Contract Services 11,610 20,871 Animal Control Agreement 100-80100-7211 11,610 20,871 Total Operating Costs 11,610 20,871 3-5 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) PUBLIC SAFETY VIDEO CAMERAS SUMMARY OF CHANGE: Purchase four additional video cameras to further enhance safety in the downtown. FISCAL IMPACT: One time cost of $32,378 in FY 2015-16. SERVICE LEVEL IMPACT: Purchasing four additional video cameras to be placed around the downtown will enable the Police Department to improve service levels to the community. KEY OBJECTIVES 1. Enhance security levels and safety in the downtown. 2. Provide additional tools to deter crime. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE In FY 2013-14, as part of the Downtown Renewal Major City Goal, City Council directed the San Luis Obispo Police Department to establish a pilot video surveillance camera program for known problem areas in downtown San Luis Obispo. Surveillance cameras provide multiple tools when placed in known problem locations. The first and greatest impact is the presence of a camera. Individuals who frequent know problem locations will be unwilling to continue in negative activity knowing there is a surveillance camera in the area. These cameras are visible to the public and each location is clearly posted with signs that advise citizens the area is under video surveillance. Secondly, these cameras give officers the ability to remotely monitor the problem locations with a desktop computer, handheld mobile device or a cellular phone. Having this ability allows officers to be more proactive than reactive when addressing crimes in these areas. Finally, if a crime does occur where a camera is present the video can be retained and used to help identify suspects, investigate crimes that have occurred and be saved as evidence to use during prosecution. The department purchased three camera pod systems, each system being equipped with four cameras. Two of these cameras were strategically placed in the downtown area and the third is currently being used to monitor the skate park while it is under construction. With the placement of these cameras the police department has seen a noticeable reduction in the crimes and problems that occurred in these areas. Department staff has also received numerous calls from business owners, and citizens, expressing their appreciation in the addition of these cameras downtown. Based on the positive impacts seen with the placement of the three camera systems, the police department would like to purchase 4 additional cameras to further address known problem areas. Three of the cameras would be placed in the downtown area and the fourth would be located near the intersection of Hathway and Bond. Three Downtown locations include: Parking Lot 2 – this location is to the rear of several bars downtown and would allow coverage of both Bubblegum and Garden alley. This area experiences frequent problems during both the daytime and evening hours. Intersections of Higuera and Garden & Marsh and Broad Streets – placement at these intersections would capture a large portion of the downtown area that frequently experience transient related problems and problems associated with large groups and individuals who frequent our downtown bars. 3-6 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) PUBLIC SAFETY VIDEO CAMERAS Hathway and Bond location: The intersection of Hathway and Bond is primarily residential with a heavy concentration of college-aged residents living in this area. Problems associated with this location are large unruly gatherings, abandon couch burnings and assaults. GOAL AND POLICY CRITERIA 1. Installing additional cameras will support Council’s Other Important Objective for the Downtown – Adopt a Downtown Concept Plan, develop a plan for expansion of Mission Plaza, and improve safety, infrastructure, and maintenance in the Downtown. 2. Enhance safety and quality of life in the downtown. STAKEHOLDERS Police Department Downtown Business Community Residents and Visitors in the downtown area Residents in the vicinity of Hathway & Bond IMPLEMENTATION Task Date 1. Obtain at least three bids from vendors July, 2015 2. Complete and submit City Manager Report July, 2015 3. Purchase Video Cameras August, 2015 4. PD staff to work with IT and PW departments to install cameras September, 2015 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Jeff Smith, Police Lieutenant Project Team: Finance & Information Technology – Network Administrators Public Works ALTERNATIVES: 1. Continue the Status Quo. Council could choose to continue status quo and not purchase additional cameras. Staff does not recommend this alternative. Due to the high frequency of problems during both day and night hours, there is a great need for additional cameras in specified areas of the downtown. In some cases, the cameras themselves will act as a deterrent for some crimes. 2. Change the Scope of Request. Staff could be directed to purchase fewer cameras, however the impact would not be as significant. Staff does not recommend this alternative. 3-7 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) PUBLIC SAFETY VIDEO CAMERAS OPERATING PROGRAM 80200 – Police Patrol COST SUMMARY Line Item Description Account No.2015-162016-17 Other Operating Expenditures 32,378 0 Operating Materials & Supplies 100-80200-7843 32,378 Total Operating Costs 32,378 0 3-8 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) COMMUNICATIONS TECHNICIAN SUMMARY OF CHANGE: Hire an additional Communications Technician position to provide adequate staffing levels in the Emergency Communications Center. FISCAL IMPACT: On-going costs of $96,228 in FY 2015-16 and $101,712 in 2016-17. SERVICE LEVEL IMPACT: Hiring an additional Communications Technician is essential to meeting industry standards related to Emergency Communication Center staffing levels. The position will enhance service to the community, address current staff mental and physical fatigue, and enable the center to establish a minimum staffing level of three dispatchers at all times. KEY OBJECTIVES 1. Enhance efficiency for processing calls and dispatching. 2. Reduce liability by providing proper staffing levels. 3. Provide better service to our citizens and emergency responders. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE The essential duties of personnel in the Emergency Communication Center are to provide efficient emergency and non-emergency service to the public, Public Safety responders, and internal City customers. To provide safe efficient quality service it requires an adequate number of qualified personnel be on duty to respond to the demanding and increasing workload. With numerous changes in technology, emergency medical dispatching and workload expectations these and other factors have created an environment where the mental and physical demands on the modern day dispatcher are challenging. Future introductions of technology into the dispatch center to include Next Generation text and video dispatching, Quickest Route and other applications will continue to tax this workgroup. As early as 1984 total staffing included eight communication technicians and one working supervisor. Minimum staffing was two dispatchers on duty. Proper coverage was still needed and to supplement the staffing there were two fully trained Field Service Technicians that assisted with coverage, and on occasion officers would cover shifts when needed. By 1997 full staff included eleven communication technicians and one manager who was not assigned to work in dispatch. In October 2000 through grant funding the City Council approved an additional communication technician bringing the total to twelve. Because of the growing work expectations of the dispatch center, liability and need to provide oversight in 2002 two supervisor positions were created. These were not additional bodies but were removed from line personnel and were considered promotions. Supervisors work 10-hour shifts four days a week. However, to meet staffing needs these positions have been pulled from their supervisory responsibilities frequently in order to cover shifts and meet minimum call taking staffing demands. In 2004 one temporary part-time dispatch position was created. Due to the length and depth of training, limited hours, and union complications this part-time position was eliminated. 3-9 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) COMMUNICATIONS TECHNICIAN During the 2009-11 Financial Plan, with Measure Y funding, the department gained one communications technician position. Staffing levels were at eleven dispatchers and two supervisors, for a total of thirteen. However, due to budget reductions in FY 2011-12, the newly added position was eliminated. Although personnel was decreased the workload and demand for services continues to increase. Ultimately, the short and long term effects on communications center personnel has led to staffing issues being exasperated, to include increased overtime, increased sick leave use and the frequent shifting of personnel to meet safe staffing standards. A manager and supervisors have filled shifts frequently to meet staffing demands. This has caused an already understaffed Emergency Communications Center to fall into a crisis experiencing both mental and physical fatigue. Today this job has become incredibly technical and complex that only trained and certified Communication Technicians are able to staff a position. Industry Standards Researching several industry standards the Communications Center has been working in an understaffed capacity for several years. A variety of nationally recognized staffing formulas have shown that for an agency with our call volume and size there should be three to five communications technicians on duty during any given shift. By requesting one additional communications technician we will begin the process of adding needed personnel to an already overtaxed and understaffed center. Listed below are several industry studies that analyze staffing levels utilizing a variety of metrics. Some studies address the proper number of call takers by analyzing phone statistics. Other studies address staffing levels by tasks assigned and some studies use shifts and leave time as a staffing indicator. To provide an overall guideline for proper and safe staffing levels for an agency with our size and workload the results are listed below. By Task Formula – Source: www.911dispatch.com/shifts/index.html This formula recommends that an agency our size with similar task work would require 15 dispatchers. Minimum Call-Taker Staffing Formula – Source: www.911dispatch.com This formula recommends our agency would need five dispatchers per shift. We currently operate with two minimum with three on selected busier shifts. APCO Communication Center Staffing Formula – Source: www.911dispatch.com/shifts/apco_staffing.html This formula takes into account the hours worked, breaks, and leave time to staff a center. For our center this formula would require a minimum of 14.44 dispatchers. Survey – Source: 2013 Public Safety PSAP Survey Results, Stratus Technologies. Stratus Technologies surveyed 919 PSAP employees throughout North America. Reviewing both staffing by population and staffing by call volume it shows that staffing of three to five dispatchers is what is needed versus our practice of two. Using the above standards and survey for determining proper staffing we are significantly understaffed in every study. 3-10 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) COMMUNICATIONS TECHNICIAN Caller Hold and Talk Times: The focus for many communications centers is to rapidly process calls and disconnect in the quickest time possible. Our City’s focus is on excellent customer service and meeting our citizen’s needs. This can take time, however, hold times are ranked and we have an excessive number of calls placed on hold for an unacceptable length of time. This is due to inadequate staffing levels. Communication Technicians are rated on answer times and under normal circumstances they are to answer all incoming lines immediately and business lines within three rings. In addition to basic staffing concerns there has been a significant increase in technology which causes further demands on the already taxed communication technician. These technologies improve many things and allow for better reporting statistics but it’s the communication technician that must manage these technologies. Examples of Technology in the Communication Center: Computer Aided Dispatch (CAD) Software, CAD mapping, CAD to CAD (sending calls to and from other agencies), Mobile Digital Computers, Instant Messaging, 3SI Alarm Tracking (internal alarms and tracking software), USDD Fire Alerting, Cal Fire Alerting and Frequency unmute, G2 Manual and daily testing of alert system, Security Cameras, Electronic controlled gates and doors for both Police and Fire stations, CJIS Portal, CLETS, Photo Link, LS System for County Warrants, Computer Phone System and monthly TTY testing, and all City network software that is used for regular business like email, time cards, etc. New audio recording equipment, text and video to 9-1-1, and Quickest Route are the known new technologies being considered and will be implemented into our communications center. Additions of these and other applications will continue to tax this workgroup. Supervisors as line employees: Research shows that it is not in the best interest of a Communications Center to use supervisors as line employees. This causes conflict with their roles and responsibilities. Supervisors have oversight of the Center, assist when call load requires, and fulfill many administrative duties to include evaluations, training (new and existing employees) and keeping the Center current in meeting mandates and industry standards. Using supervisors to meet minimum staffing on a regular basis takes them away from needed supervisory duties. GOAL AND POLICY CRITERIA An increase in staffing by one communication technician will help the center move toward the goal of establishing a minimum of three communication technicians on duty during any given shift. This will allow for one police dispatcher, one call taker, and one fire dispatcher. All current training teaches that there is a limit to multi-tasking and the ability to transition back and forth between tasks effectively. In the critical field of Emergency Dispatching it is imperative to staff the center with a dedicated call taker, a dedicated police radio dispatcher, and a dedicated fire radio dispatcher. This significantly improves and addresses “enhanced public service in addressing health and safety concerns” dedicating personnel to attend to medical emergency 9-1-1 calls and Emergency Medical Dispatching (EMD) services. STAKEHOLDERS • The community and citizens visiting the City of San Luis Obispo • Communications Personnel • Human Resources • Police and Fire 3-11 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) COMMUNICATIONS TECHNICIAN IMPLEMENTATION Task Date 1. Begin the Hiring Process July 2015 2. Conduct interviews and background investigations August 2015 3. Hire and Training begins October 2015 4. Assign trained Communication Technician to a shift April 2016 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Kerri Rosenblum, Communications & Records Manager Project Team: • Human Resources • Police Department o Training Sergeant o Communications Supervisors • Fire Department ALTERNATIVES: 1. Continue the Status Quo. Remain at current staffing levels. This is not recommended and by doing nothing it will continue to exasperate an already over taxed situation and potentially lead to unwanted liability with delays and mistakes. 2. Defer or Re-Phase the Request. The current demographics in the Communications Center are such that a few could retire at any time. We cannot afford to mandate more overtime and without relief those nearing retirement may choose to leave sooner than later. 3. Change the Scope of Request. An acceptable change to the request would be to hire multiple FTE positions to bring staffing levels up to the desired state of one call-taker, one police dispatcher, and one fire dispatcher. 4. Existing Program Evaluation. Human Resource personnel have been involved in meetings to discuss our staffing needs. They have also been involved in confidential workers compensation and personnel investigations that exemplify the need to increase and stabilize staffing in the communications center. Contracting out services is not an option. Our Communications Center staff undergo POST and EMD training and certifications and have ongoing training requirements. The job also requires many perishable skills that require longevity to attain proficiency. OPERATING PROGRAM 80400 – Police Support Services 3-12 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) COMMUNICATIONS TECHNICIAN COST SUMMARY Line Item Description Account No.2015-162016-17 Staffing 96,228 101,712 Communication Technician - Step 3 yr. 1; Step 4 yr. 2 Regular Salaries 100-80400-7010 60,060 63,232 Holiday 100-80400-7016 3,003 3,162 Retirement Contributions 100-80400-7040 15,955 18,059 Health Ins 100-80400-7042 16,296 16,296 Medicare 100-80400-7044 914 963 Total Operating Costs 96,228 101,712 3-13 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) EMERGENCY RESPONDERS PERSONAL PROTECTIVE STRUCTURAL FIRE FIGHTING EQUIPMENT SUMMARY OF CHANGE: Replace personal protective structural firefighting equipment (turnouts) for emergency responders. FISCAL IMPACT: One time cost of $110,464 in FY 2015-16. SERVICE LEVEL IMPACT: Increased safety for emergency responders with replacement of protective structural firefighting equipment that will meet National Fire Protection Association (NFPA) standards. KEY OBJECTIVES 1. Increase safety of emergency responders. 2. Provide emergency responders with firefighting equipment that meets National Fire Protection Association (NFPA) standards. Currently 37 set of turnouts are outdated (more than ten years old). EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE The National Fire Protection Association (NFPA) is the definitive source of standards for firefighting safety. Per the 2014 Edition of Standard 1851 “Standard on Selection, Care, and Maintenance of Protective Ensembles for Structural Fire Fighting and Proximity Fire Fighting,” all structural firefighting protective ensembles (henceforth referred to as “turnouts”) must be retired from service ten years after date of manufacture due to degradation in the turnouts’ ability to protect firefighters from the extreme environments of a structure fire. Despite a robust and proactive inspection, cleaning, and maintenance program, 37 sets of San Luis Obispo City Firefighters’ turnouts must be replaced due to age and condition. These sets of turnouts no longer provide the minimum level of safety required to perform our mission in the community and surrounding areas. The structural components of these turnout garments have deteriorated due to age and use; more specifically occupational wear and tear is deteriorating both the outer shells as well as the liners. The garments’ shells have sustained considerable damage over the years, which includes blown-out knees, tearing of crotch areas, ripped and torn pockets, broken zippers, unreliable Velcro closures, and ripped D rings. The garments’ liners are beyond their service life and have begun delamination where the thermal barrier and moisture barrier are beginning to separate. Based on a number of current regulations and standards, such as NFPA, Cal-OSHA, manufacturer’s recommendations and industry standards, these thirty seven sets of structural firefighting turnouts are out of-date, ineffective, and unacceptable due to damage that has incurred. They pose a considerable safety risk to the Department line suppression personnel. The Fire Department has worked diligently to secure the necessary funding for this vital need. Each Fire Emergency Response personnel maintain two sets of turnouts. Two sets are necessary as turnouts must be thoroughly inspected and decontaminated after every fire. The Fire Department maintains a special washing machine at Fire Station 1 for the purpose of cleaning contaminated turnouts. Inspecting, cleaning, and drying turnouts is a process that can take 24 hours or more. Failure to maintain a second set of turnouts could result in all 14 on-duty personnel being unable to respond to a fire while their structural firefighting protective ensembles is being cleaned and dried. Operationally, the Department would need to replace all on-duty personnel with off- duty personnel in order to maintain our ability to respond. This is not a feasible option. In years past, the Fire Department permitted the second set of turnouts to be older than the standard set by NFPA 1981 and thus provide less than the recommended safety to firefighters. This too is not a feasible or responsible option. It should be acknowledged that the fire doesn’t care if a firefighter is in his/her primary or backup set of structural firefighting protective ensemble. 3-14 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) EMERGENCY RESPONDERS PERSONAL PROTECTIVE STRUCTURAL FIRE FIGHTING EQUIPMENT GOAL AND POLICY CRITERIA The following criteria have been established as requirements for 2015-17 SOPC’s. Briefly explain how the proposed change meets one or more of the following criteria. 1. Needed to address a health & safety concern: The City of San Luis Obispo Fire Department suppression personnel responded to over 5,400 calls in 2014. Protective clothing, such as structural firefighting protective ensembles, is the most important life safety equipment for a Firefighter. It is the first line of defense between a dangerous environment and their body. Failure to follow the NFPA Standard in providing this safety garment to emergency responders could result in significant injury to firefighters and poses a significant liability issue for the City. 2. Needed to provide a level of service that is a priority for a significant contingent in the community: Firefighting turnouts are used daily by all members of Fire Emergency Response for all types of fires including structure fire and wildland fires, as well as specialty rescue calls including vehicle extrication and high-angle rescues. 3. Supports revenue generation and/or cost savings: The requested firefighting turnouts are used when responding to State and Federal wildland fires. Our participation in the system generates mutual aid revenue for the City. STAKEHOLDERS Emergency Responders and the community they serve. IMPLEMENTATION Task Date 1. Prepare and release request for proposals 8/2015 2. Select proposal 9/2015 3. Measure personnel and order turnouts 10/2015 4. Receive and in-service turnouts 12/2015 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Ray Hais, Battalion Chief Project Team: Ray Hais, Battalion Chief, PPE Committee (Emergency Responders) and Julie Cox, Administrative Analyst ALTERNATIVES: 1. Continue the Status Quo. This will put the outdated turnouts further out of date and create potential liability issues for the city. 3-15 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) EMERGENCY RESPONDERS PERSONAL PROTECTIVE STRUCTURAL FIRE FIGHTING EQUIPMENT 2. Defer or Re-Phase the Request. Providing funding for part of the request will enable the most outdated turnouts to be replaced. OPERATING PROGRAM 85200 Emergency Response COST SUMMARY Line Item Description Account No.2015-162016-17 Staffing 0 0 Contract Services 0 0 Other Operating Expenditures 110,464 0 Protective clothing 100-85200-7861 110,464 Minor Capital 0 0 Total Operating Costs 110,464 0 Net Operating Costs 110,464 0 3-16 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) RESCUE TRAINING FOR FIRE EMERGENCY RESPONDERS SUMMARY OF CHANGE: Increase training budget for Fire emergency responders and Fire administrative personnel. FISCAL IMPACT: One time cost of $59,776 in FY 2015-16. SERVICE LEVEL IMPACT: Additional emergency responders will receive Rescue Systems-II certification training, required Hazardous Materials Technician training, and Chief Officer professional development training. KEY OBJECTIVES 1. Increase safety of emergency responders. 2. Provide mandated training opportunities to emergency responders. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE There are three components to this request: Rescue Systems-II certification training, Hazardous Materials Technician certification training, and Chief Officer professional development training. The first portion of this SOPC, Rescue Systems-II training, will directly address the risks identified in our community by past and current Local Hazard Mitigation Plans (LHMP) and will provide significantly enhanced search and rescue capabilities in the City by increasing number of emergency responders to be proficient in using rescue equipment. This completes an operational goal that was eliminated during the Great Recession; however, the need for this capability remains. The potential for human loss and injury is compounded by the fact that approximately two-thirds of City of San Luis Obispo Firefighters are inadequately trained and certified to safely rescue trapped victims in building collapses. With the occurrence of a high-magnitude earthquake, all agencies within the County will be overwhelmed with their own mitigation efforts in their own communities. We will be forced to rely on our own personnel, equipment, and training. The California Office of the State Fire Marshal certified Rescue Systems-II class (Advanced Heavy Rescue) is a 40 hour hands-on instructor led class which teaches the advanced skills and techniques necessary to safely conduct effective search and rescue operations at structure collapse incidents in reinforced and unreinforced masonry (URM), concrete tilt-up, and heavy timber buildings. This level is also capable of conducting high angle rope rescue, confined space rescue (no permit required), and trench/excavation rescue. Students utilize a wide variety of specialized tools and heavy equipment in breaching walls and floors, and in the creation of shoring and stabilization systems, which allows for safe victim search and extrication. This class requires a specialized training facility with elaborate props used to simulate collapsed buildings and structures. This course can only be delivered at a State Fire Training approved site, located in Southern California and Northern California. There are 24 San Luis Obispo Firefighters that need to complete this class to achieve Type II Operational Level Capability of US & R response as specified by ICS-US&R-120-1. San Luis Obispo City Fire Department is requesting funding to enhance response capability and operational safety for an additional eight emergency responders. The best way to ensure the safety of responding Firefighters is to provide the necessary training and equipment. The Fire Department had established this course as a minimum required for all responders, but the ability to train all personnel was eliminated with the significant training budget reductions during the Great Recession. Previous attempts to reinstate this required minimum have failed. The ability to safely perform rescues from collapsed buildings is currently limited to a small number of adequately trained personnel (14 of 42) due to a lack of funding. Only one third of the Department is currently trained to the Rescue Systems-II level. The Fire 3-17 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) RESCUE TRAINING FOR FIRE EMERGENCY RESPONDERS Department has attempted to secure the required funding numerous times through federal grants but has been unsuccessful. The Rescue Systems II requested budget will train eight firefighters in FY 2015-16. The budget includes: Personnel: $35,768 (92.5 hours of overtime per person, $4471.), Fringe Benefits: $520 ($65. per person), Course fees $5,200 ($650. per person), Travel $7,088 includes: Transportation (fuel and parking) $1,544. Average round trip mileage is 550 miles, two people per vehicle to reduce cost, 2013 IRS mileage rate .565. Total cost for mileage is $1,244 ($311 per car with two people). Parking cost is $15.00/day for 5 days is $75.00. Estimated 4 trips to training sites to train 8 individuals. Total cost for parking is $300 and lodging totals $2,784. FY 2014 General Services Administration (GSA) rate used to determine lodging cost, double occupancy will be used to reduce cost for the five day training. Food is estimated to be $2,760 and based on the FY 2014 GSA rate for 8 firefighters during the 5 day training. Rescue Systems II Line Item Description Account No. 8 persons Overtime 85400-7020 35,768 Medicare 85400-7044 520 Course fee 85400-7459 5,200 Travel 85400-7459 7,088 TOTAL 48,576 Mileage 1,244 Parking 300 Lodging 2,784 Food 2,760 Total travel 7,088 The second part of this SOPC is a result of new requirements for the six shift-based City of San Luis Obispo emergency responders that are on the San Luis Obispo County Regional Hazardous Materials Response Team. The annual continuing education requirements for team members have increased from 24 hours to 60, effective April 3, 2014, per the SLO County Regional Haz Mat Standard Operating Guidelines. It is estimated that the addition cost per team member for training will be $1,000 per person for a total of $6,000 annually. This additional expense is an ongoing request for $6,000 for training for the Hazardous Material Team members on the county-wide Hazardous Materials Team. Haz Mat Training Line Item Description Account No. Annual Amount Education and training 85400-7459 6,000 The third portion of this SOPC is to provide professional development opportunities related to administrative staff performance goals set in the evaluation process. Conference registration and travel cost for 4 conferences is estimated at $1,000 - $1,500 per conference. The existing budget is insufficient to support this need. The travel, meeting, dues budget was reduced from $5,500 in FY 2007-08. While the cost of participating in educational 3-18 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) RESCUE TRAINING FOR FIRE EMERGENCY RESPONDERS conferences has increased substantially in the past 7 years and there was no Deputy Chief in 2007, the Fire Department is requesting $300 less than the FY 2007-08 authorized budget for this purpose. The position of Deputy Chief was added to the Administrative Division in FY 2012-13. Professional conferences or educational opportunities Line Item Description Account No. Annual Amount Professional conferences 85100-7529 5,200 GOAL AND POLICY CRITERIA The following criteria have been established as requirements for 2015-17 SOPC’s. Briefly explain how the proposed change meets one or more of the following criteria. 1. Needed to address a health & safety concern: The training requested in this grant would directly address the risks identified in our community by past and current Local Hazard Mitigation Plans (LHMP). One of the Hazard Mitigation goals is to “Reduce the severity of damage and losses due to natural and human- caused hazards.” An objective under this goal is to provide Rescue Systems-II class to all City of San Luis Obispo firefighters. Funding this SOPC will assist in accomplishing this objective. It will provide a greater safety margin for the firefighters who will be tasked with providing rescue services to victims in collapsed buildings and compromised structures due to vehicle versus occupied building, earthquake or other natural event, new construction or industrial accident, train derailment, or farm or industrial machinery entrapment. The City of San Luis Obispo also operates 12 large (30-700 acres) open space lands that are available for recreation which includes Bishops Peak, 1546 ft. three-pointed peak that is a popular technical rock climbing area. The City additionally operates numerous smaller areas. This class will enhance our ability to rescue ill or injured hikers or climbers using low and high angle rope rescue systems. 2. Needed to provide a level of service that is a priority for a significant contingent in the community: Since this training enhances our ability to rescue persons trapped in residences, businesses, permit required confined spaces, open spaces, and a myriad of other locations and activities, it would be of value to all citizen and visitors if/when a large or small scale rescue emergency exists. Training and education enhances the administrative staff’s ability to develop and implement best practices and be responsive to new methods and techniques for services delivered to for the community. STAKEHOLDERS Emergency Responders and the community they serve. IMPLEMENTATION Task Date 1. Register emergency responders for training 8/2015 2. Participate in training 10/15- 5/16 3-19 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) RESCUE TRAINING FOR FIRE EMERGENCY RESPONDERS PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Jeff Gater, Deputy Chief Project Team: Jeff Gater, Deputy Chief ALTERNATIVES: 1. Defer or Re-Phase the Request. Providing funding for part of the request. OPERATING PROGRAM 85400 Training Services COST SUMMARY Line Item Description Account No.2015-162016-17 Staffing 36,288 0 Overtime 100-85400-7020 35,768 Medicare 100-85400-7044 520 Contract Services 0 0 Other Operating Expenditures 23,488 0 Professional Conferences 100-85100-7529 5,200 0 Education and training 100-85400-7459 18,288 Minor Capital 0 0 Total Operating Costs 59,776 0 Net Operating Costs 59,776 0 3-20 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) SLURRY SEAL AT FIRE STATION 1 SUMMARY OF CHANGE: Slurry seal asphalt driving surfaces at Fire Station 1. FISCAL IMPACT: One time cost of $22,000 in FY 2015-16 SERVICE LEVEL IMPACT: The slurry seal project will provide needed maintenance and safety at Fire Station 1. KEY OBJECTIVES 1. Provide funding for maintenance of asphalt at the Fire Station 1 to maintain condition of this heavy use surface before further and more costly deterioration. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE Slurry seal asphalt surfaces at Fire Station 1: A new asphalt layer was added to the entire Dispatch Center Facility during construction in 2010. The asphalt surface has since weathered and is in need of a slurry seal application. Existing budget for city-wide asphalt maintenance can’t financially support this need; although City staff has endorsed the need to perform this maintenance work to preserve the integrity of the costly subsurface and to avoid significant repair needs in the near future. The asphalt surfaces at Fire Station 1 provide multiple benefits to the Fire Department’s operations. The public and employees use both front and rear lots. The large rear lot is used by heavy fire vehicles for training, maintenance, and also for large public outreach events such as Fire Prevention Open House. The rear lot has a thick layer of asphalt designed to handle the constant loading from heavy vehicles and is a significant investment. Keeping the asphalt layer sealed will reduce erosion of the sand ingredient that is currently clogging up the site’s drainage system and will prolong the life of the surface. Slurry seal coating is a standard maintenance procedure for asphalt surfaces. GOAL AND POLICY CRITERIA 1. Needed to address a health & safety concern: The slurry seal will prevent the existing erosion of sand that is clogging the site’s underground drainage system and has filled the runoff clarifier to approximately 50% of its capacity. Servicing the clogged pipes and pumping out the clarifier will be expensive and difficult and should be avoided as long as possible. 2. Needed to provide a level of service that is a priority for a significant contingent in the community:. A functional asphalt surface is critical to the emergency, training, and vehicle maintenance activities that occur at Fire Station 1. STAKEHOLDERS Emergency Responders and the community they serve. 3-21 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY) SLURRY SEAL AT FIRE STATION 1 IMPLEMENTATION Task Date 1. Coordinate with public works on slurry seal project 8/2015 2. Obtain at least three quotes for slurry seal 7/2015 3. Bid awarded by Finance for slurry seal 8/2015 4. Vendor provides slurry seal 9/2015 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Bob Bisson, Project Team: Bob Bisson Battalion Chief - SLOFD, Daniel Van Beveren – Public Works (asphalt/slurry advisor), and Julie Cox, Administrative Analyst - SLOFD ALTERNATIVES: 1. Defer or Re-Phase the Request. Defer the request. OPERATING PROGRAM 85500 Technical Services COST SUMMARY Line Item Description Account No.2015-162016-17 Staffing 0 0 Contract Services 22,000 0 contract services - Slurry seal contract 100-85500-7227 22,000 Total Operating Costs 22,000 0 Net Operating Costs 22,000 0 3-22 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) STAFFING DUE TO UTILITIES DEPARTMENT REORGANIZATION SUMMARY OF CHANGE: Hiring a Utilities Engineer/Project Manager dedicated to capital projects and development review, a Health and Safety Engineer to ensure safety for citizens and employees alike, and increasing the three-quarter time Administrative Assistant to full-time are the next steps toward the future Utilities Department structure. FISCAL IMPACT: On-going costs of $273,400 in 2015-16 and $273,900 in 2016-17 split equally between the water and wastewater division. SERVICE LEVEL IMPACT: To implement the new master plans for Water and Wastewater services requires engineering support from a dedicated staff member familiar with the Utilities infrastructure. Providing public and employee safety is essential to the department and its constituency and requires dedicated staff. A workload assessment for administrative support indicated that an increase in staffing is warranted. KEY OBJECTIVES 1. Efficient capital improvement plan delivery and development review services. 2. Constant review and implementation of complex and changing safety requirements for strict adherence with OSHA regulations. 3. Provide proficient and efficient administrative support for a department with 65 employees. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE Utilities Engineer/Project Manager Providing safe water and wastewater services to San Luis Obispo citizens requires a vast infrastructure of treatment plants, pipelines, pump and lift stations. With new master plans being finalized, the Department is embarking on an ambitious capital projects program that requires dedicated management to be completed to ratepayer expectations. Having a staff member familiar with the Utilities infrastructure and concentrated on the Utilities CIP program is imperative in order to provide efficient CIP delivery and development review services. Health and Safety Engineer Providing public and employee safety is essential to the Utilities Department and its constituency. OSHA regulations require strict adherence. Assessment and audit of health and safety risks associated with infrastructure and operational practices must be routinely conducted and focused training provided on an ongoing basis to ensure compliance and maximum safety to all involved. Having a dedicated health and safety professional ensuring that complex and changing safety requirements are met, including in-depth training and administrative requirements, is an important part of the Utilities’ operation. Administrative Assistant – ¼ time The workload assessment for administrative support for the Utilities Department and its 65 Utilities employees indicates that a minimum of two full-time employees are needed to provide timely public reception and office management, human resources (including timecards) administration, and various complex and routine administrative tasks. GOAL AND POLICY CRITERIA Approval of the positions and hiring the new employees will allow the department to: - continue to address health and safety concerns for both citizens and employees; - deliver water and sewer services with the infrastructure required and expected by the ratepayer; - build the foundation for the next step in aligning the department with the organizational structure required to deliver water and wastewater services in the 21st century. 3-23 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) STAFFING DUE TO UTILITIES DEPARTMENT REORGANIZATION STAKEHOLDERS - Rate payers expecting safe water treatment and delivery and sewer collection and treatment. - Water and Wastewater division programs with capital improvement projects and crews working on utilities infrastructure. - The Utilities department’s workforce relying on proper and time-efficient administration and office/workspace management. IMPLEMENTATION Task Date 1. Begin hiring process for Utilities Engineer and Health and Safety Engineer July 2015 2. Increase Administrative Assistant time from ¾ to full-time July 1, 2015 3. Finalize selection process and hire positions October 2015 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Director of Utilities Project Team: Human Resources, Deputy Directors Water and Wastewater. ALTERNATIVES: 1. Continue the Status Quo. By disallowing the hire of the Utilities Engineer, the capital improvement program would be greatly hindered and unable to move forward as required by the new master plan. At this point, the department does not have any safety related oversight and violations of OSHA regulations remain unchecked. Provided the ambitious work program, additional administrative assistance is imperative for proper operation and administration. 2. Defer or Re-Phase the Request. The hiring of the positions could be staggered. Within the request, the Utilities Engineer has the highest priority, followed by the Health and Safety Engineer, and Administrative Assistant. OPERATING PROGRAM 55100 – Water Administration/Engineering 55300 – Wastewater Administration/Engineering COST SUMMARY Line Item Description Account No.2015-162016-17Staffing269,400 273,900 Salaries 55100.7010 94,775 95,075 Salaries 55300.7010 94,775 95,075 Benefits 55100.7040-50 39,925 41,875 Benefits 55300.7040-50 39,925 41,875 Other Operating Expenditures 4,000 0 Computer Supplies 55100.7413 2,000 Computer Supplies 55300.7413 2,000 Total Operating Costs 273,400 273,900 3-24 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) WATER AND SEWER ADMINISTRATION & ENGINEERING CONTRACT SERVICES SUMMARY OF CHANGE: Additional funding required for contract services to support Water and Sewer hydraulic models, recycled water study, and update to water and sewer development impact fees. FISCAL IMPACT: One time cost of $60,000 in 2015-16. On-going cost of $15,000 in 2015-16 and 2016-17. SERVICE LEVEL IMPACT: These contract services will allow the City to maintain the water, recycled water and sewer collection system hydraulic models annually in addition to conducting a recycled water rate study and reviewing water and sewer development impact fees in 2015-16. KEY OBJECTIVES 1. Develop and maintain hydraulic models that allow for estimating impacts of development projects. 2. Maximize operational efficiency and future capital planning. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE During the 2013-15 Financial Plan, the Utilities Department utilized consultant services to develop calibrated hydraulic models of the water distribution system, recycled water distribution system and wastewater collection system as a tool for estimating impacts of development projects, maximizing operational efficiency, and assisting with future capital planning. These hydraulic models will require annual maintenance updates as the City develops, new capital projects are brought on-line, and new pipelines are installed in the City. They will also need to be recalibrated as additional flow data is available. Maintenance of the water, recycled water, and wastewater collection system models are estimated to cost $5,000 each per year for a total of $15,000. Contracting for consultant services to maintain the models is cost effective as the models require specialized software, training, and expertise to run and maintain. Recycled Water Rate Study. Upon completion of the Recycled Water Master Plan (tentatively scheduled for August 2015), a rate study is needed to revisit the current rate structure and consider other elements in the plan such as an off-peak seasonal rate. Impact Fees. The City updated its water and sewer development impact fees in August 2013. At that time the Utilities Department indicated it would consider capacity and connection fees (as opposed to development impact fees) in its next fee update. Using the 2015 Water Master Plan, the 2015 Wastewater Collection System Infrastructure Renewal Strategy, and the 2014 Land Use Element, the impact fee study will coordinate with the citywide impact fee update and infrastructure financing plan. This request will fund the study of a fee structure that will include necessary capacity improvements to serve new development and the City’s capital investment in its water distribution pipeline, reservoir infrastructure, and wastewater collection system; all critical infrastructure elements which have historically not been included in the City’s calculation of water and sewer development impact fees. GOAL AND POLICY CRITERIA 1. City of San Luis Obispo, General Plan, Water and Wastewater Management Element, policy A5.2.5 (water) and B2.2.3 (wastewater). 2. City of San Luis Obispo, General Plan, Land Use Element, policy 1.12.1. 3. Consistency with the 2013-15 Major City Goal: Essential Services, Infrastructure & Fiscal Health 4. City of San Luis Obispo Utilities Department Strategic Plan, Goal 2 – Infrastructure; Goal 4 – Stewardship 3-25 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) WATER AND SEWER ADMINISTRATION & ENGINEERING CONTRACT SERVICES STAKEHOLDERS Community Development Department, Utilities Department staff, as well as the City’s Economic Development Manager, will work together to ensure stakeholders such as developers, builders, and ratepayers are informed. The City’s water and sewer ratepayers, as well as developers, will benefit from capacity and connection fees that most accurately reflect the costs incurred to provide service to new development. IMPLEMENTATION Task Date 1. Execute contract with consultants (hydraulic model maintenance, recycled water rate study, capacity and connection fee study). July 2015 2. Present recycled water rate study and capacity and connection fee study recommendations to Council. June 2016 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Utilities Projects Manager Project Team: Deputy Directors from Water and Wastewater, Utilities Business Manager, Utilities Services Manager, Utilities Analyst, Deputy Director of Community Development, Chief Building Official, and the Economic Development Manager. ALTERNATIVES: 1. Defer or Re-Phase. While the on-going hydraulic model maintenance could be deferred to a later Financial Plan, this alternative should only be chosen if the Council desires to reduce the update cycle for the hydraulic model data. For a relatively low investment, the maintenance of the hydraulic models will provide the ability to accurately analyze the potable and recycled water distribution systems with the most up-to-date information and ensure adequate capacity is available in the collection system to avoid potential sanitary sewer overflows. 2. Use in-house resources to conduct water rate study and capacity and connection fee study. There is in- house expertise to complete these studies without the use of consultant services although doing so would require changes to the proposed work program. As the project is currently planned, staff will be significantly engaged with the work in order to keep consultant costs to a minimum; partnering with the consultants to maximize the strengths of each party. OPERATING PROGRAM 55100 – Water Administration/Engineering 55300 – Wastewater Administration/Engineering 3-26 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) WATER AND SEWER ADMINISTRATION & ENGINEERING CONTRACT SERVICES COST SUMMARY Line Item Description Account No.2015-162016-17 Contract Services 75,000 15,000 Water Admin/Engineering - Recycled Water 55100.7227 20,000 Water Admin/Engineering - Hydraulic Model 55100.7227 10,000 10,000 Water Admin/Engineering - Impact Fee 55100.7227 20,000 Sewer Admin/Engineering - Hydraulic Model 55300.7227 5,000 5,000 Sewer Admin/Engineering - Impact Fee 55300.7227 20,000 Total Operating Costs 75,000 15,000 3-27 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) CONTROL SYSTEMS STAFFING KEY OBJECTIVES 1. Implementation and maintenance of the Utilities Department’s Control Systems infrastructure. 2. Ensuring proper and effective operation of the complex infrastructure and processes associated with water resource management. 3. Ensuring the community’s health and safety standards through proper operation and alarm systems control. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE The Utilities Department’s computer-based process control systems program (including programmable logic controllers, telemetry devices, measuring and monitoring equipment, SCADA) is managed by the City’s IT division. Effectively operating the complex infrastructure and processes associated with managing the City’s water and wastewater resources requires heavy reliance on these control systems. Currently IT manages a contract for control systems support that provides emergency and on-call services. This model does not provide the scope and level of support needed to enhance these systems. Dedicated staff is required to manage and maintain the multi-million dollar investments associated with these control systems located throughout the City and County (Whale Rock Reservoir, Salinas Reservoir, Nacimiento water project and Cal Poly). A $1.5 million capital project to install SCADA across the water distribution system and Whale Rock Reservoir is at 95 percent design and the updated Water Resources Recovery Facility and upgrade and needed improvements for the Water Treatment Plant’s SCADA will require higher levels of technical service. In retrospect, project approval should have included a staffing component to implement this project; unfortunately it did not. After analyzing the option of contracting out this work it is clear the overall need for the in-house skills these positions bring is crucial to operations. The positions would be housed in IT as the interconnectivity of all network systems and association with the IT team is the most effective and efficient way to deliver this service. GOAL AND POLICY CRITERIA 1. Assisting in addressing water and wastewater related health & safety concerns. 2. Needed to provide a level of service that is a priority for a significant contingent in the community. 3. City of San Luis Obispo Utilities Department Strategic Plan Goal 2 – Infrastructure; Goal 4 - Stewardship SUMMARY OF CHANGE: Hiring two new positions (Control Systems Administrator and Control Systems Technician) to plan, design, develop, implement, modify and maintain the Utilities Department computer-based process control systems and all components associated with those control systems is crucial for the successful construction and implementation of the water division’s Supervisory Control and Data Acquisition (SCADA) and the ongoing safe and proper function of the Utilities infrastructure and service delivery to rate payers. FISCAL IMPACT: On-going costs of $237,500 in 2015-16 and $235,800 in 2016-17 plus annual staffing related increases thereafter paid for by the Water and Sewer Enterprise funds. This cost is offset by a reduction in the annual cost allocation charges for IT/Telemetry of $140,900 that would no longer apply after 2017-18. SERVICE LEVEL IMPACT: Allow the construction of the $1.5 million control systems capital project and ensure proper and ongoing maintenance of the entire water and wastewater control systems infrastructure. 3-28 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) CONTROL SYSTEMS STAFFING STAKEHOLDERS Staffing for the control system infrastructure and SCADA are critical to the health and safety of the City and the compliant and efficient operations of all wastewater and water facilities. IMPLEMENTATION Task Date 1. Begin hiring process July 2015 2. Hire employees Mid-September 2015 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Director of Utilities Project Team: Interim Director of Information Technology, members of Information Technology and Water and Wastewater Divisions ALTERNATIVES: 1. Continue the Status Quo. The status quo would require the hiring of contract services and alternate approaches to getting the SCADA project moving forward through construction. Investing $1.5 million in an infrastructure that cannot be properly maintained and kept up, would not be a prudent fiscal investment. It would require significant staff time to manage the contract services during a complex construction project. The status quo would not address the serious gap in services Utilities requires to maintain its control systems infrastructure that exists today and will be installed in the future. 2. Defer or Re-Phase the Request. The request is to fund both positions for the entire year. The Control Systems Administrator could be hired first after which time the Control Systems Technician (who would report to the Control Systems Administrator) hiring process could being. This would reduce funding needed for year one. 3. Implementation in a Different Way. Staff has investigated contracting for these services. The difficulty is finding contractors locally that do not have to travel here from either down south or up north. Travel time, overhead cost, and time lag would make this alternative exponentially more expensive and time prohibitive. OPERATING PROGRAM 55160 – Water Distribution 55310 – Wastewater Collection 55500 – Reservoir Operation 3-29 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) CONTROL SYSTEMS STAFFING COST SUMMARY Line Item Description Account No.2015-162016-17 Staffing 233,000 235,800 Staffing 55160.7010 69,900 69,900 Staffing 55310.7010 77,600 77,600 Staffing 55500.7010 7,700 7,700 Benefits 55160.7040-50 35,000 36,300 Benefits 55310.7040-50 38,900 40,300 Benefits 55500.7040-50 3,900 4,000 Other Operating Expenditures 4,500 0 Computer Supplies 55160.7413 2,000 Computer Supplies 55310.7413 2,250 Computer Supplies 55500.7413 250 Total Operating Costs 237,500 235,800 Offsetting Costs Savings or Revenues Cost Allocation for Telemetry Services / IT 2013-14 CAP Net Operating Costs 237,500 235,800 3-30 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) WASTEWATER COLLECTION MINOR CAPITAL SUMMARY OF CHANGE: Implement minor capital funding for the wastewater collection system to ensure optimal operation and maintenance of the sanitary sewer and stormwater collection systems. FISCAL IMPACT: One time cost of $26,400 in 2015-16 and ongoing cost of $20,000 in 2015-16 and 2016-17. SERVICE LEVEL IMPACT: Adequate minor capital funding for responsive maintenance of sanitary sewer manholes is essential to avoid costly emergency repairs and fines from system overflows. One-time funding for computer modules and a pipe inspection camera will provide the tools for proper maintenance and operation of the City’s wastewater collection and stormwater systems. KEY OBJECTIVES 1. Reduce risk, avoid costly emergency repairs, and failure within the collection system. 2. Enable data configuration and the production of reports necessary for proper maintenance of the City’s wastewater collection and stormwater systems. 3. Efficiently determine the structural integrity of the sanitary sewer and stormwater systems. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE Deteriorating Manholes. Manhole replacement and rehabilitation is typically associated with sewerline CIP projects which is the preferred approach to managing the collection system. However, providing a level of funding for the rapid rehabilitation of manholes found to be deteriorating to the point of catastrophic failure is necessary and prudent. Attending these repairs before catastrophic failure can be managed by wastewater staff and reduces the risk and costs associated with sanitary sewer overflows. Manhole rehabilitation has been a common activity for Wastewater Collection to oversee and was previously funded in its operating budget. GIS Select and Analysis Module. Purchasing this module provides the ability to filter and query closed circuit television (CCTV) data and information to pre-configured reports. This module allows data to be configured so reports can be produced to enhance the maintenance, operation, and asset management data of the wastewater collection and stormwater systems. It supports the Wastewater Collection System Infrastructure Renewal Strategy and other software such as Cityworks Infrastructure Optimization (I/O) asset management software. Replacement of Pipe Camera. The current portable pipe camera is outdated and operating beyond its useful life. This tool is critical in determining the structural integrity of infrastructure and has resulted in responsive maintenance activities and effective data gathering providing improved customer service. Funding will be split between Utilities and Public Works (50 percent from Sewer and 50 percent from General Fund - Stormwater). GOAL AND POLICY CRITERIA 1. Comply with the State Water Resources Control Board Order No. 2006-003-DWQ. 2. Maintain compliance with San Luis Obispo’s 2014 Sewer System Management Plan (SSMP). 3. Maintain compliance with San Luis Obispo’s Stormwater Management Plan (SWMP). 4. City of San Luis Obispo Utilities Department Strategic Plan; Goal 2 – Infrastructure, Goal 3 – Regulatory, Goal 4 - Stewardship 3-31 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) WASTEWATER COLLECTION MINOR CAPITAL STAKEHOLDERS - Wastewater Collection and Stormwater programs. - Water Quality regulatory agencies. IMPLEMENTATION Task Date 1. Hire outside contractor to rehabilitate and coat existing collection system manholes. July 2015 2. Purchase GIS Select and Analysis Module, sole source from IT Pipes. July 2015 3. Purchase pipe camera. July 2015 4. Hire outside contractor to rehabilitate and coat collection system manholes. July 2016 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Wastewater Collection Supervisor Project Team: Wastewater Collection and Stormwater program employees. ALTERNATIVES: 1. Continue the Status Quo. The request intends to replace infrastructure at the end of its useful life. Continue to use the current assets will increase the risk of failure and liability to the City. 2. Change the Scope of Request. The request for minor capital funding to replace deteriorating manholes could be increase to address more location within one year. However, staff believes that the requested amount will allow for improvement and continued maintenance of the manhole infrastructure on a responsive annual basis. OPERATING PROGRAM 55310 – Wastewater Collection 50230 - Stormwater COST SUMMARY Line Item Description Account No.2015-162016-17 Minor Capital 46,40020,000 Coat Deteriorated Manholes 55310.7957 20,00020,000 Purchase GIS Select and Analysis Module 55310.7957 8,400 Purchase Pipe Camera (Utilities)55310.7957 9,000 (Public Works) 50320.7957 9,000 Total Operating Costs 46,40020,000 3-32 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM PERMIT – STUDIES AND ANALYSIS SUMMARY OF CHANGE: Additional operating funds are needed at the Water Quality Lab to support testing, analysis, and special studies associated with the City’s new National Pollutant Discharge Elimination System (NPDES) permit for the Water Resource Recovery Facility (WRRF). FISCAL IMPACT: On-going costs of $17,000 annually. SERVICE LEVEL IMPACT: This funding will support mandated studies, testing, and analysis needed for the City WRRF’s newly issued NPDES permit. KEY OBJECTIVES 1. Conduct additional studies, testing, and analysis as required by the City WRRF’s new NPDES permit including material, supplies, and equipment not currently available in the Water Quality Lab operating budget. 2. Fulfill the terms of water quality testing as mandated by federal and state requirements under the new NPDES permit. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE NPDES Permit. The WRRF’s revised NPDES permit requires additional sampling, analysis and reporting. The additional requirements are mandatory water quality regulations and discharge requirements that allow the compliant operation of the WRRF and discharge into San Luis Obispo Creek. GOAL AND POLICY CRITERIA 1. Protecting the health and safety of the community. 2. City of San Luis Obispo General Plan, Water and Wastewater Management Element. 3. City of San Luis Obispo Utilities Department Strategic Plan Goal 3 – Regulatory; Goal 4 - Stewardship. 4. Compliance with Federal and State mandated regulations. STAKEHOLDERS Water Quality Lab and WRRF staff Federal and State water quality agencies IMPLEMENTATION Task Date 1. Ongoing sampling and analysis July 1, 2015 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: The Water Quality Lab Manager is responsible for program execution and the timely submittal of permit required data and reporting. 3-33 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM PERMIT – STUDIES AND ANALYSIS Project Team: The Water Quality Lab Manager is supported by Water Quality Lab Analysts and the Water Resource Recovery Facility staff. ALTERNATIVE: This is a regulatory mandate. Alternatives to meeting this mandate would put the City at risk to become out of compliance with its NPDES permit requirements. OPERATING PROGRAM 55350 – Water Quality Lab COST SUMMARY Line Item Description Account No.2015-162016-17 Contract Services 17,000 17,000 WRRF Mandated Analysis 55350-7255 17,000 17,000 Total Operating Costs 17,000 17,000 3-34 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) WATER QUALITY LABORATORY ANALYST SUMMARY OF CHANGE: Addition of one FTE Water Quality Laboratory Analyst. FISCAL IMPACT: On-going costs of $77,157 in 2015-16 and $81,227 in 2016-17. SERVICE LEVEL IMPACT: This position will provide needed staffing to meet the increased workload for ongoing studies related to the City’s National Pollutant Discharge Elimination System (NPDES) permit to comply with State and Federal water quality regulations. KEY OBJECTIVES 1. Comply with State and Federal Water Quality regulations mandated by the City’s new NPDES permit. 2. Ensure that all requirements of the NPDES permit are considered, properly administered, and reported. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE Ongoing operational requirements at the Water Resource Recovery Facility (WRRF). The required sampling and analysis to meet the requirements of the recently revised NPDES permit and ongoing process control sampling have critically exceeded the Water Quality Laboratory’s ability to accomplish them on a regular work schedule. The lab has utilized part- and full-time temporary employees to meet the time sensitive demands of sampling, analysis, reporting, and other lab duties, in addition to shift coverage for its seven-day-a-week operation. This has not proven to be a sustainable solution given the complicated workload and requirements for shift coverage. This request is a cost effective and time efficient answer to meet the required workload given that the cost of outsourcing the analysis would exceed the cost of hiring staff. This position was not filled when vacant in 2009 and was subsequently deleted from Water Quality Laboratory’s budget in 2009 as a cost saving measure. GOAL AND POLICY CRITERIA 1. State and Federal Mandates: With the new NPDES permit came new and more stringent discharge requirements. In order to ensure the mandated discharge levels are achieved, increased testing is necessary. 2. The sampling and analysis addresses the community’s health and safety concerns by safekeeping the creek and recycled water quality. 3. This request conforms to the City’s Temporary Employee policy, as much of the increased workload has been accomplished with temporary aid. STAKEHOLDERS Water Quality Lab and WRRF staff Federal and State agencies governing the new NPDES permit IMPLEMENTATION The hiring process would begin with the new fiscal year. The position is expected to be filled by mid-September. Task Date 1. Open Recruitment July 1, 2015 2. Hire Laboratory Analyst Mid-September 2015 3-35 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC UTILITIES) WATER QUALITY LABORATORY ANALYST PROGRAM MANAGER AND TEAM SUPPORT Program Manager: The Water Quality Lab Manager will work with the Human Resources department through the hiring and selection process. ALTERNATIVES: 1. Continue the Status Quo. This request is based on the demands and requirements of the new NPDES permit which is a State and Federal mandate. Leaving regular staffing levels at status quo would require additional temporary staffing to be hired. This work is permanent and ongoing as directly tied to the new NPDES permit. Filling the need with temporary staffing is inconsistent with the City’s temporary employee policy. 2. Existing Program Evaluation. The Water Quality Lab already contracts for services that cannot be efficiently accomplished in-house due to the special equipment needed for the analysis of specific tests. Contract services are currently invoiced at a cost of $88,900. Contracting out additional analysis still requires staff to sample, process and manage analytical samples including the analytical results. OPERATING PROGRAM 55350 - Water Quality Lab COST SUMMARY Line Item Description Account No.2015-162016-17 Staffing 77,157 81,227 Laboratory Analyst (SBP)55350.7010 60,138 63,310 Retirement Contribution 55350.7040 17,019 17,917 Health & Disability Insurance 55350.7042 15,712 16,000 Medicare 55350.7044 872 918 Other Operating Expenditures 0 0 Total Operating Costs 77,157 81,227 Offsetting Costs Savings or Revenues (Enter as a negative number. If there are none, delete this row in the table.) Net Operating Costs 77,157 81,227 3-36 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) TRANSPORTATION PLANNER/ENGINEER POSITION: CONTRACT TO REGULAR CONVERSION SUMMARY OF CHANGE: Converting an ongoing 1.0 full-time equivalent (FTE) benefitted contract position to a 1.0 FTE regular position in the Transportation Planning and Engineering program. FISCAL IMPACT: Converting an existing contract benefited staff position to a regular staff position will result in zero net cost to the General Fund. SERVICE LEVEL IMPACT: Maintaining this ongoing position is critical to providing core transportation services such as operations, safety, neighborhood wellness, and fulfilling local, State, and Federal regulatory requirements. KEY OBJECTIVES Maintain existing staff resources necessary for: 1. Continuing the City’s Annual Traffic Safety, Bi-Annual Traffic Operations, and Neighborhood Traffic Management Programs. 2. Implementing Measure G priority to protect and maintain essential services and facilities such as bike lanes and sidewalk. 3. Fulfilling regulatory and municipal code requirements 4. Fulfilling State & Federal regulatory requirements for traffic control and operations EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE This position was a 1.0 FTE benefitted permanent position prior to 2009, when it was temporarily converted to a fulltime benefitted contract position to qualify for grant funding as part of a short term 2009-11 budget reduction strategy. In December of 2011, the grant funding was exhausted, and the position was returned to being funded completely from the General Fund. However, the contract engineer position has yet to be converted back to a permanent position. The regular position was never intended to be eliminated or permanently placed into contract status as this work has been determined to be ongoing regular work. Rather, the position was intended to be restored back to the General Fund once the State grant was fully exhausted. Continuing to maintain this on-going core position as a contract is in conflict with the City’s Temporary Employee Policy. This policy calls for temporary contract employees to be generally used for six months to two years for medium to short-term special projects and programs or seasonal work. This is the only position associated with Measure G that is not a regular full time status. This position is essential to the City fulfilling its Major City Goal of Multi-Modal Transportation and Other Important Objective of Neighborhood Wellness, Measure G priority to protect and maintain essential services and facilities such as bike lanes and sidewalk, and maintaining current service levels, programs, and regulatory obligations. Over the last twelve years there has been a substantial increase in staffing demand with, among other things: 1. 15 new traffic signals 2. Approximately 7 new center line miles 3. New traffic operations program 4. Expansion of the traffic safety program 5. Expansion of the neighborhood traffic management (NTM) program 3-37 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) TRANSPORTATION PLANNER/ENGINEER POSITION: CONTRACT TO REGULAR CONVERSION 6. Augmentation of bicycle and pedestrian programs and projects 7. Travel demand modeling functions in-house 8. Traffic signal operations and design in–house 9. Annexation/development of new residential, commercial, and industrial areas. 10. Spike in development applications 11. 50+ new actionable policies, program, and project adopted as part of the General Plan Update GOAL AND POLICY LINKS 1. 2015-17 Major City Goal for Multi-Modal Transportation 2. 2015-17 Other Important Objective for Neighborhood Wellness 3. Congestion Relief 4. Circulation Element Objectives 1.6 Thru 1.11 5. Circulation Element Policies & Program Standards 6.1 Thru 9.1 6. City of San Luis Obispo Municipal Code Titles 10 & 12 7. California Vehicle Code Section 21400 8. Title 23 U.S. Code, Sections 109(d), 114(a), 217, 315, 402(a) 9. Title 23 Code of Federal Regulations 655.603, Sections 1.48(b)(8), 1.48(b)(33), & 1.48(c)(2) IMPLEMENTATION Task Date 1. Establish Regular Fulltime Transportation Planner/Engineer Position July 2015 2. Eliminate temporary contract Engineer II – Trans. position July 2015 3. Submit requisition for the full time regular position & provide in-house opportunity (EOP) July 2015 4. Establish eligibility list August 2015 5. Interview candidates and select one for appointment to the position August 2015 6. Begin orientation and training September 2015 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Transportation Operations Manager ALTERNATIVES: 1. Continue the Status Quo. Renew the current contract, which is currently set to expire on June 30, 2015, and continue to fill this position as a temporary contract. However, this is a critical core position that has been ongoing for at least the past twelve years and therefore continuing the position as a temporary contract is in conflict with the City Temporary Employee Policy. 2. Defer or Re-Phase the Request. Defer the conversion of this position from contract to permanent to a later date. However, there is no financial or operational benefit derived from this alternative and continuing to maintain this position as a temporary contract is in conflict with the City Temporary Employee Policy. 3-38 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) TRANSPORTATION PLANNER/ENGINEER POSITION: CONTRACT TO REGULAR CONVERSION 3. Change the Scope of Request. Other than continuing the status quo or deferring the request there is no feasible alternative that would involve a different scope of the request. 4. Implementation in a Different Way. Other than continuing the status quo or deferring the request there is no feasible alternative that would involve implementation in a different way. 5. Existing Program Evaluation. This position is currently being contracted out; however because of the core service and on-going nature of the position it is not appropriate to maintain this position under contract. If this position was eliminated and the division was required to operate with fewer employees this would result in a significant functional deficiency within the Transportation Division and would necessitate the suspension of many programs such as the City safety, operations, and neighborhood traffic management programs. Operating with fewer transportation staff would also result in substantial delays in the delivery of capital project program, private development applications and environmental review, neighborhood services, and citizen request responses. OPERATING PROGRAM Transportation Planning & Engineering (50500) COST SUMMARY Line Item Description Account No.2015-162016-17 Staffing 104,800111,200 Regular Salaries 50500-7010 71,80075,600 Retirement Contribution 50500-7040 20,30022,800 Health & Disability Insurance 50500-7042 11,70011,700 Medicare 50500-7044 1,000 1,100 Unemployment Insurance 50500-7046 Total Operating Costs 104,800111,200 Offsetting Costs Savings or Revenues Contract Salaries 50500-7012 (71,800)(75,600) Retirement Contribution 50500-7040 (20,300)(22,800) Health & Disability Insurance 50500-7042 (11,700)(11,700) Medicare 50500-7044 (1,000)(1,100) Unemployment Insurance 50500-7046 Net Operating Costs 0 0 3-39 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) BICYCLE TRANSPORTATION PLAN IMPLEMENTATION SUMMARY OF CHANGE: Reorganize the Principal Transportation Planner job description to an Active Transportation Manager and a reclassification of a City Worker 4 to a Transportation Planner/Engineer to enable the Transportation Division to implement the Bicycle Transportation Plan and General Plan. FISCAL IMPACT: On-going costs of $16,500 in 2015-16 and $17,500 in 2016-17 from the General Fund, offset by a reduction in the adopted CIP. On-going costs of $16,500 in 2015-16 & $17,500 in 2016-17 from the Parking Fund. The remaining annual on-going costs of $71,200 will be offset by existing temporary salaries and development review revenue. The proposed revenue is from transportation development services surcharges for such services as traffic impact studies, the amount is separate from that requested by the Community Development Department for their SOPC. SERVICE LEVEL IMPACT: This request will provide adequate structure and staffing resources in the Transportation Planning & Engineering Division for supporting the Major City Goal of Multimodal Transportation. This prioritizes implementation of the Bicycle Transportation Plan and the associated new capital projects, programs, and services. KEY OBJECTIVES Maintain and restructure staff resources necessary for: 1. Beginning long term implementation of the City’s Bicycle Transportation Plan (BTP) 2. Beginning long term implementation of the City’s Circulation Element (CE) 3. Adequate staffing capacity for processing development review applications EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE In November of 2013 the City adopted its Bicycle Transportation Plan and identified implementation of that plan as a Major City Goal for 2015-17. Elements of the Bicycle Transportation Plan are implemented thru private development and other larger capital projects. This SOPC proposes to restructure the Transportation Planning and Engineering program to be better suited for implementing the Major Council Goal, BTP, and CE. This proposal creates both an Active Transportation Manager, and a Bicycle Coordinator. The LUCE, the BTP, the proposed capital programs, and the upcoming development obligations create the need for policy development, project delivery, program implementation, and project review. This workload is best accommodated by a policy level Active Transportation Manager and a Bike Coordinator to implement capital and development projects. The Active Transportation Manager utilizes the existing funding and the FTE for the Public Works Department’s Principal Transportation Planner. The Planner would be eliminated and a new Active Transportation Manager created. The Bicycle Transportation Coordinator would utilize the following funding sources: • Existing funding from the General Fund for .25 Bike Coordinator in the Transit Program • Development Review funding to facilitate construction of new development bike and pedestrian projects • Capital funding as this position would implement the capital elements of the BTP • Parking funds as this position impacts the need for downtown parking 3-40 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) BICYCLE TRANSPORTATION PLAN IMPLEMENTATION If the Principal Transportation Planner shift to Active Transportation Manager is approved, the non-active transportation programs & services of the existing Planner would shift to the existing Transportation Manager, and the existing Planner/Engineer staff of the unit. In addition to programs, services, and long range planning; implementation of the Bicycle Transportation Plan also requires new capital projects, development review, and transportation impact studies. The current Bicycle Coordinator job classification does not require the level of education, experience, and responsibility necessary for delivering these things, therefore this SOPC proposes to elevate the Bicycle Coordinator classification to another Transportation Planner/Engineer. Since approximately half of this position will be responsible for development review and transportation impact studies, the cost for this position would be 50% offset with development review fees. The offsetting development review funding may either be established directly from the revenue accounts or an update to the cost allocation plan. The graphic attached depicts the two primary transportation functions; delivering capital & public improvement projects and providing programs & services along with the corresponding staffing levels. (note: the chart also includes the recommended changes included in the Baseline SOPC for changes to the Transportation Program). GOAL AND POLICY CRITERIA 1. 2015-17 Major City Goal for Multimodal Transportation 2. Bicycle Transportation Plan 3. Measure Y/G Objective: Traffic Congestion Relief 4. Circulation Element 5. City of San Luis Obispo Municipal Code Titles 10 & 12 6. California Vehicle Code Section 21400 7. Title 23 U.S. Code, Sections 109(d), 114(a), 217, 315, 402(a) 8. Title 23 Code of Federal Regulations 655.603, Sections 1.48(b)(8), 1.48(b)(33), & 1.48(c)(2) STAKEHOLDERS A wide range of stakeholders are affected by this program, including community members, residents, and visitors. Internal stakeholders include the Community Development, Utilities, Fire and Police. IMPLEMENTATION Task Date 1. Reclassify Principal Transportation Planner and Bicycle Coordinator Positions July 2015 2. Submit Requisition for Trans. Planner/Engr. Position July 2015 3. Establish eligibility list August 2015 4. Interview candidates and select one for appointment to the position August 2015 5. Begin orientation and training September 2015 3-41 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) BICYCLE TRANSPORTATION PLAN IMPLEMENTATION PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Transportation Operations Manager Project Team: The Public Works, Community Development, Parks and Recreation, Police, Fire, and Administration Departments. ALTERNATIVES 1. Continue the Status Quo. Currently the City does not have the adequate staffing resources to accommodate implementation of the BTP. Also, under the status quo, staff resources dedicated to bicycling is part-time and temporary. 2. Implementation in a Different Way. The City could revise the Principal Transportation Planner job description to an Active Transportation Manager but not reclassify City Worker 4 to a Transportation Planner/Engineer. This would secure regular, on-going staffing for bicycles but not provide adequate staffing for delivering the capital projects programs and services proposed as part of the Major City Goal: Multimodal Transportation, therefore, the work scope of that goal would need to be reduced significantly. OPERATING PROGRAM Transportation Planning & Engineering (50500) COST SUMMARY Line Item Description Account No.2015-16 2016-17 Staffing 104,200 110,200 Regular Salaries 50500-7010 68,200 71,800 Retirement Contribution 50500-7040 19,300 21,700 Health & Disability Insurance 50500-7042 15,700 15,700 Medicare 50500-7044 1,000 1,000 Unemployment Insurance 50500-7046 Total Operating Costs 104,200 110,200 Offsetting Costs Savings or Revenues Temporary Salaries 50500-7014 (18,800)(19,600) Transportation Sur Charge Revenues 100-45485 (52,400)(55,600) Parking Enterprise Fund 510-50600-7010 (16,500)(17,500) Reductions in CIP (16,500)(17,500) Net Operating Costs 0 0 3-42 CU R R E N T BU D G E T Re g u l a r FT E = 3 Te m p o r a r y FT E = 2. 2 5 PR O P O S E D BU D G E T Re g u l a r FT E = 5. 2 5 Te m p o r a r y FT E = 0 20 1 5 ‐17 Tr a n s p o r t a t i o n Pl a n n i n g & En g . Di v i s i o n SOPCs Ci r c u l a t i o n El e m e n t & Bi c y c l e Tr a n s p o r t a t i o n Pl a n Im p l e m e n t a t i o n Principal Planner (Peggy M.)1 FTE: Reg100% GF Active Trans. Mgr.(Peggy M.)1 FTE: Reg100% GFSOPCBTPImp.$0MCG SOPC Tr a n s . Pl n . / E n g . (B r y a n W. ) 1F T E : Co n t r a c t . 10 0 % GF 25 % GF 75 % Gr a n t Tr a n s . As s i s t . (J e n R. ) 1F T E : Co n t r a c t SOPC Convert Cont. Trans. Plnr/Eng. $0 Tr a n s . Pl n . / E n g . (B r y a n W. ) 1F T E : Re g 10 0 % GF 10 0 % GF 75 % Gr a n t Tr a n s . Pl n . / E n g . (T B D ) 1F T E : Re g . SOPC Dev Serv. Staffing. BA S E L I N E SO P C S Le g e n d Bo l d = Ch a n g e in Fu n c t i o n Bo l d = Po s i t i o n Up g r a d e Bo l d = Ch a n g e in Ti t l e Co n t r a c t / Te m p . Po s i t i o n Co n t r a c t / T e m p . Co n v e r t e d to Re g u l a r Po s i t i o n Bi k e Co o r d i n a t o r (E l i s s a M.) .2 5 FT E PW Te m p . .2 5 FT E Tr a n s i t Temp. 50 % GF 50 % Tr a n s i t Tr a n s . Pl n . / E n g . (T B D ) 1F T E : Re g . or Contract 85 % GF 15 % Pa r k i n g 50 % Tr a n s i t SOPC BTPImp. $0 3-43 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) PARKING SERVICES STAFFING – ADMINISTRATIVE HEARING OFFICER SUMMARY OF CHANGE: Add a temporary, part-time Administrative Hearing Officer position in Parking Services. FISCAL IMPACT: Funding for this request will come from Parking Services existing temporary staffing budget so the request is cost neutral. SERVICE LEVEL IMPACT: An Administrative Hearing Officer position is essential to the proper functioning of the City’s parking enforcement process. KEY OBJECTIVES 1. Continues the high level of service to the community in reviewing citation appeals 2. Retains well trained individuals as administrative appellate reviewers and minimizes costs associated with training and re-training individuals due to turnover of volunteers EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE The parking citation contestation hearing process is an integral and necessary part of parking enforcement. Beginning in 1996 California Vehicle Code (CVC) requires any agency that issues parking citations to offer free administrative hearings as part of the parking citation appeal process. In the past the Administrative Hearing Officer function was provided by volunteers. Because the time commitment has increased significantly over the past few years due to the addition of Sunday enforcement and new residential parking districts, the City has begun to pay a temporary part-time staff member to conduct the administrative hearings. Additionally, the State requires Hearing officers to complete 20 hours of training that can be costly and time consuming if turn over occurs. CVC section 40215 (a)(4)(A) states that the officer/examiner must be separate and independent from the citation collection or processing function. As such, this position needs to be separate from other temporary positions in Parking Services. Staff recommends a paid position at a flat hourly rate of $20-$25. Five California cities were contacted regarding their Administrative Hearing Officer positions. Of the five cities contacted, four provided compensation to either contracted-out or in-house staff. The compensation method (case-by-case, flat rate, etc.) varied from city to city. Case-by-case compensation can range from $30 to $35 per case. Currently, the staff person handling administrative hearings conducts hearings every other Friday for about five hours; for a total of 120 hours annually. At $25 per hour this position would cost roughly $3,000 annually. This position is budgeted at $3,500 annually to ensure all reasonably unforeseen additional costs are covered. GOAL AND POLICY CRITERIA City policy allows for hiring of temporary workers if available budget exists. This SOPC requests simply formalizes the existing compensation being paid to the City’s citation reviewer. 3-44 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) PARKING SERVICES STAFFING – ADMINISTRATIVE HEARING OFFICER STAKEHOLDERS Primary stakeholders involved in this recommendation are members of the public that are seeking administrative review of their parking citations. A well trained and knowledgeable review officer will be providing higher levels of service and consistency for these stakeholders as their reviews are processed. IMPLEMENTATION Because the position is currently filled the implementation of this SOPC will begin on the first day of the next fiscal year. PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Parking Manager ALTERNATIVES: 1. Continue the Status Quo. The current citation appeals officer is being compensated and this request will not change that. 2. Defer or Re-Phase the Request. The City could deny the request and instead contract out for this process or rely on volunteers. Contracting for this service will be more costly based upon comparisons with other agencies. Relying on a volunteer group may save salary but will require time and costs of other staff to hire, train and monitor the volunteer force. Substantial saving is not anticipated under this scenario and if high turnover should occur, will likely be more costly to the City. OPERATING PROGRAM Parking Services: 50600 COST SUMMARY Line Item Description Account No.2015-162016-17 Staffing 3,551 3,640 Temporary Salaries*50600-7014 3,500 3,588 Medicare 50600-7044 51 52 Total Operating Costs 3,551 3,640 Offsetting Costs Savings Temporary Salaries 50600-7014 (3,500)(3,588) Medicare 50600-7044 (51)(52) Net Operating Costs 0 0 *Existing temporary salary savings have been used to fund this position in the past. This proposal would identify and budget those funds specifically for the use of the temporary parking administrative officer position. 3-45 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) ASSISTANT PARKING SERVICES MANAGER SUMMARY OF CHANGE: Add a full-time permanent Assistant Parking Services Manager position that will focus on the day-to-day operations of Parking Services. FISCAL IMPACT: On-going costs of $112,600 in 2015-16 and $118,000 in 2016-17, offset by $59,600 in salary savings from a vacant .5 FTE planner position. SERVICE LEVEL IMPACT: The additional staff position will support the Parking Services Manager with the day-to-day operation and oversight of the parking system including: operation and maintenance of the City’s on- street and off-street parking supply, parking enforcement, and temporary staff levels. This position would allow the Parking Services Manager to focus on policy, outreach, future planning efforts and technology advancements. KEY OBJECTIVES 1. Will implement one of the major recommendations included in the 2014 Parking Services Organizational Assessment. 2. To provide additional administrative and supervision support for the Parking Services Division and general public. 3. Will allow the Parking Services Manager to delegate some daily line functions to the Assistant and regain time to devote to greater effort in strategic planning that addresses current and future parking issues. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE The Parking Services Organizational Assessment (2014 Walker Parking Consultants) identified the need to provide additional support for the Parking Manager to allow greater effort to be spent in strategic planning and administration. Currently the Parking Manager must split time between planning and operations which results in reduced time spent on long term planning and other missed opportunities for service changes. From the Organizational Study: “The Parking Manager in San Luis Obispo is without the support of an assistant to oversee the day-to- day responsibilities of the operation, a position that the equivalent of the parking manager position in similar municipal parking organizations have assisting them. Further, our observations suggest that planning-related demands in other cities appear to be less than what we see and currently and project for the future in San Luis Obispo. While the input from stakeholders indicates a high level of satisfaction with the Manager’s effort in planning, stakeholders also said that more input would ultimately be needed from the Parking Manager for the City’s future growth, and the resulting parking issues, to be properly accommodated.” Creating the position of Assistant Parking Manager will address this stakeholder concern and provide additional resources for the Parking Manager as identified in the study. GOAL AND POLICY CRITERIA As part of the 2013-15 Financial Plan, the City approved the allocation of funds for an organizational assessment of the Parking Services Division. One of the key objectives for the organizational assessment was to determine the adequacy of existing staff resources and opportunities for reorganization. In April 2014 the Parking Services contracted Walker Parking Consultants (Walker Parking) to perform the organizational assessment. 3-46 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) ASSISTANT PARKING SERVICES MANAGER Walker Parking conducted interviews with internal and external stakeholders, performed a detailed evaluation of the future parking demand in the downtown area, and reviewed similar parking organizations and their organizational structures. The result was a list of recommendations (near-term and longer-term) for change to the Parking Services Division that will allow the Division to continue to provide a high-level of service to residents and visitors of the City. One of the near-term recommendations put forth by the organizational assessment is to create an Assistant Parking Services Manager position. The purpose of the Assistant Parking Services Manager position is to manage the day-to-day parking operations thereby allowing the Parking Services Manager to devote greater effort to strategic planning, policy development, and community outreach. Walker Parking recommends funding the Assistant Parking Services Manager position using revenue generated by extending parking meter hours of operation and enforcement from 6 PM to 9 PM Monday through Saturday. Walker Parking estimates extended operation and enforcement will generate over $434,000 net income annually. The estimated revenue generation is well above the recommended compensation for the Assistant Parking Services Manager position. If the hours of operation and enforcement are not extended, the Parking Enterprise Fund can support the cost of the new position and still be fiscally solvent. The cost summary below outlines the staffing costs associated with the addition of a full-time permanent staff position to the Parking Services Division beginning in 2015-16. STAKEHOLDERS This recommendation will benefit many stakeholders including: members of the general public accessing parking services of the City, Resident for Quality Neighborhoods (RQN), the Downtown Association, Chamber of Commerce, Cal Poly, internal City departments relying on Parking for budget and planning assistance, and other neighborhood groups that interrelate with Parking Services. IMPLEMENTATION Task Date 1. Develop Assistant Parking Manager Job Classification August 2015 2. Advertise for Position September 2015 3. Hire new Assistant Parking Manager December 2015 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Parking Services Manager Project Team: The Human resources Department will assist in developing the job description for the new position and the hiring process. 3-47 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) ASSISTANT PARKING SERVICES MANAGER ALTERNATIVES: 1. Continue the Status Quo. Denial of the request will continue the current pattern of the Parking Services Manager being split between operations and planning with limited time for strategic planning. In addition, the status quo reduces the City’s ability to provide succession planning and backup of administration and management staff. 2. Implementation in a Different Way. Contracting out for this service is not recommended since the cost would likely be higher and would not provide the same benefits to the City – i.e. succession planning – that would result from the recommendation. OPERATING PROGRAM Parking Services (50600) COST SUMMARY Line Item Description Account No.2015-162016-17 Staffing 112,600 118,000 Regular Salaries 50600 - 7010 74,10077,100 PERS 50600 - 7040 21,00023,300 PARS 50600 - 7041 700 800 Health Insurance 50600 - 7042 15,70015,700 Medicare 50600 - 7043 1,100 1,100 Total Operating Costs 112,600118,000 Offsetting Cost Savings Savings from .5 FTE Planner position (59,600)(59,600) Net Operating Costs 53,000 58,400 San Luis Obispo Parking Services Organizational Structure – Future and Current Future Current Source: Walker Parking Consultants 3-48 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) TRANSIT MARKETING & ADVERTISING AUGMENTATION SUMMARY OF CHANGE: Increasing the Transit Marketing and Advertising Budget to build ridership and promote services. FISCAL IMPACT: Ongoing cost of $30,000 in 2015-16 and $30,000 in 2016-17. SERVICE LEVEL IMPACT: Historical transit funding, particularly during the “Great Recession”, has severely limited marketing and advertising for SLO Transit. As a result, marketing and advertising to build ridership and promote services has been very limited. The recent economic recovery has increased transit funding, particularly in State Transportation Development Act (TDA) funding. Increasing the marketing and advertising budget by $30,000 each year will help build choice riders and promote support and use of the transit system. KEY OBJECTIVES 1. Execute strategic marketing campaigns aimed at promoting the benefits of public transit. Staff will be able to better engage at-risk and under-engaged populations with more thorough messaging. This will become even more pertinent as SLO Transit starts to promote the service changes that will come as a result of the adopted Short Range Transit Plan. 2. Improve public engagement motivate choice-riders to use the improved (SRTP) services SLO Transit offers. Not having the ability to market the changes, brought about by the SRTP, could nullify their value if staff cannot promote their use. 3. Educate the public in an attractive manner with a cohesive messaging and regular frequency. 4. Motivate the public to use SLO Transit services by portraying public transit in a positive light, highlighting its many economic and environmental benefits. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE The SLO Transit marketing budget is currently $34,000, representing around 1% of the total Transit Operating budget. This budget is quickly consumed by a few promotions, which frankly have a limited range in public reach because of their infrequency. To supplement these campaigns, staff does leverages social media, public events and in-kind contributions. However, a more frequent, cohesive and encompassing message is needed to keep the public engaged, educated and motivated to benefit from SLO Transit services. A strong marketing budget is the best way to create excitement for fixed-route service to the general public. Changes to the transit system will come with many benefits for current riders as well as for the rest of our community. The increase in marketing budget will give staff plenty opportunity to educate and promote the benefits of these changes during the next 5-7 years it takes to implement the SRTP. GOAL AND POLICY CRITERIA Continue to garner support from transit oriented populations (seniors, disabled, economically disadvantaged, college-age population, etc.). The second goal is to increase transit ridership among key under-performing demographics (Commuters, K-12 students, Downtown Employees, etc). And thirdly, to keep the Transit riding and general public informed about service changes and improvements that come as a result of the Short Range Plan as they come fruition during the next 5-7 years and in a way to grow ridership and support for transit services. Other Goals include: 3-49 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) TRANSIT MARKETING & ADVERTISING AUGMENTATION 1. 2013-15 Major City Goal to address homelessness in our City 2. 2013-15 Major City Goal for Pedestrian & Bicycles 3. 2013-15 other Council objectives to address transportation (Advertising revenue etc) 4. Measure Y Objective: Traffic Congestion Relief 5. Circulation Element Objectives calls for bicycling, transit, and walking as a means to reduce traffic. 6. Vehicle operations, administration and facility and bus stop maintenance 7. 2011-13 Major City Goal for Traffic Congestion Relief 8. Temporary Employee Policy: It is the policy of the City of San Luis Obispo to hire temporary employees to meet the temporary needs of the City that result from emergencies, special projects of a short-term nature, seasonal work, un-programmed surges in workload, and to provide substitutes for regular employees. 9. Human Resources Management: Regular employees will be the core workforce and the preferred means of staffing ongoing, year-round program activities that should be performed by full-time City employees rather than independent contractors. Other key issues: 1. SLO Transit is the largest transit agency in the County without designated marketing staff. The County’s regional provider, RTA, has a full-time management level position fulfilling these duties 2. Two previous transit audits recommended inclusion of a marketing position to promote the benefits of transit to various populations within the city. 3. Mobility statistics nationwide indicate that younger people are awaiting longer to get a driver’s license and car ownership percentages are declining among the younger age group. There is an opportunity to capture that demographic for increased transit ridership STAKEHOLDERS The Mass Transit Committee has been a long-time advocate for enhancing the marketing efforts of SLO Transit. The Short Range Transit Plan provides a thorough analysis of SLO Transit rider demographics. It also provides insights into travel patterns, trip times & length and their purposes. These insights provide key indicators for what targeted messaging is likely to be the most affect to garner support. This increase to the SLO Transit marketing budget will primarily enhance staff’s ability to reach the general public and educate them about the benefits of fixed-route services. The increased marketing budget also means the division has more “buying power” for ad placements and could use this to negotiate better bulk rates; in essence furthering SLO transit marketing leverage. An analysis of marketing mediums/channels will indicate to staff which methods yield the best results to reach the intend markets. IMPLEMENTATION With approval of the proposed budget, staff can commence with crafting key messaging, themes, campaigns and mediums that will yield the biggest impact at increasing ridership. These marketing messages will be based on performance indicators about key demographics which have historically translated into ridership (e.g. Seniors, Disabled, Students, Economically Disadvantaged, etc.) 3-50 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) TRANSIT MARKETING & ADVERTISING AUGMENTATION Tasks Date 1. Identify key markets (i.e. identify demographics) August, 2015 2. Identify key messages September, 2015 3. Identify key mediums and channels for reaching these markets October, 2015 4. Develop a spending plan December, 2015 5. Execute marketing plan March, 2016 Specific tasks include: 1. Conducting targeted marketing to key currently under-performing populations relative to transit ridership, including potential commuters, school age children and their parents 2. Conducting targeted marketing to sustain or increase ridership among key populations, including Cal Poly students and seniors over 65 3. Increase ridership and fare media sales by implementation of marketing/outreach plan 4. Expand Promotional assistance with Downtown Access Pass Program (DAP) and Transit fare pass media 5. Develop a Speakers’ Bureau program to build awareness of the benefits that San Luis Obispo Transit has to offer. 6. Increase transit use by providing education and resources on the ‘First Mile-Last Mile’ strategy employed nationally; essentially, this educates potential riders on mobility choices to address the distance between their trip origin and their departure bus stop, and their trip destination and their departure bus stop. National studies show lack of clarity on ‘first-mile/last mile options are a barrier to increased ridership PROGRAM MANAGER AND TEAM SUPPORT Program Manager: The Transit Assistant and Transportation Assistant, at the direction of the Transit Manager, are primarily responsible for the public engagement, public outreach and marketing of Transit’s services. Project Team: It is within the division’s ability to expand its current marketing programs beyond their current state to reflect broader and more targeted messaging. ALTERNATIVES: 1. Continue the Status Quo. a. The current SLO Transit marketing budget is largely consumed by 1) reproducing informational print materials riders use to learn about the bus services, 2) creating rider focused Public Service Announcements (PSA’s) addressing passenger issues and 3) producing new “Rider Alert” materials regarding operational issues. All these categories do little to nothing to grow the ridership base from non-riders, but are necessary to maintaining the operation. b. A small remaining portion of marketing funds are then used for a limited number of outreach campaigns. However, the scarcity and infrequency of these outreach campaigns have limited success in cultivating and fostering NEW transit-riding habits. c. Not increasing the budget would mean that these few outreach dollars transit does have would be consumed by legal ad placements as part of implementing the SRTP process. While these are necessary, to inform the public of service changes, they also do little to nothing to promote the use of transit to current non-riders. 3-51 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) TRANSIT MARKETING & ADVERTISING AUGMENTATION 2. Defer or Re-Phase the Request. a. Similarly, while staff will be able to inform the public of public-participation meetings and the service changes impending with its limited outreach marketing dollars, the ability to highlight these benefits in an attractive and outreach way would be deferred to another fiscal year. b. In that deferral, the time sensitive opportunity to build community support, in the form that translates into ridership, could be lost and become much more difficult to recover in consequent years. 3. Change the Scope of Request. a. The increase of $26,000 to the marketing budget, for a total of $60,000, is the bare minimum by which staff believes it can be affective in both engaging, educating and motivating the public about the benefit of SLO Transit services. b. Any amounts above this, would only help in broadening the messaging. Industry wide, 4% of the operating budget tends to sufficient. OPERATING PROGRAM Transit (50700) COST SUMMARY Line Item Description Account No.2015-162016-17 Other Operating Expenditures 30,000 30,000 Advertising and Marketing 50700.7203 30,000 30,000 Total Operating Costs 30,000 30,000 Net Operating Costs 30,000 30,000 3-52 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) SHORT RANGE TRANSIT PLAN SERVICE CHANGE SUMMARY OF CHANGE: Increasing Service Levels as a result of recommendations of the Short Range Transit Plan. FISCAL IMPACT: Ongoing cost of $250,000 in 2015-16 and $250,000 in 2016-17, offset by $25,000 in new farebox revenue as a result of ridership increase. SERVICE LEVEL IMPACT: The City of San Luis Obispo and SLO RTA are conducting a joint update to each entity’s Short Range Transit Plan. This document will make recommendations for service changes, identify opportunities for growth and improved coordination between the two agencies. This request is a placeholder for those anticipated service change recommendations that will result as part of the City’s SRTP update. KEY OBJECTIVES 1. Increase service levels as identified by the Short Range Transit Plan (SRTP). 2. Fill service gaps and take advantage of opportunities for growth for the SLO Transit system. 3. Add earlier and later operating hours, more frequent headways, increased service levels during summer months (both later hours and more headways), new east-to-west (and vice versa) routes, new service near the high school and perhaps even service near the airport. 4. Report implementation of these service changes regional, State and Federal transit regulatory organizations. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE Ability to demonstrate SLO Transit has support from local stake holders is essential for when staff approaches the COG for the State and Federal funds that would make up the $500,000 in transit operating budget. GOAL AND POLICY CRITERIA The SRTP and Circulation Element are the guiding documents for transit services for the City. This request anticipates significant recommendations for service changes as a result of the SRTP Update currently underway (in essence acting as a place holder for recommendations that are anticipated to come forward in FY 2015-16) Adopted goals or policies include: 1. 2015-17 Major City Goal for Multi-Modal Transportation 2. Newly adopted LUCE forecasts significant increases in the transit mode choice for the City of San Luis Obispo 3. 2013-15 Major City Goal to address homelessness in our City 4. 2013-15 Major City Goal for Pedestrian & Bicycles 5. 2013-15 other Council objectives to address transportation (Advertising revenue etc) 6. Measure Y (G) Objective: Traffic Congestion Relief 7. Circulation Element Objectives calls for bicycling, transit, and walking as a means to reduce traffic. 8. Vehicle operations, administration and facility and bus stop maintenance 9. 2011-13 Major City Goal for Traffic Congestion Relief 3-53 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) SHORT RANGE TRANSIT PLAN SERVICE CHANGE STAKEHOLDERS The SRTP process has a considerable amount of stake-holder and public participation before becoming adopted. Based on these comments, the SRTP consultant and staff will have designed system improvements that address service gaps & deficiencies, as well as further promote fixed-route services. IMPLEMENTATION Task Date 1. Adopt SRTP Early 2016 2. Implement SRTP Mid 2016 3. Post implementation Monitoring Late 2016 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: The Transit Manager will be responsible for the development and implementation of the Short Range Transit Plan. Project Team: Transit, Transportation Planning & Engineering, San Luis Obispo Council of Governments, Regional Transportation Agency, Mass Transportation Committee. ALTERNATIVES: 1. Continue the Status Quo. Current operational budget reflects costs associated with operating the services as they are today. Any increases to the service (e.g. operational hours, increased headways and miles) must be met with additional funds. 2. Defer or Re-Phase the Request. Deferring the additional funds will severely delay Transit’s ability to implement service changes 3. Change the Scope of Request. With no changes to the Transit Operating Budget, only status quo service can be maintained. By increasing the budget, this ensures Transit staff can carry through with the recommendations brought forth by the SRTP. OPERATING PROGRAM Transit -50700 3-54 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) SHORT RANGE TRANSIT PLAN SERVICE CHANGE COST SUMMARY Based upon the project revenue and expenditure over the next two years, Transit fund can absorb in expenditure costs. Line Item Description Account No.2015-162016-17 Other Operating Expenditures 250,000 250,000 Purchased Transportation 50700.7338 250,000 250,000 Total Operating Costs 250,000 250,000 Offsetting Costs Savings or Revenues Increased farebox as a result of ridership increase (25,000)(25,000) Net Operating Costs 225,000 225,000 3-55 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) TRANSPORTATION PROGRAM ASSISTANT (Transit) SUMMARY OF CHANGE: Converting a .25 full-time equivalent (FTE) temporary City Worker VIII Bicycle Programs Coordinator/Transit Assistant position to a regular 1.0 FTE Transportation Assistant position for the Transit Enterprise Fund will cost $57,800 in 2015-16 and $62,300 in 2016-17. The existing temporary staffing funding will be converted with an additional budget augment of $57,800 needed to fully fund this position conversion. FISCAL IMPACT: Ongoing cost of $57,800 in 2015-16 and $62,300 in 2016-17. Current temporary transit staffing dollars totaling $20,200 will be converted to help support this staffing request. SERVICE LEVEL IMPACT: Maintaining this ongoing position is critical to providing core transportation services such as operations, safety, and fulfilling local, State, and Federal regulatory requirements. KEY OBJECTIVES SLO Transit touches the lives of San Luis Obispo citizens over 1.1 million times over the course of a fiscal year, arguable more than any other division. Yet, transit staff consists of two FTE and one .25 Temporary position. Bringing the .25 temporary position to a full-time, regular position better enables transit staff to take advantage of Federal, State and Regional resources, maintain the City’s transit system and further develop these services to levels consistent with the City’s Goals & Objectives. Currently, Transit’s two FTE are dedicated to the Financial and Operational mission-critical aspects of maintaining the SLO Transit system. To a lesser degree, staff along with the .25 temporary position, are actively pursuing and applying for grants, conducting operational analyses, engaging the public and further developing the system. An additional .75 time for transit purposes, will create better immediate and long tern opportunities for serving the public. One example is the time staff has dedicated to processing public applications for Disabled Identification Cards, VIP (80+ years old) and Downtown Access passes. Because of time constraints, the public is limited to having these processed only one day a week and for only a two hour window. With an increased staffing level, transit will be able to offer the public more front counter hours to process their individual requests at times convenient for the rider. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE Transit has commenced its mandated Short Range Transit Plan. This is a comprehensive analysis of the current state of the transit system with purposes of identifying strengths and opportunities. As a result, service changes will be recommended and will be implemented over the course of the next 5-7 years. Each of these service changes will require a considerable amount of public engagement, operational analyses, asset management as well as post-implementation monitoring. These tasks require work above and beyond maintaining current level of services. The addition of .75 time, for transit purposes, will help absorb to a considerable degree the impact of the increased work load, help ensure thorough analyses are performed and help expedite the prescribed system improvement. GOAL AND POLICY CRITERIA There are two key objectives with this request. The first is to increase transit ridership among key under-performing demographics (commuters, younger students, etc.), and second, to increase the safety of current transit riders. Given the high ethic of active mobility, the presence of CalPoly and a high number of people who are transit dependent, the City has a vibrant transit system. Ridership could be increased by targeted outreach to specific groups. Relative to 3-56 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) TRANSPORTATION PROGRAM ASSISTANT (Transit) safety, approximately 90% of the passenger/driver issues with safety relate to individuals associated with homelessness. This could be reduced with targeted outreach to shelters and service providers. Specific tasks include: 1. Enhancing safety on transit routes by providing outreach and education to Homeless shelters 2. Conducting targeted marketing to key currently under-performing populations relative to transit ridership, including potential commuters, school age children and their parents 3. Conducting targeted marketing to sustain or increase ridership among key populations, including Cal Poly students and seniors over 65 4. Increase ridership and fare media sales by implementation of marketing/outreach plan 5. Expand Promotional assistance with Downtown Access Pass Program (DAP) and Transit fare pass media 6. Develop a Speakers’ Bureau program to build awareness of the benefits that San Luis Obispo Transit has to offer. 7. Increase transit use by providing education and resources on the ‘First Mile-Last Mile’ strategy employed nationally; essentially, this educates potential riders on mobility choices to address the distance between their trip origin and their departure bus stop, and their trip destination and their departure bus stop. National studies show lack of clarity on ‘first-mile/last mile options are a barrier to increased ridership As part of the 2007-09 financial plan, a temporary staffing position was approved for two years partially funded by the division’s contract services budget. A part-time temporary City Worker VIII staffing position was established in FY 2009-10 for a Bicycle Programs Assistant in the Transportation Planning and Engineering Program to assist with implementation of the Major City Goal and Measure Y Priority for Traffic Congestion Relief. This position also serves as the Transportation Program Assistant with Transit (50700) sharing the .25 FTE costs associated with transit related duties. Other key issues: 1. SLO Transit is the largest transit agency in the County without designated marketing staff. The County’s regional provider, RTA, has a full-time management level position fulfilling these duties 2. Two previous transit audits recommended inclusion of a marketing position to promote the benefits of transit to various populations within the city. 3. Mobility statistics nationwide indicate that younger people are waiting longer to get a driver’s license and car ownership percentages are declining among the younger age group. There is an opportunity to capture that demographic for increased transit ridership A full time position dedicated to public engagement/marketing has the potential to increase transit mode share, meet city goals on congestion relief, economic development and climate change. In addition more pedestrians using transit to access the downtown results in fewer cars and makes for a friendlier business district. Due to existing citizen values, the presence of a homeless population and the proximity of Cal Poly we already have a high performing transit system that has carried over one million riders in each of the last five years and our performance is above average when compared to similar sized transit systems nationwide. Convenience, reliability, time competitiveness, accessibility, cost, comfort, safety are just a few of the intangible factors beyond simply providing the vehicles and operating the service that will ultimately determine how effective our SLO transit system will be. This expanded position dedicated to public engagement programs and marketing which would allow us to take our system to the next level of service to our community. Adopted goals or policies include: 1. 2011-13 Major City Goal for Traffic Congestion Relief 2. 2013-14 Major City Goal to address homelessness in our City 3. 2013-14 Major City Goal for Pedestrian & Bicycles 4. 2013-14 other Council objectives to address transportation (Advertising revenue etc.) 5. Anticipated to be part of the 2015-16 Major City Goal adressing mode splits 6. Measure Y Objective: Traffic Congestion Relief 7. Circulation Element Objectives calls for bicycling, transit, and walking as a means to reduce traffic. 8. Vehicle operations, administration and facility and bus stop maintenance 3-57 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) TRANSPORTATION PROGRAM ASSISTANT (Transit) 9. Temporary Employee Policy: It is the policy of the City of San Luis Obispo to hire temporary employees to meet the temporary needs of the City that result from emergencies, special projects of a short-term nature, seasonal work, un-programmed surges in workload, and to provide substitutes for regular employees. 10. Human Resources Management: Regular employees will be the core workforce and the preferred means of staffing ongoing, year-round program activities that should be performed by full-time City employees rather than independent contractors. STAKEHOLDERS The increase to a full-time, regular position translates to additional support for Transit services, enabling the division to offer more services to the general public, improve communicational outreach and expedite the process by which service enhancements can be implemented. IMPLEMENTATION Task Date 1. Advertise position July 2015 2. Hire Transportation Assistant September 2015 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Transit Manager Project Team: This request will primarily involve the Transit Division and with some support from the Human Resources Department. ALTERNATIVES: 1. Continue the Status Quo. SLO Transit outperforms many of its transit peers. However, this robust support for SLO Transit services also comes accompanied with increased demands and administrative needs. The two FTE’s and .25 Temporary positions sufficiently maintain current service levels. Any further expansion of services (e.g. those identified in the SRTP, along with Major City’s Goals and LUCE) will require additional staffing levels. 2. Defer or Re-Phase the Request. Deferring the increased staffing position until sometime after this fiscal year means that the already commenced SRTP could take longer to implement. 3. Change the Scope of Request. Having a Transit team, comparable to system peers, will go a long way in helping to meet local transit service demands and in a quality and expedited fashion. The increased work load from the SRTP process will hamper staff’s ability to advance transit related interests in the meantime. 4. Implementation in a Different Way. Moving the .25 temporary position to a full-time, regular FTE is the minimum that is needed so that the city does not violate its own policy, whereby: “temporary resources should not be used for regular ongoing work.” This position has existed in a “temporary” state for the last nine years and is continued to be needed indefinitely. 3-58 SIGNIFICANT OPERATING PROGRAM CHANGE (TRANSPORTATION) TRANSPORTATION PROGRAM ASSISTANT (Transit) OPERATING PROGRAM Transit (50700) COST SUMMARY Fiscal Impact Summary Costs By Type Fund Current FTE Current Proposed FTE Proposed Change in FTE Change Transit Services 530-50700.2520,200$ 1.00 78,000$ 0.75 57,800$ Line Item Description Account No.2015-16 2016-17 Staffing 78,000 78,000 Regular Salaries 50700-7010 49,900 52,600 Retirement Contribution 50700-7040 14,200 15,900 Health & Disability Insurance 50700-7042 13,200 13,200 Medicare 50700-7044 700 700 Total Operating Costs 78,000 82,400 Offsetting Costs Savings or Revenues Temporary Salaries 50700-7014 (19,900)(19,900) Medicare 50700-7040 (300)(200) Net Operating Costs 57,800 62,300 The ongoing financial impact associated with converting this half-time non-benefitted temporary position to a full time regular benefited position is $78,000 annually. The staffing costs will be fully funded by the Transit Enterprise Fund. The Transit Enterprise Fund has current temporary staffing dollars that will be converted to help support this staffing conversion. An additional $57,800 will be needed annually to augment this staffing cost. 3-59 SIGNIFICANT OPERATING PROGRAM CHANGE – LEISURE, CULTURAL & SOCIAL SERVICES RANGER SERVICE STAFFING Summary of Change: In support of the 2015-17 Major City Goal of Open Space Preservation, The Parks and Recreation Department is seeking an increase in the staffing levels for the Ranger Service Program with request for a full-time Ranger Maintenance Worker to continue to develop a sustainable open space maintenance program. Fiscal Impact: Ongoing cost of $73,686 in 2015-16 and $77,298 in 2016-17. Service Level Impact: The added staffing resource will assist the City’s Ranger Service in meeting program demands and the growing needs of maintenance and enhancement for the City’s open space on a daily basis. KEY OBJECTIVES 1. Provide added full-time permanent staffing to the Ranger Service Program dedicated solely to open space. 2. Enhance open space user experience, infrastructure amenities, and catch up on long deferred projects. 3. Increase infrastructure maintenance specific to open space, predominately trails. 4. Increase patrol of City open space which reduces maintenance needs in the long term. 5. Address the impacts of illicit activities in the City’s open space and creeks that impact the City’s natural resources and its compliance with storm water mandates. 6. Assist the Natural Resources program with the management of mitigation areas and resource protection projects. 7. Assist the Fire Department on reduction of fuels in the urban wild-land interface. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE Brief History of the Ranger Service Program The Ranger Service program came into existence in 1995. The program, as was typical of the time, was initially focused on park patrols to address inappropriate activities in City parks, as well as to educate park users about the natural environment. With the establishment of the City’s Natural Resources program and significant acquisitions of open space lands the Ranger Services program expanded its focus to include protecting and maintaining natural resources. Primary Activities and Staffing Levels of the Ranger Service Program The Ranger Service program is in Parks and Recreation. The program is staffed seven days a week during daylight hours and occasional nighttime. Its existing staff resources consist of: one full time Recreation Supervisor/Lead Ranger; one full time Ranger Maintenance Worker II; two part time limited benefit temporary rangers; and hours for a part time temporary City Worker 5. Ranger Service staff enforce the proper use of City parks and open space. Daily, Ranger Service staff patrol 35 City parks, visit 25 trailheads, inspect 7-8 miles of creek corridor, and maintain 4,000 acres of open space. Furthermore they protect the City’s natural resources by completing maintenance, construction, rehabilitation and patrol of parks and open space. Ranger staff also conduct year round environmental education programs including hikes in the open space. Presently, the City has 52.5 miles of trails and 4,000 acres of open space that Ranger Service staff and volunteers maintain, manage, and patrol in addition to its creek corridors. Thanks to a longstanding partnership with Central Coast Concerned Mountain Bikers and Cal Poly interns, volunteers provide over 4,000 hours of trail maintenance 3-60 SIGNIFICANT OPERATING PROGRAM CHANGE – LEISURE, CULTURAL & SOCIAL SERVICES RANGER SERVICE STAFFING and construction a year to the program including 70 trail work days a year. In recent years, the City has become increasingly involved in the maintenance and monitoring of riparian creek corridors in response to the endangered steelhead trout residing in the system and increased storm water regulations. This has also come at a time where illegal camping and illicit activities in the creeks and open space have increased requiring significant and routine clean-up by Ranger Service staff of trash, discarded furniture, drug paraphernalia and human and animal waste. All members of the Ranger Service program team wear many hats each day. Patrolling and maintaining (Rangers carry tools and fix trail issues along the way when not working in a focused area) the City’s parks and open space is a daily responsibility, but it is a task often completed by one Ranger. In practice this means only a finite number of areas are patrolled each day. If an issue arises a Ranger will respond, however when deep into open space lands it can take 45 minutes or more before a Ranger is able to arrive at the scene of the incident. The Rangers respond to complaints and change patrol patterns to address ongoing issues many of which create maintenance issues (i.e. short cut trails, illegal encampments, dogs off leash engaging with native species) but can only cover limited issues at a time. As the open space areas of the City have expanded the Rangers have more issues to address and more areas to maintain and patrol on foot, in vehicles, or on bikes. While the program is admirably supported by volunteers for maintenance there are daily projects which require staff’s attention and work to prevent health and safety issues to the public as well as the natural resources. Today staff triages its priorities and there is much deferred maintenance to be addressed. Staffing Need and Response to 2015-17 Major City Goal Open Space Preservation In conducting research on best practices regarding maintenance of open space it was found that there is not an industry standard for the number of Rangers focused on open space maintenance. Using City’s with somewhat similar programs results in the following comparative data. City Open Space Staffing Aurora, Colorado 7,000 acres 21 full-time 9 Ranger Patrol 12 Ranger Maintenance and Operations Boulder, Colorado 6,555 acres 11 rangers 9 maintenance workers 3 education and outreach Bend, Oregon 2,500 acres 17 rangers and maintenance workers 26 seasonal staff San Luis Obispo 4,000 acres 2 Rangers (1 Supervisor, 1 Full Time) 2 LBT Rangers 1 CW 5 Given the City’s present staffing, for San Luis Obispo, it is a reasonable objective to ultimately achieve the ratio of one full time Ranger per 1000 acres of open space maintained by Ranger Service. This is modest in comparison with other communities’ staffing levels but acknowledges the program’s LBT positions and unprecedented use in the industry of volunteers at 4,000 plus hours of assistance a year. The addition of a Ranger Maintenance Worker would result in coming close to this ratio taking into account current staffing levels (full time and part time) and volunteers. Furthermore if this position is approved, it is the intent of the Ranger Supervisor to re-deploy the staffing resources such that the LBTs are focused on Park Patrols (as supported by PD) and the full time Ranger Maintenance Workers are focused on open space matters and not City parks on a routine basis. 3-61 SIGNIFICANT OPERATING PROGRAM CHANGE – LEISURE, CULTURAL & SOCIAL SERVICES RANGER SERVICE STAFFING Planning For Future Maintenance and Catching Up on Existing Enhancement Needs In order to achieve the Major City Goal to Protect and Maintain City Open Space staff has identified the need to develop a Maintenance Plan for the City’s Open Space. This Plan will identify standards of care for the City Open Space, develop a plan for existing open space infrastructure enhancements needed (i.e. trash cans, signs, mutt mitt stations, etc at trail heads), compile in one place a list of all deferred maintenance projects, and identify future projects consistent with Open Space and Conservation Plans for each Natural Area. In order to implement this Plan added staff is needed to “catch up” on already identified projects and to continue to maintain the open space when that “catch up” is complete. At present staff has a list of over 100 projects that are needed to be completed in the City’s open space and this is before the Master Plan for Maintenance is completed. Of course none of this takes into account “nature happening” in the City open space which would change priorities - i.e. a very wet winter, vandalism of a sign, or other daily occurrence which result in maintenance needs. Proposed Addition of Staff Resources Final analysis and required documentation will be completed by the Human Resources Department to verify compensation is commensurate with the duties and responsibilities of the position and it is classified equitably compared to other positions within the organization. The assumptions at this time include the addition of one full- time regular Ranger Maintenance Worker managed by the Ranger Service Supervisor. Ranger Service staff anticipate that this position would assist the Ranger Service Supervisor with maintenance (trail construction, mitigation projects, mowing and clean-ups associated maintenance) and patrol projects in the City’s open space only. Year 1 staffing projected at Step 1 and Year 2 at Step 2 Job Classification Hrs/Wk Salary PERS Ins Medicare Total Ranger Maint. Worker (Year 1 Step 1 ) 40 40,612 11,493 15,792 589 68,486 Ranger Maint. Worker (Year 2 Step 2) 40 42,770 12,916 15,792 620 72,098 Overtime (Y1) ** 5,000 Overtime (Y2) ** 5,000 ** The division has no overtime budget for any employees and this item is recommended given the seasonal nature of maintenance which can require immediate needs and overtime Associated Operating Expenditures It is expected that any addition to the Ranger Service staffing will also result in added costs associated with education and training (PC 832), uniforms and Department of Justice clearances; resulting in a non-staffing expenditure increase of $1,000. GOAL AND POLICY LINKS 1. 2015-17 Major City Goal Open Space Preservation: protect and maintain open space. 2. Measure G ballot language for open space preservation. 3. Provide adequate staffing and other resources to maintain and enhance open space quality and amenities for the community. 3-62 SIGNIFICANT OPERATING PROGRAM CHANGE – LEISURE, CULTURAL & SOCIAL SERVICES RANGER SERVICE STAFFING STAKEHOLDERS A wide range of stakeholders are affected by this program, including community members, residents, trail users (hikers, runners, bikers) and visitors. Internal stakeholders include the Park Rangers, the Natural Resources program, Fire and Police. IMPLEMENTATION Task Date 1. Work with Human Resources on recruitment. July 2015 2. Recruit and Interview Eligible Candidates August 2015 3. Orientation and Safety Training August 2015 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: The Ranger Service Supervisor is responsible for ensuring mission critical services necessary to ensure successful completion of the Open Space Major City Goal and staffing levels associated. Project Team: Parks and Recreation – Ranger Service, Administration – Natural Resources, Fire Department. ALTERNATIVES 1. Contract Employee for a Two Year Term. An alternative could be to add a contract employee at $45,000 a year for a two year term. This is not recommended as it is an ongoing and existing need and contrary to City employment policies. 2. Continue the Status Quo. By continuing with the current Ranger Service staffing structure, the program will continue to fall behind on open space maintenance. 3. Implementation in a Different Way. When, in seldom times, contract resources are available for these specialized Ranger Service projects, the services are not cost effective. OPERATING PROGRAM Ranger Service – 60290 3-63 SIGNIFICANT OPERATING PROGRAM CHANGE – LEISURE, CULTURAL & SOCIAL SERVICES RANGER SERVICE STAFFING COST SUMMARY The Cost Summary below outlines staffing costs associated with added full-time permanent staff for the Ranger Service Program. Line Item Description Account No.2015-16 2016-17 Staffing 73,486 77,098 Regular Salaries 100-60290-7010 40,612 42,770 PERS 100-60290-7040 11,493 12,916 Health Insurance 100-602900-7042 15,792 15,792 Medicare 100-60290-7044 589 620 Overtime 100-60290-7020 5,000 5,000 Other Operating Expenditures 200 200 Contract Services 100-60290-7227 200 200 Total Operating Costs 73,686 77,298 3-64 SIGNIFICANT OPERATING PROGRAM CHANGE (LEISURE, CULTURAL & SOCIAL SERVICES) PARKS & RECREATION REORGANIZATION TO ENHANCE GOLF AND SENIOR PROGRAMS SUMMARY OF CHANGE: Reorganize the operations of the Laguna Lake Golf Course Program within the Parks and Recreation Department (due to a retirement and the identification of an enhanced operational structure). Existing program budget resources are sufficient to accomplish a reorganization focused on maintenance and programming and are proposed to be used to add one additional Recreation Coordinator in Parks and Recreation to address program needs for both Golfers and Seniors. FISCAL IMPACT: None. Existing program budget is sufficient. SERVICE LEVEL IMPACT: Increase the Golf Program’s full time regular staff at the Laguna Lake Golf Course by one net new full time position. It is proposed upon the retirement on May 4th of the Recreation Supervisor Golf that the program be reorganized into maintenance and programming. The maintenance functions with management support coming from the Recreation Supervisor for Aquatics and Facilities would consist of a Golf Crew Coordinator and two Maintenance Workers II/III as well as a part time city worker seasonal position. The programming functions would be supported by a new position of Recreation Coordinator Golf/Seniors with the 2015-16 budget adoption to coordinate programmatic activites at the Golf Course and Senior Center as well as coordinate part time Proshop workers and volunteers. This position would be supported by the Recreation Supervisor Sports. The addition of a Recreation Coordinator Golf/Seniors to the Parks and Recreation Department would allow for all programs in the Department to work together in a coordinated effort to improve services at the Laguna Lake Golf Course and the Senior Center. This operational enhancement responds to Measure G by enhancing Senior Programming. By having one position focused on senior activities (which take place at two separate facilities) the hope is to better coordinate activities for Seniors throughout the City. The position would also assist in the transition in anticipated staff retirements at the Course in 2015, including the hiring, scheduling, and training of all Proshop staff and Course volunteers. The position would be in charge of operating the Golf Course Proshop, implementing software upgrades at the Course to enhance user efficiencies, managing financial and general office administrative tasks, and marketing the Course. This position in coordination with the Recreation Coordinator, Sports would manage the programming at the Golf Course and where possible add new recreational opportunities to the course. This position would be a complement to the Golf Course Maintenance Crew Coordinator whose position is intended to coordinate all maintenance activities at the Golf Course including supervising two maintenance workers and one seasonal worker and is supervised by the Recreation Supervisor Aquatics/Facilities. KEY OBJECTIVES 1. Increase Golf Staffing within Existing Resources. Provide added staffing to the Golf Course with a specific focus on programming, customer service, and fiscal management to all golfers. 2. Enhance Senior Programming. Enhance two programs at the Golf Course and Senior Center to improve services to the community. Provide operational innovations at the Golf Course and Senior Center in support of senior programming, responding to Measure G. 3. Add New Activities and Enhance User Experience. Enhance Programming at the Course by easier to use reservation software, new events such as Concerts on the Green, exploring the addition of Foot Golf and or Pickleball along with broadened programs at the Course including cards at the Clubhouse. 4. Work in Partnership with Maintenance. Provide a compliment and enhance maintenance staff structure at the Golf Course consisting of a Golf Maintenance Crew Coordinator, two Parks Maintenance Workers and one seasonal part time worker arising from a reorganization. 3-65 SIGNIFICANT OPERATING PROGRAM CHANGE (LEISURE, CULTURAL & SOCIAL SERVICES) PARKS & RECREATION REORGANIZATION TO ENHANCE GOLF AND SENIOR PROGRAMS 5. Allow for Maintenance Staff to Focus on Maintenance Enhancements. Provide the Maintenance Staff time to increase conservation efforts at the Course including modernizing irrigation and site specific weather systems, evaluating and where appropriate installing new grasses and other opportunities focused on turf reduction. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE Retirement of Long Time Supervisor The long time supervisor of the Golf Course will retire on May 4, 2015, and it is anticipated that many of the pro shop workers who have worked under him (many of whom have retired from multiple careers already) will also choose to retire this year. The long time retiree has 30 years of experience at the course and invaluable institutational knowledge. For years he has worked as an active supervisor and has physically performed maintenance duties himself daily. His time has been split with greater emphasis on maintenance than programming. He has worked on average many more hours than a 40 hour work week. As this structure is not sustainable, this has resulted in a proposed reorganization of the Golf Course Program staff to better address the operational and programmatic needs of the facility in the long term and to set it up for continued success. All Hands Approach In analyzing the best way to staff the Course into the future, and to best address the Council and public’s recent feedback on operations, Parks and Recreation proposes taking an all hands on deck approach to managing and enhancing Laguna Lake Golf Course in the future and better integrating the Course into the Department and with the Senior population that does not golf. To accomplish this staff is proposing a reorganization of the Golf Program into two divisions of the Department with one maintenance focused and the other programming (similar to the overall structure that the department uses already). The proposed reorganization of the Golf Program suggests taking the duties of the Golf Course Supervisor position and splitting it into the two new divisons. Staff is recommending a change in job duties so that those engaged in maintenance can focus solely on that activity and the same for programming. Of course both divisions will be partners but would report to different supervisors in the Department to better integrate the Course into the Department’s offerings to the community and to better use Recreation Supervisors with expertise in maintenance and programming respectively. The proposed organizational structure would look like this: Recreation Supervisor Aquatics/Facilities Golf Crew Coordinator Golf Maintenance Worker II/III Golf Maintenance Worker II/III Part Time Seasonal Recreation Supervisor Sports NEW Recreation Coordinator Golf/Seniors Part Time Proshop Golf Volunteers Senior Volunteers 3-66 SIGNIFICANT OPERATING PROGRAM CHANGE (LEISURE, CULTURAL & SOCIAL SERVICES) PARKS & RECREATION REORGANIZATION TO ENHANCE GOLF AND SENIOR PROGRAMS Mechanics of Reorganization and Staffing Addition To facilitate the reorganization of the golf program into two divisions the Golf Course Supervisor position, upon the incumbent’s retirement, would be reclassified to Golf Course Crew Coordinator. There would be salary savings from that reclassification that is proposed to be reallocated by Council upon adoption of the 2015-17 Financial Plan and used to fund in part the Recreation Coordiantor Golf/Seniors. The Golf Crew Coordinator would be focused on maintenance activities and would be a lead role at the Course. It is similar to the Streets Crew Coordinator and Parks Maintenance Crew Coordinator positions which exist already at the City. SLOCEA has been met with on this topic and approves of this restructuring in the area of maintenance. Staff would meet and confer with SLOCEA on the topic of the Recreation Coordinator position following Council’s approval of it with budget adoption. The new position of Recreation Coordinator Golf Course/Seniors would plan, organize and coordinate recreation programs at the Golf Course and the Senior Center, including activities and special events. This position would also assist with activities associated with operating the Course Proshop which includes staffing it about 12 hours a day seven days a week with temporary staffing and volunteers (including hiring, training, scheduling, time card management of Proshop personnel), management of operational software and assisting with programmatic activities ranging from promotions of the Course to implementing new recreational efforts at the course and some general office administrative tasks and supervision and volunteer program management. Operational Model Is Intended to Provide a Foundation for Continued Success at the Golf Course As Council is familiar the users of Laguna Lake Golf Course are passionate about its level of maintenance and operations. Staff believes that this operational model as proposed will allow for the transition of a key staff member to retirement while allowing for new staff to have the foundation for continued success. Under this reorganization and enhancement the Golf Course staff in 2015-17 would be able to focus on new program initiatives, staff training, and increased sustainable practices in ongoing maintenance. With this reorganization, it is intended that all of the City’s Recreation Programs will take a more active part in the development of new initiatives at the Course. For instance, Sports could identify facility enhancements (a future CIP) to offer Pickleball at the Course as well develop new activities for active adults. Ranger Service staff could become involved in developing a walking trail and nature walks around areas of the golf course. Community Services would continue to actively enhance senior programming and with increased coordination of all Senior activities offered both at the Course and the Senior Center would serve more members of the growing senior community in San Luis Obispo. The Recreation Coordinator at the Golf Course would assist in Senior activities at both facilities. Staff believes that a diversified supervision structure will result in better integration within the department of this key facility as will staff being focused on either maintenance or programming but not both. This is the model used at both the SLO Swim Center and Damon Garcia Sports fields to great success. In response to Council consensus, staff will continue to develop best practices for the golf course and these enhancements and innovations will encourage use beyond golf, as well as preserve the natural setting of the course. The enhancements of the reorganization proposed is intended to increase programming to the Golf Course and the Senior Center and improve coordination across programs. This added operational enhancement responds to Measure G by enhancing Senior Programming. In addition, the Pro-Shop operations, customer service and fiscal management will be the center of activity for the programming side of operations for the course and will be best utilized as a separate function from the maintenance. 3-67 SIGNIFICANT OPERATING PROGRAM CHANGE (LEISURE, CULTURAL & SOCIAL SERVICES) PARKS & RECREATION REORGANIZATION TO ENHANCE GOLF AND SENIOR PROGRAMS GOAL AND POLICY CRITERIA 1. Measure G ballot language for enhancing senior programs. 2. Additional recreation opportunities continue to expand upon all users in the community from seniors to youth, requiring additional staffing for the site and patron safety. 3. Upgrade to the online reservation system will deliver daily functionality and future vision to the community and LLGC staff. 4. Expansion and promotion of new programming, (such as FootGolf, Pickle Ball, Events and Non-County Resident fee) that will generate new revenue sources. STAKEHOLDERS A wide range of stakeholders are affected by this program, including seniors, golfers, community members, residents and visitors. Internal stakeholders include Recreation Supervisors for Aquatics/Facilties, Adult and Youth Sports, Community Services and the Senior Center. IMPLEMENTATION Task Date 1. Meet and Confer with SLOCEA 2. Work with Human Resources on Recruitment July 2015 August 2015 3. Recruit and Interview Eligible Candidates Sept. 2015 4. Orientation and Training Fall 2015 5. New Programs for Golf and Seniors Ongoing PROGRAM MANAGER AND TEAM SUPPORT Program Manager: The Recreation Supervisors Aquatics/Facilities and Sports are responsible for ensuring critical services necessary to ensure success of Laguna Lake Golf Course. Project Team: Golf Course Staff, Parks and Recreation Analyst and all Divisions of Parks and Recreation. ALTERNATIVES: 1. Continue the Status Quo. By continuing with the current Golf Course staffing structure, the program will rely on the newly hired Golf Maintenance Crew Coordinator to maintain operations of the Golf Course maintenance and the Pro Shop. With impending retirements of valued staff and volunteers this will become a strain on the Course and staff and does not set the Golf Course up for success. OPERATING PROGRAM Laguna Lake Golf Course – 60900 3-68 SIGNIFICANT OPERATING PROGRAM CHANGE (LEISURE, CULTURAL & SOCIAL SERVICES) PARKS & RECREATION REORGANIZATION TO ENHANCE GOLF AND SENIOR PROGRAMS COST SUMMARY Line Item Description Account No.2015-162016-17 Staffing 85,82686,851 Golf/Seniors Recreation Coordinator 100-60900-7010 53,976 53,976 PERS 100-60900-7040 15,275 16,300 Medicare 100-60900-7044 783 783 Insurance 100-60900-7042 15,792 15,792 Total Operating Costs 85,82686,851 Revenue offset Cost Salary Savings Reorganization 100-60900-7010 (55,482)(55,482) Part Time Temporary Golf 100-60900-7014 (30,344)(31,369) Net Operating Costs 0 0 3-69 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) DEVELOPMENT SERVICES STAFFING, CONTRACT SERVICES AND CDD REORGANIZATION SUMMARY OF CHANGE: The Community Development Department, Fire Department and Public Works are requesting to transition six positions from temporary to regular positions, continue the use of six temporary employees, reorganize the CDD Administration Division, add a Fire Inspector I and use a short term Human Resources Temp to provide support during transition. In addition, consultant and contract services needed to assist the department in technical support and timely response to applications. This will cost approximately $1,582,917 in FY 2015-16 and $1,373,990 in FY 2016-17, all of which will be revenue off-set. TEMPORARY TO REGULAR EMPLOYEES 2015-16 2016-17 Community Development Community Development Administration Receptionist/Cashier $58,240 $58,859 Development Review Associate Planner $116,741 $118,214 Long Range Planning Projects Manager $129,923 $131,600 Engineering Development Review Civil Engineer $141,645 $143,493 Engineering Technician - Regular Full Time $87,801 $88,853 Public Works Transportation Transportation Planner/Engineer $104,558 $110,579 Total FY Cost: $638,908 $651,598 CONTINUED TEMPORARY POSITIONS Community Development Development Review Planning Tech - Temporary Full Time $77,079 $78,131 Assistant Planner - Temporary Full Time $94,599 $95,927 Engineering Development Review Engineering Technician - Temporary Full Time $75,649 $76,701 Long Range Planning Planning Tech - Temporary Full Time $77,079 $78,131 Building & Safety Permit Technician - Temporary Full Time $72,856 $73,846 Fire Temp Fire Staff $40,000 $40,000 Total FY Cost: $437,263 $442,735 3-70 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) DEVELOPMENT SERVICES STAFFING, CONTRACT SERVICES AND CDD REORGANIZATION ADMINISTRATIVE SUPPORT SERVICES REORGANIZATION 2015-16 2016-17 Community Development Community Development Administration Supervising Admin to CDD Business Manager $30,752 $31,211 City Clerk Deputy City Clerk $87,801 $88,853 Total FY Cost: $118,553 $120,064 NEW POSITIONS Fire Fire Inspector I $99,351 $94,593 Human Resources Human Resources Specialist - Part Time Temporary $3,842 $0 Total FY Cost: $103,193 $94,593 CONSULTANT AND CONTRACT SERVICES Community Development Building & Safety Contract Services – plan check $100,000 $0 Development Services Contract Services – application processing $50,000 $0 Subdivision Improvement Plan Review $10,000 $0 Surveyor/Map Review $10,000 $0 Airport Land Use Consultant assistance $50,000 $50,000 Fire EnerGov Support/Report writing $ 15,000 $ 15,000 City Attorney Contract Services for consultant assistance $50,000 $0 Total FY Cost: $285,000 $65,000 Planning and Building Permit activity has increased more than 40% since Fiscal Year 2011-2012 while regular staffing has increased 12%. Eleven full time temporary positions and $1.1M in Consultant Services has been relied upon to provide resources to meet the service demands during high permit activity, however, the influx of permit activity has been consistent for over one year and economic forecast numbers reflect a five year trend of increased development services supporting the need and stability to bring regular staffing levels up to meet the long term service demands. Projected increases in building valuation are directly related to a corresponding increase in permit review and inspections and hiring regular staff will provide a stable and reliable workforce to address these positive challenges and also prepare for the natural employee turnover that occurs within organizations. 3-71 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) DEVELOPMENT SERVICES STAFFING, CONTRACT SERVICES AND CDD REORGANIZATION FISCAL IMPACT: One time cost of $735,905 in FY 15-16 and $507,735 in FY 16-17. On-going costs of $847,012 in FY 15-16 and $866,255 in FY 16-17. The one-time costs will be offset by FY 2014-15 over realized revenue that is projected to be approximately $996,000. All on-going cost will be offset by the continued increase in forecasted development services revenue as outlined below. Fiscal Year Dev Services Balance SOPC Cost Savings & Other Revenue Offset Remaining Balance Staffing Contract Services On-going One-time 15-16 $1,703,052 1 $847,012 $450,905 $285,000 $133,524 $253,659 16-17 $1,238,797 2 $866,255 $442,735 $65,000 $138,428 $3,235 SERVICE LEVEL IMPACT: The objective of this request is to ensure the City is able to timely process applications through the development review and plan check process given increased permit activity. While regular and temporary staff positions have been added, regular positions are needed for recruitment and retention over the longer term, so that there is a stable and reliable staff that can efficiently and effectively process permit applications. In addition, the City will continue to require technical support to participate in the Airport Land Use Plan update process and support review of projects within the area subject to airport influence. This participation is critical to the ongoing success of the LUCE and in bringing the two policy/regulatory guidance documents in closer alignment. Requested staffing is required to keep up with permit activity that has remained consistently high since 2012-13 and are expected to continue through 2016-17 and beyond. Should these resources not be available, permit volumes will overwhelm the development review process, impairing the City’s ability to keep pace with permit 1 75% of 14/15 projected revenue in excess of budget + 75% of 15/16 forecasted revenue in excess of five year fiscal forecast – cost of Council approved Building FTE. ($996,164+$706,888) 2 Dev Services Remaining Balance + 75% of 15/16 forecasted revenue in excess of five year fiscal forecast – cost of Council approved Building FTE. ($253,659+$985,138) 3-72 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) DEVELOPMENT SERVICES STAFFING, CONTRACT SERVICES AND CDD REORGANIZATION volumes and implement Major City Goals and other objectives. Long term temporary staff has been used to fill these positions since September of 2013. Now that a trend of elevated permit activity has been established, it’s more effective to use regular staffing to provide consistent levels of service from dependable regular city employees. Beyond the impact of providing support for increased development services, CDD’s administrative support services team has taken on several significant ongoing tasks that require a restructure of the division to ensure there is administrative capacity to support the department and align positions with tasks and responsibilities. These tasks include but are not limited to: Administrative support/management of Affordable Housing Fund and the Human Relations Commission Administration and implementation of EnerGov Software program – including management of E-portal Cashier functions handled solely by support staff to ensure the appropriate levels of control and checks and balance. Administrative support to Engineering Development Review The restructure would include replacing the Supervising Administrative Assistant position with a CDD Business Manager. The CDD Business Manager would be equivalent to a Senior Analyst with supervision duties and will absorb the fiscal responsibilities of the Supervising Administrative Assistant, supervise CDD support staff and identify, develop and implement process improvements. The addition of a Deputy City Clerk will free up the Administrative Assistant III that currently spends 90-100% of her time coordinating Advisory Body activities so she can absorb the clerical activities of the Supervising Administrative Assistant and will serve as a customer service lead. The Deputy City Clerk and the Recording Secretary will be relocated to the Clerk’s Office. Human Resources request the use of a temporary HR specialist to ensure the timely recruitment and processing of the requested staffing. CDD has funding for a part-time temporary Engineering Consultant ($40,430 in 15-16 and $41,022 in 16-17) and a contract Permit Technician ($41,841 in 15-16 and $42,424 in 16-17) that would no longer be necessary and will offset cost by $82,271 in 2015-16 and $83,446 in 2016-17. Public Works has funding to cover $26,732 of the Transportation Planner/Engineer in 2015-16 and $29,982 in 2016-17. 3-73 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) DEVELOPMENT SERVICES STAFFING, CONTRACT SERVICES AND CDD REORGANIZATION KEY OBJECTIVES 1. Match resources available to services being requested 2. Maintain established levels of service 3. Satisfaction of both external and internal customers EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE 1. High levels of permit activity – resources needed to meet processing times 2. Large and complex project submissions –require professional staff and consultants to process permits 3. Transition of Development Review Software to EnerGov 4. Engineering Development Review transitioning from Public Works to CDD GOAL AND POLICY CRITERIA 1. Major City Goals – This request supports long standing Major City Goals, including Affordable Housing, the Economic Development Strategic Plan (EDSP) and policy research, development and implementation. Timely processing of priority affordable housing projects is critical in meeting the City’s Housing objectives. A major strategy of the EDSP is streamlining the development review process to removing barriers to creating head-of-household jobs. This request supports current Major City Goals of Housing and Multi-Modal Transportation as well as other important objectives of Downtown and Neighborhood Wellness by ensuring that adequate staff is available to achieve permit processing and support. 2. Legal Concerns – The State of California Permit Streamlining Act requires timely processing of development applications. The initial 30-day “completeness” review of all applications demands adequate staff to meet that deadline. 3. Priority Level of Service – Timely processing of development applications is a priority to a significant contingent of the community and is fundamental to the City’s ongoing economic recovery and viability. 4. Revenue Generation and/or Cost Savings – The use of regular employees is more cost effective than the use of consultants. For example, from February 2014 to September 2014 $286,790 was paid out to consultants for plans examining and building inspections. It cost $214,482 to use full-time regular staffing for a Plans Examiner and a Building Inspector for one year. This request will enable the processing of more applications in house resulting in lower operating cost. 5. Reorganization within or across Departments – This request includes the increased support and new initiatives the Community Development Department is taking on: Affordable Housing Fund/Human Relations Commission, EnerGov systems management, Engineering Development review, Rental Housing Inspection Program, and more complex and financial responsibilities that have historically been with FIT. The funding of a Deputy City Clerk will centralize and pair the function of committee and commission support with a division within the City that is functionally organized around these technical responsibilities. Approval of this SOPC will support reorganization within and across departments to achieve these objectives. 6. Reallocation of Existing Resources – This request will allow several departments to reallocate resources to streamline a significant citywide task. Funding a Deputy City Clerk to work under the direction of the City Clerk and provide support to the advisory bodies will make a more efficient process and free up CDD 3-74 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) DEVELOPMENT SERVICES STAFFING, CONTRACT SERVICES AND CDD REORGANIZATION resources to provide administrative support for development services. This will also enable CDD staff to provide liaison and administrative support to the Human Relations Commission (i.e. grants-in-aid process) while agenda support for Commission meetings will be provided by the City Clerk’s staff. This will free up Human Resources staff to focus on core services. STAKEHOLDERS Development Services affect the entire community. Development projects have the potential to go through three departments, five divisions, three advisory bodies and City Council. Minor delays at any of these levels may cause major impacts. This program will provide the resources to limit delays and the effect on stakeholders. IMPLEMENTATION The continued temporary staffing and consultant services are currently at the proposed level, approved by Council 6/14/14 as part of the 2014/15 Supplemental budget review and just require approval for additional funding. Task Date 1. Hire Temporary Human Resource Specialist June 2015 2. Meet and confer with SLOCEA for new positions and Admin reorganization July 2015 3. Finalize Details of Admin Reorg July 2015 4. Recruitment for new hires 5. On board new hires July-Aug 2015 Aug 2015 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: The Director of Community Development, Derek Johnson, will be responsible for the management of this program. Project Team: The project team will consist of the Community Development Department’s Fiscal Officer, Deputy Directors, Chief Building Official, Supervising Civil Engineer, the Fire Chief, City Clerk, Human Resources and the Transportation Manager. ALTERNATIVES: 1. Continue the Status Quo. If these resources are not available, permit volumes will overwhelm the development review process, impairing the City’s ability to keep pace with permit volumes and implement Major City Goals and other objectives. 2. Implementation in a Different Way. The program request is for a fairly balanced use of regular staff, temporary staff and contract services. A trend has been determined that would suggest a need for full time regular staffing while still maintaining the flexibility of temporary staffing or the use of consultants to adjust to the fluctuating nature of permit activity. The request could be filled using all temporary staffing and/or consultants, however, when using temporary staffing and consultants for long terms, the operating cost, turnover costs and impact to regular employees exceeds that of the sustainability of regular staffing. 3-75 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) DEVELOPMENT SERVICES STAFFING, CONTRACT SERVICES AND CDD REORGANIZATION 3. Existing Program Evaluation. The last year and a half has been a live evaluation of the requested program. Temporary staffing and consultants have been used to meet the demand on resources. Consultant costs far exceed temporary and regular staffing cost. In some cases we have been unsuccessful in securing temporary staffing and predict that it will become more difficult as the economy recovers and even more difficult to retain the temporary staffing we currently have. All requests for staffing have been discussed with Human Resources (HR) and preliminary SOPC was reviewed by HR prior to submittal. OPERATING PROGRAM 1. Community Development Department – Development Review 2. Community Development Department – Engineering Development Review 3. Fire Department – Hazard Prevention 4. Public Works - Transportation 3-76 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) DEVELOPMENT SERVICES STAFFING, CONTRACT SERVICES AND CDD REORGANIZATION COST SUMMARY Line Item Description Account No.2015-162016-17 Staffing 1,571,6171,372,490 Administration - Support Services Reorg. 40100-Various 176,793 178,923 Planning - Development Review 40200-Various 288,419 292,272 Planning - Long Range 40400-Various 207,002 209,731 Engineering - Senior Civil Engineer & Techs 40500-Various 305,096 309,046 Building - Permit Tech 40700-Various 72,856 73,846 HR - Temporary staffing 30100-7014 3,842 0 Fire - Fire Inspector I 85300-Various 88,051 93,093 Fire -Temporary Staffing 85300-Various 40,000 40,000 Public Works 50500-various 104,558 110,579 Airport Land Use Consultant Work 40400-7227 50,000 50,000 Contract Services - Building Division 40700-7227 100,000 0 Contract Services - Development Review 40200-7227 50,000 0 Surveyor/Map Review 40500-7227 10,000 0 Subdivision Improvement Plan Review 40500-7227 10,000 0 Additional Support for City Attorney's office 15100-7227 50,000 0 EnerGov Support/Report writing - Fire 85300-7227 15,000 15,000 Other Operating Expenditures 11,300 1,500 Training 85300-7459 1,500 1,500 Office Supplies (work station /computer/etc)85300-7421 9,500 Uniforms and Identification 85300-7913 300 Minor Capital 0 0 Total Operating Costs 1,582,9171,373,990 Offsetting Costs Savings or Revenues Revenues - Dev Services (706,888)(985,138) Revenues - Transportation Env Review 100-45830 (24,521)(25,000) Revenues - 75% of 14/15 Dev Services Revenues in excess of Budget (996,164) Public Works - Temporary Salaries 50500-7014 (26,732)(29,982) Engineering - Temp Engineering Consultant 40500-7014 (31,200)(31,200) 40500-7040 (8,830)(9,422) 40500-7044 (400)(400) Engineering - Contract Permit Tech 40500-7012 (32,200)(32,200) 40500-7040 (9,141)(9,724) 40500-7044 (500)(500) Net Operating Costs (253,659)250,424 3-77 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) LUCE IMPLEMENTATION AND FEE UPDATE SUMMARY OF CHANGE: Implementing the update to Land Use and Circulation Elements (LUCE) to ensure internal consistency of the City’s implementing ordinances and fees will cost approximately $410,000 in FY 2015-16 and $325,000 in FY 2016-17 for consultant and contract services. FISCAL IMPACT: One time cost of $410,000 in FY 2015-16 and $325,000 in FY 2016-17. SERVICE LEVEL IMPACT: The objective of this request is to complete the LUCE update by implementing key strategies that were developed as part of the update process. This effort is necessary to maintain internal consistency of the General Plan and its implementing documents. This effort will involve form-based codes/updated guidelines for the downtown that will provide an updated graphic Downtown Concept Plan (as called for in the Land Use Element) along with other changes to the Zoning Code; and a nexus study and impact fee program update to address changed infrastructure needs and evaluate facilities and service needs not previously captured, in order to update the City’s impact fee program. KEY OBJECTIVES 1. Leverages initial fiscal analysis conducted as part of the LUCE update. 2. Provides internal consistency between the General Plan and implementing ordinances as required by Government Code. 3. Develops fee and impact information needed for Economic Development Strategic Plan implementation. 4. Implements recommendations of the Community Development Organizational Assessment where Zoning Code changes may impact process changes. 5. Conducts the required AB1600 evaluation of the fee program and fair share cost allocation resulting from changes to public infrastructure and service needs defined in the LUCE update. 6. Complies with State law requirement to complete routine updates to fee programs. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE Due to an $880,000 grant from the Strategic Growth Council (SGC) the City was able to initiate an update to the Land Use and Circulation Elements (LUCE) during the 2011-13 Financial Plan period. The Council added $367,500 to this budget in order to complete the environmental review of the project (which was not covered by the grant). The draft LUCE was submitted to the Strategic Growth Council by the grant deadline of September 26, 2014 and hearings and review of the Environmental Impact Report proceeded through the fall with final approval by the Council on December 9, 2014. Subsequent work efforts are now needed to implement the updated General Plan. Changes to the Zoning Code and other implementing documents are called for as part of the LUCE update. The updated General Plan will benefit from implementing ordinances and standards that are more graphical in nature and more easily understood by the public. This request includes a desire to see updated graphics and re-organization of the Zoning Code and other implementing codes. Also, infrastructure changes identified and endorsed by the City Council through the LUCE update and associated EIR require a more detailed evaluation to determine how the infrastructure will be funded and how the current impact fee programs will need to be adjusted. While the LUCE update process involved a financial analysis, it did not provide the level of detail required to develop infrastructure costs and distribution through appropriate mechanisms, such as impact fees. This evaluation (also referred to as an AB 1600 study) must be done to establish the nexus between the infrastructure desired and the development that will pay the impact fees. AB 1600 sets the legal and procedural parameters for the charging of development impact fees. 3-78 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) LUCE IMPLEMENTATION AND FEE UPDATE The City’s traffic impact fee program was originally established in 1995 and last updated in 2006. The purpose of the fee is to fund the transportation improvements required to accommodate new development in the City. Since the last update, new transportation improvements have been identified that are not currently included in the traffic impact fee program and a multi-modal approach has been endorsed. Additionally, the equity of some specific plan area fees has been questioned. These circumstances are best to be addressed as part of a multi-modal circulation impact fee update now that the General Plan has been updated. Augmenting contract services for transportation consultant assistance is essential for providing services to internal City customers such as the Police & Fire Departments. Other stakeholders, such as Cal Poly, Cal Trans, SLO County, San Luis Obispo Council of Governments are affected by this resource. Previously traffic impact updates have been completed by the Finance and IT Department. Given the department’s current resources, staff recommends consultant services be utilized to accomplish this task. GOAL AND POLICY CRITERIA This request meets all of the SOPC criteria as follows: 1. Supports Major City Goals: This request supports Major City Goals, including Housing and Multi-Modal Transportation as well as supports an other important objective of Downtown. It also continues implementation of goals from the 2013-15 Financial Plan of Infrastructure and Fiscal Health, Bike and Pedestrian Paths, and implementing the Economic Development Strategic Plan (EDSP) by updating the fee program to achieve community objectives of affordable housing and circulation infrastructure. 2. Needed to address health, safety or legal concern: Updating the Zoning Code will provide internal consistency between the recently-adopted General Plan and implementing ordinances as required by Government Code. Providing a nexus study and update to the fee program is required to reflect new and changed infrastructure identified in the LUCE update. This includes conducting the required AB1600 evaluation of the fee program and fair share cost allocation for affordable housing, public art, open space, parks, and changes to public infrastructure and service needs defined in the LUCE update. 3. Needed to provide a priority level of service: Updating the impact fees to fairly distribute responsibility and cost of needed infrastructure is a priority for the development community. In addition, updating the Zoning Code and implementing bike paths and affordable housing projects is a broader community priority. 4. Supports revenue generation and/or cost savings: Both efforts may indirectly result in either revenue generation or cost savings. Updating the impact fees will more accurately represent the cost of infrastructure needs in the community and will distribute the costs to pay for those needs. The resulting infrastructure will support new development which will generate revenue. Updating the Zoning Code will provide more clarity and reflect a range of uses that were not envisioned in 1994 – the last time the Land Use Element was significantly updated. 5. Represents reorganization within or across Departments: Implements recommendations of the Community Development Organizational Assessment where Zoning Code changes may impact process changes. 3-79 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) LUCE IMPLEMENTATION AND FEE UPDATE 6. Reallocation of Existing Resources: The staff resources previously assigned to the LUCE update will be available to coordinate this effort, but consultant services will still be required. Updating the Downtown Concept Plan will leverage the resources allocated for the Mission Plaza CIP project and visioning/outreach efforts can be coordinated for efficiency. In addition, the Public Art Master Plan effort will be completed by September 2015 and will inform the Downtown Concept Plan update effort. STAKEHOLDERS Implementation of the updated General Plan will engage many of the same community members who were interested and involved in the LUCE update itself: Residents for Quality Neighborhoods; Home Builders Association; Chamber of Commerce; Downtown Association; SLO Property and Business Owners’ Association; city residents, and owners of properties and businesses. IMPLEMENTATION Implementation is envisioned as follows: Task Date 1. Develop RFP for Downtown Concept Plan update Aug 2015 2. Interviews and consultant selection process Sept 2015 3. Visioning, interviews, charrette(s), review of Mission Plaza Assessment from CIP Oct-Dec 2015 4. Develop Draft Concept Plan Dec-Jan 2016 5. Advisory Body review (ARC, CHC, PC) and early Council feedback Feb-May 2016 6. Council review and approval July 2016 7. RFP for Infrastructure Fee Update Feb 2016 8. Consultant Selection for Infrastructure fee update April 2016 9. Work effort for Infrastructure update (costs, nexus, financing options, right- sizing) April – July 2016 10. Public outreach – infrastructure update Aug-Sept 2016 11. RFP for Zoning Code update August 2016 12. Consultant Selection for Zoning Code update September 2016 13. Commission and Council consideration of Infrastructure options Oct-Nov 2016 14. Consultant work on Zoning Code update Oct –Dec 2016 15. Council adoption of Public Facilities Fee program Dec 2016 16. Draft Zoning Code and CEQA evaluation Jan – Mar 2017 17. Referral of Draft Zoning Code and CEQA to ALUC April 2017 18. Planning Commission and Council review of draft Zoning Code update April – May 2017 19. Council approval of Zoning Code update June 2017 3-80 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) LUCE IMPLEMENTATION AND FEE UPDATE PROGRAM MANAGER AND TEAM SUPPORT Program Manager: The program manager for the Affordable Housing Nexus study and for LUCE implementation (Zoning code/Downtown Concept Plan) will be the Community Development Deputy Director. The Public Works Deputy Director and Transportation Operations Manager will take the lead on circulation element implementation and traffic impact fee update. Project Team: The project team will include a Transportation Planner, Community Development Senior and Associate Planners, the Finance and Information Technology Director, and support staff. Representatives from City Police, Fire, Utilities, Public Works, Finance and IT, and Parks and Recreation departments will be involved. ALTERNATIVES: 1. Continue the Status Quo. Once the Land Use and Circulation Elements are adopted, the City will need to ensure that implementing documents, information and processes are updated as well. Continuing the status quo implies that no changes will be required in response to the update. Regardless the traffic impact fee program will need to be updated to comply with State law and add facilities to support LUCE land uses and policies. If no other changes are needed, staff will recommend any identified funds be returned to the General Fund. This is an unlikely scenario. Infrastructure improvements and impact fees must be updated if the community will be able to achieve improvements identified in the updated General Plan. Other changes identified in the update will need to be implemented otherwise the policies and programs cease to provide direction for decision-makers and inconsistencies would exist between policies and implementation mechanisms. 2. Defer or Re-Phase the Request. The request could be phased to address the infrastructure financing or the implementing zoning code and standards to be changed in response to the update. This approach could result in the General Plan having no way to implement desired improvements or could result in a General Plan that has inconsistent standards if funding is not approved in the 2015-17 Financial Plan. Neither of these outcomes is desirable. The City’s traffic impact fee program needs to be updated whether or not there are changes to the General Plan. 3. Change the Scope of Request. The request could be re-scoped to include consultant assistance for the nexus study, traffic impact fee update and infrastructure fee development only. Existing staff would be required to complete the implementation of other changes resulting from the LUCE Update. Due to existing workload and resource commitments, this could mean that other work desired by the Council does not occur. Items that could lose momentum or be deferred include completion of the Housing Element update, implementation of Climate Action Plan strategies, and other initiatives assigned to the Community Development Department. 4. Implementation in a Different Way. City staff seeks grants to accomplish Council-directed work efforts and will continue to look for funding opportunities, funding partners, and any funding efficiencies possible to leverage City resources. Transportation Impact Fund fees (TIF) are not available for this update. There are limited TIF funds available for AB 1600 work or updates to this source which only covers City-wide infrastructure (Specific Plans are handled separately). A program amendment would be required to enable funds to be used for this purpose and would still only address city-wide fees. If grant funds are not available, 3-81 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) LUCE IMPLEMENTATION AND FEE UPDATE General Fund support will be required to accomplish this effort unless staff in the Finance and IT Department complete the consultant services components of this work effort. Given the current staffing resources in that department, this alternative is not recommended. 5. Existing Program Evaluation. The LUCE update will involve an evaluation of the City’s existing land use and circulation element policies and programs, their status and on-going fit with community values. This process will be completed with the adoption of the LUCE update (projected to occur by November 2014). OPERATING PROGRAM Long Range Planning Transportation Planning COST SUMMARY Completion of the updated Land Use and Circulation Elements (LUCE) to ensure internal consistency of the City’s implementing ordinances and fees will cost approximately $735,000 in Financial Plan 2015-17. Line Item Description Account No.2015-16 2016-17 Staffing 0 0 Contract Services 410,000 325,000 Engineering Firm to design and cost infrastructure 50500-7227 50,000 Traffic modeling and Nexus study 50500-7227 50,000 Financial Firm to develop PFFP 40400-7227 75,000 Financial Firm to update TIF program 50500-7227 50,000 Affordable Housing Nexus Study 40400-7227 35,000 Changes to EnerGov to accommodate updated fees 40400-7227 50,000 Downtown Concept Plan update 40400-7227 100,000 Update of Zoning Code 40400-7227 150,000 CEQA analysis and ALUC referral 40400-7227 75,000 Transportation Consultant 50500-7227 50,000 50,000 Total Operating Costs 410,000 325,000 TIF Funds (70,000) Affordable Housing Funds (35,000) Net Operating Costs 305,000 325,000 3-82 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) NEIGHBORHOOD MATCH GRANTS SUMMARY OF CHANGE: Implementing Neighborhood Match Grants as one of the tools to address Neighborhood Wellness will cost approximately $5,000 in FY 2015-16 and $10,000 in FY 2016-17 for grant funds. FISCAL IMPACT: On-going costs of $5,000 in FY 2015-16 and $10,000 in FY 2016-17. SERVICE LEVEL IMPACT: The objective of this request is to provide grant funds to neighborhood-sponsored projects. The intended outcome of this program is to support a pilot grant program that will provide city resources to “match” neighborhood resouces (which may include volunteer labor or professional services, donations, or other resources) to accomplish smaller neighborhood wellness, enhancement or beautification projects. This effort was identified as part of the FY 2013-15 Neighborhood Wellness Major City Goal. KEY OBJECTIVES 1. Implements neighborhood wellness Major City Goal from the FY 2013-15 Financial Plan. 2. Enhances a sense of place within neighborhoods supporting Land Use Element policy 2.11. 3. Implements Land Use Element policy 2.12 Neighborhood Wellness Action Plans to engage the neighborhood and provide support to accomplish neighborhood goals and address neighborhood needs. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE Support of neighborhood led initiatives is one of five distinct work programs designated in the FY 2013-2015 Neighborhood Wellness Major City Goal. A task toward implementation of neighborhood initiatives included obtaining Council direction for guidelines and process for “Neighborhood Match” grants for neighborhood improvement projects. In consideration of the Land Use and Circulation Element Update effort, the work program timing was adjusted as part of the last Major City Goal status report to seek Council direction in March of 2015. The updated LUCE policies and programs are now available to inform development of the neighborhood match grant program and City staff has received initial Council direction regarding grant program considerations. Staff will now conduct more extensive outreach with neighborhood groups to help address program development considerations such as goals of the program, eligibility criteria, amount of awards and types of projects supported, ranking, and review process. GOAL AND POLICY CRITERIA This request meets all of the SOPC criteria as follows: 1. Supports Other Important Objective: This request supports the Neighborhood Wellness Other Important Objective identified by the City Council for FY 2015-17. It implements a part of the collaborative solutions effort to engage residents in efforts that will strengthen neighborhood cohesion and accomplish neighborhood objectives. 2. Needed to address health, safety or legal concern: Providing neighborhood match grants has the potential to increase neighborhood health. While program guidelines are still under development, there is a potential that projects to address safety concerns could be funded under the match grant program. 3. Needed to provide a priority level of service: Providing funds to match neighborhood volunteer hours or donations will address priorities defined by the neighborhood itself. 3-83 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) NEIGHBORHOOD MATCH GRANTS 4. Supports revenue generation and/or cost savings: Required match of volunteer hours, or donations of professional services or materials leverage city funds and will ultimately result in cost savings to accomplish the neighborhood project. 5. Reallocation of Existing Resources: The program is still under development and procedures and advisory body review have yet to be identified, however, the intent is to work within existing advisory body resources for review of grant applications. STAKEHOLDERS Implementation of the Neighborhood Match Grant will engage neighborhood groups and their residents (i.e. Residents for Quality Neighborhoods; Alta Vista, Monterey Heights, Neighbors North of Foothill, San Luis Drive, Laguna, Old Town, College Highlands, Anhold Mt. Pleasant neighborhood groups; Home Owners’ Associations; and residents within Parking Districts). IMPLEMENTATION Implementation is envisioned as follows: Task Date 1. Study Session with City Council March 2015 2. Public outreach – neighborhood group interviews and meetings April – June 2015 3. Program guideline recommendations for Council August 2015 4. Application period for first year grants Oct - Dec 2015 5. Advisory Body Review and recommendation Jan-Feb 2016 6. Award of grants and work begins March 2016 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: The manager for the Neighborhood Match Grant program would be identified as either the Tourism Manager or Long Range Planning staff, dependent upon the advisory body that is identified as the appropriate review body for the match grant program. Project Team: The project team will include staff from Public Works, Utilities, Fire, Community Development (including Building staff), and Parks and Recreation, depending on the type of project proposed. ALTERNATIVES: 1. Continue the Status Quo. There is no current neighborhood match grant program, therefore continuing the status quo would mean that staff would not implement this effort identified as part of the FY 2013-15 Financial Plan Major City Goal of Neighborhood Wellness. Neighborhoods would not have this identified source of funding to assist them in achieving neighborhood objectives. 3-84 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) NEIGHBORHOOD MATCH GRANTS 2. Defer or Re-Phase the Request. The program could be phased to initiate in FY the 2016-17 fiscal year instead of FY 2015-16. Staff anticipates that delaying implementation until FY 2016-17 will avoid the $5,000 cost associated earlier implementation, however it will not provide significant savings to the City’s overall budget and will defer implementation of an identified Major City Goal work effort. 3. Change the Scope of Request. The request could be re-scoped however the funding requested is already quite small and the effort is intended to start off as a pilot program. The funding could be identified for year 2015-16 only and Council could request staff to return and report on the success of the program prior to authorizing funding for the subsequent year. This is not recommended. Staff anticipates the minor amount of funding identified is necessary for program initiation. 4. Implementation in a Different Way. The Council could assign a portion of the Community Event/Beautification grants-in-aid budget to this effort. This would reduce the amount of grant funds available to support community events or beautification projects. Given the small amount of funding available for the grants-in-aid awards, this alternative is not recommended. 5. Existing Program Evaluation. The neighborhood match grant program is a new effort. Staff is currently working to develop program guidelines after consulting with neighborhood groups and receiving more input. OPERATING PROGRAM Long Range Planning COST SUMMARY The neighborhood match grant program will cost approximately $15,000 in Financial Plan 2015-17. Line Item Description Account No.2015-16 2016-17 Staffing 0 0 Other 5,000 10,000 Grant funds for neighborhood match projects 40400-7287 5,000 10,000 Total Operating Costs 5,000 10,000 Net Operating Costs 5,000 10,000 3-85 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) RENTAL HOUSING INSPECTION PROGRAM SUMMARY OF CHANGE: Per City Council direction, implement a Rental Housing Inspection Program from for single family and duplex rentals in the City. Implementation contingent on program adoption by the City Council. FISCAL IMPACT: On-going costs of $301,164 in 2015-16 and $449,312 in 2016-17. These costs will be offset by approximately $146,150 in revenue in 2015-16 and $280,074 in 2016-17. The development of an effective Rental Housing Inspection Program for the City will require a substantial investment of time and resources. Given the City’s budgetary limitations and need for fiscal prudency, the program will be designed to be fee supported and minimize any significant financial impacts on the General Fund. One time and ongoing costs will be partially offset by annual revenue during the first two years and fully offset in future years when full program participation is received. SERVICE LEVEL IMPACT: This SOPC is for the necessary resources to fund the proposed Rental Housing Inspection Program as a part of the Neighborhood Wellness Major City Goal as specified by the City Council on December 16, 2014. These resources will allow the City to create a program to inspect all single family and duplex rental units every three years including a self-certification program for rentals that pass an initial inspection. KEY OBJECTIVES This change will accomplish implementation of an action item from the 2013-15 Neighborhood Wellness Major City Goal to establish a Rental Housing Inspection Program (RHIP) in the City. A RHIP is intended to help stabilize and preserve neighborhoods by addressing blight and substandard conditions related to rentals as the City’s percentage of rental properties increases. The ultimate goals of such a program would be the elimination of unsafe rental housing conditions, and the preservation and improvement of safe, livable, and attractive neighborhoods. 1. Help stabilize and preserve neighborhoods A significant portion of the housing units in the City of San Luis Obispo are rentals. Based on the 2010 Census, the City had 20,553 dwelling units and 61.8%, or approximately 12,700 of them were rentals. In comparison, the statewide rental rate is about 43%. There are estimated to be 8,541 multifamily rental units and 4,059 single- family and/or duplex rental units. Given the current growth rate of rental units (.4% per year), the percentage of the housing stock that could be rentals in 2015 is 63-64%. In addition, approximately 79% of code enforcement violations identified in residential zones in 2013 are attributable to rental units. Of particular note, rental units in R1 and R2 zoning districts have a far greater violation occurrence rate than in multifamily zones (i.e. 139 cases per thousand units as compared to 20 cases per thousand units). 2. Addressing blight and substandard conditions related to rentals A RHIP would allow inspectors to enter a property to enforce the minimum standards for the maintenance of residential occupancies as defined by State Housing Law and derived from the Uniform Housing Code. The program would also enforce the property maintenance standards contained in SLOMC 17.17. Staff has had numerous discussions with students and nonstudent tenants who relate that they are reluctant to report code violations because of concerns of retaliation and difficulty in finding alternate housing. Some students have reported living in housing that is in significant disrepair, yet are unwilling to file a complaint. It is also not 3-86 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) RENTAL HOUSING INSPECTION PROGRAM uncommon to receive complaints from parents regarding the substandard nature of their student’s rental units. In addition, neighborhood associations have told staff that they believe many violations are not reported by tenants, and that illegal rental conversions are much more common than reported as was evidenced with the recent case of the Slack and Grand homes purchased by Cal Poly. EXISTING SITUATION As a part of the 2013-15 Neighborhood Wellness Major City Goal work plan, the City Council directed staff to develop a RHIP to address concerns related to rental units in the City. The current percentage of the housing stock that could be rentals is 63-64% compared to a statewide average of 43%. In addition, approximately 79% of code enforcement violations identified in residential zones in 2013 are attributable to rental units. GOAL AND POLICY CRITERIA Neighborhood Wellness has been consistently identified as a top community priority through the previous and current financial planning process. As evidenced from similar communities, a RHIP is one of the key elements to enhancing neighborhood wellness in a community with a significant number of rental units. As a part of the 2013- 2015 Neighborhood Wellness Major City Goal, the City Council held a study session on RHIP options in December 2014. At that time, the City Council directed staff to draft an ordinance to create a program for single- family and duplex rental units. Staff will be returning to the City Council with an ordinance on May 5, 2015. STAKEHOLDERS Over the past year, staff has been engaged in a public outreach effort with various stakeholders including business, neighborhood and student groups and individuals to receive input and concerns about a RHIP. Presentations were made to the San Luis Obispo Association of Realtors (SLOAOR), Chamber of Commerce, Property Managers Association, Residents for Quality Neighborhoods, Monterey Heights Neighborhood Association, Alta Vista Neighborhood Association, the Student-Community Liaison Committee, the Neighborhood Civility Working Group, Cal Poly Transitional Housing Program Committee, and Cal Poly Associated Students (ASI). Staff is currently following up with these groups on the key elements of the proposed RHIP. IMPLEMENTATION Task Date 1. Rental Housing Inspection Program Ordinance Public Hearing May 5, 2015 2. Hire Code Enforcement Supervisor and Administrative Assistant July 2015 3. Develop inspector job descriptions, inspection checklist, standard operating procedures, notification and billing system. Aug.-Dec. 2015 4. Begin notification and billing process 5. Hire 1st inspector 6. Begin inspections 7. Hire 2nd inspector Jan. 2016 Feb. 2016 Apr. 2016 July 2016 3-87 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) RENTAL HOUSING INSPECTION PROGRAM PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Chief Building Official Project Team: Chief Building Official, Community Development Director, Building and Safety Supervisor, Code Enforcement Supervisor The City Attorney, and Finance & Information Technology, Fire and Police Departments concur with the recommended actions and limited ongoing coordination will be required of these departments during implementation. ALTERNATIVES: 1. Continue the Status Quo. Maintain status quo by continuing mandated complaint-based code enforcement for housing violations and the Fire Department’s Multi-family Inspection Program unchanged. This would not be consistent with City Council direction. 2. Implementation in a Different Way. As a part of the implementation process, staff will explore options for contracting parts of the RHIP including billing and notification, but the inspections are intended to be performed by City staff. OPERATING PROGRAM 1. Community Development Department – Building Division COST SUMMARY Line Item Description Account No.2015-162016-17 Staffing 212,414 398,112 1 supervisor, 1 admin,1.0 inspector (2015-16) 1 supvsr, 1 admin, add 2nd inspect. (2016-17)40700212,414 398,112 Contract Services 0 0 Will be explored as a part of implementation 40700-7227 Other Operating Expenditures 38,750 51,200 Vehicle maintenance, fuel, training, supplies, contingency, etc. 40700 38,750 51,200 Minor Capital 50,000 0 50,000 (2015-16) Computers, file scanning Office construction, vehicles $153,750 (2015-16) (submitted separate CIP request)7951 50,000 Total Operating Costs 301,164 449,312 Offsetting Costs Savings or Revenues 30% cost recovery (2015-16) 60% cost recovery (2016-17)(146,150)(280,074) Net Operating Costs 155,014 169,238 3-88 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) CAPITAL IMPROVEMENT PROGRAM ENGINEER SUMMARY OF CHANGE: Augment CIP Engineering resources to reduce capital project implementation costs. FISCAL IMPACT: On-going operating cost of $136,500 in 2015-16 and $145,200 in 2016-17, offset by reductions in the design service with the adopted CIP. SERVICE LEVEL IMPACT: The primary objective of the CIP Engineering Program is to deliver quality Capital projects in a cost effective manner. KEY OBJECTIVES 1. Reduce design costs for CIP projects 2. Increase consistency of design EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE Upon passage of the original ½ cent sales tax (Measure Y), the CIP Engineering program made a conscious decision to hold staffing levels and absorb the increased workload through increased consultant services. This decision was based on the sunset clause of the measure and the reality that new staff have a “start-up” time before they become fully productive. Engineering management worked with on-call service consultants to streamline their integration with staff to produce as seamless an operation as possible. Consultants were provided access to records to complete their own research with the City’s historical construction documents and provided high levels of feedback on their initial projects. The result was less than hoped for in terms of creating highly integrated consultant staff. The projects selected for consultants changed from specialized to more routine projects in the hopes of improving integration and reducing the amount of time staff devoted to plan review. The result was again less than hoped for. As part of the 2011-13 Financial Plan adoption, the use of a contract employee was proposed as a substitute for consultant services. This request was approved and a contract employee began work in 2012. An analysis has been completed of a group of projects where both staff and consultants have produced similar projects in order to compare costs as much “apples to apples” as possible. The analysis shows that the average cost of design for paving and sealing projects, as a percentage of the construction cost, is 3% for City staff as compared to 11.5% for a consultant. The staff cost is based on actual hours, multiplied by full compensation rates for an Engineer III. The actual costs were lower as the work was accomplished in part with a contract Engineer I and student intern, both unbenefited. Sampling of curb ramp projects showed a similar trend with staff cost at 25.7% on average and consultant average cost at 109.5%. The sample size is not very large; however, the significant difference and consistency of results across all design activities supports the finding that staff is able to more cost effectively produce Capital projects. Office space and computing equipment are currently available to support the additional position with no additional investment. Transportation is available, on an as needed basis, through the existing pool cars. GOAL AND POLICY CRITERIA 1. The Council has indicated clear support for continued Capital Improvements, possibly increasing funding levels over those of previous years, in the 2015-17 Financial Plan. 3-89 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) CAPITAL IMPROVEMENT PROGRAM ENGINEER 2. The City’s Financial Management Manual (Section 210) identifies Public Works Engineering as the centralized purchasing authority for construction projects and related services, making Engineering the appropriate location for identified increased resource needs to deliver construction projects. 3. A change in project delivery approach for certain projects, from consultant services to internal staff is anticipated to result in a net cost savings to the City estimated at $250,000 (based on anticipated delivery capacity for an additional engineer and design budgets proposed in the Capital program) for a mix of General Fund and Enterprise projects. STAKEHOLDERS All internal clients of the CIP Engineering program of Public Works will potentially be affected by this change. Historically, internal design staff is more accessible and more familiar with City operations and needs, and so able to provide a higher level of service to clients than contract services. Regardless of delivery method, clients are involved in scoping, reviewing, and final construction of their projects through the Engineering staff designing or managing consultant design. Preliminary analysis of the projected 2015-17 Financial Plan, indicates there will be cost savings for the overall CIP in excess of the cost of this staff addition. The Community, as the ultimate stakeholders in City operations, will benefit through reduced costs of design delivery. IMPLEMENTATION The Utilities Department will participate with Public Works in implementing design work in-house with this additional resource. As savings on design are realized, the funds will be reprogramed into the CIP to meet other pressing needs. Task Date 1. Advertise position July 2015 2. Hire engineer Sept 2015 3. Reallocate savings (Financial Plan Supplement) June 2016 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: CIP Engineering Program - Supervising Civil Engineer Project Team: Utilities will be a partner in implementing internal design and participated in a discussion of this delivery model. There will be some minor impacts to Administrative services in Public Works and Finance and Information Technology to handle employee related activities. ALTERNATIVES: 1. Continue the Status Quo. Continuing Status Quo of using a contract employee for an extended period for ongoing regular work is not compliant with the City’s Personnel Rules & Regulations. 3-90 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) CAPITAL IMPROVEMENT PROGRAM ENGINEER 2. Implementation in a Different Way. The alternative to the proposed staff augmentation and continuation of the status quo, is to end the contract currently in effect and resume higher levels of consultant design services. Analysis indicates this is more costly than providing these services in-house. 3. Existing Program Evaluation. As discussed above, under the Existing Situation, analysis indicates this is a cost effective delivery model. OPERATING PROGRAM CIP Engineering (50410) COST SUMMARY Initial reductions in the CIP to offset program costs will come from the Street Reconstruction and Stormdrain Replacement design budgets (pending final Council CIP adoption and approval of this SOPC.) As the new employee becomes more productive and additional savings in the CIP are realized, the released funds will be reallocated to other needs. Line Item Description Account No.2015-162016-17 Staffing 113,800 121,600 Salary 100.50410 75,600 79,400 PERS 100.50410 21,400 25,300 Insurance 100.50410 15,700 15,700 Unemployment 100.50410 Medicare 100.50410 1,100 1,200 Other Operating Expenditures 22,700 23,600 20% Reserve Fund Balance 22,700 23,600 Total Operating Costs 136,500 145,200 Initial Reductions in CIP Project Design Funding: - Street Reconstruction & Resurfacing*(120,000)(123,900) - Stormdrain Replacements*(16,500)(21,300) Net costs across Operating and Capital programs 0 0 *Note that funding for these CIPs will be adjusted as noted in each of the CIP write-ups if this SOPC is approved. 3-91 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) PROJECT MANAGEMENT SOFTWARE ONGOING SUPPORT SUMMARY OF CHANGE: Provide funding for ongoing maintenance and hosting of Project Management software approved for implementation in the 2013-15 Financial Plan. FISCAL IMPACT: On-going net costs of $27,000 in 2015-16 and $25,200 in 2016-17. SERVICE LEVEL IMPACT: Project Management Software allows for consolidated scheduling, tracking and reporting of all City projects. These activities are currently accomplished in CIP Engineering using a combination of an unreliable FoxPro application, Microsoft Project, and Excel. These programs are not consistently used across the organization, with each department using whatever tools are available to them. Maintaining the program will provide for a centralized, uniform, and streamlined approach to project management. KEY OBJECTIVES 1. Provide funding for ongoing maintenance, licensing, and hosting for the City’s CIP Project Management program software and data. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE The purchase and deployment of new project management software was approved as part of the 2013-15 Financial Plan. Once implemented, the software has ongoing support, maintenance, and hosting costs to allow it to be used. 1. The Council has indicated clear support for continued Capital Improvements, possibly increasing funding levels over those of previous years, in the 2015-17 Financial Plan. 2. The City’s Financial Management Manual (Section 210) identifies Public Works Engineering as the centralized purchasing authority for construction projects and related services, making Engineering the appropriate location for identified increased resource needs to deliver construction projects. STAKEHOLDERS Project Management software will allow for a consistent tool for anyone completing a project or tracking project status. This information is often of interest to the community, the Council, City management, and project proponents. Standardized software for tracking will provide more accessible and comprehensive information on project status. GOAL AND POLICY CRITERIA 1. Council Goals include project implementation directly related to Project Management needs. 2. Operating Program Goals for CIP Engineering include the oversight and management of construction projects, directly related to Project Management needs. 3. Cost Allocation Plan development requires detailed tracking for assignment of operating program costs. CIP Engineering works under multiple funds and Project Management software provides the mechanism to readily track project hours for allocation 3-92 SIGNIFICANT OPERATING PROGRAM CHANGE (COMMUNITY DEVELOPMENT) PROJECT MANAGEMENT SOFTWARE ONGOING SUPPORT IMPLEMENTATION Task Date 1. Award Contract for Software Deployment December, 2014 2. Complete Installation December, 2015 3. Make 1st Year Payment December, 2015 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: CIP Engineering Supervising Civil Engineer Project Team: The project team for ongoing costs is minimal and involves generally, only bill processing. There may be possible impacts to having the software hosted that have not been foreseen at this time. Any issues will be addressed in cooperation with Information Technology staff. ALTERNATIVES: 1. Deny the Request. If the request is denied, the investment in the software will be lost as the product will be unusable. OPERATING PROGRAM CIP Project Engineering (50410) COST SUMMARY Line Item Description Account No.2015-162016-17 Contract Services 27,000 27,000 Data Processing Services 100.50410.7229 27,000 27,000 Total Operating Costs 27,000 27,000 Offsetting Costs Savings or Revenues Microsoft Project Subscription (1,800) Net Operating Costs 27,000 25,200 3-93 SIGNIFICANT OPERATING PROGRAM CHANGE (ADMINISTRATION) LASERFICHE DOCUMENT MANAGEMENT SOFTWARE ONGOING SUPPORT SUMMARY OF CHANGE: Provide funding for ongoing maintenance and subscription services for Laserfiche Document Management software (WebLink) approved for implementation in the 2013-15 Financial Plan. FISCAL IMPACT: On-going costs of $14,200 in 2015-16 and $14,200 in 2016-17. SERVICE LEVEL IMPACT: The City of San Luis Obispo is committed to open and honest government and strives to consistently meet the community’s expectations by providing excellent service, in a positive and timely manner, and in the full view of the public. In order to accomplish this, it is imperative that City documents and records are readily available to staff and members of the public. The Laserfiche WebLink Portal accomplishes this objective by allowing any user to search all of the City’s official records and print or save them in PDF format. KEY OBJECTIVES 1. Provide funding for ongoing maintenance and subscription services for the City’s Laserfiche Document Management software (WebLink). a. Funding for staff software licenses and associated Laserfiche Document Management modules (Forms) is also included. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE The purchase and deployment of Laserfiche Document Management software was approved as part of the 2013- 15 Financial Plan. Laserfiche WebLink has been implemented, but the software has ongoing support, maintenance, and subscription costs. These ongoing costs were identified in the 2013-15 Financial Plan but funding was never appropriated to the relevant operating program. STAKEHOLDERS City staff, decision-makers, and the public will benefit from easy and reliable access to official City records, including but not limited to past Council actions, resolutions, and ordinances. GOAL AND POLICY CRITERIA 1. The Council has indicated clear support for continued transparency and accountability improvements as part of the Fiscal Sustainability and Responsibility Other Important Objective the 2015-17 Financial Plan. IMPLEMENTATION Task Date 1. Launch Lasefiche WebLink portal on City website Completed 2. Make annual payments for maintenance, licensing and subscription costs Ongoing 3-94 SIGNIFICANT OPERATING PROGRAM CHANGE (ADMINISTRATION) LASERFICHE DOCUMENT MANAGEMENT SOFTWARE ONGOING SUPPORT PROGRAM MANAGER AND TEAM SUPPORT Program Manager: City Clerk Project Team: Clerk’s Office Information Technology Department ALTERNATIVES: 1. Deny the Request. If the request is denied, the initial capital investment in the software will be lost as the product will be unusable. OPERATING PROGRAM Administration and Records (20100) COST SUMMARY Line Item Description Account No. 2015-16 2016-17 Maintenance Agreement 100.20100.7227 14,200 14,200 Total Operating Costs 14,200 14,200 3-95 SIGNIFICANT OPERATING PROGRAM CHANGE (GENERAL GOVERNMENT) REQUEST FOR BUSINESS LICENSE COMPLIANCE SERVICES SUMMARY OF CHANGE: Contract with outside firm for business license compliance services. FISCAL IMPACT: One time cost of $ 32,000 in 2015-16 and $30,000 in 2016-17. SERVICE LEVEL IMPACT: This request is to obtain professional services from an experienced company that is capable of detecting unlicensed businesses within the community and bringing them into compliance with the city’s business license ordinance. The number of unlicensed businesses operating within the community is not known at this time. This not only represents a loss of revenue for the city but also a source of frustration for the business community that regularly pays their taxes while competing against those that do not. It has been approximately 4 years since the last enforcement effort was carried out. Using the resources of a company having the ability to compare existing business license information against other databases to search for unlicensed businesses will identify those home-based, rental property and other business types that have escaped detection previously. City staff will observe and learn from this process to begin identifying these businesses sooner and hopefully avoid having them go undetected in the future. The result will be more revenue for the city which will exceed the cost of the service by a 2-1 margin. Adequate outreach will be conducted to make the business community aware of the enforcement efforts and possible contact that may be made by members of the consulting firm. Ahead of this, an assessment of the existing ordinance along with current and past practices in interpreting the ordinance will be made to ensure that the enforcement effort is consistent with past practice. KEY OBJECTIVES 1. Increase the number of licensed businesses operating within the city while also leveling the playing field for those businesses that have maintained their business license while competing against those who have not. 2. Increased revenue to the city while offsetting costs on a 2-1 ratio. This represents an increase in one-time revenue as delinquent amounts are paid and on-going revenue from future license renewals. 3. Improve the city’s ability to identify and reach out to new businesses that might otherwise go undetected EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE It has been more than 3 years since the city conducted a business license enforcement effort. While regular enforcement efforts are optimal, periodic ‘sweeps’ still yield significant results in the form of additional one-time and on-going revenues as well as leaving an impression in the community afterward that reminds people that the city does check for compliance. It is now time to initiate another enforcement effort and staff is recommending the use of outside experts to carry out a much more comprehensive effort using a variety of databases that will be compared to the current business license listing to detect a multitude of business types including home-based, rental property, vacation rental and storefront locations. The city does not have access to these databases nor does it have the staff resources needed to devote time to this endeavor. As much as 2/3rds of the city housing stock is established as rental properties but staff is not able to confirm how many of the rental properties are actually licensed. Through this comprehensive effort, staff should be able to identify all rental properties, and working with the consultant, bring those that are unlicensed into compliance. Through this effort the city will see an increase in one-time revenues from the collection of delinquent taxes and penalties while also increasing future revenues from license renewals. 3-96 SIGNIFICANT OPERATING PROGRAM CHANGE (GENERAL GOVERNMENT) REQUEST FOR BUSINESS LICENSE COMPLIANCE SERVICES GOAL AND POLICY CRITERIA 1. This request supports the Major City Goal of Fiscal Sustainability and Responsibility by presenting a plan to identify unlicensed businesses and collect delinquent business license taxes and initiate future payments from business license renewals. As a result, revenues from an existing source will be enhanced. 2. This request is expected to generate upwards of $100,000 per year in on-going revenue and a minimum of $50,000 per year from the collection of delinquent taxes and fees although the last enforcement effort by the City generated more than $100,000 in delinquent revenues. (the fee estimate is based on 32% of delinquencies captured the first year and 30% of delinquencies captured in the second year of a two-year enforcement effort with $100,000 in delinquencies captured each year. If revenue recovery is less, the fee is less) STAKEHOLDERS While staff from the Finance & I.T. Department will be involved in the planning, implementation and execution of the compliance program, the business community will be affected in a number of ways. As such it is imperative to have a meaningful and effective outreach effort as this program is being developed and implemented. Next, those businesses that are operating and which currently have a business license will be made aware that the city is taking license compliance seriously and is trying to level the playing field with respect to having all business obtain a license. Next, those businesses that are operating without a license will be contacted and asked to apply for a license through letter and phone contact. A series of mailings will be sent out via utility bill inserts and direct mailings letting the business community, Chamber of Commerce and the Business Improvement District know that this enforcement effort is underway using an outside service provider and how they can assist. Staff at the city will be available to answer questions and assist with the license registration process. The launch date will be planned for a time when the Finance Department will not have competing obligations and can devote the time needed to this effort. IMPLEMENTATION Task Date 1. Program design and outreach to appropriate stakeholders; release RFP after Council review August 2015 2. Award contract by City Council 3. Design communications, review municipal code requirements and past practices for implementing business license requirements October 2015 January 2016 4. Prepare mailings and notifications April 2016 5. Release mailings and notifications and launch enforcement program May 2016 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: The Finance Director, working with the Financial Operations Manager and the Supervising Accounting Assistant will oversee the collection effort and ensure its success. 3-97 SIGNIFICANT OPERATING PROGRAM CHANGE (GENERAL GOVERNMENT) REQUEST FOR BUSINESS LICENSE COMPLIANCE SERVICES Project Team: The staff at the Community Development Department (CDD) will be involved as they will be reviewing new applications as they are generated from businesses that were operating without a license. The Director for CDD has reviewed this request and finds that his staff is able to absorb this workload. ALTERNATIVES: What are the reasonable alternatives to your request? Examples may include: 1. Continue the Status Quo. The Finance Department can compare the list of licensed businesses against the sales tax permit database provided by HdL and a listing of utility accounts by address where the property owner’s address is not the same as the utility location. Locations found that are not in the business license listing will be flagged as possible unlicensed businesses and will be sent a letter to confirm the location’s status. This can be done on a batch basis with groups of letters going out periodically as time permits. 2. Defer or Re-Phase the Request. This request can be deferred, however this simply delays the recognition of revenues that are owed to the city. Given that this request will generate more revenue than it costs to conduct, this does not seem like a prudent choice. 3. Change the Scope of Request. The scope of work can be scaled up or down and the cost vs. revenue ratio will not change significantly. OPERATING PROGRAM This request will be the responsibility of the Finance Department’s Revenue Division. COST SUMMARY Line Item Description Account No.2015-162016-17 Contract Services 32,000 30,000 25120-7227 32,000 30,000 Total Operating Costs 32,000 30,000 Offsetting Costs Savings or Revenues*(32,000)(30,000) Net Operating Costs 0 0 *Actual business license revenues are expected to increase by $100,000 per year in total. 3-98 SIGNIFICANT OPERATING PROGRAM CHANGE (GENERAL GOVERNMENT) INCREASE IN LIABILITY INSURANCE SUMMARY OF CHANGE: Increase in general liability premiums FISCAL IMPACT: On-going costs of $294,163 in 2015-16 and $556,942 in 2016-17. SERVICE LEVEL IMPACT: On-going costs of $294,163 in 2015-16 and $556,942 in 2016-17 are based on actual required contribution amounts provided by CJPIA for 2015-16 and a 15% increase estimate in 2016-17. Not paying premiums would result in having no liability insurance coverage. KEY OBJECTIVES 1. Comply with contractual obligation with CJPIA to fund Liability Insurance annual contributions. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE The City of San Luis Obispo became a member of the CJPIA in 2003 for participation in the liability program. Membership in the CJPIA means sharing risk with other member agencies. However, the risk is shared among a large number of agencies, who share common goals of risk avoidance, claims control and transfer of risk in order to eliminate or reduce exposure. By following proven practices of risk management, member agencies assist each other in keeping the cost of claims down. By sharing risk, the cost to an agency for a year with significant claims experience is somewhat mitigated and spread out over a number of years. The CJPIA Executive Committee approved a prospective funding model (beginning with claim year 2013-14) that aimed at funding coverage periods sufficiently, providing budgetary predictability for members by requiring one annual contribution and eliminating the retrospective adjustments, and rewarding effective loss control and risk management efforts with lower rates. Coverage years under the prospective formula will not be adjusted retrospectively on an annual basis. However, if net asset levels become insufficient, an assessment may be needed in the future. The new funding model is intended to provide overall financial strength and security for the pool, and rate stability and fairness for the members. Coverage years under the old funding model (prior to 2013- 14) will continue to have retrospective adjustments until all claims are closed for those years. GOAL AND POLICY CRITERIA Other Important Objective: Fiscal Sustainability and Responsibility STAKEHOLDERS All City Departments IMPLEMENTATION Task Date 1. Receive annual contribution information from CJPIA April 2015 2. Liability Insurance annual contribution due to CJPIA July 2015 3-99 SIGNIFICANT OPERATING PROGRAM CHANGE (GENERAL GOVERNMENT) INCREASE IN LIABILITY INSURANCE PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Greg Zocher, Human Resources Manager Project Team: Monica Irons, Human Resources Director Wayne Padilla, Finance and Information Technology Director Jason Stilwell, Interim Information Technology and Financial Planning Director Joe Lamers, Budget Manager ALTERNATIVES: 1. Continue the Status Quo. Failure to pay insurance premiums would be a breach of contract with CJPIA. 2. Defer or Re-Phase the Request. Paying the additional insurance premium at a later time would result in assessment of late penalties. OPERATING PROGRAM 30200 – Risk Management COST SUMMARY Increase In Liability Insurance Fiscal Year Total Annual Increases In 2015-17 Cumulative Increase Over 2014-15 (SOPC) FY 14-15 1,457,697 FY 15-16 1,751,860 294,163 294,163 FY 16-17 2,014,639 262,779 556,942 3-100 SIGNIFICANT OPERATING PROGRAM CHANGE (GENERAL GOVERNMENT) INCREASE IN WORKERS’ COMPENSATION INSURANCE SUMMARY OF CHANGE: Increase in Workers’ Compensation premiums FISCAL IMPACT: On-going costs of $388,016 in 2015-16 and $690,956 in 2016-17. SERVICE LEVEL IMPACT: On-going costs of $388,016 in 2015-16 and $690,956 in 2016-17 are based on actual required contribution amounts provided by CJPIA for 2015-16 and a 15% increase estimate in 2016-17. Not paying the premiums would result in having no workers’ compensation insurance coverage. KEY OBJECTIVES 1. Comply with contractual obligation with CJPIA to fund Workers’ Compensation annual contributions. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE The City of San Luis Obispo became a member of the CJPIA in 2004 for participation in the workers’ compensation program. Membership in the CJPIA means sharing risk with other member agencies. However, the risk is shared among a large number of agencies, who share common goals of risk avoidance, claims control and transfer of risk in order to eliminate or reduce exposure. By following proven practices of risk management, member agencies assist each other in keeping the cost of claims down. By sharing risk, the cost to an agency for a year with significant claims experience is somewhat mitigated and spread out over a number of years. The CJPIA Executive Committee approved a prospective funding model (beginning with the claim year 2013-14) that aimed at funding coverage periods sufficiently, providing budgetary predictability for members by requiring one annual contribution and eliminating the retrospective adjustments, and rewarding effective loss control and risk management efforts with lower rates. Coverage years under the prospective formula will not be adjusted retrospectively on an annual basis. However, if net asset levels become insufficient, an assessment may be needed in the future. The new funding model is intended to provide overall financial strength and security for the pool, and rate stability and fairness for the members. Coverage years under the old funding model (prior to 2013- 14) will continue to have retrospective adjustments until all claims are closed for those years. GOAL AND POLICY CRITERIA Other Important Objective: Fiscal Sustainability and Responsibility STAKEHOLDERS All City Departments IMPLEMENTATION Task Date 1. Receive annual contribution information from CJPIA April 2015 2. Workers’ Compensation annual contribution due to CJPIA July 2015 3-101 SIGNIFICANT OPERATING PROGRAM CHANGE (GENERAL GOVERNMENT) INCREASE IN WORKERS’ COMPENSATION INSURANCE PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Greg Zocher, Human Resources Manager Project Team: Monica Irons, Human Resources Director Wayne Padilla, Finance and Information Technology Director Jason Stilwell, Interim Information Technology and Financial Planning Director Joe Lamers, Budget Manager ALTERNATIVES: 1. Continue the Status Quo. Failure to pay insurance premiums would be a breach of contract with CJPIA. 2. Defer or Re-Phase the Request. Paying the additional insurance premium at a later time would result in assessment of late penalties. OPERATING PROGRAM 30200 – Risk Management COST SUMMARY Increase In Workers' Compensation Insurance Fiscal Year Total Cost Annual Increases 2015-17 Cumulative Increase Over 2014-15 (SOPC) FY14-15 1,631,585 FY15-16 2,019,601 388,016 388,016 FY16-17 2,322,541 302,940 690,956 3-102 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY & GENERAL GOVERNMENT) FIRE APPARATUS AND PUBLIC WORKS VEHICLE & EQUIPMENT MAINTENANCE SERVICES SUMMARY OF CHANGE: Increase non-staffing operating costs to support Fire Apparatus and Public Works Vehicle & Equipment Maintenance Services. FISCAL IMPACT: On-going costs of $46,000 in 2015-16 and $46,000 in 2016-17. SERVICE LEVEL IMPACT: The Fire Department’s Fire Apparatus and the Public Works Department’s Vehicle & Equipment Maintenance operating material and supply costs require an increase in funding to effectively service the City’s fleet of vehicles and equipment. While efforts have been made to reduce costs and transfer funds from other programs to assist with the increase in operating costs, there is still a need for additional funds. KEY OBJECTIVES 1. Assure availability of funding for the purchase of equipment parts and ongoing equipment repair and maintenance costs. This work is absolutely essential in maintaining the City’s fleet in good working order and ensuring the safety of drivers and the surrounding community. 2. Align the City’s fleet budget with actual expenditures. EXISTING SITUATION: FACTORS DRIVING THE NEED FOR CHANGE 1. Increasing equipment and repair costs to keep up with increasing repair demands. Vehicles and equipment must be outsourced to keep fleet safe and operational. 2. Eliminate the need to “backfill” program budget expenditures derived in fleet services with savings in other Fire and Public Works Department programs and accurately reflect expenditures/savings in the originating programs. GOAL AND POLICY CRITERIA Over the past several years, the Fire Department Fire Apparatus services and the Public Work’s Vehicle and Equipment Maintenance operating program budget for fleet operations have been underfunded; more specifically in the overhaul & major repairs, equipment replacement parts and tires & batteries accounts. While repair costs can fluctuate annually depending on the need, the three year average has shown these budget accounts in Public Works over-expended by an annual average amount of $100,700. In the past, funding to offset these budget overages has come from miscellaneous savings in other Public Works Department programs and were one-time in nature. For the past two years, the Fire Department has made a midyear budget request for an additional $26,000 to cover the deficit in the Fire Apparatus program. This trend is expected to continue due to the increase in replacement parts and equipment. To partially offset future costs in the equipment replacement parts account, various programs in Public Works have permanently transferred $23,000 from their non-staffing budgets to the fleet budget. Because these funds are spread amongst nine general fund program budgets, the service level impact is expected to be minimal. In addition, the Fleet Manager is currently working diligently to contain costs without negatively impacting the operation and maintenance of the City’s fleet. That work, along with the request for $20,000 and transfer of $23,000 is expected to address the Public Work’s Vehicle and Equipment Maintenance operating program budget. Additional funding from other Fire Department programs has not been available to transfer to Fire Apparatus services. While it was acknowledged during the FY 2013-14 midyear process that this funding gap is an ongoing issue for the Fire Department, funding was not extended beyond FY 2013-14. This provided the opportunity for 3-103 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY & GENERAL GOVERNMENT) FIRE APPARATUS AND PUBLIC WORKS VEHICLE & EQUIPMENT MAINTENANCE SERVICES collaboration between the Fire Department and Public Works Department to assess the capacity for Public Works to transfer funds to the Fire Department to cover the ongoing funding gap. Upon completion of the FY 2013-14 budget, Public Works conducted an extensive analysis of that department’s capacity to support Fire’s budget need, resulting in the internal funding listed in the previous paragraph. The result of this analysis was the conclusion that Public Works does not have the capacity to transfer funding to the Fire Department. This requested adjustment in the Fire Apparatus and Vehicle and Equipment Maintenance program operating budget will assure availability of funding for the purchase of equipment parts and ongoing equipment repair and maintenance costs. This work is absolutely essential in maintaining the City’s fleet in good working order and ensuring the safety of drivers and the surrounding community. This request will more accurately align the Vehicle and Equipment Maintenance operating program budget and the Fire Apparatus operating budget program with actual expenditures. Though this request will address some of the budget shortfalls experienced over the past several years, it may not resolve any future, unanticipated cost increases to the fleet operation. The goal with this request is to help avoid future midyear budget requests from the Departments for additional operating budget funding for the Fire Apparatus and Vehicle & Equipment Maintenance programs. In addition, funding for Fire Apparatus and Vehicle and Equipment Maintenance operations is partially support by Enterprise Funds through the Cost Allocation process. A portion of this repair work/equipment as it relates directly to Enterprise Funds will be supported through the Cost Allocation Plan. STAKEHOLDERS The general public of San Luis Obispo and those that share the roads in this community. The City employees that operate City fleet or equipment and rely on safe, dependable vehicles and equipment in their daily course of work. IMPLEMENTATION Task Date 1. Allocate funding for overhaul/major repairs, equipment replacement parts, tires and batteries budget accounts July 1, 2015 PROGRAM MANAGER AND TEAM SUPPORT Program Manager: Fire Vehicle Mechanic, Fleet Maintenance Supervisor Project Team: Fire & Public Works Administrative Analysts ALTERNATIVES: What are the reasonable alternatives to your request? Examples may include: 1. Continue the Status Quo. Continuing without a budget augmentation will cause the Fire Apparatus and Vehicle and Equipment Maintenance program budgets to be annually over-expended. Continuing the status quo may result in increased labor hours and vehicle downtime. 3-104 SIGNIFICANT OPERATING PROGRAM CHANGE (PUBLIC SAFETY & GENERAL GOVERNMENT) FIRE APPARATUS AND PUBLIC WORKS VEHICLE & EQUIPMENT MAINTENANCE SERVICES 2. Change the Scope of Request. Program budgets could be augmented in an amount less than the annual average as shown above. However, staff still anticipates the two program budgets will be over-expended at year’s end. OPERATING PROGRAM Fire Apparatus (85210) Vehicle & Equipment Maintenance (50340) COST SUMMARY Line Item Description Account No.2015-162016-17 Other Operating Expenditures 69,000 69,000 Fire - Equipment Replacement Parts 85210-7795 21,000 21,000 Fire - Tires, Batteries & Accessories 85210-7907 5,000 5,000 PW - Equipment Replacement Parts 50340-7795 23,000 23,000 PW - Tires, Batteries & Accessories 50340-7907 20,000 20,000 Minor Capital 0 0 Total Operating Costs 69,000 69,000 Offsetting Costs Savings PW-Admin.50100-7227 (1,000)(1,000) PW - Streets 50300-7227 (1,600)(1,600) 50300-7621 (6,000)(6,000) 50300-7835 (1,000)(1,000) 50300-7845 (2,100)(2,100) 50300-7875 (500)(500) PW - Traffic & Signals 50330-7229 (700)(700) 50330-7233 (2,000)(2,000) 50330-7791 (1,000)(1,000) 50330-7843 (200)(200) PW - Park Maint.50200-7227 (200)(200) 50200-7229 (200)(200) 50200-7531 (600)(600) 50200-7821 (400)(400) 50200-7843 (500)(500) 50200-7845 (2,000)(2,000) 50200-7875 (500)(500) 50200-7911 (500)(500) PW-Building Maint.50230-7605 (1,000)(1,000) PW-CIP Project Engineering 50410-7459 (1,000)(1,000) Net Operating Costs 46,000 46,000 3-105 SLOCity.org © 2014 City of San Luis Obispo