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HomeMy WebLinkAbout02-21-2019 REOC Agenda PacketCity of San Luis Obispo, Agenda, Planning Commission Agenda REVENUE ENHANCEMENT OVERSIGHT COMMISSION Thursday, February 21, 2019 5:30 p.m. REGULAR MEETING Council Hearing Room 990 Palm Street San Luis Obispo, CA CALL TO ORDER: Chair Chris Coates ROLL CALL: Commissioners Michael Multari, Jeannette McClure, Winston Newland, Vice Chair Ken Kienow, and Chair Chris Coates PUBLIC COMMENT: At this time, people may address the Committee about items not on the agenda. Persons wishing to speak should come forward and state their name and address. Comments are limited to three minutes per person. Items raised at this time are generally referred to staff and, if action by the Committee is necessary, may be scheduled for a future meeting. CONSIDERATION OF MINUTES 1. Minutes of the Revenue Enhancement Oversight Commission of December 6, 2018 BUSINESS ITEMS 2. Annual Audit Review Recommendation: Review the audited financial statements contained in the Comprehensive Annual Financial Report for the Local Revenue Measure (Rico Pardo). 3. Draft Annual Community Report Review Recommendation: Review the draft 2017-18 Annual Community Report and Report in Brief and provide feedback. (Ryan Betz & Greg Hermann). 4. Discussion on the Process for Changes to Recommended Projects Revenue Enhancement Oversight Commission Agenda for 2/21/19 Page 2 Recommendation: Review the current process for changes to recommended projects and provide direction on any modifications or changes. (Ryan Betz & Greg Hermann). COMMENT AND DISCUSSION 5. Staff Updates 6. Commission Communications ADJOURNMENT The next Regular Meeting of the Revenue Enhancement Oversight Commission is scheduled for Thursday, March 14, 2019, at 5:30 p.m., in the Council Hearing Room, 990 Palm Street, San Luis Obispo, California. The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7107. Meeting audio recordings can be found at the following web address: http://opengov.slocity.org/weblink/1/fol/61028/Row1.aspx DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of December 6, 2018 Page 1 Minutes - DRAFT REVENUE ENHANCEMENT OVERSIGHT COMMISSION Thursday, December 6, 2018 Regular Meeting of the Revenue Enhancement Oversight Commission CALL TO ORDER A Regular Meeting of the San Luis Obispo Revenue Enhancement Oversight Commission was called to order on Wednesday, December 6, 2018, 2018 at 5:32 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Chair Michael Multari. ROLL CALL Present: Commissioners Ken Kienow, Jeannette McClure, Winston Newland, Vice Chair Christopher Coates, and Chair Michael Multari Absent: None Staff: City Manager Derek Johnson, Ryan Betz Interim Assistant to the City Manager, Public Works Director Daryl Grigsby, Deputy Director of Public Works/City Engineer Matt Horn, Brigitte Elke Finance Director, Budget Manager Alex Ferreira, and Deputy City Clerk Heather Goodwin Others Present: Account Executive, PR with AMF Media Group Katie Ferber OATH OF OFFICE 1. Administer the Oaths of Office to newly-appointed Commissioner Winston Newland. Deputy City Clerk Goodwin administered the Oath of Office to newly-appointed Commissioner Winston Newland. PUBLIC COMMENT ITEMS NOT ON THE AGENDA None. --End of Public Comment-- APPROVAL OF MINUTES 2. Consideration of Minutes of the Regular Revenue Enhancement Oversight Commission Meeting of May 22, 2018: ACTION: UPON MOTION BY VICE CHAIR COATES, SECONDED BY COMMISSIONER KIENOW, CARRIED 5-0-0, the Revenue Enhancement Oversight DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of December 6, 2018 Page 2 Commission approved the Minutes of the Regular Revenue Enhancement Oversight Commission Meeting of May 22, 2018, as presented. Interim Assistant to the City Manager Betz made a clarification to the minutes, stating that the item regarding the idea of having standard operating procedures on how to handle late year adjustments that was to be heard at a fall commission meeting is now being proposed for the February 2019 commission meeting. By consensus, the commission agreed to place this item on the agenda at the future meeting in February 2019. PUBLIC COMMENT None. --End of Public Comment-- BUSINESS ITEMS 3. Review Purpose of the Revenue Enhancement Oversight Commission and Elect Officers. City Manager Johnson and Interim Assistant to the City Manager Betz provided a PowerPoint presentation and responded to Commissioner inquiries. Public Comment None. --End of Public Comment-- ACTION: UPON MOTION BY CHAIR MULTARI, SECONDED BY COMMISSIONER MCCLURE, CARRIED 5-0-0, to appoint Vice-Chair Cotes as Chairperson to serve a one-year term. ACTION: UPON MOTION BY CHAIR MULTARI, SECONDED BY VICE CHAIR COATES, CARRIED 5-0-0, to appoint Commissioner Kienow as Vice-Chairperson to serve a one-year term. Vice-Chair Cotes assumed the role as Chair and Commissioner Kienow assumed the role as Vice-Chair for the remainder of the meeting. 4. 2017-18 Local Revenue Measure Unaudited Year-end Expenditures. Interim Assistant to the City Manager Betz and Budget Manger Alex Ferreira provided a PowerPoint presentation and responded to Commissioner inquiries. Public Comment None. --End of Public Comment-- DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of December 6, 2018 Page 3 By consensus, the Commission received and filed the report and reviewed unaudited operating and capital expenditures of local half-percent sales tax revenue in the last fiscal year. No action was taken on this item. 5. Budget Reallocation for the Police Department Facility Replacement Project. Deputy Director of Public Works/City Engineer Horn provided a PowerPoint presentation and responded to Commissioner inquiries. Public Comment None. --End of Public Comment-- ACTION: UPON MOTION BY COMMISSIONER MULTARI, SECONDED BY CHAIR COATES, CARRIED 5-0-0, to recommend to the City Council the reallocation of Local Revenue Measure funds for the Police Station Replacement Project. 6. 2017-18 Annual Community Report and Citizen Oversight Meeting. Interim Assistant to the City Manager Betz and Account Executive, PR with AMF Media Group Katie Ferber provided a PowerPoint presentation and responded to Commissioner inquiries. Public Comment None. --End of Public Comment-- Discussion ensued regarding the 2017-18 Annual Community Report and the Annual Citizen Oversight meeting. By consensus, the Commission provided the following directional changes to the Local Revenue Measure Priorities Ranking form. 1. Remove the “Other Vital Services and Capital Projects” category. 2. Provide highlights and most common uses/examples on the walls for clarity purposes for each topic. ACTION: UPON MOTION BY COMMISSIONER MULTARI, SECONDED BY COMMISSIONER KIENOW, CARRIED 5-0-0, to appoint Commissioner McClure and Commissioner Newland to serve as subcommittee members to assist in the development of the 2017-18 Annual Report. DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of December 6, 2018 Page 4 7. 2019-21 Financial Plan Process and Revenue Enhancement Oversight Commission Meeting Schedule. Interim Assistant to the City Manager Betz provided a PowerPoint presentation and responded to Commissioner inquiries. Public Comment None. --End of Public Comment-- By consensus, the Commission received and filed the presentation of reviewing the process in developing the 2019-21 Financial Plan and discussion of the 2019 Revenue Enhancement Oversight Commission meeting schedule. Not action taken on this item. COMMENT AND DISCUSSION 8. Staff Updates Ryan Betz Interim Assistant to the City Manager announced that staff will bring to Council an updated “Funding of the Future” item to the February 5, 2019 Council meeting. 9. Commission Communications None. ADJOURNMENT The meeting was adjourned at 7:04 p.m. The next Regular Revenue Enhancement Oversight Commission meeting is scheduled for Wednesday, January 23, 2018 at 6:00 p.m., in San Luis Obispo Veterans Memorial Building, 801 Grand Avenue, San Luis Obispo, California. APPROVED BY THE REVENUE ENHANCEMENT OVERSIGHT COMMISSION: XX/XX/2019  Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 2/21/19 Item Number: 2 DATE: February 21, 2019 FROM: Brigitte Elke, Finance Director Prepared By: Rico Pardo, Accounting Manager/Controller SUBJECT: ANNUAL AUDIT REVIEW RECOMMENDATION 1. Review the audited financial statements contained in the Comprehensive Annual Financial Report (CAFR) for the Local Revenue Measure. DISCUSSION Ordinance No. 1605, establishes the Citizens’ Revenue Enhancement Oversight Commission (REOC) and includes specific citizen oversight and fiscal accountability provisions for the Local Revenue Measure. These provisions include an annual review of the audited financial statements for the Local Revenue Measure: 2.14.040(C.) Annual Audit. The REOC shall meet annually to review the audited financial statements contained in the Comprehensive Annual Financial Report for the Essential Services Measure. On February 5, 2019, the City Council accepted the CAFR for fiscal year 2017-18. As required by the City Charter, the financial statements for the City (including the Local Revenue Measure) were audited by independent certified public accountants. The objective of a financial audit is to provide users of the financial reports with reasonable assurance, from an independent source, that the reports are reliable. The auditor, Glenn Burdette, issued the financial statements with an unmodified opinion which means that they are presented fairly and in conformity with generally accepted accounting principles. The table below shows a ($216,749) net available for future year appropriations in the Local Revenue Measure fund at the end of fiscal year 2017-18. This means that the General Fund balance was impacted negatively by Local Revenue Measure sub-fund. The net negative position in the sub-fund is due to lowered projections in the sales tax receipts over the last two fiscal years compared to original adopted budgets. Since the revenue projections were lowered and projects were not adjusted, the expenditures exceeded revenues and resulted in the net negative sub-fund balance. The variance will be adjusted at the end of the 2018-19 budget and will be significantly reduced through anticipated project savings. Any remaining balance will be assumed through the General Fund. At the end of fiscal year 2017-18, $6.3 million remains appropriated but not yet expended for capital projects already approved by the REOC. An excerpt from the CAFR Transmittal Memorandum with a summary of the audited expenditures and revenues is included below. The complete CAFR is available online at www.slocity.org/budget. City of San Luis Obispo, Title, Subtitle     Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 2/21/19 Item Number: 3 DATE: February 21, 2019 FROM: Greg Hermann, Interim Deputy City Manager Prepared By: Ryan Betz, Interim Assistant to the City Manager SUBJECT: DRAFT FY 2017-18 LOCAL REVENUE MEASURE YEAR ANNUAL COMMUNITY REPORT AND REPORT IN BRIEF RECOMMENDATION 1. Review the draft 2017-18 Local Revenue Measure Annual Community Report and Report in Brief and provide feedback. DISCUSSION Annual Community Report Chapter 3.15 of the Municipal Code (the Essential Services Transactions [ Sales] and Use Tax) includes specific citizen oversight and fiscal accountability provisions. One of these provisions requires an annual community report: Annual Community Report. A written report shall be reviewed at a public hearing by the Revenue Enhancement Oversight Commission, and a summary will be provided annually to every household in the community detailing how much revenue is being generated by the measure and how funds are being spent (MC 3.15.040.E). At the December 6, 2018 Revenue Enhancement Oversight Commission (REOC) meeting, the Commission provided general feedback on recommended changes to the report and appointed a sub-committee of Commissioners McClure and Newland to provide additional direction. City staff along with a representative from AMF Media Group (AMF), the firm designing the report, met with the sub- committee to discuss potential modifications in detail. Since that time, AMF and staff have been working to develop the report content including new photography. The draft Annual Community Report and Report (Attachment 1 & 2) are included for the REOC’s review. The Report in Brief will be included in City utility bills in March 2019 and the Annual Report will be discussed at the March 14 REOC meeting. ATTACHMENTS 1. Draft FY 2017-18 Local Revenue Measure Annual Community Report 2. Draft FY 2017-18 Local Revenue Measure Annual Community Report in Brief LOCAL REVENUE MEASURE ANNUAL COMMUNITY REPORT Fiscal Year 2017–18 CITY OF SAN LUIS OBISPO HOW DID WE SPEND REVENUES? PAGE 5 Read about how Local Revenue Measure funds were spent in 2017-18. CITY/COUNTY LIBRARY RENOVATIONS PAGE 7 Learn more about how the City worked with the County to improve the public library in Downtown San Luis Obispo. 1 PROJECT SPOTLIGHT Neighborhood Paving The Madonna and Los Osos Valley Road project included neighborhood repaving, new striping, bike lane improvements, pedestrian crosswalk and ADA upgrades. The project was built under budget and used recycled pavement materials. 2 The Local Revenue Measure – also known as Measure G – is a one-half percent local sales tax approved by City voters in November 2006. It protects and maintains essential services and facilities, such as open space preservation, bike lanes and sidewalks, public safety, neighborhood street paving and code enforcement, flood protection, senior programs, and other vital services and capital improvement projects. The Local Revenue Measure is subject to voter extension in 2023. The Local Revenue Measure is a general-purpose measure and, as such, the proceeds are not restricted to specific purposes. This provides the Council with flexibility to respond to new circumstances and challenges. The voter-approved ballot language provides guidance to use local sales tax revenue to protect and maintain essential services and facilities and identifies examples of services and projects that achieve this objective. These community spending priorities help guide the Citizen’s Revenue Enhancement Oversight Commission (REOC) when making recommendations to the Council about Local Revenue Measure uses. The Council uses the REOC’s input, and additional public feedback, to prioritize the use of Local Revenue Measure funding as part of the City’s two-year financial planning process. WHAT IS THE LOCAL REVENUE MEASURE? The Mission Plaza Railing project is part of ongoing code enforcement upgrades to ensure one of our most used public spaces is safe and the area surrounding the creek can be enjoyed by all. 3 To protect and maintain essential services and facilities – such as open space preservation; bike lanes and sidewalks; public safety; neighborhood street paving and code enforcement; flood protection; senior programs; and other vital services and capital improvement projects – shall the City’s Municipal Code be amended to extend the current one-half percent local sales tax for eight years, with independent annual audits, public goal-setting and budgeting, and a Citizens’ Oversight Commission? LOCAL REVENUE MEASURE BALLOT LANGUAGE (MEASURE G) FISCAL YEAR In 2018 the City’s open space team focused on major improvements at Johnson Ranch and Reservoir Canyon trailheads, including the installation of this 60-foot pedestrian bridge above the waterfall at Reservoir Canyon. 4 Local one-half percent sales tax revenue totaled $7.5 million in 2017-18, which adds approximately 12 percent to the general fund. The Local Revenue Measure has generated more than $71 million since its original adoption in November 2006. REVENUES Dana Street was repaved with an asphalt overlay and ADA compliant pedestrian improvements and curb corner ramps were created at all crossings. FISCAL YEAR $5M $6M $7M $8M 2010–11 2011–12 2012–13 2013–14 2014–15 2015–16 2016–17 2017–18 $5,616,300 $6,237,500 $6,493,800 $6,774,365 $7,136,300 $7,178,200 $7,376,500 $7,504,500 ANNUAL RE V E NUE S 5USES 2017–18 2017-18 Local Revenue Measure funds were used on the following Council-adopted priorities: 7% PARKS AND RECREATION/ SENIOR PROGRAMS AND FACILITIES $481,000 8% OPEN SPACE PRESERVATION $539,000 9% FLOOD PROTECTION $667,000 5% BICYCLE AND PEDESTRIAN IMPROVEMENTS $383,000 6% TRAFFIC CONGESTION RELIEF/SAFETY IMPROVEMENTS $466,000 4% CODE ENFORCEMENT $313,000 1% OTHER VITAL SERVICES AND CAPITAL PROJECTS $54,000 41% NEIGHBORHOOD STREET PAVING (INCLUDES IMPROVEMENTS TO BIKE LANES) $2.9 million 19% PUBLIC SAFETY $1.4 million City/County renovations & improvements 6USES 2017–18 Funds were used to pay for police officers positions and to purchase new emergency response vehicles for both the Police and Fire Departments. For every $1 of revenue generated by the Local Revenue Measure, $.72 is paid by visitors and $.28 is paid by City residents (2014 Retail Sales Analysis) Operating Uses ($2.5M) // 34% Capital Uses ($4.8M) // 66% To fund positions that provide services Examples of these costs include funding for positions such as police officers and flood control staff. Fund construction and investment in equipment The largest capital expenditures funded by the Local Revenue Measure is 2017-18 were neighborhood street paving projects, public safety equipment, and open space preservation. Local Revenue Measure uses fall into two categories: operating expenses and capital expenses. 7PROJECT SPOTLIGHT: In partnership with the County, the Library in the heart of Downtown San Luis Obispo saw major maintenance upgrades to the roof, windows, and paint throughout. The elevator was modernized and improved, as well as renovated for ADA compliance and accessibility. The project also included a new HVAC system throughout the facility. Each year the San Luis Obispo Library sees about 163,000 visitors, and the upgrades have enhanced the space for people of all ages. City/County Library Remodel, Major Maintenance and ADA Compliance 8 There are many exciting projects to look forward to in 2018-19 and several have already been completed. For a complete listing of projects funded by the Local Revenue Measure, see the summary table at the end of the report. PLANNED LOCAL REVENUE MEASURE USES LAUREL LANE COMPLETE STREETS AUGUST 2018 MEADOW PARK PATHWAY MAINTENANCE AND PEDESTRIAN BRIDGE REPLACEMENT SPRING 2019 STREET LIGHTING STORM DRAIN REPLACEMENTS SUMMER 2019 REPLACEMENT EMERGENCY RESPONSE VEHICLES SINSHEIMER STADIUM BACKSTOP REPLACEMENT DECEMBER 2018 Permanent protection of the 266 acres in the Miossi Open Space will provide recovery benefits to a variety of rare plants, as well habitat and migration corridors for steelhead trout, mountain lions, and the California black bear. The land will also link existing trails connecting Poly Canyon to the West Cuesta Ridge area, where you can see outstanding views of the Pacific Ocean. 9 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2017–18 (BUDGET) 2017–18 (ACTUAL) 2017–18 (BUDGET & CARRYOVER*) 2017–18 (ACTUAL) Laguna Lake Dredging 92,323 60,789 Open Space Maintenance 306,473 235,132 Enhanced Tree Maintenance 470 470 Open Space Protection 560,857 112,073 Open Space Protection 139,685 130,818 Open Space Wildfire Fuel Reduction 5,000 - Subtotal 144,685 130,818 960,123 408,464 Bicycle Facility Improvement 127,993 64,919 Sidewalk Repair 157,529 51,585 Bob Jones Octagon Barn 42,531 - Pedestrian and Bike Pathway Maintenance 98,409 7,093 Downtown Renewal 196,000 - Street Marking Replacement 5,753 5,753 Bicycle Transportation Plan Implementation 194,745 21,363 Bike Bridge/Phillips 250,000 25,398 Safe Routes To School 44,594 - Octagon Barn Facility 184,754 - Active Transportation Plan 40,000 - Sidewalk Replacement 5,000 - Railroad District Sidewalk 5,000 - Sidewalk Access Improvements 45,000 17,396 Transportation Planning and Engineering 189,099 189,099 Subtotal 189,099 189,099 1,397,308 193,506 OPEN SPACE PRESERVATION BICYCLE AND PEDESTRIAN IMPROVEMENTS CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2018 10CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2018 OPERATING PROGRAMS CAPITAL PROJECTS Traffic Safety Report 63,000 5,450 Traffic Operations Report Implementation 10,909 1,713 Traffic Sign Maintenance 25,000 2,070 Traffic Safety & Operations Improvements 30,000 436 Monterey/Osos Traffic Signal 252,628 252,869 Parking Structure Assessment 8,333 - Traffic Signal Truck 91,133 91,133 Neighborhood Traffic Improvements 75,000 1,181 Neighborhood Traffic Improvements 352 598 Signal and Light Maintenance 111,001 110,254 Subtotal 111,001 110,254 556,355 355,450 TRAFFIC CONGESTION RELIEF / SAFETY IMPROVEMENTS OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2017–18 (BUDGET) 2017–18 (ACTUAL) 2017–18 (BUDGET & CARRYOVER) 2017–18 (ACTUAL) 11CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Police Motorcycle Replacement 4,272 4,272 Police Patrol Utility Vehicle 6,307 - Police Station Replacement Study 80,000 32,903 Fire Records Management System Replacement 16,730 - Police CAD Hardware 25,000 - 911 Phone System 207,768 - Police CAD Hardware 15,826 - Fire Emergency Response Van with Ambulance Package 125,009 124,881 Fire Command Vehicle 25,465 18,053 Police Patrol Sedan 46,409 46,409 Police Patrol Sedan 46,177 46,177 Police Patrol Unmarked Sedan 6,193 - Police Traffic Motorcycle 32,882 32,882 Fire Station #2 Exterior Driveway Ramp Replacement 6,500 - Fire Station #4 Backup Generator 7,000 - Police Station Building Maintenance and Improvements 35,000 - Emergency Dispatch Center Building Maintenance 27,000 14,720 Pest Control 28,000 - Fire Station #1 Masonry Seal 65,000 - Fire Station #2 Exterior Paint 33,700 - Police Handheld and Vehicle Radio Replacement 180,000 - South Hills Radio Upgrade 250,000 11,546 Facility Security Cameras 26,500 17,404 Police Digital Storage Equipment Replacement 80,000 80,000 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2017–18 (BUDGET) 2017–18 (ACTUAL) 2017–18 (BUDGET & CARRYOVER) 2017–18 (ACTUAL) PUBLIC SAFETY Street Reconstruction and Resurfacing 373,649 192,614 Concrete St/Access 18 575,160 105,992 Streets Asphalt Grinder 90,676 90,676 Streets 3/4 Ton Pickup 1,152 1,152 Madonna & LOVR Street Resurfacing 2,148,916 2,148,916 Corp. Yard & Fire Station Roll-up Door 9,500 9,500 Streets Program Dump Truck - - Streets Crack Sealant Machine 48,199 48,199 Streets Skip/Drag Loader 133,000 122,406 Streets Sweeper Truck - - Fleet Electric Forklift 35,000 35,000 Streets Maintenance Medium Duty Truck 120,000 - Streets and Sidewalk Maintenance 214,594 210,649 Subtotal 214,594 210,649 3,535,252 2,754,455 12CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2018 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2017–18 (BUDGET) 2017–18 (ACTUAL) 2017–18 (BUDGET & CARRYOVER) 2017–18 (ACTUAL) NEIGHBORHOOD STREET PAVING INCLUDES IMPROVEMENTS TO BIKE LANES Police Patrol Vehicles 51,000 - Police Patrol Vehicles 51,000 - Police Traffic Motorcycle 34,000 33,040 Fire Emergency Response Vehicle 58,000 43,261 Street Lighting 20,000 - PulsePoint CPR Software 8,000 8,000 Patrol Services 884,388 884,388 Subtotal 892,388 892,388 1,590,738 505,549 PUBLIC SAFETY 13 Marsh Street Bridge Repair 725,869 780 Storm Drain System Replacement 665,623 57,408 Broad/Leff Culvert 10,000 - Creek and Flood Protection 641,742 608,578 Subtotal 641,742 608,578 1,401,492 58,188 CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2018 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2017–18 (BUDGET) 2017–18 (ACTUAL) 2017–18 (BUDGET & CARRYOVER) 2017–18 (ACTUAL) FLOOD PROTECTION PARKS AND RECREATION / SENIOR PROGRAMS AND FACILITIES CODE ENFORCEMENT Mission Plaza Railing 139,875 59,875 Building and Safety 252,729 252,729 Subtotal 252,729 252,729 139,875 59,875 Park Major Maintenance and Repairs 496,151 20,734 French & Islay Tennis Court Resurfacing 2,630 - Sinsheimer Park Baseball Backstop Replacement 98,500 2,385 City/County Library Remodel, Major Maintenance and ADA Compliance 405,300 259,524 City/County Library HVAC Replacement 3,600 2,500 Parks & Rec Admin HVAC Replacement 7,200 4,764 Swim Center Filter Control 18,500 8,022 Ludwick Center Gym Lights 15,500 - Parks Maintenance Pickup Truck 33,220 33,220 Parks Maintenance Tractor 42,000 42,000 Parks Maintenance Utility Cart 24,452 24,452 Parks and Landscape Maintenance 83,520 83,520 Subtotal 83,520 83,520 1,147,053 397,601 14 City Hall Chiller Replacement 227,400 14,476 Multi-Site Energy Management Software 24,000 15,400 City Hall Building Maintenance 24,500 24,018 Completed Projects 66,997 - Subtotal - - 342,897 53,894 TOTAL LOCAL REVENUE MEASURE USES 2,529,758 2,478,035 11,071,093 4,786,982 CITY OF SAN LUIS OBISPO // LOCAL REVENUE MEASURE SUMMARY // FOR THE FISCAL YEAR ENDED JUNE 30, 2018 OPERATING PROGRAMS CAPITAL PROJECTS PROJECT TITLE 2017–18 (BUDGET) 2017–18 (ACTUAL) 2017–18 (BUDGET & CARRYOVER) 2017–18 (ACTUAL) OTHER VITAL SERVICES AND CAPITAL PROJECTS * Budget & Carryover includes unspent funds for planned but not completed projects Road Paving The Madonna and Los Osos Valley Road project included neighborhood repaving, new striping, bike lane improvements, pedestrian crosswalk and ADA upgrades. The project was built under budget and used recycled pavement materials. 15 Open Space Preservation, Bicycle and Pedestrian Improvements, Traffic Congestion Relief/Safety Improvements, Public Safety, Neighborhood Street Paving, Code Enforcement, Flood Protection, Parks and Recreation/Senior Programs and Facilities, other Vital Services and Capital Projects. PRIORITIES SET BY THE CITY COUNCIL FOR FY 2017–18 INCLUDE: CITY OF SAN LUIS OBISPO For more information, please visit: www.slocity.org/budget Photography: Kelly Donohue Photography Owen Main Photography City of San Luis Obispo The concrete intersections at Palm/Johnson and Palm/ Toro were reconstructed and ADA compliant pedestrian improvements were made at all curb corner ramps and crossings. Winston Newland Commissioner Chris Coates Chair CITIZENS’ REVENUE ENHANCEMENT OVERSIGHT COMMISSION Volunteer Residents Serve on the Commission The Revenue Enhancement Oversight Commission (REOC) reviews, reports, and makes recommendations directly to the City Council regarding the revenue and expenditures of the City’s general purpose, half-percent sales tax. The REOC consists of five members, who must be residents and registered voters of the City. Michael Multari Commissioner Ken Kienow Vice Chair Jeannette McClure Commissioner WHAT IS THE LOCAL REVENUE MEASURE? ANNUAL COMMUNITY REPORT IN BRIEF Fiscal Year 2017–18 19%PUBLIC SAFETY $1.4 million 41%NEIGHBORHOOD STREET PAVING (INCLUDES IMPROVEMENTS TO BIKE LANES) $2.9 million 7%PARKS AND RECREATION/ SENIOR PROGRAMS AND FACILITIES $481,000 8%OPEN SPACE PRESERVATION $539,000 9%FLOOD PROTECTION $667,000 5%BICYCLE AND PEDESTRIAN IMPROVEMENTS $383,000 6%TRAFFIC CONGESTION RELIEF/SAFETY IMPROVEMENTS $466,000 4%CODE ENFORCEMENT $313,000 1%OTHER VITAL SERVICES AND CAPITAL PROJECTS $54,000 2017-18 Local Revenue Measure funds were used on the following Council-adopted priorities: HOW IS YOUR 1/2 PERCENT SALES TAX SPENT? Neighborhood Paving The concrete intersections at Palm/Johnson and Palm/Toro were reconstructed and ADA compliant pedestrian improvements were made at all curb corner ramps and crossings. Dana Street was repaved and also received new crossings, and Madonna/LOVR was repaved and new bike lanes were implemented creating safer routes for cyclists. Public Safety The Local Revenue Measure supports the City’s Police Department by providing funding for three officers and one sergeant. Funds were also used to purchase emergency response vehicles for both the Police and Fire Departments. Open Space The City’s Conservation Plan for the Reservoir Canyon Natural Reserve identified the need to provide increased trail access and creek crossings to allow safer passage, particularly during winter storms when the creek often floods parts of the trail. The installation of a new 60-foot span bridge crossing is complete. Flood Protection Flood protection efforts include annual replacement of failing corrugated metal storm drain pipes throughout the City. Planned future projects include replacement of storm drain pipes on Bullock, Buchon, at Santa Rosa, Broad at Leff Culvert, Old Garden Creek, Broad Street, Ellen Way, Lakeview, and Woodbridge. SPENDING HIGHLIGHTS The Local Revenue Measure – also known as Measure G – is a one-half percent local sales tax approved by City voters in November 2006. It protects and maintains essential services and facilities, such as open space preservation, bike lanes and sidewalks, public safety, neighborhood street paving and code enforcement, flood protection, senior programs, and other vital services and capital improvement projects. The Local Revenue Measure is subject to voter extension by March 31, 2023. These community spending priorities help guide the Citizens’ Revenue Enhancement Oversight Commission (REOC) when making recommendations to the Council about Local Revenue Measure uses. The Council uses the REOC’s input, and additional public feedback, to prioritize use of the Local Revenue Measure funding as part of the City’s two- year financial planning process. Local one-half-percent sales tax revenue totaled $7.5 million in 2017-18, which adds approximately 12 percent to the general fund. The Local Revenue Measure has generated more than $71 million since its original adoption in November 2006. REVENUES CITY OF SAN LUIS OBISPO // For a complete list of 2017–18 Local Revenue Measure uses, view the full report at slocity.org/budget $7.5M City/County Library Remodel, Major Maintenance and ADA Compliance In partnership with the County, the Library in the heart of Downtown San Luis Obispo saw major maintenance upgrades to the roof, windows, and paint throughout. The elevator was modernized and improved, as well as renovated for ADA compliance and accessibility. The project also included a new Heating, Ventilation and Cooling (HVAC) system throughout the facility. Each year the San Luis Obispo Library sees approximately 163,000 visitors, and the upgrades have enhanced the space for people of all ages. For every $1 of revenue generated by the Local Revenue Measure, $.72 is paid by visitors and $.28 is paid by City residents. (2014 Retail Sales Analysis) PROJECT HIGHLIGHT Operating Uses ($2.5M) // 34% – Funds positions that provide services Examples of these costs include funding for positions such as police officers and flood control staff. Capital Uses ($4.8M) // 66% – Funds construction and investment in equipment The largest capital expenditures funded by the Local Revenue Measure is 2017-18 were neighborhood street paving projects, public safety equipment, and open space preservation. Neighborhood Paving The Madonna and Los Osos Valley Road project included neighborhood repaving, new striping, bike lane improvements, pedestrian crosswalk and ADA upgrades. The project was built under budget and used recycled pavement materials.     Revenue Enhancement Oversight Commission Agenda Report Meeting Date: 2/21/19 Item Number: 4 DATE: February 21, 2019 FROM: Greg Hermann, Interim Deputy City Manager Prepared By: Ryan Betz, Interim Assistant to the City Manager SUBJECT: DISCUSSION ON THE PROCESS FOR CHANGES TO RECOMMENDED PROJECTS RECOMMENDATION 1. Review the current process for changes to recommended projects and provide direction on any modifications or changes. DISCUSSION On May 5, 2018, the REOC directed staff to place on a future agenda a discussion on the process to handle changes to recommended projects that may occur outside of the typical four public meetings per year. There are a number of changes that can occur to capital projects throughout the year. The following is a discussion of each including the role of the REOC per its purpose as stated in the City’s Municipal Code1: 1. Change to the cost of an approved project a. Project budgets are determined by an estimate of the City Engineer and include an amount for contingencies that may occur through the project. A number of factors may contribute to a project exceeding the budgeted costs. If this occurs for a Local Revenue Measure funded project, the City Manager has the authority to use funds from the Local Revenue Measure completed projects account to offset the increased costs. In this situation, the REOC would be made aware during a regular meeting as a part of project updates or through the review of year-end expenditures. This is most frequent type of change to a project. 2. Addition of a new project a. A new capital project can only be approved by the City Council. If the new project is anticipated to use Local Revenue Measure funds and specific direction is not provided by the City Council as to which project or projects the funding should come from an item would be added to a regular meeting (if scheduling allows) or a special meeting would be called to review the request and make a recommendation to the City Council. If specific                                                              1 Chapter 3.15 ‐ The Commission will be responsible for reviewing and making budget recommendations directly to the  City Council regarding expenditures from the essential services transactions (sales) and use tax and reporting annually to  the community on the City's use of these tax revenues.   City of San Luis Obispo, Title, Subtitle      direction is provided by the City Council as to which project or projects the funding should come from, the staff will make the changes and return to the City Council for final approval if necessary. 3. Deletion of an existing project a. A capital project can also only be deleted the City Council. If deletion of a project is required to fund a new or existing project, but the specific direction is not provided by the City Council as to which project or projects should be deleted the above process would be followed for the REOC. If specific direction is provided by the City Council as to which project or projects should be deleted, the staff will make the changes and return to the City Council for final approval if necessary. ALTERNATIVES The REOC could direct staff to add a fifth public meeting to the annual schedule. Though the Council could add a new project at any time during the year, the fifth meeting would likely occur in the spring either after the Strategic Budget Direction in April or before budget adoption in June.